resolved in 1982 in the Modification of Final Judgment (MFJ) which required AT&T to divest its 22 local operating companies. The MFJ also required that the 22 operating companies be reorganized them into seven regional holding companies. Under the MFJ, AT&T retained its long distance service, the Bell Laboratories and Western Electric.
In 1969, the FCC granted MCI an application to provide intercity private-line services-via microwave transmission-between Chicago and St. Louis, and competition in long-distance telephone services in the United States were provided for through policy action. A number of factors made competition possible. New technologies, including microwave radio and satellite systems made competition technically possible. Regulatory rulings-including the Above 890 Decision, which allowed users to construct private microwave systems-made competition politically possible. In 1971, the FCC expanded the original MCI decision to include all specialized common carriers along with MCI who must be allowed to interconnect to the Bell local networks. The 1971 decision was a national policy promoting full, nationwide private-line competition.
In 1973, ITT USTS unit (which was to become US Sprint) sought a specialized carrier route from Houston to New York. In response, AT&T Chairman John de Butts asked for moratorium on further experiments in economics aimed at increasing competition. In 1974, the United States Department of Justice filed an antitrust suit seeking breakup of Bell system. In 1977, the Execunet decision, gave MCI the right to offer switched long-distance services and compete directly with AT&T Long Lines, when the courts overturned the FCC's rejection of the service request by MCI.
Since early 1984 the United States telecommunications service structure has consisted of several different components. The long distance market is serviced by AT&T and other common carriers, such as MCI and US Spr...