The 1980s (Divestiture and a "Whole New Ballgame")


1980 - - The FCC issues its Computer Inquiry II decision which differentiated between basic and enhanced services. Basic service requires regulation. AT&T must now provide unregulated services through a fully separated subsidiary.

1981 - - IBM introduces the desktop personal computer (IBM PC).

1982 - - The FCC approves Cellular start-ups with two licensees per market. AT&T and the DOJ sign consent decree settling the DOJ's anti-trust case by divesting AT&T of its local telephone companies. Judge Green issues the Modified Final Judgment (MFJ).

1983 - - The scramble begins within AT&T to divest itself. ISDN trials begin in Japan. The U.S. has its first cellular subscriber. Microsoft announces Windows. The FCC creates and approves the "Customer Line Access Charge".

1984 - - The AT&T Divestiture creates seven (7) regional regional Bell operating companies. The Bell System has ended. British Telecom is privatized. Apple Computer introduces the Macintosh. Motorola sells its first portable cellular telephone. AT&T Technologies introduces the System 75 digital PBX for business users. IBM buys ROLM Corporation, the U.S. third largest business telephone system manufacturer and provider. Bellcore is established as a research and educational resource by the RBOCs "replacing" the lost Bell Laboratories.

1985 - - Teleport, the first competitive access provider, is established in New York City.

1986 - - The first round of "Equal Access" is completed by the RBOCs and independents.

1987 - - The U.S. reaches its one millionth cellular subscriber. ISDN trials begin in the United States. AT&T proposed price cap regulation.

1988 - - The first transatlantic fiber optic cable is completed. "Equal Access" is completed for 90% of RBOC subscriber lines and 70% of independent subscriber lines. The first "commercial" offering of ISDN service in the United States.

1989 - - Fiber to the home trials begin in Cerritos, CA. Judge Green allows AT&T but excludes the RBOCs from entering electronic publishing industry. The FCC sets price cap regulation for AT&T. The number of subscriber telephone lines in the United States is now 138.1 million; in the world: 496.0 million.


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