Gerald Faulhaber - Faculty Research in Knowledge@Wharton

Cable TV Follows Its Subscribers to the Internet

Wed, 22 Jul 2009 15:41:58 EST

The cable television industry's answer to the increasing threat from Internet video sites such as YouTube and Hulu focuses on a clear-cut strategy: Make cable subscriptions portable to any Internet accessible device, such as a laptop computer or even a mobile phone, for no additional charge. Experts at Wharton say the move is a promising early step in meeting the Internet video challenge, but they expect more such experimentation ahead.

As Smartphones Proliferate, Will One Company Emerge as the Clear Market Winner?

Wed, 27 May 2009 17:04:13 EST

Just as computer operating systems vied for dominance back in the late 1970s and early 1980s, smartphone makers these days are jostling for market share, hoping that their mix of capabilities -- ranging from web surfing to email to calendar management -- will ensure them a critical mass of customers. What the makers of such mobile devices as the BlackBerry, iPhone and Treo are trying to avoid is the outcome of that earlier race, when one company -- Microsoft -- ended up the dominant player.

Dear President-elect Obama: Here's How to Get the Economy out of the Ditch

Wed, 12 Nov 2008 15:57:28 EST

President-elect Barack Obama must lead a nation mired in a worsening recession and burdened by the costs, both financial and human, of two wars and rising debt. Wharton faculty offer some counterintuitive advice: Now may be the time for the government to spend a lot of money.

Wanted: A President Who Can Lead During a Time of 'Daunting' Challenges

Wed, 01 Oct 2008 17:54:21 EST

The new president's job, says one Wharton professor, "will be as hard as any job any person has ever had." For the 44^th president of the United States, extraordinary managerial and cognitive abilities will be needed to tackle unprecedented challenges, including wars being waged in two countries and a financial system on the verge of collapse. Wharton and University of Pennsylvania faculty members offer their views on which leadership qualities will be most important over the next four years, and why. This article is the third in a series about economic and leadership issues focusing on the November 4 election.

Tuning in a Post-merger Strategy: Sirius XM Must Cut Costs and Build Its Case

Wed, 03 Sep 2008 17:03:03 EST

Now that the FCC has approved a merger of the two satellite radio companies, Sirius XM's big challenges are to stop the flow of red ink and settle on a strategy to compete with the myriad of other portable music providers. Says one Wharton professor: "They may have one more shot at a Hail Mary pass."

Will Technology Firms Bridge the Chasm Between Computer and TV?

Wed, 25 Jun 2008 15:40:07 EST

Hewlett-Packard, Netflix, Apple and others want to move content from the Internet to that big flat-screen TV in the living room. Wharton experts wonder if there is a market for this and indeed, whether consumers are even willing to accept interactive television. The best advice to companies for now: Hedge your bets.

Bridging the Global Digital Divide, One Laptop at a Time

Wed, 11 Jun 2008 16:25:47 EST

On May 20, the non-profit One Laptop per Child (OLPC) program unveiled the second version of its XO laptop, which is designed to bring affordable, modern technology to children in developing countries. In April, Intel announced its next-generation Classmate PC, which targets the same market. Meanwhile, Microsoft has been tweaking its Windows XP operating system for these educational devices, which also run on the open source Linux operating system. Experts at Wharton say that the focus on third world countries is promising, but they question whether these efforts will be effective.

Wireless Broadband Utopia: Are We There Yet?

Wed, 16 May 2007 15:58:25 EST

The wireless broadband pieces appear to be falling in place: Sprint Nextel says its next-generation high-speed network will be launched in a few markets by the end of 2007. Intel plans to embed so-called "WiMAX" enabled semiconductors in laptops by the end of 2008, and startups like Craig McCaw's Clearwire hope to blanket much of the nation with WiMAX service. Other companies are supporting hybrid wireless networks so that devices can hop between technologies. Where is all this heading, and what does it mean for the "Anywhere Consumer"?

Verizon's High-Speed Network: If They Build It, Will You Come?

