by Coll, Steve;
Trienens’ meetings with, 150–157, 177
Trienens’ phone calls to, 146, 147–148, 149, 177
local operating companies, 10, 24–25
Baxter’s views on, 182–184
corporate management vs., 7, 14
Crimson Sky and, 174, 176–177
divestiture of, 274, 288–289, 292, 296, 309, 319–321, 349–352, 372–373
inter-intra split and, 274, 319–321, 349–352
local service franchise of, 320–321
McGowan’s recommendations for, 34, 56, 143, 276–277
MCI antitrust suit against, 21
post-breakup, 366–367, 372–373
procurement decisions of, 289–290
profits of, 372–373
state regulators and, 37–38
U.S. v. AT&T and, 142–143, 144, 176
see also specific companies
local service:
increase in price of, 349–351, 366
long distance as subsidy for, 13
state regulation of, 37–39
tariffs, 37–39
long distance, 150–151
AT&T pricing of, 13, 22–24
Bell Bill and, 92–100
local service subsidized by, 13
MCI and, 11–15, 83–91
number of subscribers to, 370
post-breakup prices of, 367
tariffs, 28, 37
Long Lines department, 9, 10, 24–25, 34, 170, 176, 277
Baxter’s views on, 182, 183
H.R. 5158 and, 353–354
inter-intra split and, 274, 320–321
MacAvoy, Paul, 373–374
McGill, Archie, 108
McGovern, George, 283, 284, 285
McGowan, William, 16–36, 47–52, 71–72, 148, 170
Anderson secret settlement attempt and, 143–144
antitrust suit considered by, 20–21
background of, 17
Bell Bill and, 93–94
credibility problem of, 89–91, 93, 109
deButts compared to, 43
deButts meeting memo of, 25–26
deButts’ meeting with, 21–27, 49–50, 368
Execunet and, 83–91, 109
Goeken’s relationship with, 20, 21
H.R. 5158 attacked by, 354
inter-intra split and, 274–275
local operating companies as viewed by, 34, 56, 143, 276–277
Otter Tail case and, 23, 115
Saunders and, 200–210
Strassburg’s correspondence with, 51–52
success of, 201–202, 274–275
testimony and cross-examination of, 200–210, 232
Verveer’s conversations with, 55–56
McLean, Robert, 172–174, 262, 306, 325–326, 339
McLuhan, Marshall, 368
McNeely, Michael, 164
marketing, 107–109, 111, 371
Mauro, Tom, 81
Maxwell, Ronald, 197–199
MCI, 11–39, 47–52, 367
annual revenues of, 201
artificial cost advantage of, 369–370
AT&T antitrust suit of, 20–21, 27–35, 52, 56, 77, 131, 148–149, 169–171, 202, 371
AT&T negotiations with, 18–25, 34, 36–39, 48
AT&T views on survival of, 89–90
cost of AT&T interconnection with, 19–20, 275–276, 369–370
CSSA service of, 47, 203, 207
description of AT&T interconnection with, 18–19
economic problems of, 34–35, 47, 48, 86–87, 89–90, 368, 371
ENFIA agreement and, 275–276, 369–370
Execunet service of, see Execunet
FCC and, see Federal Communications Commission
future of, 368–371
FX service of, see FX service
IBM’s strategic alliance with, 371
interim interconnection contract of, 36–39
inter-intra split and, 274–275, 276, 353–354
lobbying of, 28–35, 152, 370–371
McGowan’s vision of, 27
marketing campaign of, 371
microwave towers of, 12, 15, 18, 27, 34–35, 87, 89
Nader campaign funded by, 353–354
operating costs of, 12, 369–370
“prayer breakfasts” of, 29
stock of, 370
U.S. v. AT&T and, 148–149, 169–171, 196, 200–210, 288–289
Meese, Edwin, 185–186, 189, 211, 242, 322
Baldrige and, 216–218
at cabinet council meeting (July 27), 245–247
Trienens’ meetings with, 212, 224–225
message toll service (MTS), 49, 86
migration strategy, 108
Mitchell, John, 57
“Modification of Final Judgment,” 305–306, 308–311
