Changes

==The Bell System Divestiture==

==The Bell System Divestiture==

In 1974, the United States Department of Justice (DOJ) filed an anti-trust lawsuit against AT&T alleging the company with monopoly and conspiracy to monopolize the entire telecommunications industry both equipment and services. At&T denied the allegations and fought the case for five years in court and lobbied the Congress to conduct hearings and amend the 1934 Communications Act which created the Federal Communications Commission (FCC), an independent regulatory body which conducted a full scale investigation of the telephone industry. The agency also implemented regulations to increase competition. In 1979, Charles L. Brown then Chairman of AT&T admitted that the company is facing difficulties in pursuing its business operations and implementing its new technologies because of the legal battles and regulations particularly the U.S. antitrust lawsuit. In 1981, AT&T initiated a settlement agreement with the Department of Justice through U.S. Attorney General William Baxter. Both parties reached a settlement agreement January 8, 1982. AT&T agreed to divest the 22 Bell operating companies. In return, the DOJ dissolved the 1956 Consent Decree which limited the business operations  of AT&T to common-carrier communications service, to license its inventions to all interested parties and its manufacturing subsidiary, the Western Electric will only manufacture equipment for the use of Bell operating companies. The Divestiture which took effect on January 1, 1984 dissolved the Bell System but AT&T was free to enter to any business interest and to compete with any new market in the telecommunications industry including the internet.<ref>[http://www.porticus.org/bell/bellsystem_history.html Divestiture and Restructuring -The End of the Bell System]</ref>

In 1974, the United States Department of Justice (DOJ) filed an anti-trust lawsuit against AT&T alleging the company with monopoly and conspiracy to monopolize the entire telecommunications industry both equipment and services. At&T denied the allegations and fought the case for five years in court and lobbied the Congress to conduct hearings and amend the 1934 Communications Act which created the Federal Communications Commission (FCC), an independent regulatory body which conducted a full scale investigation of the telephone industry. The agency also implemented regulations to increase competition. In 1979, Charles L. Brown then Chairman of AT&T admitted that the company is prosperous in terms of revenue and and it has developed new technologies, but the company is facing difficulties in pursuing its business operations and implementing its new technologies because of the legal battles and regulations particularly the U.S. antitrust lawsuit. In 1982, Brown initiated a settlement agreement with the Department of Justice through U.S. Attorney General William Baxter.<ref>[http://www.porticus.org/bell/decisiontodivest.html The Decision to Divest,Incredible or Inevitable?]</ref> Both parties reached a settlement agreement January 8, 1982. AT&T agreed to divest the 22 Bell operating companies. In return, the DOJ dissolved the 1956 Consent Decree which limited the business operations  of AT&T to common-carrier communications service, to license its inventions to all interested parties and its manufacturing subsidiary, the Western Electric will only manufacture equipment for the use of Bell operating companies. The Divestiture which took effect on January 1, 1984 dissolved the Bell System but AT&T was free to enter to any business interest and to compete with any new market in the telecommunications industry including the internet.<ref>[http://www.porticus.org/bell/bellsystem_history.html Divestiture and Restructuring -The End of the Bell System]</ref>

==References==

==References==