Reborn Tech Maniac

Chapter 462

As an exchange of courtesy, Tang Huan invited Bob Galvin, Christopher Galvin and his son, Martin Cooper and other Motorola important figures to visit Pacific Communications in San Francisco and Cupertino in Silicon Valley.

Pacific Communications, which has already soloed out of the American Telephone and Telegraph Company system, is in the process of building a large-scale construction project to further expand the network and carry out digital transformation.

The communication network built by AT&T is still the best quality network system in the world so far. The assets inherited by Pacific Communications are of absolute high quality.

But there is one thing. Pacific Communications and the other six Bell brothers were assigned to the local telephone business with limited profits, while AT&T kept the long-distance telephone business that was in the rapid growth stage and had considerable profits. in hand.

The split of AT&T means the liberalization of the US telecommunications market and the intensification of competition. If Pacific Communications wants to live comfortably in the future, it must not be old and aggressive.

Fortunately, despite the conservatism and arrogance of big companies, the management of Pacific Communications has reached a consensus early on that the traditional telecommunications industry is entering the digital age, and the proportion of data transmission services will exceed that of voice transmission services. attitude to adapt to the big situation where the business rules are changing rapidly.

Therefore, when it came to setting up optical fiber and developing value-added services such as caller ID and new generation fax, Pacific Communications' management was very proactive and did not require Tang Huan to worry about it. Its services in Silicon Valley were well received by customers.

But these talented guys are also very stubborn. They stay away from loss-making businesses such as Pacific BBS, Exchange mail system, and online game MUD. The preferential plans for network fees are like squeezing toothpaste, and they refuse to implement them in one step. in place.

As for the cellular system, it was neglected for a time because of the large amount of resources invested in network construction and the lack of a successful business model.

Tang Huan is well aware of the inertia and habits of these business elites. It is nothing more than waiting for others to explore the road successfully, and then through capital operation, they will pick peaches through acquisitions.

Tang Huan, who knew the prospects of the cellular system, of course could not accept this routine. When it came time to pick peaches, Pacific Communications might not be able to snatch other predators.

Moreover, Pacific Communications is not Tang Huan's company alone, and it is necessary to expand its territory.Do you feel bad about money?
In addition, it is precisely because the prospect of the cellular system has not been clearly seen by the public that it is a good time to start. Pacific Communications has inherent advantages.

As early as 1977, the Federal Communications Commission had completed testing the technology of the cellular system, confirming its feasibility.

In 1981, the Federal Communications Commission began to make formal regulations on the operation of cellular systems, and took great care of Regional Bell Operating Companies like Pacific Communications—RBOC, the Regional Bell Operating Company.

The FCC is so merciful that, in its opinion, RBOCs are being forced out of the lucrative long-distance business and, under the terms of the Revised Final Judgment, forced to stay in a barely profitable The local telephone market deserves an opportunity for business growth as compensation.

Thus, the FCC's rules for issuing cellular phone technology licenses are that each major city in the United States will be awarded two licenses: one to the successful competing bidder, and the other to the incumbent "wireline" local call operator, i.e. RBOCs like Pacific Communications.

There was little opposition to this decision because the cellular phone system was very expensive to implement, and without success, future profitability was uncertain.

Ever since, the attitude of most telecommunications companies was very indifferent. Only Pacific Communications, which was driven away by Tang Huan with a whip, made a positive response and made it clear that it would soon launch this new type of business in California.

Motorola and others came to the headquarters of Pacific Communications, and what they saw was the situation of the hard-charging troops. They were immediately filled with joy—the mobile communication products that they spent a huge sum of [-] million US dollars on research and development really had real big customers.

Due to the successful cooperation with the MD68000 microprocessor in the semiconductor field, the two parties are also quite in tune with the next cooperation in the mobile communication field.

Tang Huan proudly showed Motorola the application effect of high-end Fangyuan personal computer equipped with MD68000 and entry-level Fangyuan workstation in billing, service and many other business links of Pacific Communications.

While everyone was chatting happily, a special guest - MCI CEO William McGovern came to visit.

Tang Huan was slightly stunned, thinking that he and William McGovern had not had any contact before, so why did he come to see him now?
Chuck Smith reminded in a low voice, "MCI has always been in financial constraints. It is estimated that William McGovern is here to seek financing this time."

Tang Huan nodded suddenly. After the successful listing of Fangyuan Computer Company, he became a cash cow in the eyes of many people, and they all wanted to come over and squeeze it. It would not be surprising if William McGovern did it for this purpose.

Chuck Smith is a rare black executive in the American business world. Therefore, although he also has the bad habits of big companies like AT&T, in front of Tang Huan, his survival principle makes him dare not go against the rules and always act the same. , the understanding and execution of various business ideas are very consistent.

Therefore, Tang Huan assured Chuck Smith to continue entertaining Motorola, while he came to meet William McGovern.

The great name of MCI comes from the fact that it is the mortal enemy of AT&T. It was its birth in 1963 and its subsequent aggressiveness that contributed to AT&T, a giant monopolizing the communication industry, and was eventually The end of the Department of Justice dismantling.

The original founder of MCI was John Gocken. This man was very idealistic and tenacious, but he was not good at management.

When MCI was on the verge of collapse in 1968, William McGovern, who had a bad temper with John Gorken, joined it.

This business elite with a deep Wall Street background immediately adjusted MCI and attracted financing, bringing MCI back to life.

After MCI went public in 1972, John Gorken, who owns [-]% of the shares, left MCI the next year to start a new personal career and no longer participated in any management activities of MCI.

In other words, it was William McGovern who played an important role in forcing AT&T to break up.

(End of this chapter)