Monopolist logic? Managing technology in the telecom sector during technological and regulatory change

Abstract

After 1980, the telecom industry rapidly changed. Several new technologies were introduced, and telecom sectors in many countries opened for competition. The new technologies were available to all operators, but not all technologies assumed the same risks. Drawing upon rich archival sources from the Swedish telecom operator Televerket (after 1993, Telia), we examine the investment in and management of one new technology–ISDN. By exploring the choices and rationales for initiating and ending a technology project, we find that they may be pursued for political reasons–what we call ‘investment as corporate political activity’, and that many years of losses are sometimes not enough to abandon these projects. We also identify a monopolist logic in which projects can be maintained for use as bargaining chips in negotiations over deregulation or options to expand in markets after deregulation.