Wed, 21 Mar 2007 15:21:30 EST

Verizon is betting billions of dollars on a new fiber-optic network that could transform it from a telephone company to a cutting-edge technology player. If the strategy works, the company could leapfrog over rivals, such as AT&T and Comcast, by offering faster Internet service and potentially richer video on demand. But if Verizon's fast network fails to entice consumers, the company will have created a multi-billion-dollar boondoggle. Wharton faculty and others examine the two different scenarios.

Sirius and XM: Can Two Archrivals Sing the Same Tune?

Wed, 21 Feb 2007 15:01:25 EST

On Monday, the country's two satellite radio services -- Sirius and XM -- announced that they had finally agreed to merge. The move raises a number of questions, not the least of which is whether they can get this deal approved by the Federal Communications Commission and the Justice Department. But regulatory issues aside, what prompted these two archrivals to embrace each other, what do they expect to get out of it, and what does a combined company mean for consumers who currently pay a subscription fee of $12.95 a month? Knowledge@Wharton asked for comments from Wharton marketing professor Peter Fader, whom we talked with first, and business and public policy professor Gerald Faulhaber.

Getting a Fix on Network Neutrality

Wed, 14 Jun 2006 18:59:45 EST

On June 8, the House of Representatives squashed an amendment that would prevent telecommunications companies from charging Internet content companies more to deliver enhanced services, such as high quality audio and video content. The amendment would have required "network neutrality," an often-debated term that means different things to different people. To its supporters, like Google, Yahoo and eBay, it means that telecommunications companies should be required to treat all Internet traffic -- whether bandwidth-hogging video or a brief email message -- the same. To companies like Verizon and AT&T, imposing network neutrality would mean that they could not charge for enhanced services on networks that cost them billions of dollars to build. Experts from Wharton and elsewhere weigh in on the issue.

Podcast: AT&T-BellSouth: Good Connection?

Wed, 08 Mar 2006 08:40:58 EST

Earlier this week, AT&T announced it had agreed to acquire BellSouth for $67 billion, a deal that will create the world's largest telephone company. Reports since that announcement have noted that a "reborn AT&T," as it has been called by the media, will give cable companies a serious run for their money in the race to sell phone, TV and Internet services. And it comes at a time when cable companies are already losing market share to telephone companies in the area of high-speed Internet connections. Knowledge@Wharton has asked Gerald Faulhaber for his perspective on the acquisition, including its impact on consumers. Faulhaber is professor of business and public policy at Wharton, and in 2000-2001 was chief economist at the Federal Communications Commission. In the 1980s he was director of strategic planning and financial management at AT&T, and before that held various positions at Bell Telephone Laboratories.

AOL: In Search of a New Strategy

Wed, 02 Nov 2005 16:31:57 EST

America Online is once again the center of Time Warner's growth strategy, and this go around there are a number of potential partners -- ranging from Microsoft and Google to Yahoo and Comcast -- reportedly interested in buying a minority stake. Yet to be determined is how the latest AOL business model, which includes both dial-up Internet access and advertising, will evolve. For example, what can AOL create that's unique? How can it reap profits from its instant messaging dominance? How will it convince its customers to stick with AOL as broadband Internet access grows in popularity? And why is Time Warner looking to sell a stake in AOL? Wharton and other experts weigh in on AOL's future.

eBay Calling Skype: Is It a Good Connection?

Mon, 21 Nov 2005 14:55:23 EST

When online auctioneer eBay announced its intentions last week to buy Internet communications services provider Skype in a potential $4.1 billion deal that will consolidate three of the biggest Internet brands -- eBay, PayPal and Skype -- under one roof, the questions began. What, people are asking, is the rationale behind the acquisition, and isn't $4.1 billion a bit steep? After all, it takes some imagination to see how eBay's e-commerce activities -- auctions and payment systems -- will be combined with Skype, a Voice over Internet Protocol (VoIP) and PC-to-PC calling company that has signed up 54 million users globally in a little more than two years.

The Hype over Skype: Can It Go the Distance?

