NATS 1775 Lecture Notes - Lecture 13: Itu Radio Regulations, Long-Distance Calling, Diode
10 Nov 2015
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Document Summary
Worldwide dispute over if bell invented telephone, believed antonio meucci invented the first telephone. Filed for patent first, but could not afford. Filed for a caveat instead (an intent to patent down the road) Wanted to sell his patent rights to western union for , a premier telegraph company. Realized mistake, hired elisha grey + thomas edison to compete with bell. Makes agreement with bell, bell sticks to telephone, wu sticks to telegraph b) Rates relatively high prior to 1894 (. 66 per month/13% monthly wages) Shift to rates of per month/4% of monthly wages. Buys out competition, leaves dying territories (natural monopoly - not good to have too much competition, better off with just one provider) Bell has competitive advantage due to abundance and expertise of capital + control of infrastructure. Engaged in price war tactics: charged cheaper rates to retain monopoly. One company provides exclusively to one particular geographic area.
