Barriers of Entry
The barriers of entry began early for AT&T. In the late 1940’s AT&T provided microwave relay systems across the nation within three decades. It proved to be a more effective form of communication rather than to copper wiring for long distance as its competitors used. In the 1960’s, AT&T launched its first satellite, Telstar 1, into orbit for international communications capability. These new technological advancements permitted new, more powerful, and eventually a less expensive cost for customer, form of communications. It was difficult for any telecommunications competitor to enter the market. Because of this, the FCC stepped in and deemed AT&T a monopoly and divest AT&T into smaller telecommunication services. Within the past year, AT&T also posessed the patents related to video compression, whish is essential to video technology. AT&T has advised other companies who posess the video technology that they may be infringing upon AT&T's patent. For these companies to use this technology, AT&T is offering a liscence under reasonable and non-discrinatory terms.