Final answer:
The FAA's challenges in upgrading air traffic systems stem from bureaucratic hurdles, financial constraints, and the difficult task of integrating new technologies without interrupting service, much like AT&T's failure to prevent competition due to market deregulation.
Step-by-step explanation:
The primary cause of the Federal Aviation Administration's (FAA) failure to upgrade the nation's air traffic system can be linked to a range of factors, including bureaucratic challenges, budget constraints, and rapidly evolving technology that outpaces the implementation process. Much like AT&T's unsuccessful efforts to lobby Congress to block competitors in 1978, which failed due to a shift toward greater market competition and deregulation, the FAA has faced similar challenges in modernizing the air traffic system. These efforts were impeded by a combination of financial limitations, the complexities of implementing new technologies in a comprehensive and integrated manner, and the necessity to maintain uninterrupted operation during upgrades which are costly and time-consuming.