Abstract

The AT&T Bell System invented cellular telephony and deployed the world's first prototype cellular system. Strangely, neither AT&T nor its spin-off Regional Bell Operating Companies capitalized on that technological lead, and cellular telephony in the US slipped behind that in other developed countries. This turnaround is explained as a combination of a competency trap that blinded the AT&T Bell System leadership to the importance of the wireless telephony market and the lead their cellular system offered, coupled with a failure of institutional agency required to organize and direct the emerging industry resulting from the death of the AT&T Bell System.

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