WEBVTT - TechStuff Classic: The AT&T Story - Part Two

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<v Speaker 1>Welcome to Tech Stuff production from I Heart Radio. Hey there,

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<v Speaker 1>and welcome to tech Stuff. I'm your host, Jonathan Strickland.

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<v Speaker 1>I'm an executive producer with I Heart Radio and a

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<v Speaker 1>love of all things tech. And we are continuing our

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<v Speaker 1>look back in the classic episode archive with the A

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<v Speaker 1>T and T Story. Now, last week we published or

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<v Speaker 1>republished the A T and T Story Part one. This week,

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<v Speaker 1>surprise surprise, it's the A T and T Story Part two.

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<v Speaker 1>Originally this published on November six, two thousand thirteen. Let's

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<v Speaker 1>listen in. How about an episode on the history of

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<v Speaker 1>A T and T, especially the deregulation of the telco industry. Now,

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<v Speaker 1>of course we already talked about the founding of A

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<v Speaker 1>T and T, but and how it started off kind

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<v Speaker 1>of as a natural monopoly. Um, now we're going to

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<v Speaker 1>really look into how that continued and how the United

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<v Speaker 1>States government began to uh put the brakes on A

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<v Speaker 1>T and T a little bit, all right, because at

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<v Speaker 1>the beginning they had kind of been saying, you know,

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<v Speaker 1>you guys have this terrific infrastructure, you go on and

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<v Speaker 1>build that. That's terrific, right, This would be incredibly useful

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<v Speaker 1>for the United States and so and then, and they

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<v Speaker 1>took it over just for example, during World War One,

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<v Speaker 1>which we talked about in the first episode, government said

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<v Speaker 1>let's just take over this for a little bit, and

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<v Speaker 1>then returned it barely used just a couple of years later.

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<v Speaker 1>So we left off in the twenties. So we're picking

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<v Speaker 1>up right around nineteen twenty four, which is when A

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<v Speaker 1>T and T developed something that frankly, I was shocked

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<v Speaker 1>at how early the development for this technology came. I

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<v Speaker 1>didn't expect to see this. It's a telephotography, which is

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<v Speaker 1>also called a fax machine in goods. Yeah, I had

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<v Speaker 1>no idea. Yeah, people were faxing goofy little pictures of

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<v Speaker 1>of early twentieth century folklore back and forth, you know,

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<v Speaker 1>letting people know that if you if you forward this

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<v Speaker 1>one letter, Rockefeller will give you free M and m's

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<v Speaker 1>or something. I don't I I don't think that's what

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<v Speaker 1>was actually being facts at the time. I honestly, UH

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<v Speaker 1>just made all that up because it didn't research that.

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<v Speaker 1>But then I don't know what the first facts was,

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<v Speaker 1>hopefully not not some sort of email scam. We should

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<v Speaker 1>do we should do another. I think we actually got

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<v Speaker 1>a request for a facts related episode we should totally

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<v Speaker 1>look into that. Sometimes we should do one about facts

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<v Speaker 1>machines and one on facts lore, which is kind of

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<v Speaker 1>the predecessor to the Internet email memes that we see

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<v Speaker 1>today or Facebook games exactly. Okay, So things that we

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<v Speaker 1>do know about Bell Telephone Laboratories Incorporated open for business,

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<v Speaker 1>that is, that is Bell's R and D Lab, which

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<v Speaker 1>would come out with some of the most important pieces

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<v Speaker 1>of technology of the twentieth century. Exactly. Yes, Bell Labs

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<v Speaker 1>famous for their research. And here's the thing is that

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<v Speaker 1>the research that Bell Labs did was not always directly

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<v Speaker 1>related to the telephone industry, at least not in a

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<v Speaker 1>way that you could tell from the surface. But but

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<v Speaker 1>down the line would become critical. Exactly. It's it's instrument

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<v Speaker 1>at all in the way telephones work today. Now. Nineteen

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<v Speaker 1>twenty six, that's when Bell Labs and Western Electric begin

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<v Speaker 1>to make sound equipment for these crazy moving pictures that

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<v Speaker 1>are coming out of the Hollywood these days. That's crazy. Yeah,

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<v Speaker 1>so obviously not too far from the whole idea of

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<v Speaker 1>transmitting sound. Now it's recording and playing back sound in

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<v Speaker 1>a way that works in a synchronized fashion with moving pictures.

