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AT&T wasn't created by the government, yet there was a government intervention into the market, led by nationalisation. " Around 1917, the idea that everyone i
by ghostwriter 8y ago
AT&T wasn't created by the government, yet there was a government intervention into the market, led by nationalisation.
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Around 1917, the idea that everyone in the country should have phone service and that the government should promote that began being discussed in government. AT&T agreed, saying in a 1917 annual report: "A combination of like activities under proper control and regulation, the service to the public would be better, more progressive, efficient, and economical than competitive systems." In 1918 the federal government nationalized the entire telecommunications industry, with national security as the stated intent. Rates were regulated so that customers in large cities would pay higher rates to subsidize those in more remote areas. Vail was appointed to manage the telephone system with AT&T being paid a percentage of the telephone revenues.
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https://en.wikipedia.org/wiki/History_of_AT%26T#Monopoly https://en.wikipedia.org/wiki/History_of_AT%26T#Monopoly