Friday, November 04, 2005

 

More R&D from AT&T and MCI mergers? No way.

I'm at the annual Marconi Foundation Symposium, where Gordon Moore, Bob Lucky, Jack Goldman (founder of Xerox PARC), Len Kleinrock, Whit Diffie, and other founders of our field are bemoaning the demise of (mostly U.S.) telecommunications R&D.

Amid this concern with R&D, the FCC press release (.doc) approving Verizon-MCI and AT&T-SBC mergers says
. . . the mergers will give the companies increased economies of scale and scope, which should [should? -- DI] increase their incentives and resources to engage in basic research and development.
I'll eat my hat if duopoly scale and scope alone actually yields more research. I think the new telco giants need a bigger bone to chase, such as rate of return regulation that gives them a financial reward for increasing the expense side of the ledger. That'd be back to the future.

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Comments:
On the whole I have to agree with you. On the other hand, friends at AT&T Labs seemed pretty upbeat shortly after the merger was announced... claims in the Star Ledger to the contrary :). Guess we'll see soon!
 
They won't do research unless required - it is vendor management as well as being managed by the vendors.

Most of the good people are gone and it is hard to imagine them being attracted back - quality will suffer. Of course some of these folks might consider writing perl scripts to automate billing reports research.
 
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