Compatibility Standards and the Market for Telecommunications Services
Abstract
Not so long ago, the determination of technical standards in the United States telephone industry was primarily an internal matter for the American Telephone and Telegraph Company. To be sure, AT&T had to coordinate with foreign telecommunications entities, with independent telephone companies, and with the United States Department of Defense, but the degree of coordination was relatively minor and AT&T had substantial latitude in determining the standards that were employed. However, three forces have caused this situation to change dramatically. First, because of the entry of large numbers of competing suppliers of equipment and services into the United States telecommunications industry, standard-setting has moved from the technical concern of a single firm to a factor with important implications for competition. As a result, the processes by which standards are set have come to be subject to detailed scrutiny by both the regulatory authorities and the courts. In a sense, telecommunications standards have become too important to leave their determination solely to the telephone companies. Second, the divestiture of the Bell Operating Companies from AT&T, has, by fragmenting the telephone industry, reduced the ability of AT&T to determine standards as it had in the past. (RRH)
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1988
- Accession Number
- ADA216995
Entities
People
- Garth Saloner
- Stanley M. Besen
Organizations
- RAND Corporation