A Lesson from AT&T History

It's always useful to look at history.

Since AT&T lawyers seem to be doing the most grumbling about opening the iPhone to other carriers, I thought it might be helpful to look at AT&T’s reign as a near monopoly in American telephone service, or at very least the predominating force, until the “divestiture� on January 1, 1984 gave regional service to the Baby Bells.

You needn't look very far to notice a very telling fact. 

Indeed, it is something which always struck me as the most telling about AT&T’s 100-year rule - something which says it all, I think, about the impact of near-monopolies on phone service:

The telephone was invented in 1876.  It wasn't until the 1950s that more than 50% of Americans enjoyed telephone service in their homes.

Yes, the pace of progress was a little different, then, but not that different.  Television was in more than 90% of American homes by end of the 1950s, a little more than ten years after it was introduced commercially.

AT&T held its service very close to its vest.  Customers in effect leased phones from AT&T.  You had no choice but to use its service.  Sound familiar?

Under this regime, it took more three quarters of a century for phone service to reach the homes of more than 50% of Americans.

Unfortunately, AT&T seems to have not learned very much from this experience.  It is trying its same old tricks with iPhone service.  Fortunately, it looks like we won't have to wait a hundred years to divest ourselves of these tricks.