The Bell System was a monopoly of telecommunications companies that served North America for over a century. It was led by the Bell Telephone Company, which later became the American Telephone and Telegraph Company (AT&T). The term “Ma Bell” was often used to describe the system’s vertical monopoly on telecommunications products and services in most areas of the United States and Canada.
The Bell System, which included esteemed research and development facility Bell Laboratories, was dissolved in 1983 when AT&T’s 22 operating companies were divested by court order. After 1934, the Federal Communications Commission (FCC) took over the regulation of AT&T. Until its dissolution, the Bell System was the largest company in the world and had over one million employees.
Bell Labs, within the Bell System, was responsible for some groundbreaking scientific discoveries. In 1937, Clinton Davisson, a Bell Labs researcher, won the Nobel Prize in Physics for demonstrating that electrons have both wave and particle properties. In 1947, Bell Labs invented the transistor, which earned researchers John Bardeen, Walter H. Brattain, and William B. Shockley the Nobel Prize in Physics in 1956. Bell Labs also developed the first electronic telephone switching system in the 1960s and designed the world’s first satellite communications system, Telstar. In 1978, two Bell researchers, Arno Penzias and Robert W. Wilson, received the Nobel Prize for discovering cosmic microwave background radiation.
Frequently Asked Questions (FAQ)
What was the Bell System?
The Bell System was a system of telecommunications companies and one of the largest monopolies in history. It was led by the Bell Telephone Company and later by the American Telephone and Telegraph Company (AT&T). The Bell System dominated the telephone services industry in North America from its inception in 1877 until its antitrust breakup in 1983.
Who managed the Bell System?
The Bell System was managed by the American Telephone and Telegraph Company (AT&T), which started as the Bell Telephone Company. The Bell System included esteemed research and development facility Bell Laboratories, Western Electric Company (responsible for manufacturing the system), and 22 operating companies.
What happened to the Bell System?
The Bell System was dissolved in 1983 when AT&T’s 22 operating companies were divested by court order. The Federal Communications Commission (FCC) took over regulation of AT&T in 1934. At the time of its dissolution, the Bell System had over one million employees and $150 billion in assets (equivalent to $390 billion in 2021 dollars).
Conclusion
The Bell System was a revolutionary and powerful player in the telecommunications industry for over a century. The system’s leadership, American Telephone and Telegraph Company (AT&T), was responsible for the majority of telecommunications products and services in most areas of the United States and Canada until its antitrust breakup in 1983. Before its dissolution, Bell Labs made several groundbreaking scientific discoveries, including the invention of the transistor in 1947.