Wed, 07 Sep 2005 15:24:58 EST

Although Skype, which provides Voice over Internet Protocol (VoIP) telephony services and PC-to-PC calling, turns two years old on August 29, it remains unclear what kind of business this relative newcomer will turn out to be. Skype could remain a mere fad for techies, become a next-generation communications platform or evolve into the next eBay or Google, say Wharton experts. What's certain, however, is that Skype, which has offices in Estonia, London, San Francisco, Korea and Japan, is worth watching. As of August 4, its software had been downloaded nearly 145 million times and the company claims to have 47 million people using its services. Skype is an "underappreciated phenomenon in telecom," says one Wharton professor.

The Wi-Fi Debate: Should Cities Be in the Business of Broadband?

Wed, 01 Jun 2005 17:22:46 EST

The city of Philadelphia's grand experiment to blanket its 135 square miles with wireless high-speed Internet access is being closely watched by municipalities across the U.S. that are pursuing similar initiatives. While Philadelphia's project, which edged closer to reality with an announcement on April 7, is more than a year away from completion, it has sparked an intense debate over such questions as: Are broadband services better handled by the public or private sector? Can a wireless broadband network, commonly known as Wi-Fi, be used to help more low-income people gain online access? Should Internet access be viewed as city infrastructure, like telephone poles or city streets?

The Outlook for VoIP: Regulatory Battles and New Competition

Wed, 23 Feb 2005 16:12:25 EST

During his four years as chairman of the Federal Communications Commission, Michael Powell championed the idea that new communications technologies should not be subject to federal and state regulations. But as Powell prepares to step down in March, Voice over Internet Protocol (VoIP) -- the technology that allows telephone calls to travel over the Internet -- faces a push by several states to regulate it as a traditional telephone service, a move that many fear would stifle its potential.

Mother and Child Reunion: Will the AT&T/SBC Merger Build or Destroy Value?

Wed, 30 Mar 2005 10:14:10 EST

SBC Communications' CEO, Edward E. Whitacre Jr., sees his company's acquisition of AT&T as a deal that will "renew America's leadership in communications technology." The $16 billion merger, however, also raises lots of questions that have yet to be answered, according to experts from Wharton and elsewhere. Unless these issues are resolved, according to one professor, the merger could end up as "a great opportunity to destroy value."

Verizon Ratchets Up Stakes in the Cable-Telecom War

Wed, 01 Dec 2004 13:53:21 EST

In the escalating war between telecom and cable companies, Verizon Communications recently unveiled plans to offer video service via fiber-optic lines running directly into homes. According to Wharton experts and others, however, the company's ambitious agenda faces a number of obstacles, including equally ambitious agendas from competitors like Comcast, Cox Communications and Cablevision.

Microsoft and the EU: Who's Right and Does It Really Matter?

Wed, 02 Jun 2004 14:36:33 EST

A finding by the European Union that Microsoft has abused its power in the market for personal computers represents a blow to the company, but the software giant is so flush with cash and so dominant a player in the PC industry that it will not sustain long-term harm as a result of the ruling, according to faculty members at Wharton and elsewhere. These experts differ, however, on whether the EU made the right decision. Some say the company plainly violates antitrust laws. Others say it's not so clear-cut.

Comcast vs. Disney: Facts and Fantasia

Wed, 10 Mar 2004 16:03:37 EST

For Brian Roberts, CEO of cable giant Comcast, the problem may boil down to this: What do you do with the Magic Kingdom? Two weeks ago, Roberts made a $49 billion bid for the embattled Walt Disney Co. Disney's board rejected the offer, but no one expects Roberts' effort to end there. Chances are, he will bid again. Whether he should is another matter. Will buying Disney give Comcast much-needed leverage as it negotiates with competitors such as Rupert Murdoch's News Corp.?

AT&T Wireless: Will Cingular's Big Bet Pay Off?

