Comment by pmb
6 months ago
It was forcibly funded as part of a consent decree from the US government that allowed AT&T to continue as a monopoly as long as they invested a percent of their yearly revenue (or profit? I forget) in research. AT&T, having no interest in changing their incredibly profitable phone network, then proceeded to do fundamental research, as required as a condition of their monopoly.
Decades later, AT&T was broken up into the baby bells and the consent decree was removed at that time. Bell Labs' fate was then sealed - it no longer had a required legal minimum funding level, and the baby bells were MBA-run monstrosities that were only interested in "research" that paid dividends in the next 6 months in a predictable fashion.
The funding model is an integral part of the story.
That sounds plausible, but is not how it is told in The Idea Factory, where the authors explain that both AT&T (running the phone system) and Western Electric (manufacturing equipment for the phone system) had separate research divisions even before this. They then discovered that they were duplicating a lot of research, so they set up one entity to perform research for both the harder and the softer sides of the communication system.
Citation needed. What I'm seeing: No evidence of a legal requirement to spend a % of revenue on research: There was no line-item mandate in the consent decree forcing AT&T to invest a specific percentage into Bell Labs. The support for research was strategic and reputational: AT&T used Bell Labs to fend off antitrust pressure and maintain regulatory goodwill.
The baby bells actually took with them part of Bell Labs, renamed to Bellcore, that survived for another decade or so. I interned there whilst doing my MSc, it was still a great place for a while, with serious research.
Wikipedia tells me it still exists in some form, albeit under a different name https://en.wikipedia.org/wiki/Iconectiv
This is all incorrect. The author needs to fact check. Bell labs started in January 1925 and is currently owned by Nokia. The MFJ was in 1984.
my folks worked at at&t when all that happened and so that narrative arc was a big part of my upbringing. my timeline/details is probably off and I can't ask them because they passed away but from what you say here I can totally see what you mean, it totally tracks with the dramas and discussions that they brought home from work every night.