Data Communications: Market Order 1973-1979

Entering 1973, most experts expected the robust growth of data communications revenues to continue at 40-50% per annum. Lower prices and increased competition, especially in the high-speed modem category where AT&T had finally introduced product, were seen as driving demand. By 1974, a sagging economy and merciless competition had firms struggling to break even. Without new applications, such as point-of-sale and credit authorization terminals, sales of modems were projected to be flat. [2] No one imagined that in a short few years an announcement of a microprocessor in November 1971 would energize unprecedented opportunities for modems and multiplexers. By the late 1970’s, corporations were installing data communication networks in unimaginable numbers.