COMMERCIAL GROWTH OF THE TELEPHONE

In 1876 American inventor Alexander Graham Bell ushered in a new era of voice and sound telecommunication when he uttered to his assistant the words, "Mr. Watson, come here; I want you," using a prototype telephone. Bell received the patent for the first telephone, but he had to fight numerous legal challenges to his patent from other inventors with similar devices. Bell was able to make his prototype telephone work, and this enabled him to attract financial backers, and his company grew. The telephone was a vast improvement over the telegraph system, which could only transmit coded words and numbers, not the sound of a human voice. Telegraph messages had to be deciphered by trained operators, written down, and then delivered by hand to the receiving party, all of which took time. The telephone transmitted actual sound messages and made telecommunication immediate. Improved switching technology (used to transfer calls from one local network to another) meant individual telephones could be connected for personal conversations.

The first commercial telephone line was installed in Boston, Massachusetts, in 1877. Early telephones required direct connections to other telephones, but this problem was solved with telephone exchange switches, the first of which was installed in New Haven, Connecticut, in 1878. A telephone exchange linked telephones in a given area together, so a connection between the telephone and the exchange was all that was needed. Telephones were much more convenient and personal than telegrams, and their use quickly spread. By 1913 telephone lines from New York City to San Francisco had been established, and by 1930 radio signals could transmit telephone calls between New York and London, England. Eventually, long-distance telephone service in the United States was consolidated into one company, the American Telephone and Telegraph Company (now known as AT&T Corp.), which was a regulated monopoly.