System 1240 (later System 12) [1] [2] was a new Digital Telephone Exchange developed in 1977 by ITT Corporation. It reportedly cost US$1 billion. [3] It anticipated the features of ISDN of the 1990s. [4]
It was designed at the Advanced Technology Center ( Stamford, Connecticut and then Shelton, Connecticut.) Manufacturing was by ITT's subsidiaries such as BTM in Belgium, where the first production system was installed at Brecht in August 1982. [5]
Initial sales, particularly in Europe and Mexico, were strong, but the new system took longer than expected to integrate, with further losses. [6] Against the advice of headquarters, ITT Telecommunications ( ITT Kellogg) in Raleigh, North Carolina undertook the conversion to the US market, [7] and although sales were announced in 1984 [8] and 1985, [9] the attempt ultimately failed, in early 1986. [4] [10]
Reception
Fortune reported that "Araskog focused the company on an all-consuming push to develop and market System 12" and "shoveled profits from good businesses into System 12's insatiable maw". [11] System 12 was intended to operate in all markets, and in all modes, from local switches to long distance. [5]
References
- ^ Viswanathan, T. Telecommunication Switching Systems and Networks, p.225.
- ^ US Patent 4,201,891 at freepatentsonline.com
- ^ International Telephone Telegraph Corp at encyclopedia.com
- ^ a b ITT System 12 at frankoverstreet.com
- ^ a b Chapuis, Robert J.; Joel, Amos E. Jr. (2003). "IX-7: "The ITT (now Alcatel) System 12"". 100 Years of Telephone Switching. ISBN 9781586033729.
- ^ "ITT Earnings Decline 33% for 3rd Quarter", Los Angeles Times, 5 November 1985.
- ^ Bartlett, Christopher A.; Ghoshal, Sumantra (2002). Managing Across Borders (2 ed.). Harvard Business School Press. ISBN 1-57851-707-9.
- ^ ITT Telecom, The New York Times, 26 June 1984.
- ^ "ITT Makes Sale To Southern Bell", The New York Times, 21 March 1985.
- ^ Hinman, Catherine. "ITT Division In Brevard Will Furlough 60", Orlando Sentinel, 14 March 1986.
- ^ Magnet, Myron; Andrew Evan Serwer (11 November 1985). "IS ITT FIGHTING SHADOWS -- OR RAIDERS?". Fortune.
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