The Breakup of AT&T

The breakup of AT&T, also known as the AT&T divestiture, occurred in 1982 when the U.S. government intervened to break up the telephone monopoly. AT&T, which controlled most telephone service in the U.S., was found to be stifling competition. The company was split into several smaller regional companies called "Baby Bells," allowing for increased competition and innovation in telecommunications. This move aimed to lower prices and improve service for consumers, leading to a more diverse market with various phone service providers. The breakup fundamentally reshaped the telecommunications industry in the United States.