On February 28TH 1885 AT&T was born. Capitalized on only $100,000, American Telephone and Telegraph provided long distance service for American Bell. Only local telephone companies operating under Bell granted licenses could connect to AT&T’s long distance network. Vail thought this would continue the Bell System’s virtual monopoly after its key patents expired in the 1890s. He reasoned the independents could not compete since they would be isolated and without long distance lines. With licensed companies providing local service, Western Electric manufacturing equipment and AT&T providing long distance, Vail’s structuring of the Bell System was now complete.

On this day in Telephone History February 28TH 1885

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On this Day in Telephone History, February 28TH 1885,  AT&T was Born. Capitalized on only $100,000, American Telephone and Telegraph provided long distance service for American Bell. Only local telephone companies operating under Bell granted licenses could connect to AT&T’s long distance network. Vail thought this would continue the Bell System’s virtual monopoly after its key patents expired in the 1890s. He reasoned the independents could not compete since they would be isolated and without long distance lines. With licensed companies providing local service, Western Electric manufacturing equipment and AT&T providing long distance, Vail’s structuring of the Bell System was now complete.