Wed, 10 Mar 2004 16:03:36 EST

Last week Cingular, the second-largest wireless telephone firm in the U.S., beat Britain's Vodafone in a bidding battle for AT&T Wireless with a $41 billion bid. If regulators approve, the merger will create the country's largest wireless telephone company. But will Cingular be able to build real value from the deal? Experts at Wharton and elsewhere give the merger a thumbs up in terms of strategy, but warn that it is still too early to say whether the acquisition will be good for Cingular. One key problem: the whole wireless industry is in a flux.

Time to Redial: VOIP (Voice Over Internet Protocol) Makes a Comeback

Wed, 28 Jan 2004 13:48:21 EST

Declared dead just a few years ago, voice over Internet Protocol (VOIP) – or the ability to make phone calls over the Internet – is back. Phone carriers are announcing aggressive VOIP strategies aimed at both consumers and businesses even as Time Warner Cable, Cox Communications and Comcast have trumpeted their own forays into the VOIP market. But how widespread will VOIP usage be, and how ready for prime-time is its technology?

What's Ahead for 2004

Tue, 20 Jan 2004 11:08:42 EST

After a slow and confusing economic recovery, 2004 will be a year of solid improvement building on positive news, including the capture of Saddam Hussein, at the close of 2003. New technology and changing public policy, as the

United States

faces another presidential election, will also shape the business world in the coming year, predict Wharton faculty, who were interviewed by Knowledge@Wharton on five key sectors: the economy, the banking industry, airlines, telecommunications and health care.

Mobile Telephones: Can Nokia Keep Ringing Up Sales?

Wed, 05 Nov 2003 13:40:57 EST

Nokia, the innovative Finnish company, dominates the mobile phone market with more than $30 billion in annual sales. But growth is slowing, and with the announcement of the new Microsoft-Vodafone alliance, the competitive landscape is changing. Will Nokia's bet on innovative products such as N-Gage -- a phone that bundles music, video and interactive gaming -- help it retain its lead? Experts at Wharton and elsewhere say the company has great strengths but also faces huge challenges.

Open Source: Closing, Closing...

Wed, 13 Aug 2003 00:00:00 EST

It might look like the battle of David and Goliath, but in the case of the SCO Group vs. IBM, not too many people are rooting for David. The SCO Group has filed a $3 billion lawsuit alleging wrongful use of Unix by IBM in the development of its Linux code. Many Linux developers have expressed annoyance at what they see as SCO's attempt to undermine the very nature of open source software development. The larger question arising from the fight is whether Linux can truly remain open while gaining acceptance in the corporate marketplace. Experts at Wharton and elsewhere believe that as more Linux-based products appear, the open source movement will have to come to terms with intellectual property issues through cross-licensing arrangements or other methods.

New FCC Rules on Media Ownership: Static from All Sides

Wed, 04 Jun 2003 00:00:00 EST

When Federal Communications Commission chairman Michael Powell described his agency�s partial deregulation of media outlet ownership restrictions June 2 as �modest, albeit very significant changes,� few seemed to share his sentiment. The Newspaper Association of America saluted the FCC for loosening its �regulatory shackles.� Sen. Olympia J. Snowe, however, suggested that deregulation �will undermine the basic tenets of democracy.� Will deregulation be great for the media business, terrible for democracy, or does it represent merely a modest � but significant � change?

Why Corporate Digital Transformation Didn't Always Deliver

Wed, 07 May 2003 00:00:00 EST

In 2000, DaimlerChrysler AG was in crisis. The company had stumbled in integrating the operations of its predecessors and the Chrysler portion of the business was on its way to losing $1.2 billion. Karenann Terrell arrived to help lead its e-business initiatives during this time of trouble. �It�s a helluva lot easier to implement digital transformation in companies in crisis,� Terrell told participants at a May 1 conference on the Internet sponsored by the Reginald H. Jones Center and the Wharton e-Business Initiative (WeBI).

The FCC�s Latest Telecom Ruling: Far-Reaching, Yes, But Also Far From Clear

Wed, 12 Mar 2003 00:00:00 EST

A recent vote on deregulation by the Federal Communications Commission left many questions unanswered and none of the players in the telecommunications industry entirely satisfied. It was the kind of decision, however, that will affect the future of telecom companies in far-reaching ways, some of them not yet fully understood, according to experts at Wharton and two think tanks.

