The Kingsbury Commitment

Once AT&T started buying out the smaller Telco companies in order to reduce competition, the U.S. Department of Justice considered this a violation of the Sherman Anti-Trust Act. Thus, in 1913, a suit was bought against AT&T wherein the company was forced to cease purchasing other telcos. This process came to be known as the Kingsbury Commitment.

The following was established through the Kingsbury Commitment:

1- Bell would establish an arrangement with the independent subscribers to provide long distance services,

2- Bell agreed to discontinue purchasing the smaller independent telephone companies

3- Telephone service would not be duplicated

4- The creation of the biggest national telecommunications facilities worldwide

Communication Act of 1934

The Communications Act of 1934 established the following:

1- Each telephone company would provide telephone service to subscribers in geographic areas.

2- Prices for telecommunications services would have to be the same for all subscribers in the area.

3- Each area "served" by a company would be known as an exchange and thus every subscriber would be tied to one serving exchange.

4- Each carrier that provided services in the geographic area would be responsible for providing all the telephone sets for the subscribers.

5- Each carrier would be responsible for providing all transmission facilities necessary.

6- Each carrier would provide the access, transmission and distribution of the calls.

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