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There was no point in the government intervening in antitrust cases because technology changes too fast. But the case of AT&T lead to the opposition conclusion. Two years after the IBM case collapsed the government succeeded in breaking up the telephone monopoly. Under court supervision, seven regional telephone companies - called "Baby Bells" - were set up to provide local telephone services...
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AT&T became the long-distance operator and soon faced competition from Sprint and MCI - now part of WorldCom The spur of competition led to a modernization of the sector -which has become one of the most dynamic parts of the US economy. But the seven "Baby Bells" have now become just three giant telecoms corporations, as Congress modified the law to allow local companies and the long-distance operators to compete with each other...
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