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<v Speaker 1>Nineteen seven A T and T begins trans atlantic telephone

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<v Speaker 1>service between London and the United States. But they don't

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<v Speaker 1>have a cable. There's no cable connecting the US in

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<v Speaker 1>London at this point. That would be via a radio signal. Yeah,

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<v Speaker 1>and uh, it was, you know, it was. It was

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<v Speaker 1>a slight a little expensive to make a phone call.

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<v Speaker 1>It was seventy five bucks for three minutes. Yeah, which

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<v Speaker 1>if you're looking at nineteen twenty seven dollars and then

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<v Speaker 1>you compare them to today's dollars. I I used the

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<v Speaker 1>Bureau of Labor Statistics, which uses the Consumer Price Index

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<v Speaker 1>two factor in how much stuff costs from one era

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<v Speaker 1>to another. According to that, that would be about a

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<v Speaker 1>thousand and eight dollars for those three minutes. So if

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<v Speaker 1>you've got an extremely important phone call right to your

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<v Speaker 1>British buddy, or if you're in London your Yankee friend, yeah,

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<v Speaker 1>that's pretty much. That's that's pretty expensive. UM ninety nine,

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<v Speaker 1>Bell Labs broadcast the first public demonstration of a color

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<v Speaker 1>television picture. That's early too. Yeah, and it was. The

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<v Speaker 1>thing they showed was a telephone operator, of course, dressed

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<v Speaker 1>in a colorful costume. And uh, A T and T

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<v Speaker 1>researchers that year filed a patent for coaxial cable for

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<v Speaker 1>broadband transmission. As of that year, there are more than

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<v Speaker 1>twenty million phones in the United States, and fifteen point

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<v Speaker 1>four million of those are operated by Bell. UH and

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<v Speaker 1>they've got how many four hundred and fifty thousand employees

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<v Speaker 1>They started off with one Thomas Watson. UH. Now they're

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<v Speaker 1>up to four hundred and fifty thousand. Of course Watson

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<v Speaker 1>was no longer with a company at that point, but

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<v Speaker 1>at any rate, Yeah, it's pretty amazing. And so nineteen

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<v Speaker 1>thirty Bill starts to hold demonstrations to teach customers how

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<v Speaker 1>to use dial service, the rotary dial, right, because before that,

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<v Speaker 1>whenever you picked up a phone, you would reach an

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<v Speaker 1>operator and you tell the operator where you wanted to

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<v Speaker 1>place your call. They would find out how to root

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<v Speaker 1>it and do it for you. And UH, I think

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<v Speaker 1>in the nine twenties they were starting to get into

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<v Speaker 1>some electro mechanical systems that would do that for you

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<v Speaker 1>but or for the operators, but you still had to

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<v Speaker 1>talk to an operator to get your call to where

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<v Speaker 1>it was going. This was the first time that you

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<v Speaker 1>would use a number a data set to tell the

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<v Speaker 1>phone what you wanted to do, right, So this is

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<v Speaker 1>where people started to get phone numbers and you would

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<v Speaker 1>start to dial numbers and uh and all the all

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<v Speaker 1>the switching was handled by electro mechanical switches at that

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<v Speaker 1>point forward. But you had to teach people how to

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<v Speaker 1>do this because it was new. No one had ever

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<v Speaker 1>had to do it before. And I don't know how

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<v Speaker 1>many of our listeners are familiar with the old rotary

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<v Speaker 1>dial phones. Dialing on those could be really fun if

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<v Speaker 1>you were a kid, but if you were an adult

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<v Speaker 1>making the Earth fifth or six phone call that day,

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<v Speaker 1>you just sit there and hope that none of the

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<v Speaker 1>numbers you had to call were in that nine range. Yeah,

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<v Speaker 1>where you know, you dial and you just the whole

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<v Speaker 1>thing click click ci ci cick click cick cick click.

