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Suppressing Innovation: Bell Laboratories and Magnetic Recording (1993)

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Re: Suppressing Innovation: Bell Laboratories and Magnetic Recording (1993)

#7
post #5

FYI I see [dead] by your comments. Maybe you have been hell-banned?

Please don't post like this. If you see a [dead] comment that shouldn't be dead, you should vouch for it (https://news.ycombinator.com/newsfaq.html) or email hn@ycombinator.com so we can fix the problem

Re: Suppressing Innovation: Bell Laboratories and Magnetic Recording (1993)

#8
post #7
post #5

FYI I see [dead] by your comments. Maybe you have been hell-banned?

Please don't post like this. If you see a [dead] comment that shouldn't be dead, you should vouch for it ( https://news.ycombinator.com/newsfaq.html ) or email hn@ycombinator.com so we can fix the problem

OK, but how could I vouch for users?

I occasionally see comments from users like this one, with all but occasional comments dead. If I look back far enough, sometimes I can find a comment that was transgressive. But often enough, nothing.

So should I be emailing hn@ycombinator.com about those?

Re: Suppressing Innovation: Bell Laboratories and Magnetic Recording (1993)

#9
TLDR: "Management feared that the availability of a recording device would make customers less willing to use the telephone system and so undermine the concept of universal service. (...) The fear took two forms. First, if conversations became matters of record in the same way as letters or other contracts, managers felt that customers would abandon the telephone for critical negotiations and return to the mails, where a slip of the tongue would not prove fatal. (...) Second, if conversations could be recorded, matters of an illegal or immoral nature, which some executives estimated made up as much as one third of all calls, would no longer be discussed by phone. (...) Although one might expect that managers would stress the economic half of this equation, in fact they paid far more attention to the question of trust and image. During this period AT&T had constant public relations problems, largely the result of antitrust investigations. Thus, the fact that magnetic recording might create a major upset with only a minor gain for a few customers who could afford to have their calls answered automatically was simply not acceptable for managers concerned with preserving AT&T's good name."

Re: Suppressing Innovation: Bell Laboratories and Magnetic Recording (1993)

#10
The 1947 anti-trust lawsuit was settled by the 1956 consent decree which forced AT&T to exit all businesses not related to providing a national telecommunications network and which also required royalty-free licensing of all patents. For example, the Westrex sound recording business for movie production was sold to Litton.

This undoubtedly reduced any appetite for deploying any customer premises recording devices which would be similar to recording technology used for entertainment purposes. In fact, telephone answering machines became popular only after the development of low cost Phillips cassette recording technology driven by entertainment markets.

Note also that the gating of technology into the Bell System from Bell Laboratories via Western Electric was by design. Bell Labs was set up independently of and funded by AT&T Headquarters and Western Electric. This allowed Bell Labs to research (AT&T) and develop (WECo) technologies independently of short term business needs in order to prevent the Bell Operating Company regulated monopolies from stagnating, and it also prevented the system from being disrupted by short term engineering hacks. What were wanted were big innovations, thoughtfully applied.

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