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==History==

==History==

===Invention of the Telephone===

===Invention of the Telephone===

The history of AT&T can be traced back to the time when Alexander Graham Bell invented the telephone. In 1875, Gardiner Hubbard and Thomas Sanders financially supported Alexander Graham Bell in inventing the first telephone.<ref>[http://www.corp.att.com/history/history1.html Origins of AT&T]</ref> On July 1, 1875, Bell was able to transmit speech sounds through electricity however, the words can't be understood. Bell drafted a patent application and specification for his invention and labeled it as "improvement in telegraphy." He delayed his patent application because of a promise made to another investor named George Brown that he will not file a U.S. patent until a patent is applied in Britain. However, Gardiner Hubbard filed the patent application to the United States Patent Office without Bell’s knowledge on February 14, 1876. Bell received his first patent no. 174, 465 on March 10 on that same year. Bell continued experimenting on his device. On March 10, 1876, he used his latest design, a liquid transmitter hooked to an electric circuit in transmitting the first spoken words to his assistant Thomas Watson. At his end, Watson heard clearly Bell’s statement, “Mr. Watson, come here, I want you.” <ref>[http://www.corp.att.com/history/inventing2.html Inventing the Telephone]</ref> The first telephone was invented and subsequently on January 30, 1877 Bell’s second patent no. 186, 787 was issued to him by the U.S. Patent Office.<ref>

The history of AT&T can be traced back to the time when Alexander Graham Bell invented the telephone. In 1875, Gardiner Hubbard and Thomas Sanders financially supported Alexander Graham Bell in inventing the first telephone.<ref>[http://www.corp.att.com/history/history1.html Origins of AT&T]</ref> On July 1, 1875, Bell was able to transmit speech sounds through electricity, although the sounds were unintelligible. Bell drafted a patent application and specification for his invention and labeled it as "improvement in telegraphy." He delayed his patent application because of a promise made to another investor, George Brown, that he would not file a U.S. patent until a patent was applied in Britain. However, Gardiner Hubbard filed the patent application to the United States Patent Office on February 14, 1876 without Bell’s knowledge. Bell received his first patent no. 174, 465 on March 10 on that same year. Bell continued experimenting with his device. On March 10, 1876, he used his latest design, a liquid transmitter hooked to an electric circuit, to transmit the first intelligible, spoken words to his assistant, Thomas Watson. At his end, Watson heard clearly Bell’s statement, “Mr. Watson, come here, I want you.”<ref>[http://www.corp.att.com/history/inventing.html Inventing the Telephone]</ref> Thus, the first telephone had been invented, and subsequently, on January 30, 1877, Bell’s second patent no. 186, 787 was issued by the U.S. Patent Office.<ref>

[http://books.google.com/books?id=3KzVAAAAMAAJ&pg=PA383&lpg=PA383&dq=Alexander+Graham+Bell+second+patent&source=bl&ots=C9jmOTkW-N&sig=dsL574Obgj8GAQItJkmvOdiwNNo&hl=en&ei=JUJPTufxOYLmiALm3pChAQ&sa=X&oi=book_result&ct=result&resnum=9&ved=0CFQQ6AEwCA#v=onepage&q=Alexander%20Graham%20Bell%20second%20patent&f=false The Bell telephone: The deposition of Alexander Graham Bell…]</ref>

[http://books.google.com/books?id=3KzVAAAAMAAJ&pg=PA383&lpg=PA383&dq=Alexander+Graham+Bell+second+patent&source=bl&ots=C9jmOTkW-N&sig=dsL574Obgj8GAQItJkmvOdiwNNo&hl=en&ei=JUJPTufxOYLmiALm3pChAQ&sa=X&oi=book_result&ct=result&resnum=9&ved=0CFQQ6AEwCA#v=onepage&q=Alexander%20Graham%20Bell%20second%20patent&f=false The Bell telephone: The deposition of Alexander Graham Bell…]</ref>

