For whom the Bell tolls: Causes and consequences of the AT&T divestiture

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Abstract
This essay examines the causes and suggests some of the consequences of the divestiture of AT&T. It is the particular regulatory history of AT&T which can be said to “overdetermine” the breakup. It is argued that the breakup serves the principal players well: large telecommunications users are served by competition‐generated new technologies; the state's commerce interest in capitalist accumulation is served by a vertically integrated AT&T let loose in international markets; the state's defense interest is protected by allowing AT&T to serve all defense needs. The traditional recipient of “universal service” will suffer as the breakup imperils the traditional concept of telephony as a public utility.