Telephone History

1940 -- Today

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Although Germany was battling fiercely in Europe, World War Two hit the United States quite suddenly. Call volume increased dramatically after the Pearl Harbor attack. Telephone men were called into service by the thousands. 

Western Electric shifted 85% of its work to war-related projects. And, Bell Labs cranked out several innovations to help in the war effort including a gun director and improvements in radar (left, a radar system in use). Regular home phone service was put on hold and those needing service were simply out of luck. 

After the war, thousands of phones had to be installed to catch up with the demand. And of course, thousands of returning servicemen were put to work.

It seems the late 1940s were a time of innovation. The first commercial mobile phones were installed (1946 in St. Louis), Microwave Radio was introduced for use in the long distance market and television service began in earnest. In 1947, the scientists at Bell Labs (right) invented the transistor and the course of history changed. In 1948 they earned a Nobel Peace Prize for their work. 

There were 30,000,000 phones in service in 1948.

The first winds of "breaking apart the Bell System" came in 1949 when the Justice Department field suit against the Bell System under the Sherman Antitrust Act. AT&T asked for a postponement. The case dragged for a couple years. With the election of a Republican, Dwight D. Eisenhower the case was shelved for a time, as the Republican administration held a different view of anti-trust laws than the Democratic administration it replaced.

By 1956, the suit was settled. The consent decree did not split the Bell System in any way. In fact, it dealt mostly with limiting the company to the business of communications and allowing the sharing of technical information to any applicant.

The new man at the helm, Frederick Kappel brought color, style and technological advancement to the system. In 1959 the Princess phone was introduced, in 1963 the first Touch Tone phones were rolled out, and in 1965 the Trimline was introduced.

Party lines were on the decrease and by the mid-1960s only 25 percent of all phones in  America were connected through a party line. Electronic Switching offices began taking the place of the old mechanical switches. Kappel also introduced All Number Calling (ANC). Popular prefix names such as Butterfield, Spring, Rogers Park, and Yards were now gone. But it wasn't without a fight as consumers fought vigorously to keep the beloved names in place.

The 60s also saw the first communications satellites launched: Echo 1 and Telstar. And anyone as a kid in the early 60s can attest, it was quite popular to look for the satellites in a clear night sky.

By 1971 there were over 100 million phones in service.

But the 60s came to a close on a negative note--several negative notes. First, the massive union strikes against the phone companies in 1968 crippled service and divided management and craft employees. Then, huge service disruptions occurred in New York City. But that wasn't all. 

The 60s saw "alien" equipment slowly being connected to Bell System lines. Phone attachments were on the rise and customer-owned telephones were being installed at an alarming rate...alarming to the Bell System. It spawned a whole new industry; the "interconnect industry."

But that still wasn't the end. By 1970, the FCC allowed independent companies to install and maintain communications systems for businesses--a direct competition with the Bell System and their facilities. These companies were called, "common carriers." The largest was MCI.

And in 1974 another hammer blow. The government announced it was filing suit to break up the "monopolistic" Bell System. Not only did this action drag  until 1979 when it went to trial, but the action could very well have cast a slowdown of technological advances made during this period in telecommunications.

The case was assigned to Judge Harold Greene. It was said he didn't like the big Bell Company so naturally leaned at breaking the system into smaller pieces.

And he did just that.  In 1983 the government--Judge Harold Greene--had successfully torn apart the Bell System. 

After divestiture, employees, friends, colleagues immediately began working for "other" competitive companies. The system was broken into 7 "Baby bells," each with its own separate workforce, managers, and executives.

Was it good for the country, the economy? Well, depends on who you ask. Some argue that splitting the Bell System meant a more rich field for technological advances. However, Bell Labs had hundreds if not thousands of advancements...inventions. As far as the prediction of higher service costs, it seems that has not materialized as we see that long distance offerings are cut-throat and companies are competing on a price-alone basis.

Local service? With the advent of cable TV, cell phones, computers, etc., competition has entered this area as well, and the demand for land lines is decreasing.

Today our phones and equipment are for the most part, made overseas. Advancements continue at a breakneck speed. Ultra-fast communications systems are being developed and improved. 

And in dizzying speed, new companies start up every year and some of the Baby Bells have merged.

For over one hundred years, telephone service has served as the basic communication link in this country and the world. Today, cellular phones and computers have revolutionized personal and business communication. 

Are we headed for a "phone-less" future? In the January 10, 2000 edition of the Chicago Tribune, David Greenblatt, CEO for NET2PHONE, an Internet communications company stated, "Using the phone is a very unnatural way to talk to someone." 

Interesting. Opponents of Alexander Graham Bell offered the same idea over one hundred years ago when Bell was trying to "sell" people on the idea of talking into a box.    

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