Breakup of Ma Bell

The breakup of Ma Bell, officially called AT&T, in 1984 was a major antitrust case that divided the company to encourage competition. Prior to that, AT&T held a monopoly over phone services across the U.S., meaning it was the only provider. The government agreed to break it into multiple regional companies called "Baby Bells," which handled local calls. This allowed new companies to compete, improve services, and innovate. AT&T retained its long-distance (interstate) operations. The breakup aimed to foster a more competitive, efficient telephone industry and better consumer choices.