Breakup of the Bell System
1982 US government action ending telephone monopoly
Breakup of the Bell System
The Bell System held a virtual monopoly over telephone infrastructure in the United States from around the early 20th century until January 8, 1982. It consisted of the parent American Telephone & Telegraph Company (AT&T), which directly provided long-distance service, while local service was provided by 24 local Bell Operating Companies, which were owned whole or in part by AT&T, while its manufacturing subsidiary Western Electric produced almost all of its equipment, which was largely designed at the research and development subsidiary Bell Labs. As a result, AT&T had substantial control over the United States' communications infrastructure. The breakup of the system was initiated in 1974 when the United States Department of Justice filed United States v. AT&T, an antitrust lawsuit against AT&T. Relinquishing ownership of Western Electric was one of the Justice Department’s primary demands. Believing that it was about to lose the suit, AT&T proposed an alternative: breaking up the Bell...
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