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Invention of the telephone
Although Alexander Graham Bell in credited for the invention of
the telephone, legend tells that Elisha Grey applied for a telephone
patent just a couple of hours after Bell. This was the year 1876.
Once Bell patented the telephone, the first thing he did was to
try to sell it to a telegraph company (Western Union). However,
due to the novelty of the invention, Western Union did not consider
that the telephone was a practical invention. Bell's second option
was to find financial backers that would believe in his invention
and form the Bell Telephone Company. The company was finally created
on July 9, 1877. Almost one year later, it receive the license to
provide telephone services in the United States.
A few years later, in 1900, the American Telephone and Telegraph
Company (AT&T) was created and became the parent company of the
Bell System. While Bell was handling local telephone services, AT&T’s
was created with the purpose to take charge of the long distance
business branch of the industry and its licensees. After the Bell
patents expired in 1893 and 1894, numerous other independent telephone
companies started offering services to the public. Although there
were over 6,000 independent companies, they mostly provided services
in rural areas. Bell provided services in the larger metropolitan
areas. Because the different telephone networks were not “inter-connected”,
users had to have separate telephones to be connected to separate
networks.
Although the creation of the telecom industry started with Bell's
invention, considered almost unimportant at the time, it helped
shape the way e communicate today and became one of the biggest
and fastest growing industries in history. Even the telecommunications
structure implemented from the creation of AT&T remained a standard
throughout the years, dividing services into local and long distance.
For two local bell companies to connect, these must unavoidably
do so through a long distance provider (carrier). Although the connection
structures to transfer calls from one point to another are still
the same, equipment, speed and quality have noticeably improved
over the years and will continue to do so. Once the telecom industry
bloomed, other companies appeared with the intention of competing
with what until then was only Bell and AT&T. Independent companies
appeared to provide services and even equipment (a whole industry
in itself). As AT&T discovered that these smaller companies were
becoming increasingly competitive, it started buying them out to
alleviate competition and increase revenues. Eventually, the us
government considered that AT&T was monopolizing the industry and
started to intervene in order to establish a fairer competition
between companies and created several telecom standards that are
applied to this day.
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Today
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