Breaking Up AT&T

Archive Report

AT&T's Reorganisation

Enticipated Effects of AT&T Divestiture

New Year's Day will ring in a new era for the tele-communications industry. On Jan. 1, 1984, American Telephone & Telegraph Co. — the world's largest company — will be broken up into eight separate entities. AT&T will continue to provide regulated long-distance service and will be allowed for the first time to enter into new, unregulated fields. Local phone service will continue to be provided by existing local operating companies until Jan. 1. Then they will be grouped into seven regions, each controlled by a newly created, independent holding company.

The breakup of the “Bell System” — affecting nearly one million workers and $150 billion in assets — will be the biggest corporate reorganization ever undertaken. While it is ...

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