Tuesday, January 22, 2013

Test Post: Creative Destruction

Mandeville Maxens telephone 
Old Bell System Land Line, image licensed for reuse by Infrogmation at Flickr

In my childhood during the late 60s and early 70s, nothing except AT&T phones existed. There were no answering machines, no “portable” phones, no fax machines, no dial-in internet via modems. Phones were leased from “the phone company,” not owned by consumers. A technician from AT&T had to come to one's house or office to install a phone, using hard-wired jacks later ruled out by the FCC (Wu 190). On the other hand, the system always worked. A dropped call was as inconceivable as advertising on radio when Herbert Hoover denounced it (Wu 74).

How quickly this changed after the AT&T breakup. Soon consumers faced the then-dizzying choice of three carriers for long distance: a Bell spin-on, Sprint, or MCI. Quaint sounding, isn't it, to have only three choices? Moreover, does it seem prehistoric that "long distance" would be a feature that would worry a consumer?

The irony here is that today, if you want a full-featured mobile service, how many choices do you have?  I'm counting: AT&T, Verizon, T-Mobile, Sprint.

The process of creative destruction that Schumpter describes, and that so influences Wu's thinking (160-61), led to the miraculous phones you hold (like drug addicts!) in your palms. It's a fair speculation that AT&T would have been slow to bring such an innovation to market, if they'd ever brought it at all.

Personally, the disruptions of the early 80s seem worthwhile to me. I like the devices we have, straight out of the science fiction when AT&T's Bell System bestrode the land like a benevolent but very judgmental titan.  I do wonder about two things: are new versions of the Bell System, with equally decisive checks on innovation, ahead? And what would today be like if we'd had 1930s answering machines and 1950s cellular phones?