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The monopoly position of the Bell System in the U.S. was ended on January 8, 1982. AT&T Corporation proposed by in a consent decree to relinquish control of the Bell Operating Companies, which had provided local telephone service in the United States. [1]
The Bell System was a system of telecommunication companies, led by the Bell Telephone Company and later by the American Telephone and Telegraph Company (AT&T), that dominated the telephone services industry in North America for over 100 years from its creation in 1877 until its antitrust breakup in 1983.
United States v. AT&T, 552 F.Supp. 131 (1982), was a ruling of the United States District Court for the District of Columbia, [1] that led to the 1984 Bell System divestiture, and the breakup of the old AT&T natural monopoly into seven regional Bell operating companies and a much smaller new version of AT&T.
The terms required the breakup of the Bell System, including removing local telephone service from AT&T control and placing business restrictions on the divested local telephone companies in exchange for removing other longstanding restrictions on what businesses AT&T could own and manage. [1]: 125
The telephone played a major communications role in American history from the 1876 publication of its first patent by Alexander Graham Bell onward. In the 20th century the American Telephone and Telegraph Company (AT&T) dominated the telecommunication market as the at times largest company in the world, until it was broken up in 1982 and replaced by a system of competitors.
A "Baby Bell" is a local telephone company in the United States that was in existence at the time of the breakup of AT&T into the resulting Regional Bell Operating Companies (RBOCs). Sometimes also referred to as an "ILEC" (Incumbent Local Exchange Carrier) they were the former Bell System or Independent Telephone Company responsible for ...
While AT&T periodically faced scrutiny from regulators, this state of affairs continued until the company's breakup in 1984. Throughout most of the 20th century, AT&T held a semi-monopoly on phone service in the United States and Canada through a network of companies called the Bell System. At this time, the company was nicknamed Ma Bell.
The Bell Telephone Company was the initial corporate entity from which the Bell System originated to build a continental conglomerate and monopoly in telecommunication services in the United States and Canada. The company was organized in Boston, Massachusetts, on July 9, 1877, by Alexander Graham Bell's father-in-law Gardiner Greene Hubbard.