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Now VoIP is poised to overtake “traditional telephony” as the way people communicate. Now SBC-AT&T calls itself “the new AT&T.” This new company has the size, the infrastructure and the leadership to play a part in networked media’s future. Many have insisted that SBC’s purchase of AT&T represents “the end” for AT&T as an independent company. Just as the AT&T once contended with triumph and adversity by following its “universal service” dictum, SBC has followed Ed Whitacre’s mission of creating a universal platform for digital communications in the information age. Given the many ways devices can connect to the Internet, from broadband cable to to WiFi, a single company controlling every point of contact between subscriber and service is hard to imagine. A recent report by crypto analytics platform Blockdata claims that almost $6 billion was spent by 40 organizations in blockchain and cryptocurrency startups between September 2021 and June 2022. According to Blockdata, the parent company of Google, Alphabet, has the most investment in the blockchain industry. Many of these start-ups went public and received even more investment money. A lot of the company busts followed a pattern: The fledgling business received hundreds of millions through venture capital and initial public offerings (IPOs), blew through most of it via rampant spending and rapid expansion, ran out of cash reserves when revenues didn’t reach expected levels, failed to get additional funding because of market conditions and went bankrupt within just a year or two of launching.
When SBC appeared on government radar as a coming giant, the company had to change its approach. Unlike AT&T, SBC used government power to its advantage. SBC’s strategy of perpetual growth gave it the power it needed when competition threatened its markets. Where the government forced AT&T to cede its share of the market to competitors, SBC got laws on the books that protected their markets from outside competition. The financial markets go down as well as up. This tactic, guided by SBC Chairman Ed Whitacre, worked well when the SBC was the smallest of the Baby Bells. SBC began as a Baby Bell and is the creation of Ed Whitacre — who worked his whole life for AT&T before the break up. The group has already influenced current approaches to long-term care with its attitudes toward aging and financial preparedness for care in later life. Promoters estimated there to be a thousand million acres available for settlement and exploitation, and practically every acre held the promise of freedom, prosperity, and the chance for a new life built on hard work and initiative. Imagine, for a moment, how Americans of the early nineteenth century must have felt gazing westward toward two million square miles of fledgling country.
It was the tool Americans had been waiting for, and they used it vigorously to settle the continent. Both the conquests of Alexander the Great and the rise of the Roman Empire pale in comparison with the expansion of the United States and Canada across the North American continent. Yet the undeniable result was a continent that, despite its ongoing turmoil, has enjoyed a degree of power, affluence, and accomplishment unprecedented in human history. The lack of water in large sections of the country precluded the use of canals, so that despite the immediate success of the Erie Canal (opened from the Hudson River to Lake Erie in 1825), shippers and travelers recognized the limitations of canals as they sought an effective means to reach the rapidly advancing western frontier. Even as SBC opened its territory to competitors, it acquired another Baby Bell (Ameritech) and expanded its reach to Chicago and the Midwest. Times have radically changed since 1984. The technology that first enabled the Internet to reach your home was the telephone line.