The American Telephone and Telegraph Company Divestiture: Background, Provisions, and Restructuring
Report No. 84-58 E I -. <I?....*- ".YII. -n, -- THE AMERICAN TELEPHONE AND TELEGRAPH COMPANY DIVESTITURE: BACKGROUND, PROVISIONS, AND RESTRUCTURING b Y Angele A. Gilroy Specialist in Industrial Organization Economics Division COLLECTION WKI HEKN !CNTUCKY LIBRARY April 11, 1984 11 i :::A L.'~~-l.ii.e makes jucn research available. without parti- ::;I.. in lr:m\ !orrns inc!uding studies. reports. cornpila- ;,)I!., I!:<?\[>. :md l:a~kqroi~ndhrietings. Cpon request. CRS .. ., :i ~ !>!r::z:rrir.e.;in ann1~-zingle+slative proposals and -tl:..b. :!nd in s>w;sinq the possible effects of these proposals . < :!I irie.The Ser~ice'ssenior specialists and ii,:c( r :iil.,;ii ?is are also at-aiiable for personal consultations ;xi-ir :.t>.;!?ecri\-elieid.; t~f'expertise. ABSTRACT On January 1, 1984, The American Telephone and Telegraph Company (AT&T) di- vested itself of a major portion of its organizational structure and functions. Under the post-divestiture environment the once fully-integrated Bell System is now reorganized into the "new" AT&T and seven Ladependent regional 5olding ?om- panies -- American Information Technologies Corp., 3ell Atlantic Corp., 3ell- South Corp., NYNEX Corp., Pacific Telesis Group., Southwestern Bell Corp., and U.S. West, Inc. The following analysis provides an overview of the pre- and post-divestiture organizational structure and details the evolution of the anti- trust action which resulted in this divestiture. CONTENTS ABSTRACT ................................................................ iii INTRODUCTION ............................................................ 1 1 . BELL SYSTEM CORPORATE REORGANIZATION .............................. 3 A . Predivestiture Bell System Corporate Structure ................ 3 B . Divested Operating Company Structure .......................... 5 C . Post-Divestiture AThT Organizational Structure ................ 7 11.
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