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Bell System

The Bell System logo and trademark as it appeared in 1969


Logo used from 1889 to 1900

The Bell System was the system of companies, led by


the Bell Telephone Company and subsequently by AT&T, eventually comprised all telephone companies owned by
which provided telephone services to much of the United American Telephone & Telegraph, referred to internally
States and Canada from 1877 to 1984, at various times as associated companies, regional holding companies, or
as a monopoly. On December 31, 1983, the system was later Bell operating companies (BOCs).
broken up into independent companies by a U.S. Justice
Department mandate. In 1899, American Telephone & Telegraph (AT&T) ac-
quired the assets of its parent, the American Bell Tele-
The colloquial term Ma Bell (as in Mother Bell) was phone Company. Originally American Bell had created
often used by the general public in the United States to AT&T to provide long distance calls between New York
refer to any aspect of this conglomerate, as it held a near and Chicago and beyond. AT&T became the parent of
complete monopoly over all telephone service in most ar- American Bell, and thus the head of the Bell System, be-
eas of the country, and is still used by many to refer to any cause regulatory and tax rules were leaner in New York
telephone company. Ma Bell is also used to refer to the than in Boston, where American Bell was headquartered.
various female voices behind recordings for the Bell Sys- Later, the Bell System and its moniker Ma Bell became
tem: Mary Moore, Jane Barbe, and Pat Fleet (the current a term that referred generally to all AT&T companies of
voice of AT&T). which there were four major divisions:

AT&T Long Lines, providing long lines to intercon-


1 History nect local exchanges and long distance calling ser-
vices.
Further information: History of AT&T
Western Electric Company, Bells equipment man-
ufacturing arm,
In 1877, the American Bell Telephone Company, named
after Alexander Graham Bell, opened the rst telephone Bell Labs, conducting research and development for
exchange in New Haven, Connecticut. Within a few years AT&T.
local exchange companies were established in every ma-
jor city in the United States. Use of the Bell System name Bell operating companies, providing local exchange
initially referred to those early telephone franchises and telephone services.

1
2 1 HISTORY

In 1913, under AT&T ownership, the Bell Systems grow-


ing monopoly over the phone system was challenged
by the government in an anti-trust suit, leading to the
Kingsbury Commitment, under which they escaped being
broken up or nationalized in exchange for divesting them-
selves of Western Union and allowing non-competing
independent telephone companies to interconnect with
their long distance network. After 1934, AT&T was
regulated by the Federal Communication Commission
(FCC). Proliferation of the telephone allowed the com-
pany to become the largest corporation in the world until
its dismantling by the United States Department of Jus-
tice in 1984, at which time the Bell System ceased to
exist.[1]

1.1 Formation under Bell patent

Receiving a U.S. patent for the invention of the telephone


Bell System trademark used by AT&T and aliated companies
on March 7, 1876, Alexander Graham Bell formed the
from 1921 to 1939
Bell Telephone Company in 1877, which in 1885 became
AT&T.[2][3][4] When Bells original patent expired 15
years later in 1894, the telephone market opened to com-
petition and 6,000 new telephone carriers started while
the Bell Telephone company took a signicant nancial
downturn.[2][4]
On April 30, 1907, Theodore Newton Vail returned as
President of AT&T.[2][4] Vail believed in the superiority
of one phone system and AT&T adopted the slogan One
Policy, One System, Universal Service.[2][5] This would
be the companys philosophy for the next 70 years.[4]
Under Vail, AT&T began buying up many of the
smaller telephone companies including Western Union
telegraph.[2][4] Anxious to avoid action from govern-
ment antitrust suits, AT&T entered into an agreement
known as the Kingsbury Commitment with the federal
government.[2][5]