Is It time to Give Up on AOL Time Warner?

Wed, 26 Feb 2003 00:00:00 EST

When America Online bought Time Warner for $103.5 billion in January 2001, the plan was to meld new-economy Internet prowess with old-economy content and cutting-edge broadband delivery. The scheme�s designers boasted they would create the world�s largest corporation. Now, just over two years later, AOL Time Warner is a shambles. Was this just bad luck? Was the merger ill-conceived to begin with? And will the company now resort to selling off major assets in an attempt to reduce its enormous debt?

How Bush Can Avoid an Economic Meltdown

Wed, 20 Nov 2002 00:00:00 EST

The economy may not be recovering as strongly as some would like. But it is healthy enough at the moment that there is no need for the Bush administration to accelerate existing tax cuts or push for new cuts to stimulate economic activity, according to professors of finance and public policy at Wharton. They also say that the reemergence of federal budget deficits is reason enough to forego thinking about tax cuts.

Linux: It�s Growing More Popular, But Can It Do Windows?

Wed, 25 Sep 2002 00:00:00 EST

Linux is unlikely to dethrone Microsoft�s Windows as the ubiquitous operating system on desktop PCs anytime soon. But the open-source system will gradually become more attractive to consumers as more applications are written for it. The real growth of Linux will be in its chief market, as an operating system for servers.

Television�s Digital Dilemma

Wed, 28 Aug 2002 00:00:00 EST

On August 8, 2002, the Federal Communications Commission issued a ruling requiring that all TV sets 13 inches or larger include tuners to receive over-the-air digital broadcasts by July 1, 2007. The ruling, however, doesn�t involve just broadcasters and the companies that make TV sets. It is part of an attempt to establish order over a technological vortex that has sucked in the government, broadcasters, cable companies, TV set manufacturers and Hollywood.

Can i-mode Go Global?

Wed, 14 Aug 2002 00:00:00 EST

Japan�s mobile Internet service, i-mode, has left its European and American counterparts in the dust. Takeshi Natsuno, a Wharton graduate who manages i-mode strategy for NTTDocomo, says the mobile service now has 34 million users in Japan. Can i-mode export its success to other countries? Experts at Wharton explain why this is still an open question.

The Mega-media Business Model: Doomed to Fail, or Just Ahead of its Time?

Wed, 31 Jul 2002 00:00:00 EST

With its drastically lower stock price and an SEC investigation into its accounting practices, AOL Time Warner appears to be the latest poster child of America's mega-corporate meltdown. What happened to the once-talked-of synergies between �old media� and �new media� and between content and delivery that these mergers once trumpeted? Is the mega-media concept flawed, poorly-executed, or just not quite ready for prime time?

Challenges Ahead for Vivendi�s New CEO

Wed, 31 Jul 2002 00:00:00 EST

Vivendi Universal�s Jean-Marie Messier, a very public casualty on the information superhighway, is buried alongside other such supposed telecom industry visionaries as AOL Time Warner�s Robert Pittman and Bertelsmann�s Thomas Middelhoff. Yet Vivendi differs significantly from these two companies. A water utility that tried to transform itself into a global media powerhouse, Vivendi and new CEO Jean-René Fourtou are in a life-threatening struggle for survival.

Corporate Reform Proposals: On the Money or Off-base?

Wed, 17 Jul 2002 00:00:00 EST

Republicans and Democrats are stumbling over each other to show who can be toughest with corporate wrongdoers. The House and Senate have passed competing legislation calling for everything from longer jail terms and statutes of limitations to new accounting rules and oversight boards. Is this the right approach or are different tactics required? Knowledge@Wharton asked five faculty for their opinions.

Is Internet Radio Dying?

