Onset of Competition: Data Communications, 1968–1972

Jr., in April. Robert F. Kennedy was killed a few months later. Demonstrations at the Democratic National Convention in August also turned violent as the Chicago Police and National Guard clashed with demonstrators protesting against the Viet­ nam War. A sense of turmoil permeated all aspects of American society. With the backdrop of so much political and social unrest, it is not surprising that the decades-long regulatory policy of upholding AT&T’s stranglehold on the communi­ cations industry would be seen in new light—albeit in much less violent fashion. In the face of unprecedented technological advances in the processing, storage, and transmission of information, users demanded access to the telecommunications network in ways that challenged the existing regulatory guidelines. The actions of the FCC in light of these new demands had a profound effect on the development of the data communications market-structure. Their response addressed several challenges to the existing regulations of AT&T’s monopoly, including competition in the market for microwave telecommunications, regu­ lation of telecommunications services for the purpose of data transfer, and the attachment of electronic devices to the network for controlling and facilitating data communication. Of key importance to the regulators was adherence to their initial mandate of protecting the public interest and the interest of commercial development. The decisions of the FCC and the courts regarding AT&T gave a clear signal to entrepreneurs of data communications products to move forward or be left behind. In the brief period of 1968–1972, over 100 start-ups and existing companies brought Onset of Competition: Data Communications, 1968–1972