1.2 Kingsbury Commitment

Main article: Kingsbury Commitment

Following a government antitrust suit in 1913, AT&T


agreed to the Kingsbury Commitment in which AT&T
would sell their $30 million in Western Union stock, al- 195 Broadway, HQ for most of 20th century
low competitors to interconnect with their system, and
not acquire other independent companies without per-
mission from the U.S. Interstate Commerce Commission 1.3 Nationwide monopoly
(ICC).[2][4][6]
The Bell trademark pictured here was used from 1921 Bell system telephones and related equipment were made
through 1939 by both the AT&T corporation and the re- by Western Electric, a wholly owned subsidiary of AT&T
gional operating corporations to co-brand themselves un- Co. Member telephone companies paid a xed fraction
der a single Bell System trademark. The regional operat- of their revenues as a license fee to Bell Labs.
ing corporations name was placed where name of asso- As a result of this vertical monopoly, by 1940 the Bell
ciated company appears in this template version of the System eectively owned most telephone service in the
trademark. United States, from local and long-distance service to the
3

the Bell Systems reach was truly gargantuan. Even dur-


ing the period from 1956 to 1984, the Bell Systems dom-
inant reach into all forms of communications was perva-
sive within the United States and inuential in telecom-
munication standardization throughout the industrialized
world.
The 1984 Bell System divestiture brought an end to the
aliation branded as the Bell System. It resulted from
another antitrust lawsuit led by the U.S. Department of
Justice in 1974, alleging illegal practices by the Bell Sys-
tem companies to stie competition in the telecommuni-
cations industry. The suit was settled on January 8, 1982,
superseding the former restrictions that AT&T and the
DOJ had agreed upon in 1956.

2 Present-day usage of the Bell


name
The Bell System service marks, including the circled-bell
logo, especially as redesigned by Saul Bass in 1969, and
the words Bell System in text, were used before January
1, 1984, when the AT&T divestiture of its regional op-
erating companies took eect. Currently, the word mark
Bell, the logo, and other related trademarks, are held by
The Spirit of Communication as used on the Bell Systems direc- each of the remaining Bell companies, namely AT&T,
tories in the 1930s-40s
Verizon, CenturyLink, and Cincinnati Bell.[7] Interna-
tional rights to the marks, except for Canada, are held
telephones themselves. This allowed Bell to prohibit their by a joint venture of these companies, Bell IP Holdings.
customers from connecting phones not made or sold by
Bell to the system without paying fees. For example, if a
customer desired a type of phone not leased by the local
Bell monopoly, he or she had to purchase the phone at
cost, give it to the phone company, then pay a 're-wiring'
charge and a monthly lease fee in order to use it.
In 1949, the United States Department of Justice alleged
in an antitrust lawsuit that AT&T and the Bell System
operating companies were using their near-monopoly in
telecommunications to attempt to establish unfair advan-
tage in related technologies. The outcome was a 1956
consent decree limiting AT&T to 85% of the United
States national telephone network and certain govern-
ment contracts, and from continuing to hold interests in
Canada and the Caribbean. The Bell Systems Canadian
operations included the Bell Canada regional operating
company and the Northern Electric manufacturing sub-
sidiary of the Bell Systems Western Electric equipment
manufacturer. Northern Electric was spun o in 1956 by
Western Electric, but AT&T did not spin o Bell Canada
until 1975. The Bell Systems Caribbean regional operat-
ing companies were sold to the ITT Corporation, known
at the time as International Telephone & Telegraph Co.
The Bell System also owned various Caribbean regional
operating companies, as well as 54% of NEC and a post- A Verizon payphone with the Bell logo
World War II reconstruction relationship with NTT be-
fore the 1956 boundaries were emplaced. Before 1956, Of the various resulting 1984 spinos, only BellSouth ac-
4 3 SUBSIDIARIES