===American Bell Telephone Company===

===American Bell Telephone Company===

On July 9, 1877, Bell, Hubbard and Sanders established the Bell Telephone Company. The management of the company was primarily handled by Hubbard because Bell was not interested in becoming a businessman.<ref>[http://www.corp.att.com/history/inventing.html Inventing the Telephone]</ref> Bell Telephone Company acquired its first license to operate a telephone exchange in New Haven, Connecticut in 1878. <ref>[http://www.corp.att.com/history/history1.html Origins of AT&T]</ref> Hubbard hired '''Theodore Vail''' as the new General Manager of the Bell Telephone Company in the midst of 1878. Vail was responsible in creating the Bell System, the world's biggest telecommunications monopoly.<ref>[http://www.telephonymuseum.com/telephone%20history.htm Telephone History: The Early Years]</ref>  

On July 9, 1877, Bell, Hubbard and Sanders established the Bell Telephone Company. The management of the company was primarily handled by Hubbard because Bell was not interested in becoming a businessman.<ref>[http://www.corp.att.com/history/inventing.html Inventing the Telephone]</ref> Bell Telephone Company acquired its first license to operate a telephone exchange in New Haven, Connecticut in 1878. <ref>[http://www.corp.att.com/history/history1.html Origins of AT&T]</ref> Hubbard hired Theodore Vail as the new General Manager of the Bell Telephone Company in 1878. Vail was responsible for creating the Bell System, the world's biggest telecommunications monopoly.<ref>[http://www.telephonymuseum.com/telephone%20history.htm Telephone History: The Early Years]</ref> In 1880, Bell Telephone Company was incorporated in Massachusetts as American Bell Telephone Company.<ref>[http://www.telcomhistory.org/vm/histories.shtml Telecommunications Virtual Museum]</ref>  

In 1880, Bell Telephone Company was incorporated in Massachusetts as '''American Bell Telephone Company.'''<ref>[http://www.telcomhistory.org/vm/histories.shtml Telecommunications Virtual Museum]</ref>  

In 1882, American Bell Telephone Company purchased majority shares of the Western Electric Company, which became its primary supplier for telephone equipment.<ref>[http://www.corp.att.com/history/milestones.html Milestones in AT&T History]</ref>

In 1882, American Bell Telephone Company purchased majority shares of the '''Western Electric Company''' which became its primary supplier for telephone equipment.<ref>[http://www.corp.att.com/history/milestones.html Milestones in AT&T History]</ref>

=== The Establishment of American Telephone and Telegraphic (AT&T) Company===

=== The Establishment of American Telephone and Telegraphic (AT&T) Company===

On March 3, 1885, American Bell Telephone Company incorporated its fully-owned subsidiary, the '''American Telephone and Telegraphic Company''' known today as AT&T to operate long distance communication in New York.<ref>[http://www.porticus.org/bell/bellsystem_history.html#The Bell System The Bell System from "Encyclopedia of Telecommunications" - Charles L. Brown Copyright (c) 1991 by Marcel Dekker, Inc.]</ref>  

On March 3, 1885, American Bell Telephone Company incorporated its fully-owned subsidiary, the American Telephone and Telegraphic Company, known today as AT&T, to operate long distance communication in New York.<ref>[http://www.porticus.org/bell/bellsystem_history.html#The Bell System The Bell System from "Encyclopedia of Telecommunications" - Charles L. Brown Copyright (c) 1991 by Marcel Dekker, Inc.]</ref> This allowed AT&T to get an unlimited amount of financial backing and the power to purchase, develop, own, license, and lease telephone lines, and ultimately to achieve their primary objective of connecting every town or city in the State of New York, and eventually every town and city from Canada, Mexico, and all other countries around the world.<ref>[http://www.corp.att.com/history/nethistory/ History of the AT&T Network]</ref> Theodore Vail later became the President of AT&T. In 1892, AT&T opened its first long distance telecommunication service between Chicago and New York. The rate was $9 for 5 minutes.<ref>[http://www.corp.att.com/history/milestones.html AT&T First Long Distance Communication]</ref> In 1894, Bell's second patent expired and the competition in telephone communication business began. In 1899, AT&T became the parent company of the Bell System after acquiring all assets of the American Bell Telephone Company. In 1915, the San Francisco long distance communication line became operational.<ref>[http://www.corp.att.com/history/history1.html Origins of AT&T]</ref>

