From comments on FB group Bell Telephone..
Ed Vaughn said:
That story makes me ill. Why break what was perhaps the best-run machine in the world?
I replied:
Why? Well, it wasn’t the first time AT&T was forced to comply with government’s decisions. Like you said, it was a machine, and whether or not it was run well wasn’t the problem. The problem was technology marched ahead, but AT&T was stuck with 30 year amortization of equipment that was obsolete after 5 years. MCI ran rings around Ma Bell, charging less than a nickel a minute for long distance when AT&T was charging a dime.
To me, AT&T was a pioneer in research, but too old and stodgy – not progressive enough – in the use of their research and patents. Many experts believe that had things remained the same, we would never have advanced technologically to the point we’re at today.
The deed was done and there’s no going back. The breakup benefitted the consumer in many ways. The same thing happened to Standard Oil. It will happen again some day.