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<v Speaker 1>Good times. So by nineteen thirty two, Bell had was

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<v Speaker 1>in control of seventy nine percent of national telecommunications market

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<v Speaker 1>in the United States. They had made acquisitions throughout those

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<v Speaker 1>years and had bought up smaller companies, so nearly of

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<v Speaker 1>all telecommunications in the US falls under that's an effectively

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<v Speaker 1>a monopoly, Oh sure, right right, And it's also up

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<v Speaker 1>from what's that about only a few years ago. So yeah,

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<v Speaker 1>so they were, they were continuing to grow, and they

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<v Speaker 1>were already practically the only game in town. So and

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<v Speaker 1>a monopoly doesn't have to really be the only business, right.

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<v Speaker 1>You don't have to be just the only one out

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<v Speaker 1>there offering something. To have a monopoly, you just have

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<v Speaker 1>to be so large that no one can realistically compete

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<v Speaker 1>with you on any similar level. So let's say, for example,

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<v Speaker 1>that Google were to to completely dominate search. They're they're

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<v Speaker 1>pretty far in the lead. Let's say they completely dominated

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<v Speaker 1>to the point where no other search engine is even close.

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<v Speaker 1>Then Google would have to start worrying about being identified

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<v Speaker 1>as a monopoly. And this is the funny thing is

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<v Speaker 1>this doesn't necessarily mean that people are practicing unfair you know, tactics.

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<v Speaker 1>That just may mean that the way they do business

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<v Speaker 1>was the way that resonated with a lot of people.

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<v Speaker 1>So you can have different views of monopolies. You can

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<v Speaker 1>either see people trying their best to try and grab

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<v Speaker 1>up as much as the pie as possible, or you

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<v Speaker 1>just see people just doing a really good job and

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<v Speaker 1>then being punished for it. So there are two sides

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<v Speaker 1>to this coin. I think in this case, in particular,

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<v Speaker 1>it was due to that entire government regulation of basically

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<v Speaker 1>allowing them to be a monopoly could be. Yeah, they

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<v Speaker 1>had a huge head start, and then the government gave

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<v Speaker 1>them an even bigger boost. Well, first of all, because

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<v Speaker 1>of that whole patent thing we talked about in the

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<v Speaker 1>last episode, they had exclusive rights for the longest time,

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<v Speaker 1>so yeah, they definitely benefited quite a bit. Moving on, so,

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<v Speaker 1>nineteen thirty four, A t T began trans Pacific telephone

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<v Speaker 1>service between the United States and Japan via radio signals.

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<v Speaker 1>So again, as with many of these beginning services, you

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<v Speaker 1>could only put through a single call at a time,

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<v Speaker 1>right and now granted they had they had improved the

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<v Speaker 1>efficiency of radio by that time. So remember just a

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<v Speaker 1>few years earlier, that transatlantic call was around seventy five

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<v Speaker 1>bucks for three minutes. They lowered the costs for Pacific calls,

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<v Speaker 1>which is amazing. It was only thirty nine bucks for

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<v Speaker 1>three minutes, yep, which in today's money would be about

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<v Speaker 1>six hundred and didn't yeah you know, forget your friends

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<v Speaker 1>in London, call your buddies over in Tokyo. Um. Yeah,

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<v Speaker 1>still expensive, but not nearly as much as it was before.

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<v Speaker 1>Now this brings us up. Ninety four is big year

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<v Speaker 1>for a T and T because that's also when the

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<v Speaker 1>United States government passed the Communications Act of nineteen thirty four.

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<v Speaker 1>They thought about passing the Communications Act of nineteen thirty

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<v Speaker 1>four nineteen thirty three, but the name just didn't work,

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<v Speaker 1>so they held off for a full year. Lawrence just

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<v Speaker 1>staring at me. She doesn't like it when I throw

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<v Speaker 1>in jokes, so especially bad ones established that that that's

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<v Speaker 1>the act that actually established the Federal Communications Commission, also

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<v Speaker 1>known as the f c C. Now the FCC did

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<v Speaker 1>not just spring out fully formed and have brand new powers.