tively used and promoted the Bell name and logo during via its own research and development adapted the de-
its entire history, from the 1984 break up to its merger signs of Western Electrics North American telecom-
with the new AT&T in 2006. Similarly, cessation of us- munications equipment for use in Japan, which to this
ing either the Bell name or logo occurred for many of the day gives much of Japans telephone equipment and net-
other companies more than a decade after the 1984 break work a closer resemblance to North American ANSI
up as part of an acquisition-related rebranding. The oth- and Telcordia standards than to European-originated
ers have only used the marks on rare occasions to main- ITU-T standards. Before the 1956 break-up, North-
tain their trademark rights, even less now that they have ern Electric was predominantly focused only on man-
adopted names conceived long after divestiture. Exam- ufacturing without any signicant amount of separate
ples include Verizon, which still uses the Bell logo on telecommunication-equipment research & development
its trucks and payphones, and Qwest, formerly US West, of its own. The post-World War II-occupation operation
which licenses the Northwestern Bell and Mountain Bell of NTT was considered an administrative adjunct to the
names to Unical Enterprises, who makes telephones un- North American Bell System.
der the Northwestern Bell name.
Cincinnati Bell, a local franchise of the Bell System that Nortel Networks Corporation, formerly Northern
was never wholly owned by AT&T and existed sepa- Telecom, an equipment-manufacturing company
rately prior to 1984, also continues to use the Bell name.
It stopped using the Bell logo in the summer of 2006, Nortel led for bankruptcy in US, Canada &
though it is still seen on some bills, vehicles, and other UK during 2009 - assets sold to Avaya (below)
literature. and Genband (non-Bell)
In 1984, each regional Bell operating company was as- Northern Electric, a former telecommunica-
signed a set list of names they were allowed to use in com- tions equipment-manufacturing subsidiary of
bination with the Bell marks. Again, aside from Cincin- Western Electric
nati Bell, none of these Bell System names are currently in Dominion Electric, a former recording
use in the United States. For example, Southwestern Bell equipment-manufacturing company
used both the Bell name and the circled-bell trademark
until SBC opted for all of its companies to do business Various former Caribbean regional operating com-
under the SBC name in 2002. Bell Atlantic used the panies, sold to ITT
Bell name and circled-bell trademark until renaming it-
self Verizon in 2000. Pacic Bell continued operating in NEC, a currently existing equipment-manufacturing
California under that name (or the shortened PacBell company in Japan
nickname) until it was bought out by SBC.
Nippon Electric, a former telecommunica-
Of the various resulting 1984 spinos, only Bell Canada
tions equipment-manufacturing company 54%
continues to use the Bell name, although cessation of us-
owned by Western Electric
ing either the Bell name and circled-bell trademark oc-
curred for some of these companies multiple decades
NTT, a currently existing telecommunications com-
later. For example, for the multiple decades that Nortel
pany in Japan that was administered by AT&T as
was named Northern Telecom, their research and devel-
part of General Douglas MacArthurs post-WWII
opment arm was Bell Northern Research. Bell Canada
reconstruction
and its holding-company parent, Bell Canada Enterprises,
still use the Bell name and used variations of the circled-
bell logo until 1977, which until 1976 strongly resembled
the 1921 to 1939 Bell System trademark shown above.

3 Subsidiaries

3.1 Pre-1956 international holdings

Before the 1956 break-up, the Bell System included the


companies listed below, plus those listed in the pre-1984
section. Northern Electric, and the Caribbean regional
operating companies were considered part of the Bell
System proper before the 1956 break-up. Nippon Elec-
tric was considered a more distant aliate of Western Manhole cover with Bell System logo
Electric than Northern Electric, where Nippon Electric
3.3 1984 5

3.2 Pre-1984 breakup Bell Telephone Laboratories, Inc. (R&D,


co-owned between AT&T and Western
See also: Bell System Divestiture Electric)
Cincinnati Bell, Inc. (22.7% owned)
Immediately before the 1984 break-up, the Bell System The Southern New England Telephone Com-
consisted of the following corporate structure: pany (16.8% owned)
Bellcomm, Inc. (1963-1972; formed to sup-
American Telephone and Telegraph Company, a port the Apollo program)
holding company and long-distance carrier

Illinois Bell Telephone Company 3.3 1984


Indiana Bell Telephone Company, Incorpo-
rated On January 1, 1984, the former components of the Bell
Michigan Bell Telephone Company System were structured as such:

New England Telephone and Telegraph Com-


American Information Technologies Corpora-
pany
tion
New Jersey Bell Telephone Company
Illinois Bell Telephone Company
New York Telephone Company
Indiana Bell Telephone Company, Incorpo-
Northwestern Bell Telephone Company rated
Pacic Northwest Bell Telephone Company Michigan Bell Telephone Company
South Central Bell Telephone Company The Ohio Bell Telephone Company
Southern Bell Telephone and Telegraph Com- Wisconsin Bell, Inc.
pany
Southwestern Bell Telephone Company American Telephone and Telegraph Company

The Bell Telephone Company of Pennsylvania AT&T Communications, Inc.


