I’m convinced AT&T did all those things because it was a monopoly. Look at what happened to Xerox after the DOJ killed it’s copier monopoly by forcing it to license its patents. PARC rapidly went downhill. Companies in highly competitive markets can’t really afford capital intensive innovation.
This. Competition and rational buyers with perfect information will move prices close to production costs plus risk compensation. There's no room for anything more than incremental innovation and quick wins at those kinds of companies.
