alt Hacker NewsLucent at the same time went through the same issue: how to monetise Bell Labs.
Bell Labs greatest work came out when AT&T was a monopoly. Once they were broken up (1984?) they started feeling the pain.
When the Lucent spinoff took place, the new entities had no Monopoly money to fund unconstrained research while management's behaviour never changed.
I don't know how BL fared under Alcatel and now Nokia, but haven't heard of anything interesting for years.
I've been to the Holmdel office in the decline years. It was very sad. A fraction of the former staff was rattling around in what could've been used for a post apocalyptic sci-fi set. In its heyday it must've been magnificent. Imagine taking an entire great research university and putting it into a single architectural masterpiece. I've also been to Nokia HQ after Elop ruined the place. Also sad.