The Chesapeake and Potomac Telephone AT&T Information Systems, Inc.
Company AT&T Technologies, Inc.
The Chesapeake and Potomac Telephone Bell Telephone Laboratories, Inc.
Company of Maryland
Bell Atlantic Corporation
The Chesapeake and Potomac Telephone
Company of West Virginia New Jersey Bell Telephone Company
The Chesapeake and Potomac Telephone The Bell Telephone Company of Pennsylvania
Company of Virginia The Chesapeake and Potomac Telephone
The Diamond State Telephone Company Company
The Mountain States Telephone and Telegraph The Chesapeake and Potomac Telephone
Company Company of Maryland
Malheur Home Telephone Company The Chesapeake and Potomac Telephone
The Ohio Bell Telephone Company Company of West Virginia

The Pacic Telephone and Telegraph Com- The Chesapeake and Potomac Telephone
pany Company of Virginia
The Diamond State Telephone Company
Bell Telephone Company of Nevada
Wisconsin Telephone Company Bell Communications Research, Inc., owned
equally by all the Baby Bells
Other subsidiaries:
BellSouth Corporation
Bell Canada (1880-1975)
Southern Bell Telephone and Telegraph Com-
Northern Electric (equipment manufac- pany
turing in Canada) (1914-1956)
South Central Bell Telephone Company
Western Electric Co., Inc. (equipment manu-
facturing) Cincinnati Bell, Inc.
6 3 SUBSIDIARIES

Cincinnati Bell Telephone Company The Ohio Bell Telephone Company, a


currently existing regional LEC
NYNEX Corporation
Wisconsin Bell, Inc., a currently existing
New York Telephone Company regional LEC
New England Telephone and Telegraph Com- BellSouth Corporation, a current subsidiary.
pany Its two operating companies merged into one:
BellSouth Telecommunications, LLC, a
Pacic Telesis Group currently existing regional LEC, includes
Pacic Bell Telephone Company Southern Bell & South Central Bell
Southwestern Bell Telephone Company, a cur-
Nevada Bell Telephone Company
rently existing regional LEC
Southwestern Bell Corporation
Verizon Communications, Inc., formerly Bell At-
Southwestern Bell Telephone Company lantic Corporation, a currently existing holding com-
pany
The Southern New England Telephone Com-
pany NYNEX Corporation, a former RBOC hold-
ing company
U S WEST, Inc. Verizon New England, Inc., a currently
Northwestern Bell Telephone Company existing regional LEC
Verizon New York, Inc., a currently ex-
Pacic Northwest Bell Telephone Company
isting regional LEC
The Mountain States Telephone and Telegraph
Verizon Delaware LLC, a currently existing
Company
regional LEC
Malheur Home Telephone Company
Verizon Maryland, Inc., a currently existing
regional LEC
3.3.1 Today Verizon New Jersey, Inc., a currently existing
regional LEC
After 1984, there were multiple mergers of the operat-
Verizon Pennsylvania, Inc., a currently exist-
ing companies themselves, as well as multiple Baby Bells
ing regional LEC
that came together, and some components are now in the
hands of companies independent from the historic Bell Verizon Washington, D.C., Inc., a currently
System. The structure of the companies today is as fol- existing regional LEC
lows. Verizon Virginia, Inc., a currently existing re-
Regional Bell Operating Companies: gional LEC

CenturyLink, Inc., a currently existing indepen-


AT&T Inc., a currently existing holding company
dent LEC holding company
AT&T Corp., a current subsidiary
Qwest Communications International, Inc., a
AT&T Teleholdings, Inc. (formerly holding company acquired in 2011; originally
Ameritech Corporation), a current sub- a non-Bell company, acquired and merged U
sidiary, also includes now defunct Pacic S WEST in 2000.
Telesis
Qwest Services Corporation, a holding
Illinois Bell Telephone Company, a cur- company within the Qwest corporate
rently existing regional LEC structure
Indiana Bell Telephone Company, In- Qwest Corporation, a currently exist-
corporated, a currently existing regional ing regional LEC, originally Moun-
LEC tain Bell, includes defunct Mal-
Michigan Bell Telephone Company, a heur Bell, Northwestern Bell, Pacic
currently existing regional LEC Northwest Bell
Pacic Bell Telephone Company, a cur-
The following telephone companies are considered
rently existing regional LEC
independent of the Baby Bells:
Nevada Bell Telephone Company,
a currently existing regional LEC, Cincinnati Bell, Inc., a currently existing indepen-
omitted from the MFJ dent LEC holding company
7