“equal access” appendix of, 305, 309
final draft of, 317–319
signing ceremony for, 324–326
snag in negotiations on, 312–315
“Modified Final Judgment,” 359, 362
monopoly:
bottleneck, 55–56, 67, 316
likelihood of AT&T’s return to, 369
natural, 45–46, 85, 277, 358
Morrison, Hugh, 65–67, 118, 120, 163
U.S. v. AT&T supervised by, 74, 75, 114
motions judges, 329–330
MTS (message toll service), 49, 86
Mullane, Bill, 313
Nader, Ralph, 31, 353–354
Naisbitt, John, 368
National Association of Regulatory Commissioners, 40
National Economic Research Associates (NERA), 239–241
National Press Club, U.S. v. AT&T settlement announced at, 329–334
national security, 186–188, 216
inter-intra split and, 271–272
National Telecommunications and Information Agency (NTIA), 141, 212–216
NERA (National Economic Research Associates), 239–241
New Deal, 45, 58
New York City, AT&T quality problems in, 7, 12, 46
New York Telephone Co., 142
New York Times, 367
Nixon, Richard M., 6, 57, 61, 64
North Carolina, state utility commissioners in, 258–260
Northwestern Bell Telephone Co., 14
NTIA (National Telecommunications and Information Agency), 212–216
Nurnberger, T. S., 14
“Octoberfest” strategy, 284–285
Otter Tail utility case, 23, 115, 116, 131
Pacific Telephone & Telegraph Co., 144, 150, 151, 174, 270
crown jewel divestiture and, 142–143
inter-intra settlement and, 352
poor performance of, 143
Smith’s affiliations with, 175, 187, 211, 225
Packwood, Bob, 218, 244
Partoll, Al, 270
Penzias, Arno, 286–287
Pires, Alexander, 140–141
Pope, Bayard, 59
“pots” (“plain old telephone service”):
deButts’ emphasis on, 8, 10
decline in quality of, 7–8, 10, 11, 46
MCI required to pay for, 19–20
Powertron Corporation, 17
Presidents’ Conferences:
Basking Ridge, 319–321
Key Largo, 5–15, 22, 39, 103, 192, 301
pricing of telephone services, see tariffs
private lines, 85–86
AT&T, 12, 13
FX as, 84, 88
inadequacy of MCI reliance on, 27–28, 89–90
MCI entry into, 11–13
protective coupling arrangements (PCAs), 106–107, 109, 131, 137, 169
Greene’s views on, 263–264
Hugel’s views on, 272
U.S. v. AT&T trial and, 191–192, 263–264
public relations, inter-intra split and, 291–293, 307, 313–316, 332, 333, 335, 347, 348
publishing, electronic, 360–361
Quagmire II, 252–256, 262, 27
7, 297–301
AT&T board of directors and, 300, 301
Levine’s handling of, 304
Reagan, Ronald, 148, 150, 160, 175, 244, 248
Baldrige and, 215, 216
Baldrige dismissal proposal and, 219
Baxter appointed by, 177–178, 181, 184–185
cabinet councils and, 213, 219–222, 223, 243
dismissal of case rejected by, 254–255
Eisenhower compared to, 230–231
Greene’s dismissal opinion and, 263, 265
Meese and, 211, 212
tax cuts of, 225
Wirth’s letter to, 296
working style of, 217
Reagan administration:
business boosterism in, 215
cabinet councils in, 217–222
Crimson Sky and, 155–158, 173, 175, 177, 185
disengaged presidency in, 223–229
U.S. v. AT&T and, 148, 150, 155–158, 160, 173, 175, 177–178, 184–189, 211–230
regulation, see Federal
Communications Commission;
state regulation
Relief Task Force, 139, 145, 151, 176
Richardson, Eliot, 61
Richey, Charles, 376–377
Robinson, Kenneth, 141–144, 373–374
divestiture plan of, 141–144, 150–151
Greene criticized by, 363
Rockefeller, John D., 58
Rodino, Peter, 30, 149, 214, 245, 269, 294
Romnes, H. I., 10, 12, 105
Roncalio, Teno, 98
