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The AT&T breakup is a little more complicated. Long distance prices actually dropped tremendously under AT&T especially when you include inflation. Night/Week
by Retric 2y ago
The AT&T breakup is a little more complicated.
Long distance prices actually dropped tremendously under AT&T especially when you include inflation. Night/Weekend 3.10$ per minute (35.23$ inflation adjusted) in 1955 down to 0.87$ (3.50$ inflation adjusted) in 1980. They benefited from that 90% price drop in 25 years as people would make more and longer calls at lower rates. https://www.scribd.com/document/422152895/FCC-Report-1950-1994-AT-T-US-Long-Distance-Phone-Rates https://www.scribd.com/document/422152895/FCC-Report-1950-19...
People often show price drops after the breakup, but AT&T started installing fiber in 1977 so those price drops are mostly a continuation of the same technical advancements rather than competition.
- jordanb 2y agoAt&t did not reduce rates under the consent decree, regulators did. But the specific complaint that led to antitrust action had more to do with the control at&t was exerting over the network preventing the adoption of new technology by customers.
- Retric 2y agoI didn’t say AT&T decided to reduce long distance rates, just that those rates fell 90% while AT&T was a monopoly. Breaking them up was very likely a net positive, I am simply referring to nuance that’s often glossed over.