Wed, 17 Jul 2002 00:00:00 EST

If you have ever listened to your favorite radio station online or surfed one of the many web-exclusive streaming audio sites around the world, you have probably experienced Internet radio. But the days of independent radio on the Net could be numbered, say some experts. A recently established royalty fee payable to record companies may price many small content providers out of the market, leaving some with no choice but to shut down.

Corporate Reform Proposals: On the Money Or Off-base?

Wed, 03 Jul 2002 00:00:00 EST

Talking Back to the Tube: The Future of Interactive Television

Wed, 19 Jun 2002 00:00:00 EST

Interactive television has always promised to deliver the couch potato�s ultimate dream � surf zillions of channels, choose customized programming, check e-mail and order pizza without leaving your couch. Some of these services are now becoming a reality, while others face uncertain prospects. Which way is interactive TV headed? Experts from Wharton and elsewhere provide a roadmap.

Wireless Dreaming: Is 3G Dead?

Wed, 05 Jun 2002 00:00:00 EST

Advertisements hyping the future of the wireless lifestyle are ubiquitous. Cellular carriers often tout visions of consumers using their mobile phones to do anything from anywhere at warp speed, using so-called third generation (3G) wireless technology. But is 3G the communocopia it is made out to be? Some experts at Wharton and elsewhere believe it could be a waste of money for governments, carriers, consumers and applications developers alike.

A Cingular Challenge: Becoming More Than the Sum of its Parts

Wed, 22 May 2002 00:00:00 EST

In the past 18 months, Cingular has spent time building a brand, integrating its back offices and figuring out what to do with its two clashing wireless technologies. This summer, it finally launches service in the number-one wireless market in the nation: New York. Although the benefits to be gained from a nationwide expansion are hefty - millions of cell phone users � the journey there is hardly risk-free, suggest Wharton faculty and other analysts.

Vacationing in a Wireless World: Relaxation vs 4,000 Emails

Wed, 22 May 2002 00:00:00 EST

Not long ago, businessmen and women who took vacations could actually �get away from it all.� Office equipment was too big to bring along, and people normally did not give out their hotel�s telephone number to everyone on their rolodex. Not so today. Your office can fit in a laptop and every customer and contact has your cell phone number. Have we lost the art of taking a vacation and if so, can we get it back? Do we want to? Wharton professors and others offer some suggestions.

Will WorldCom Rise Again?

Wed, 08 May 2002 00:00:00 EST

For nearly two decades Bernard J. Ebbers, WorldCom�s charismatic CEO, drove the company�s growth through more than 70 acquisitions. Now, however, Ebbers is out and the company teeters on the brink of bankruptcy. What went wrong? Experts at Wharton and elsewhere say several factors are to blame. Among the biggest is WorldCom�s failure to integrate its acquisitions into a cohesive whole.

Factors Behind Global Crossing�s Failure

Wed, 13 Feb 2002 00:00:00 EST

It�s a little like throwing a party that no one attends. When Gary Winnick founded Global Crossing in 1997, the demand for bandwidth to help more and more people surf the information superhighway seemed endless. To meet that demand, the company built a fiber optic network that eventually linked more than 200 major cities in 27 countries. Unfortunately, not enough customers signed on to make Winnick�s vision pay off. Global Crossing filed for bankruptcy on January 28 even as the telecom industry itself faces a tough year.

So Far, the AOL Time Warner Merger Gets Mixed Reviews

Wed, 30 Jan 2002 00:00:00 EST

It�s already shaping up to be quite a year for AOL Time Warner. Last week, Netscape, the Web browsing company now owned by AOL Time Warner, filed suit against Microsoft claiming antitrust violations. Meanwhile the media giant has a new CEO, scaled back its anticipated revenue growth for 2002 and is still trying to reap the benefits predicted from its high profile merger.

What�s Ahead for 2002?

Wed, 16 Jan 2002 00:00:00 EST

What�s next? Will 2002 be like 2001, with unemployment going up, stock prices going down, the trade balance worsening and tech industries in turmoil? No one knows for sure, of course. But Knowledge@Wharton asked several Wharton professors for their best predictions about issues and trends in four key economic areas: the stock market, employment, international trade and technology.

