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Telecommunications: Public or private ? (40)

War needs communication

Human need has consistently been the fire behind invention. The need for defense (and offense!) has also been a major driver of technological progress. And there is no bigger weapon than instant-speed information!

For millennia, armies have engaged in a communications arms race. Smoke signals and beacons placed at strategic locations could provide advance warnings about enemy movements. Later, the so-called pony express — a system of posts with fresh horses and riders stationed at regular intervals — ensured that messages could travel at a horse’s speed without delay.

A common pattern among early military communication systems is the importance of geography and standards. Communication ultimately relies on terrain awareness, elevated ground to ensure visibility and consistent standards to encode and decode information. Those requirements naturally suggest a strong centralized authority that can recruit the necessary specialists and enforce consistent standards. Government was about to compete with war for being the engine behind telecommunications.

The state takes over

With the advent of the industrial revolution, technology was moving faster and more requirements were placed on communication. Factories needed daily updates and contact with suppliers and traders wanted in on the latest news to adapt their strategy. Soon, the electric telegraph was invented and the telecommunications game was changed. In Europe, the governments seized control of the telegraphs and formed a communication monopoly to ensure they could manage communication in both peace and wartime.

As the telegraph revolutionized communication over wires, the radio was the next leap forward, allowing for wireless communication. Governments quickly adopted radio for military use, particularly during World War I, while emergency services and commercial sectors found it invaluable for real-time contact. Unlike the telegraph, which was limited by its infrastructure, radio allowed information to be broadcast far and wide, breaking geographical constraints. While many nations still maintained a tight grip on these new systems, the radio demonstrated that communication could transcend boundaries, paving the way for even greater technological innovation in the coming decades.

The other side of the coin

In the meantime, telecommunications developed in a different way in the United States. Without a massive history of war behind it and with an enormous amount of land to cover, the incentives were different in the American continent. Telegraph lines were installed and operated by bold entrepreneurs instead. Telegraph lines soon became synonymous with civilization - train tracks and telegraph lines soon appeared when an area developed economic interest.

The private development of telecommunications resulted in a different path. Economies of scale were developed and soon a natural oligopoly emerged. The actual differences with Europe became thus geography (again) enabling efficiency and the ownership of the monopoly (public versus private). However, this balance was soon disrupted when regulators stepped in to break up the oligopoly, reshaping the American market.

With greater competition came even more innovation. The U.S. was primed for the next leap in telecommunications, one that would lead to the mobile communication revolution. Stay tuned to learn how these changes shaped the world of seamless, always-connected technology we now rely on!


 

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