The settlement resulted in AT&T divesting itself of 22 regional operating companies, known as the “Baby Bells,” which were responsible for local telephone service. This monumental decision aimed to foster competition in the telecommunications industry, particularly in long-distance services, which AT&T had dominated for decades.
The breakup officially went into effect on January 1, 1984, and marked a turning point in how Americans accessed and paid for phone services. It also paved the way for innovations in telecommunications and set the stage for the eventual rise of mobile and internet technologies.
Fun Fact: Some of the “Baby Bells” eventually re-merged or evolved into the telecommunications giants we know today, including Verizon and AT&T’s own resurgence in a new form.
How do you think the breakup of the Bell System shaped today’s telecommunications industry? Do you think it ultimately benefited consumers?