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  Microsoft: The New Electric Co.
Time: 00:00 EST/05:00 GMT | News Source: Wired | Posted By: Bill Roach

Microsoft is a 21st-century utility - fat, slow, and vulnerable. Ninety years ago, Theodore Vail - the president of AT&T - made a historic compromise. Vail believed that the telephone business needed to be run by one company - only then could it guarantee "communication with anyone that may possibly be wanted, at any time." So AT&T set about gobbling up competitors across the country, putting together the first nationwide phone network. For Vail's strategy to fly, though, there was one big hump to get over: the government, which was threatening AT&T with trust-busting on the one hand and nationalization on the other. So Vail cut a deal with the Justice Department, accepting regulation in exchange for sanctioned control of the telephone business.
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