In 1984, the Department of Justice reached an agreement with AT&T that:
A) allowed AT&T to continue to provide local telecommunications service to established customers but prevented it from accepting any new customers.
B) allowed the so-called Baby Bells to provide long-distance service to their local customers.
C) separated AT&T from the regional Bell operating companies.
D) led to significant degrees of competition and the reduction of monopoly power in local markets with most of the change coming within 10 years after the agreement.

Question

Quizplus · Accepted Answer

The agreement between the Department of Justice and AT&T in 1984 led to the separation of AT&T from the regional Bell operating companies. This resulted in the creation of seven Baby Bells, which were given the responsibility of providing local telecommunications services. The agreement also allowed AT&T to provide long-distance service but prohibited it from entering the local service market. This led to a reduction in monopoly power in local markets, but it took several years for significant competition to emerge.

In 1984, the Department of Justice Reached an Agreement with AT&T