This allowed AT&T to get financial backing to an unlimited amount and the power to to purchase, develop, own, license, lease telephone lines and to achieve the companys primary objective of AT&T to connect every town or city in the State of New York as well as every town and city from Canada, Mexico and all other countries around the world.<ref>[http://www.corp.att.com/history/nethistory/ History of the AT&T Network]</ref> Theodore Vail became the President of AT&T. In 1892, AT&T opened its first long distance telecommunication service between Chicago to New York. The rate was $ 9 for 5 minutes. <ref>[http://www.corp.att.com/history/milestones.html AT&T First Long Distance Communication]</ref> In 1894, Bells second patent expired and the competition in telephone communication business began. In 1899, AT&T became the parent company of the '''Bell System''' after acquiring all the assets of the American Bell Telephone Company. In 1915, the San Francisco long distance communication line became operational. <ref>[http://www.corp.att.com/history/history1.html Origins of AT&T]</ref>

==The Bell System: The Largest Telecommunications Monopoly==

==The Bell System: The Largest Telecommunications Monopoly==

The '''Bell System''' was composed of the American Telephone & Telegraph (AT&T) Long Lines also known as (''Ma Bell''), 22 regional operating companies known as '''Baby Bells''', which provide telephone exchange services and equipment within the United States, the''' Bell Laboratories''', research and development subsidiary of AT&T and the '''Western Electric Company''', its manufacturing arm. The companies within the Bell System embraced the spirit of united service to the public, the biggest employer in America where employees felt secured in their job.<ref>[http://www.porticus.org/bell/bellsystem_history.html The Bell System]</ref>

The Bell System was composed of the American Telephone & Telegraph (AT&T) Long Lines, also known as "Ma Bell;" 22 regional operating companies known as "Baby Bells," which provide telephone exchange services and equipment within the United States; Bell Laboratories, the research and development subsidiary of AT&T; and the Western Electric Company, its manufacturing arm. The companies within the Bell System embraced the spirit of united service to the public, and were the biggest employer in America, where employees felt secured in their job.<ref>[http://www.porticus.org/bell/bellsystem_history.html The Bell System]</ref>

===Foundations & Guiding Principle of the Bell System===

===Foundations & Guiding Principle of the Bell System===

The two patents issued to '''Alexander Graham Bell''' on his improvement to the telegraphy became the technological foundation in the development of the telephone while the '''Bell Patent Association''' served as the organization foundation of the Bell System.<ref>[http://www.porticus.org/bell/capsule_bell_system.html#Alexander Graham Bell and the Invention of the Telephone A Capsule History of the Bell System--The Corporation is Born]</ref>

The two patents issued to Alexander Graham Bell for his improvement to telegraphy became the technological foundation in the development of the telephone while the '''Bell Patent Association''' served as the organization foundation of the Bell System.<ref>[http://www.porticus.org/bell/capsule_bell_system.html#Alexander Graham Bell and the Invention of the Telephone A Capsule History of the Bell System--The Corporation is Born]</ref>

The founders and the entire management of the Bell System operated on the principle that research and development is a better approach to achieve better communications leading to the success of the company.<ref>[http://www.porticus.org/bell/capsule_bell_system.html A Capsule History of the Bell System---Research, Manufacture and Western Electric]</ref>

The founders and the entire management of the Bell System operated on the principle that research and development is a better approach to achieve better communications leading to the success of the company.<ref>[http://www.porticus.org/bell/capsule_bell_system.html A Capsule History of the Bell System---Research, Manufacture and Western Electric]</ref>