Roosevelt, Franklin D., 58
Roosevelt, Theodore, 31
Rose, Jonathan, 220–221, 225–228, 230, 247, 355
Senate Bill 898 and, 244–245
Ross, Ian, 268, 271–272
Saunders, George L., Jr., 75–82, 113, 119, 182, 194–210
Anderson’s meetings with, 121–122
background and personality of, 75–76, 375–376
Connell compared to, 162, 165, 167, 194, 195, 196, 262
continuance request and, 249–251
courtroom strategy of, 195–199
Crimson Sky and, 174
cross-examination conducted by, 196–199, 204–210, 235
demise of, 375–376
Greene and, 128–131, 171, 179, 216, 232–233, 235, 237, 240, 256–260, 277, 282–290, 312, 340–344
Greene challenged by, 264–265, 266
inter-intra split and, 308–311, 325, 328, 330–331, 340–344
McGowan and, 200–210
MCI antitrust suit and, 148, 149
at NERA conference, 239–241
opening argument of, 159, 166–173
in Southern Pacific v. AT&T, 376–377
Waddy as viewed by, 123–124
witness list of, 282–285, 312
Saxbe, William, 61–71, 77, 164
Schaefer, Jacob, 263–264
Schmitt, Harrison, 355
Schmults, Edward, 175, 178, 213, 224
Securities and Exchange Commission (SEC), 68–69
Segal, Erich, 166
Senate, U.S., 110, 149, 187, 352
Armed Services Committee of, 188
Commerce Committee of, 251, 355–356
Communications Subcommittee of, 98
Judiciary Committee of, 128, 251, 252
Subcommittee on Antitrust and Monopoly of, 29–35, 42, 60
Weinberger’s secret testimony to, 187–188
Senate Bill 898, 242–250, 252, 254, 261–262, 277
Baxter’s amendments to, 243–244, 252, 280
passage of, 280
Wirth report and, 295
Shenefield, John, 116, 118, 128, 139
Sherman, John, 30–31
Sherman Act (1890), 30
Sidley & Austin, 59–60, 75–82, 308
judges researched by, 124–127
Silverstein, Alan, 164
Simms, Joe, 118
Simon, William, 70–71
Sirica, John J., 127, 192n
Smith, William French, 185–186, 213, 224, 225–226, 245, 317
Baldrige dismissal proposal and, 255
nominated attorney general, 175
Pacific Telephone affiliation of, 175, 187, 211, 225
Southern Bell Telephone &
Telegraph Co., 142
Southern New England Bell
Telephone Co., 143, 144, 150, 151, 174, 270
Southern Pacific Corporation, 50–51
Southern Pacific v. AT&T, 376–377
Southwestern Bell Telephone Co., 142
price increases of, 351
Specialized Common Carriers, 50, 205–206
Sporkin, Stanley, 69
Sprint, 170, 367, 376
Stanley, Delbert, 350
state regulation, 37–39, 41, 78
FCC rivalry with, 41, 258–260
inter-intra split and, 352
in North Carolina, 258–260
stock:
AT&T, 69, 71, 152, 368
MCI, 370
Strassburg, Bernard, 43–48, 83, 373
background of, 45
FX lines and, 50–52, 86–87
subsidies, 104–105, 258–259, 273
Baxter’s views on, 182, 242
cross, 182, 184, 192n, 242, 294, 299
long distance as, 13
separations payments, 277
Supreme Court, U.S., 23, 121, 126, 181, 279, 337
Swift, Jonathan, 93
switched telephone network, 11, 24, 56
equipment competition and, 105–107
MCI duplication of, 85–90
Swope, Bill, 118
Tanenbaum, Morris, 268, 271, 325
tariffs:
AT&T, 28, 37–39, 192
costs and, 192, 349
local, 37–39
long-distance, 28, 37
MCI, 85, 87–89
modular, 87–89
telephone competition and, 349–351
Task Force on Telecommunications Policy, 217–219
telecommunications bar, 365–366
telecommunications consultants, 365
“Telecommunications in Transition” (Wirth), 294–295
telephone bills, 366–367
telephone industry:
economies of scale in, 90
rates in, see tariffs
regulation of, see Federal Communications Commission; state regulation
transitional period in, 367
