Marconi #8

In 1915 Marconi traveled to Schenectady, New York to visit the General Electric plant where Ernst Alexanderson developed and patented a high-frequency alternator capable of generating continuous waves (Marconi 393). Marconi wanted to buy it. Marconi and GE's chief counsel arrived at the verge of an agreement whereby GE would manufacture the alternator, while Marconi would have exclusive rights to use it. The agreement didn't materialize (439).

"The proposal was intensely political and essential to Marconi's global strategy. Marconi's UK base was constricted by British wartime restrictions, but the war also presented opportunities for technological development and the company was still determined to build a global network anchored by a British imperial wireless chain. At the same time, the US domestic market and likely emergence of the United States as the dominant world power after the war foreshadowed an increased role for Marconi's American operations. A deal with GE would palliate American nationalist concerns and reduce Marconi's exposure to the British public sector, with which he had such a fraught relationship. At the same time, the company was anxious to position itself once and for all against the anticipated postwar resurgence of Telefunken.
     The United States' entry to the war in April, 1917 put a major crimp in Marconi's plans. The US Navy took over all wireless operations on April 7, and as the war proceeded it was not entirely clear what would happen to them once the conflict ended" (439-40).

Telefunken was a German wireless company and Marconi's chief competitor.

In 1919 Marconi reopened his negotiations with GE, proposing purchase of 24 alternators. GE's chief counsel conferred with the US Navy. The response requested that GE not sell the alternators to Marconi. Even President Wilson wanted to dissuade GE from doing the deal. The president was convinced that world pre-eminence would be determined by three factors: oil, transportation, and communication. Wireless, however, was still up for grabs, and if the United States could achieve dominance there, the result would be a standoff between the USA and Britain (441).

As the situation evolved, almost the opposite of Marconi's plan occurred. GE bought Marconi's American operations. It resulted in the birth of the Radio Corporation of America (RCA), incorporating the assets of the Marconi Wireless Telegraph Company of America (MWTCA) into a new public company in which GE owned a controlling interest. RCA replaced MWTCA as the major US domestic wireless company and gave the US a solid foothold in global communication (443).