The U.S. communications industry today is experiencing great change. T
elecommunications companies are vying with-and in some cases merging w
ith or acquiring-cable television companies to bring interactive broad
band services into the home. Computer companies are developing product
s to provide video-conferencing and other interactive broadband capabi
lities. In Washington, lawmakers are grappling with such issues as the
''Information Highway,'' loop communication, access, local service mo
nopolies, and equipment manufacturing. One result is that the telecomm
unications industry will soon evolve into a new industry, with less re
gulation and more intense competition. These developments will lead to
rapid technological innovation and plummeting prices-the same phenome
na that shaped the computing industry in recent years. Like other part
s of the telecommunications industry, operations systems will be drama
tically affected by these events. To respond to the changes and to rem
ain innovative and competitive, AT&T's Operations Systems Business Uni
t (OSBU) is revamping not only its methods for developing software, bu
t its entire business strategy.