Chapter 0476 - The American Communications Industry Rises Together
As a gift, Tang Huan invited Bob. Galvin, Christopho? Galvin & Sons, and Martin. Cooper and other important figures of Motorola visited Pacific Communications in San Francisco and Cupertino in Silicon Valley.
Pacific Communications, which had already flown out of AT&T's system, is building on a major scale to further expand its network and digitalize it.
The communication network built by AT&T is still the best quality network system in the world, and this part of the assets inherited by Pacific Communications is absolutely high-quality.
But in one case, Pacific Communications and the other six Bell brothers Jr. were given a limited profit in the local telephone business, while AT&T kept the long-distance telephone business, which was in a stage of rapid growth and was very profitable.
The split of AT&T means that the US telecommunications market will be liberalized and competition will intensify.
Fortunately, even with the common problems of conservative and arrogant large enterprises, the management of Pacific Communications still reached a consensus early on - the traditional telecommunications industry is entering the digital era, and the proportion of data transmission services will inevitably exceed that of voice transmission services, and they must be humble to adapt to this situation of rapid changes in business rules.
As a result, Pacific Telecom's management has been very proactive in setting up optical fibers and developing value-added services such as caller ID and next-generation faxes, and its services in Silicon Valley have been well received by customers without Tang Huan having to worry about it.
But these capable guys are also very stubborn, and they stay away from loss-making businesses like Pacific BBS, Exchange mail system, and online game MUD, and the preferential plan for network fees is the same as squeezing toothpaste. Unwilling to put it in place in one step at a time.
As for the cellular system, it was also ignored because the business model of huge investment in network construction and success was not proven.
Tang Huan knows the inertia and habits of these business elites well, which is nothing more than waiting for others to explore the path successfully and then operate through capital. Pick peaches in the form of acquisitions.
Tang Huan, who knows the prospect of cellular systems, of course can't accept this routine, and when it's really time to pick peaches, Pacific Communications may not be able to grab other predators.
Moreover, Pacific Communications is not Tang Huan's company alone, and it is necessary to expand its territory. Worried about money?
In addition, it is precisely because the prospect of cellular systems is not yet seen by the public that it is a good time to start, and Pacific Communications has an inherent advantage.
Back in 1977. The Federal Communications Commission has completed testing of the cellular technology and confirmed its viability.
By 1981, the Federal Communications Commission began formalizing the operation of cellular systems, taking care of RegionalBell Operating Companies, RBOC, or Regional Bell Operating Companies, such as Pacific Communications.
The FCC was so merciful that in its view, the RBOC were forced to shut out the lucrative long-distance telephone business and, under the terms of the "Revised Final Judgment," were forced to stay in a barely profitable local telephone market. It deserves an opportunity to grow its business as compensation.
Therefore. The FCC's rules for licensing cellular technology are that each major city in the U.S. will be granted two licenses: one for competing winning bidders and one for working "cable" local phone operators, RBOCs like Pacific Communications.
There was little opposition to this decision, because the cellular phone system was very expensive to implement. And there is no precedent for success, and future profitability is not easy to determine.
As a result, the attitude of most telecom companies was very cold, and only Pacific Communications, which was driven away by Tang Huan with a whip, reacted positively. Makes it clear that it will soon launch this new type of business in California.
When Motorola and the others arrived at the headquarters of Pacific Communications, they saw the situation of this powerful soldier and immediately became full of joy -- the mobile communication products that they had spent a huge amount of money on developing really had a real big customer.
Due to the successful cooperation in the field of semiconductors MD68000 microprocessors, the two sides are also quite compatible with the next cooperation in the field of mobile communications.
Tang Huan also proudly showed Motorola that the high-end Fangyuan personal computer equipped with MD68000 and the entry-level Fangyuan workstation have been applied in many business links such as billing and service of Pacific Communication.
In the midst of everyone's conversation, a special guest, MCI CEO William Brown. McGovern came to visit.
Tang Huan was slightly stunned, and said in his heart that he and William. McGovern didn't have any contact before, and now he came to himself for what he was doing?
Chuck. Smith reminded in a low voice, "MCI has always been financially tight, and it is estimated that William. McGovern is here to seek financing. ”
Tang Huan nodded suddenly, after Fangyuan Computer Company was successfully listed, he became a cash cow in the eyes of many people, and they all wanted to come over and squeeze it. It wouldn't be surprising if McGovern was doing that.
Chuck. Smith is a rare black executive in the American business world, so although he also has the bad habits of AT&T, in front of Tang Huan, the survival principle makes him dare not violate the yin and yang, and has always behaved consistently, and the understanding and implementation of various business ideas are very compatible.
So, Tang Huan relieved Chuck. Smith continued to entertain Motorola's side, and he himself came to meet William. Mcgovern.
MCI's fame comes from the fact that it is the sworn enemy of AT&T, and it was its birth in 1963 and its subsequent aggressiveness that contributed to the end of AT&T, a giant monopoly in the communications industry, which was finally dismantled by the Department of Justice.
The original founder of MCI was John Murphy. Goken, this guy is very idealistic and very resilient, but he is not good at business.
When MCI was on the verge of collapse in 1968, he and John. Goken was not on the temper of William. McGovern joined in.
This business elite with a deep background on Wall Street immediately adjusted the MCI and attracted financing, which brought the MCI back to life.
After MCI went public in 1972, it owned 10 percent of the shares of John Brown. Goken left MCI the following year to start a new career and no longer participate in any management activities at MCI.
In other words, it was William. McGovern played an important role in forcing AT&T to spin it up. (To be continued......)