The Willis Graham Act of 1921 effectively established telephone companies as natural monopolies, citing that "there is nothing to be gained by local competition in the telephone industry." [1] The law effectively released AT&T from terms of its Kingsbury Commitment, allowing the company to acquire competing telephone companies under the oversight of the Interstate Commerce Commission (ICC). [2] It was enacted by the 67th United States Congress and signed into law by President Warren G. Harding on June 10, 1921. [3] [4]
The American Telephone and Telegraph Company (AT&T) was incorporated in 1885 as a wholly owned subsidiary of American Bell. On December 30, 1899, AT&T acquired the assets of American Bell and became the parent company of the Bell System. [5] For extending telephone service nationwide, new technologies had to be developed to propagate telephony signals over ever-increasing distances. Until Bell's second patent expired in 1894, Bell Telephone was the only company that could legally operate telephone systems in the United States. Between 1894 and 1904, after Bell's patents expired, over six thousand independent telephone companies arose in the US.
The rise of these new companies brought new problems. Telephone customers on different carriers had no way of contacting each other—there was no inter-connectivity between carriers. [5] In order to connect all of the telephone customers, AT&T began acquiring independent telephone providers, much to the dismay of remaining independents. [6] These independents complained to the attorney general that AT&T was eliminating the competition. In response to this, the attorney general referred the case to the Interstate Commerce Commission (ICC), which began an investigation. AT&T then agreed to a settlement, now known as the Kingsbury Commitment. [6] This consisted of a letter from AT&T stating that "Bell agreed to provide interconnection to the independents and to refrain from further acquisitions." [7]
However, AT&T continued to acquire more non-competing companies. The Willis-Graham Act, which was passed in 1921, shifted merger oversight to the ICC, lessening AT&T's constraints on the acquisition of competitors. [8] This essentially repealed the Kingsbury Commitment. Because of this, by 1924 AT&T had acquired 223 of the 234 independent telephone companies with the approval of the ICC. [1]
The Kingsbury Commitment is a 1913 out-of-court settlement of the United States government's antitrust challenge against the American Telephone and Telegraph Company (AT&T) for the company's then-growing vertical monopoly in the telecommunication industry. In return for the government's agreement not to pursue legal action against the company as a monopolist, AT&T agreed to divest the controlling interest it had acquired in the Western Union Telegraph Company, and to allow non-competing independent telephone companies to interconnect with the AT&T long-distance network.
A telephone company is a kind of communications service provider (CSP), more precisely a telecommunications service provider (TSP), that provides telecommunications services such as telephony and data communications access. Many telephone companies were at one time government agencies or privately owned but state-regulated monopolies. The government agencies are often referred to, primarily in Europe, as PTTs.
The Mann–Elkins Act, also called the Railway Rate Act of 1910, was a United States federal law that strengthened the authority of the Interstate Commerce Commission (ICC) over railroad rates. The law also expanded the ICC's jurisdiction to include regulation of telephone, telegraph and wireless companies, and created a commerce court.
The Communications Act of 1934 is a United States federal law signed by President Franklin D. Roosevelt on June 19, 1934, and codified as Chapter 5 of Title 47 of the United States Code, 47 U.S.C. § 151 et seq. The act replaced the Federal Radio Commission with the Federal Communications Commission (FCC). It also transferred regulation of interstate telephone services from the Interstate Commerce Commission to the FCC.
Telus Communications Inc. (TCI) is the wholly owned principal subsidiary of Telus Corporation, a Canadian national telecommunications company that provides a wide range of telecommunications products and services including internet access, voice, entertainment, healthcare, video, smart home automation and IPTV television. The company is based in the Vancouver, British Columbia, area; it was originally based in Edmonton, Alberta, before its merger with BC Tel in 1999. Telus' wireless division, Telus Mobility, offers UMTS, and LTE-based mobile phone networks. Telus is the incumbent local exchange carrier in British Columbia and Alberta. Its primary competitors are Rogers Communications and Bell Canada. Telus is a member of the British Columbia Technology Industry Association.
The telecommunications policy of the United States is a framework of law directed by government and the regulatory commissions, most notably the Federal Communications Commission (FCC). Two landmark acts prevail today, the Communications Act of 1934 and the Telecommunications Act of 1996. The latter was intended to revise the first act and specifically to foster competition in the telecommunications industry.
