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Entrepreneurial Capitalism and Innovation:
A History of Computer Communications 1968-1988
By James Pelkey

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Entrepreneurial Capitalism & Innovation:
History of Computer Communications
1968 -1988
By James Pelkey

This history is organized by three co-evolving market sectors and also standards making.
An overview of the schema is presented in the Introduction.

Ch. 1: Emergence
Ch. 3: Competition
Ch. 5: Market Order
Ch. 11: Adaptation

Ch. 2: Vision
Ch. 4: Arpanet
Ch. 6: Diffusion
Ch. 7: Emergence
Ch 8: Completion
Ch. 10: Market Order

Ch. 9: Creation

Ch. 12: Emergence



Chapter 3
Data Communications: Market Competition 1969-1972
Modems and Multiplexers

3.10  Codex and the 9600: 1971

Codex faired better than most with a 126% increase in sales to $2.5 million, largely on the back of the 4800, while losses were commensurably cut by a third to $2.0 million. In October, just after the close of the fiscal year, Codex introduced the QAM-based 9600, the long awaited successor to the AE-96, priced at $11,500. The QAM technology gave Codex a significant advantage in the market as Pugh explains:

"When we came out with the AE-96, which was a suppressed carrier, single side band modulation, a lot of people moved in and copied that, which was a mistake for them, because we had the QAM modem on the drawing boards. And about the time that Milgo came out with a single side band machine, AT&T came out with a single side band machine, and we had then announced our 9600, which was a QAM machine. We had the market all to ourselves for several years because it took them that long to catch up. That modem lasted for four or five years, and it was a marketing game. The 9600 became an instant hit!" [40]

Codex had cleared a major hurdle by successfully innovating its second-generation 9600 bps modem technology.

[40] Pugh interview with author: February 25, 1988