Bell System breakup

The Bell System breakup in 1984 was when the U.S. government ordered the largest telephone company to be divided into separate companies. This was done to promote competition and prevent one company from dominating all phone services. Before, AT&T (the Bell System) handled almost everything related to phones—local, long-distance, and equipment. After the breakup, AT&T remained as a nationwide long-distance provider, while regional companies, called Baby Bells, took over local phone services. This change encouraged innovation, better service, and lowered prices by fostering competition among multiple companies.