Bell Telephone Laboratories, Inc., the


former AT&T-corporate research unit

Avaya, Inc., a currently -existing equipment manu-


Cincinnati Bells alternative logo retains the iconic Bell logo. facturing company spun o from Lucent in 2000

LSI Corporation, a currently existing holding com-


Cincinnati Bell Telephone Company LLC, a
pany
currently existing LEC of which AT&T owned
27.8% before 1984 and thus was left separate
Agere Systems, incorporated on August 1,
in the 1984 break-up
2000, the former Micro Electronics subsidiary
FairPoint Communications, Inc., a currently ex- of Lucent was then spun o in 2002 and ac-
isting independent LEC holding company quired by LSI in 2007

Northern New England Telephone Operations Systimax Solutions, the Western Electric Struc-
LLC, a regional LEC created when Verizon tured Cabling unit, once known as AT&T Network
New England lines in Maine and New Hamp- Systems was spun o from Avaya in 2002 and is now
shire were sold to FairPoint in 2008 part of CommScope
Telephone Operating Company of Ver-
mont LLC, a regional LEC created when Telefonaktiebolaget L. M. Ericsson, a Swedish
Verizon New England lines in Vermont communications company
were sold to FairPoint in 2008
Telcordia Technologies, Inc., a currently exist-
Frontier Communications Corporation, a cur- ing research company, formerly known as Bell
rently existing independent LEC holding company Communications Research (Bellcore)

Frontier Communications ILEC Holdings,


Inc., an LEC holding company created by Beginning in 1991, the Baby Bells began to consolidate
Verizon and sold to Frontier in 2010 operations or legally rename their Bell Operating Com-
panies according to the parent company name, such as
Frontier West Virginia, Inc., a currently
Bell Atlantic Delaware, Inc. or U S WEST Com-
existing regional LEC, formerly C&P
munications, Inc., to unify the corporate image. To
Telephone of West Virginia
this day, the only remaining Baby Bell that has not re-
The Southern New England Telephone Com- named its operating companies is AT&T, formerly SBC
pany, a currently existing regional LEC that Communications. Since 2001, there have only been 17 of
AT&T owned 16.8% of before 1984 and thus the original 22 Bell Operating Companies, following the
was left separate by the 1984 break-up mergers of U S WEST's and BellSouth's operating com-
panies and reincorporation of Southwestern Bell. Only 9
The following companies were spun o after 1984 from of those 19 have retained their original corporate name
AT&T Corp. or the Baby Bells and do not provide tele- since their incorporation before 1984.
phone service.

Alcatel-Lucent, a currently existing equip- 4 See also


ment/research company
Alcatel-Lucent USA, Inc., a research company American Telephone & Telegraph Company
spun o separately in 1995 (as Lucent Tech-
nologies) and merged with Alcatel in 2006 Bell System divestiture
Western Electric Company, Incorpo-
Bell Telephone Company
rated, a former telecommunications
and recording equipment-manufacturing
Bell Telephone Memorial
company that ceased to have that name
as of the 1984 break-up Independent telephone company
Alcatel-Lucent Bell, a present-day
subsidiary of Alcatel-Lucent that was Push-button telephone
founded in Antwerp, Belgium in
1882, by Western Electric. It came RBOC (Regional Bell Operating Company)
into Alcatel-Lucent ownership via
ITT and Alcatel. The Telephone Cases
8 6 EXTERNAL LINKS

5 References
[1] AT&T Corporation. AT&T History: The Bell System.
Archived from the original on September 6, 2008. Re-
trieved 2008-12-22.

