The 1970s (Growth and Regulation)


1970 - - March 1st sees the introduction of international DDD from London to New York City. The fifth transatlantic cable is placed in service on March 22nd. On June 26th, the FCC formally announces its place for regulating the cable television industry - barring the three major broadcasting networks from the cable TV field and prohibiting the joint ownership of CATV operations and over-the-air TV stations with the same community. On July 1st, the first commercial exchange offering of Picturephone service is introduced in downtown Pittsburgh, Pennsylvania. July 1st also marks the introduction of the first PhoneCenter offering customers the opportunity to select telephones, take them home and plug them in for "instant" service.

1971 - - The number of Bell System telephones in service reaches 100 million. Independent telephone companies serve 25 million and 160 million are in use in some 200 other countries. On January 22nd, the FCC announces a comprehensive investigation of AT&T - rate of return first, then mounting costs, Western Electric and service pricing. On March 16th, Mrs. Frances Jones Parker, owner of Jones the Florist, was elected a director of Cincinnati Bell and became the first woman director of a Bell affiliate. The FCC authorizes free entry into the Specialized Common Carrier (SCC) industry allowing for point-to-point private line competition with AT&T.

1972 - - On April 19th, Miss Catherine B. Cleary, president and director of the First Wisconsin Trust Company, becomes the first woman to serve as an AT&T director. In July the Bell System answers competition in the 4800 bits-per-second transmission range with the introduction of the 208A or Dataphone 4800.

1973 - - In March, Bell Laboratories announces the development of a telephone (the Touch-a-Matic) that could automatically dial a call to anywhere in the U.S. at the touch of a single button. Also in March, AT&T, eliminating the possibility of longer range problems, announces the sale of its 20 percent stock interest in Comsat. July 10th marks the 25th anniversary of the transistor by the issuance of an eight cent stamp. In August, Cincinnati Bell becomes the first phone company to receive regulatory approval to charge for Directory Assistance. (Handicapped individuals, hospitals and hotels are exempt from the 20 cent per call charge.)

1974 - - The Department of Justice files an anti-trust suit against AT&T. "The complaint...addresses the recurrence in the past three decades of anti competitive activity...which dates back almost to the foundation of AT&T". The DOJ wants a separation of "AT&T's ownership of inter city facilities from its ownership of local facilities and the separation of the current providers of telecommunications services from the manufacturer of telecommunications equipment and its allied research and development facilities".

1976 - - AT&T installs its first digital switch. The FCC launches Computer Inquiry II. Apple Computer is founded. The FCC begins a registration program for customer owned equipment attachable to the phone system. The FCC rules that SCC have exceeded their authorization for service. The Court of Appeals disagrees and the next two years will find this issue heavily debated.

1977 - - First lightwave system is installed in Chicago, Illinois. The FCC authorizes Cellular Trials.

1979 - - CompuServe goes on line. The number of subscriber telephone lines in the United States is now 175.2 million.


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