see also American Telephone & Telegraph; local operating companies; MCI
telephones, see terminal equipment
television, 45, 101
terminal equipment (customer premises equipment), 10–11, 15, 23–24, 104–111
Bell Bill and, 109–111, 272
deButts’ concern about competition in, 105–111
embedded, 309, 366
FCC registration proposal and, 106
leasing of, 108
Litton suit over, 131, 236
protective coupling arrangements and, 106–107, 109, 131, 137, 169, 191–192
United Fruit approach and, 144
U.S. v. AT&T and, 169–170, 191–192
Toffler, Alvin, 368
Tomlin, Lily, 7–8
Trienens, Howard, 59–60, 76–79, 140–160, 195, 223, 261–262, 277–281
Anderson’s meetings with, 121, 136, 140–146
at Basking Ridge Presidents’ Conference, 319–321
Baxter and, 184–186, 297–299, 303, 309
continuance request and, 248–251
Crimson Sky and, 152–158, 166, 173, 174, 177, 178
Greene’s dismissal opinion and, 266, 267
inter-intra split and, 268–271, 275, 279–280, 292–293, 297–299, 303, 306, 308–313, 315–317, 319–321, 325, 327, 330, 348
leadership style of, 277–278
Litvack’s meetings with, 150–157, 177
Litvack’s phone calls to, 146, 147–148, 149, 177
Meese’s meetings with, 212, 224–22
5
Quagmire II and, 254, 297, 298
Senate Bill 898 and, 280
Wirth report and, 294–295
Truman, Harry S., 58
Tunney, John, 31
Tunney Act, 256, 299, 325, 327, 337, 341
AT&T settlement and, 356, 358–364
Unger, Sherman, 217, 218, 223, 245
Quagmire II and, 252–253, 254
United Fruit approach, 142, 144, 151
U.S. v. AT&T, 74–82, 107, 113–131
Anderson approach to, 117–119, 121, 122, 130
Anderson’s secretive settlement attempt in, 138–146, 269
as antitrust case vs. regulatory dispute, 78, 81–82, 114, 121
appeal of, 279, 300, 337
AT&T attempts at settlement of, 119–122, 140–159, 266–267
Baxter’s views on, 374
Brown’s attempt to find quick solution to, 122, 129, 136, 140, 144, 173, 212
class warfare in, 373, 374
cost of legal expenses in, 335
Crimson Sky and, 152–158, 164, 166
defense issues in, 186–188
deregulation vs. regulation in breakup of, 373–374
inter-intra split and, see inter-intra split
Kristol’s views on, 373, 374
leaks and, 152, 188–189, 230
MCI suit as influence on, 148–149, 169–171
piggybacking in, 152, 184
pretrial discovery in, 130–131
public’s views of, 193–194
reactivation of, 114, 122
Reagan administration and, 148, 150, 155–158, 160, 173, 175, 177–178, 184–189, 211–230
Robinson settlement plan in, 141–142, 150–151
Saunders’ sabotaging of, 76–82, 113
Senate Bill 898 and, 242–250
settlement of, 324–344; see also inter-intra split
settlement requirements in, 142, 150–151
Supreme Court’s view of, 121
terminal equipment and, 169–170, 191–192
Verveer approach to, 114, 117–118
Verveer’s views on, 74
U.S. v. AT&T trial, 123–124, 139, 144, 149, 151–152, 163–174, 190–210, 230–238
Baldrige dismissal proposal and, 216–228, 230
as bench trial, 164
best case vs. worst case scenario for, 279
Brown’s testimony in, 301–302
celebrity witnesses in, 282–287, 312
Connell’s cross-examination strategy in, 286–287
Connell’s opening arguments in, 163–166
continuance request and, 246–251
deButts’ testimony in, 262
Greene’s cross-examination in, 258–260, 288
Greene’s “lodged” strategy in, 328–330
McGowan’s testimony in, 200–210, 232
MCI case and, 169–171, 196, 200–210, 288–289
“Octoberfest” strategy in, 284–285
opening of, 159, 163–173
peer review of, 278, 288