The Microsoft Settlement: A Remedy That Pleases Almost No One

Wed, 05 Dec 2001 00:00:00 EST

The November 2, 2001 settlement between Microsoft and the U.S. Justice Department really didn�t settle anything, considering the amount of criticism leveled at the terms of the deal. But part of the problem, say Wharton professors, is the difficulty of finding remedies that are both effective and don�t cause injury. Given the growth of new economy firms, it�s a dilemma that is only going to get worse.

AT&T: Expect More Static in the Months to Come

Wed, 07 Nov 2001 00:00:00 EST

Once viewed as a model of stability, AT&T these days seems more like a dysfunctional family struggling to retain its preeminence in an uncertain economy. Wharton faculty and Wall Street analysts look at the factors � both external and internal � that have plagued the company over the last several years even as the troubled telecom industry itself faces increasing consolidation.

Behind the Telecom Meltdown: Too Much Money, Too Little Foresight

Wed, 24 Oct 2001 00:00:00 EST

While investors in the late 1990s remained oblivious to signs of trouble, it is clear in hindsight that the telecommunications bubble could not possibly have lasted, according to a panel of telecom experts at the October 12 Wharton Finance Conference. They cite a number of reasons for the unraveling of the industry, and point to Europe and Asia as the real leaders in telecom.

Are Government Bailouts Bad Business?

Wed, 10 Oct 2001 00:00:00 EST

Even the most cold-hearted free-marketer would concede the airlines got a tough break in the two-day grounding after the terrorist attacks. No manager could have been expected to anticipate events on the scale of Sept. 11, or to set aside enough money to cover the revenue shortfalls that followed. So a government bailout is a reasonable response, right? Not necessarily, say those who have studied past examples of government bailouts.

Will Comcast�s Bid for AT&T Broadband Succeed?

Wed, 01 Aug 2001 00:00:00 EST

If Comcast wins in its $58 billion bid for AT&T�s cable arm, the result will be the biggest cable company in history serving more than 22 million customers. Regulators may study the merger closely but they are unlikely to block it, according to experts at Wharton and the University of Pennsylvania. They say Comcast will probably succeed, though it may end up paying more than it has now offered.

How Significant is Microsoft�s Anti-Trust Victory?

Wed, 04 Jul 2001 00:00:00 EST

Now that the U.S. District of Columbia Circuit Court of Appeals has sent the Microsoft anti-trust case back to the lower court, an array of issues has come bubbling to the fore. Although the company�s supporters view the court�s decision to reverse the break up of the software firm as a triumph, how significant is the victory? Will the company become emboldened by it? Will the Bush Administration continue to prosecute the case? What will the final remedy be? And do consumers ever win these court battles? Wharton professors who have been following the case offer some insights into these questions.

How a Run of Bad Luck and Bad Laws Helped Ignite California�s Electricity Crisis

Wed, 31 Jan 2001 16:23:44 EST

California�s woes keep mounting. Now, on top of earthquakes, mudslides, grassfires and drought, there is the extraordinary electricity crisis. Prices have soared, shortages have taken parts of the state to the brink of blackouts, politicians are brawling and several major utilities are near bankruptcy. Knowledge@Wharton offers an analysis of what went wrong and how other states can avoid California�s mistakes.

Outlook Asia: Will Innovation Pave the Way for Another Boom?

Wed, 06 Dec 2000 14:32:09 EST

Their message was clear: The future of the global economy is in Asia. A group of renowned executives, entrepreneurs, and asset managers convened at the Sixth Annual Wharton Asian Business Conference in Philadelphia to discuss the changing face of Asia and its transition to the new economy. Despite the negative impact of the economic crisis of the late 1990s, experts at the Nov. 17 forum noted that further development of the Internet, construction of a technology and telecommunications infrastructure, and institutional reform are all signs that a second East Asian miracle�powered largely by foreign capital and investments�will take place in the region soon.

