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MCI VS. AT&T: A CASE FOR CREATIVE DESRUCTION

By John Regan

Abstract

Federal Communications Commission (FCC) requesting a license to build a microwave system connecting Chicago and St. Louis. The company then existed virtually in name only, with Jack Goeken as its primary founder and officer. Goeken had been selling two-way radios to truckers along historic Route 66 for General Electric, and he originally envisioned the system as way of extending the limited range capabilities of his radios (Kahaner 22). What Goeken could not have foreseen, was that his plan, as ambitious as it was, would eventually evolve into a multi-billion dollar corporation; while transforming the entire telecommunications industry along the way, and effectively breaking-up the monopoly of AT&T. In fact, Goeken terminated his relationship with the company (then MCI) in 1974 because he believed it was heading in a direction that was not his intention, nor justified by the 1969application (103). That direction led to the $40 billion dollar conglomerate existing today, MCI WorldCom (Ferranti 16). Goeken wanted to supply specialized service not available through AT&T, he did not intend to establish a company directly competing with services they already provided. Although Goeken came to realize that his initial idea of extending two-way radio capabilities could be expanded to providing trucking businesses and other small-to-mediu

Year: 1998
OAI identifier: oai:CiteSeerX.psu:10.1.1.196.7823
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