Society And The Expansion

The formation of the Bell Telephone Company replaced an agreement between Alexander Graham Bell and his backers, chief among them Gardiner Greene Hubbard and Thomas Sanders. Renamed National Bell Telephone Company in March 1879, it became the American Bell Telephone Company in March 1880. In 1881, he bought a controlling interest in Western Electric Company Western Union. Only three years earlier, Western Union had refused the offer of Gardiner Hubbard to sell all rights to the telephone for $ 100,000 (2.41 million in 2009 dollars).


In 1880, the leadership of the American Bell created what would become AT & T Long Lines. The project was the first of its kind to create a national long-distance network with a commercially viable cost structure. This project was formally constituted into a separate company named American Telephone and Telegraph Company March 3, 1885. From New York, the network reached Chicago in 1892.

Bell telephone patent expired in 1894, but the foundation of society is much more important customer service has a lot more value than alternatives and substantial growth continued.

On 30 December 1899, the American Telephone and Telegraph Company purchased the assets of American Bell, it's because Boston corporate law (which restricts the market capitalization of ten million dollars, which prevents the direct growth of American Bell itself) were more restrictive than those in New York City, where AT & T has its headquarters.With the transfer of assets, AT & T became the parent of the Bell System.

National long distance service reached San Francisco in 1915. Transatlantic services began in 1927 using two-way radios, but the first transatlantic telephone cable did not come until 1956, with TAT-1.