�The U.S. Wireless Industry Has Been a Laggard�

Wed, 30 Aug 2000 13:27:23 EST

Gerald R. Faulhaber, a professor of public policy and management at Wharton, last month was named chief economist of the Federal Communications Commission. In this one-year position, he will be closely involved with critical economic issues and regulatory debates about future trends in telecommunications. Faulhaber, who was director of strategic planning and financial management at AT&T as well as head of economics research at Bell Labs before joining Wharton in 1984, spoke to Knowledge@Wharton about three issues: The future of mobile computing, trends in Internet telephony and new business models in telecommunications.

Microsoft Vs. the Feds: Drawing the Battle Lines

Wed, 24 May 2000 14:45:35 EST

Like two tackles squaring off at the line of scrimmage, neither the U.S. Justice Department nor Microsoft are backpedaling from their positions in the government�s attempt to break up the giant software maker. A few weeks ago, federal prosecutors argued for the company to be split into two new entities � one based on the Windows operating system, the other on Microsoft�s Office software. Microsoft countered by saying it would fight any attempt to divide the company and offered some proposals of its own. Knowledge@Wharton asked three professors with expertise in this field for their views on the latest developments in Microsoft Vs. the Feds.

Looney Times at Time Warner and Disney

Wed, 24 May 2000 14:45:31 EST

The recent clash between Time Warner�s cable division and Disney�s television networks made a lot of viewers very unhappy when they couldn�t watch ABC�s �Who Wants to Be a Millionaire?� and other network programming. Although the two mega-businesses made temporary peace the next day, the questions remain: Could this happen again? What caused it? Are these media powerhouses � and the egos that run them - simply too big? Knowledge@Wharton asked three Wharton professors--Gerald Faulhaber, Peter Fader and Harbir Singh--to preview the next installment of Bugs Bunny vs. Mickey Mouse.

War of the Wires

Fri, 10 Dec 1999 09:14:40 EST

"Ten cents a minute!" "Eight cents a minute!" Phone calls in the United States seem to be getting cheaper and cheaper...but are they really priced fairly? In a discussion at Wharton earlier this fall, Robert Crandall of the Brookings Institution argued that they haven't been -- not by a long stretch. The Telecommunications Act of 1996 did little to deregulate the industry; in fact, U.S. telephone rates were still distorted in the name of "universal service." Residential line access prices were kept low and cross-subsidized by high long-distance rates, essentially putting the burden of payment on people, typically located in rural areas, with dispersed social networks. As a result, lower-income rural households -- who were supposedly meant to benefit from the policy -- paid more than they would have if the rates were truly based on cost. The reason? It's all about politics.

MCI WorldCom Sprint: Good Connection or Static on the Line?

Wed, 13 Oct 1999 13:34:53 EST

If approved by federal regulators, the proposed $115-billion acquisition of Sprint by MCI WorldCom would be the biggest corporate combination in history. It would give the new company, to be called WorldCom, a market value of some $200 billion, which is larger than that of AT&T. It would also significantly alter the hotly competitive telecommunications landscape. To assess the potential impact of the proposed acquisition, Knowledge@Wharton spoke with two telecom experts: Gerald Faulhaber, professor of public policy and management at Wharton and a former manager at Bell Labs and AT&T, and G. Anandalingam, professor of information management at Wharton and National Center Professor of Systems Engineering at Penn�s School of Engineering and Applied Science.

Should Broadband Networks Be Monopolies?

Thu, 19 Aug 1999 09:27:22 EST

As the Internet continues its frenetic pace of growth, broadband networks that let text and video content flash across the globe at high speeds will emerge. Will these networks be so-called natural monopolies, as telephone and cable networks were, and will they need close government regulation? Or will free market forces be capable of keeping such networks on track? Gerald R. Faulhaber and Christiaan Hogendorn of Wharton explore these issues and develop a model to provide answers.

The Euro Revolution

Sat, 27 Mar 1999 05:02:49 EST

The launch of the Euro will change not only the way that European countries trade among themselves, but also the manner in which the world does business with Europe. Karel Van Miert, Europe�s commissioner for competition, explains how competition is transforming a continent.