[2] Unnatural Monopoly: Critical Moments. Cato Institute.


Archived from the original on 10 September 2008. Re-
trieved 2008-09-17.

[3] Bells Telephone. Franklin Institute. Archived from the


original on 12 September 2008. Retrieved 2008-09-17.

[4] AT&T Milestones in AT&T History. AT&T. Archived


from the original on 28 September 2008. Retrieved 2008-
09-17.

[5] AT&T History: The Bell System. AT&T. Archived


from the original on 3 October 2008. Retrieved 2008-
09-17.

[6] Brooks, John. Telephone: The First Hundred Years,


Harper & Row, 1976, ISBN 978-0-06-010540-2.

[7] USPTO record for trademark serial no. 73727728 (exam-


ple Bell registration originally held by Pacic Telesis):
Registration is nationwide, but is subject to the condition
that registrant shall use the mark only in conjunction with
one or more of the following modiers; Nevada Bell,
Pacic Bell, Pacic Telephone, Pacic Telesis, or
PacTel. Use of a modier shall be considered to be in
conjunction with the mark if it is used in sucient prox-
imity to the mark such that a reasonable observer would
normally view the mark and the modier in a single visual
impression and would recognize that both the mark and
the modier are used by registrant. Registrants right to
exclusive use of the mark is subject to the rights of the
[other RBOCs], to which concurrent registrations in the
mark have also been issued, to use the mark in conjunc-
tion with one or more of the modiers specied in those
registrations[...]"

6 External links
Bell.com

Bell System Memorial


Blue Bell Telephone Sign History New England
Telephone and Telegraph
AT&T Corporation (1885-2005 company) History

BellSouth vs. FCC reference for company names


USPTO see trademark database
9

7 Text and image sources, contributors, and licenses


7.1 Text
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Mxn, Saint-Paddy, EdwinHJ, Dale Arnett, Rfc1394, Anthony, Pmcray, Alan Liefting, Vaoverland, DocWatson42, Cool Hand Luke, Rick
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man, Jerryseinfeld, Aquillion, David Gale, Guy Harris, Ravenhull, Harej, Bookandcoee, Ceyockey, Red dwarf, Crosbiesmith, Richard
Arthur Norton (1958- ), The JPS, Mindmatrix, Stickguy, Crackerbelly, Kosher Fan, Don-Don, SDC, Mandarax, Stromcarlson, BD2412,
Rjwilmsi, Vegaswikian, LjL, SchuminWeb, Ground Zero, Kmorozov, Kellergraham, Jaraalbe, Bgwhite, Hawaiian717, Gridlock Joe, Spl,
Rsrikanth05, Bovineone, NawlinWiki, Cmjc80, Reward, Ke5crz, Bantosh, Scheinwerfermann, SFGiants, Nikkimaria, Museo8bits, Hy-
pernick1980, JLaTondre, Benandorsqueaks, Airconswitch, One, Jmchu, SmackBot, InverseHypercube, Hmains, Larryincinci, Lapsus
Linguae, Chris the speller, Bluebot, Jgera5, Lexlex, Nbarth, Gracenotes, X570, Msr69er, KaiserbBot, KansasCity, Cherrydude, Com-
pletesentence, Ritchie333, Cybercobra, JanCeuleers, Akmarch, Esrever, SuperNova, John, Nickmoss, Isaacl, Iridescent, Lottamiata, Al-
musinc, Eladamri~enwiki, Mazdapickup89, JForget, Stjen, Almcshane, Evilgohan2, Hyena Cub, Cydebot, Bill Hemingray Meier, Un-
cleBubba, After Midnight, Quartic, Barticus88, Quintote, Leuqarte, Harryzilber, SteveSims, RBBrittain, SHCarter, Froid, Olivercorlett,
JMyrleFuller, A1000, GuelphGryphon98, Calltech, MartinBot, Agricolae, Hogie75, Jim.henderson, Centpacrr, R'n'B, Pbroks13, Trusil-
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Tray, ClueBot NG, Ditch Fisher, BG19bot, Neji56565onyoutube, Eric abiog, Finnusertop, Prestigiouzman, Xoegki, LukasMatt, Pariah24,
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