AT&T Site Visit Alternative Assignment-OPRE 6378- Kundan Rapolu (1).docx - AT&T Kundan Rapolu OPRE 6378-501 Supply Chain Strategy AT&T History AT&T

AT&T Site Visit Alternative Assignment-OPRE 6378- Kundan Rapolu (1).docx

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AT&T Kundan Rapolu 3/10/2020 OPRE 6378-501 Supply Chain Strategy
AT&T History: AT&T is currently in the Major Telecommunication Industry and specifically in the Communication Sector. The company had started in 1899 and been in communications since then. AT&T was originally named as the American Telephone and Telegraph Company which built much of the United States’ long distance and local telephone network. It was started by Alexander Graham Bell, who was the first person to invent the telephone, initially as a subsidiary responsible for building long-distance telephone lines from 1885. In 1899, the company had officially been the parent company of Bell Systems which was when its history started as a company. An important executive that was responsible for molding the organizational structure that AT&T used from around the start of the company to 1984 was Theodore N. Vail, who was brought back by the company as president in 1907 after the subsidiary turned parent company was facing growing competition from independent phone companies and telephone manufacturers. He had helped the company through his goal of establishing a monopoly over the telecommunication industry consisting of AT&T acquiring independent companies. This model allowed AT&T to provide long-distance service to all independent telephone companies from 1913, (which was later affirmed through the Graham- Willis Act of 1921). In 1939, AT&T controlled 83% of all US telephone lines and manufactured 90% of all U.S phone equipment and had about 1 million employees, however they were forced to reduce these monopolistic practices with the Sherman Antitrust Act that was brought the Justice Department which made AT&T divorce Western Electric from the Bell System. AT&T had unfortunately been hit with another Antitrust Act in 1974 which made them divest itself into 22 regional “operating companies” which will operate local telephone networks rather than have 1 corporation control it; these 22 companies later had reorganized themselves into 7 regional phone companies in 1984, and were known as the Baby Bells. Despite all the divorcing, AT&T

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