Bell Canada is a Canadian telecommunications company headquartered at 1 Carrefour Alexander-Graham-Bell in the borough of Verdun in Montreal, Quebec, Canada. It is an ILEC in the provinces of Ontario and Quebec; as such, it was a founding member of the Stentor Alliance. It is also a CLEC for enterprise customers in the western provinces.
Universal service is an economic, legal and business term used mostly in regulated industries, referring to the practice of providing a baseline level of services to every resident of a country. An example of this concept is found in the US Telecommunications Act of 1996, whose goals are:
An incumbent local exchange carrier (ILEC) is a local telephone company which held the regional monopoly on landline service before the market was opened to competitive local exchange carriers, or the corporate successor of such a firm.
In telecommunications, a long-distance call (U.S.) or trunk call is a telephone call made to a location outside a defined local calling area. Long-distance calls are typically charged a higher billing rate than local calls. The term is not necessarily synonymous with placing calls to another telephone area code.
Alberta Government Telephones (AGT) was the telephone provider in most of Alberta from 1906 to 1991.
The Interstate Commerce Act of 1887 is a United States federal law that was designed to regulate the railroad industry, particularly its monopolistic practices. The Act required that railroad rates be "reasonable and just," but did not empower the government to fix specific rates. It also required that railroads publicize shipping rates and prohibited short haul or long haul fare discrimination, a form of price discrimination against smaller markets, particularly farmers in Western or Southern Territory compared to the official Eastern states. The Act created a federal regulatory agency, the Interstate Commerce Commission (ICC), which it charged with monitoring railroads to ensure that they complied with the new regulations.
A public service company is a corporation or other non-governmental business entity which delivers public services - certain services considered essential to the public interest. The ranks of such companies include public utility companies like natural gas, pipeline, electricity, and water supply companies, sewer companies, telephone companies and telegraph companies. They also include public services such as transportation of passengers or property as a common carrier, such as airlines, railroads, trucking, bus, and taxicab companies.
The Kellogg Switchboard and Supply Company was an American manufacturer of telecommunication equipment. Anticipating the expiration of the earliest, fundamental Bell System patents, Milo G. Kellogg, an electrical engineer, founded the company in 1897 in Chicago to produce telephone exchange equipment and telephone apparatus.
An independent telephone company was a telephone company providing local service in the United States or Canada that was not part of the Bell System organized by American Telephone and Telegraph. Independent telephone companies usually operated in many rural or sparsely populated areas.
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. The system of companies was often colloquially called Ma Bell, as it held a vertical monopoly over telecommunication products and services in most areas of the United States and Canada. At the time of the breakup of the Bell System in the early 1980s, it had assets of $150 billion and employed over one million people.
AT&T Corporation is the subsidiary of AT&T Inc. that provides voice, video, data, and Internet telecommunications and professional services to businesses, consumers, and government agencies.
The International Bell Telephone Company (IBTC) of Brussels, Belgium, was created in 1879 by the Bell Telephone Company of Boston, Massachusetts, a precursor entity to the American Telephone and Telegraph Company (AT&T), initially to sell imported telephones and switchboards in Continental Europe.
The history of AT&T dates back to the invention of the telephone. The Bell Telephone Company was established in 1877 by Alexander Graham Bell, who obtained the first US patent for the telephone, and his father-in-law, Gardiner Greene Hubbard. Bell and Hubbard also established American Telephone and Telegraph Company in 1885, which acquired the Bell Telephone Company and became the primary telephone company in the United States. This company maintained an effective monopoly on local telephone service in the United States until anti-trust regulators agreed to allow AT&T to retain Western Electric and enter general trades computer manufacture and sales in return for its offer to split the Bell System by divesting itself of ownership of the Bell Operating Companies in 1982.
Telus Corporation is a Canadian publicly traded holding company and conglomerate, headquartered in Vancouver, British Columbia, which is the parent company of subsidiaries—Telus Communications, Telus Mobility, Telus Health, Telus Agriculture, and Telus International. Telus offers a range of telecommunications, health, safety, and security products and services. It is listed with the Toronto Stock Exchange. Telus Communications Inc. offers telephony, television, data and Internet services; Telus Mobility, offers wireless services; Telus Health operates companies that provide health products and services; and Telus International operates worldwide, providing multilingual customer service outsourcing and digital IT services.
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