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<v Speaker 1>It actually kind of absorbed some previously existing organizations like

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<v Speaker 1>the Federal Radio Commission and parts not all of it,

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<v Speaker 1>but parts of the Interstate Commerce Commission that governed telephone

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<v Speaker 1>and telegraph operations and kind of centralized all this because

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<v Speaker 1>this was one of those examples of how technology outpaces

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<v Speaker 1>is legislation absolutely, and so this was the United States

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<v Speaker 1>government attempt to try and catch up to the state

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<v Speaker 1>of affairs because they said, well, you know, back when

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<v Speaker 1>this was starting, we had no idea where it was

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<v Speaker 1>going to go, and now we need to be big

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<v Speaker 1>enough thing. And especially considering that more and more people

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<v Speaker 1>were using radio signals. In the way that radio signals

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<v Speaker 1>work is that you cannot have two signals on the

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<v Speaker 1>same bandwidth going out near each other because they'll conflict.

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<v Speaker 1>You end up getting interference. Interference, right, So so yeah,

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<v Speaker 1>so so government regulations starting to crack down on how

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<v Speaker 1>people could use these new fancy radio signals in order

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<v Speaker 1>to keep the airways clear for everyone's use, right. And

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<v Speaker 1>it also gave the FCC authority to regulate rates of

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<v Speaker 1>interstate and international common carriers and administration relating to electronic communication,

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<v Speaker 1>which was basically saying don't gouge your customers, right. So,

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<v Speaker 1>in other words, A T and T remember was pretty

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<v Speaker 1>much exclusive as far as long distance goes. So any

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<v Speaker 1>regional operator had to pay a toll in order for

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<v Speaker 1>their customers to be able to access law distance. So

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<v Speaker 1>if you're if let's say Lauren, You're in Atlanta and

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<v Speaker 1>you want to call me, and for some reason, I'm

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<v Speaker 1>in Omaha, Nebraska, and there are two different regional carriers,

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<v Speaker 1>and so you are using your regional carrier to tie

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<v Speaker 1>into the A T and T long distance service, and

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<v Speaker 1>then that call goes to me, Well, your regional service

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<v Speaker 1>has to pay a fee in order to access that

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<v Speaker 1>a T N T long distance, and then that fee

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<v Speaker 1>usually gets passed down to you, the customer. And this

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<v Speaker 1>was a way of preventing any company, specifically A T

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<v Speaker 1>and T, because they were really the only one who

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<v Speaker 1>could have that kind of wheeld that kind of power

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<v Speaker 1>right from raising prices so much that it puts other

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<v Speaker 1>companies out of business or it puts undue harm on

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<v Speaker 1>the consumer. That was the intent. Uh. That brings us

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<v Speaker 1>up to nine. When A T and T completed the

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<v Speaker 1>first around the world call. It went all the way

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<v Speaker 1>around the world. That seems uh, less than useful in

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<v Speaker 1>a technical sense, but good to know that they could

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<v Speaker 1>do it. It was an impressive display of technology, not practical.

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<v Speaker 1>If I want to if I want to call you,

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<v Speaker 1>I just stand up and shout over the divider between

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<v Speaker 1>our desks. I don't, I don't. No, I don't. I

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<v Speaker 1>don't not anymore, not on not on Tuesdays anyway. Not

0:12:18.480 --> 0:12:23.280
<v Speaker 1>after hr taught to me ninety seven, that's when Clinton

0:12:23.440 --> 0:12:27.160
<v Speaker 1>Davison of Bell Telephone Labs wins the Nobel Prize in

0:12:27.240 --> 0:12:32.120
<v Speaker 1>Physics for experimental confirmation of the wave nature of electrons.

0:12:32.360 --> 0:12:35.520
<v Speaker 1>So this is the first Nobel Prize awarded to someone

0:12:35.600 --> 0:12:37.720
<v Speaker 1>working out of Bell Labs. It would not be the last.

0:12:39.480 --> 0:12:42.880
<v Speaker 1>And uh, in case you're wondering the whole wave nature

0:12:42.920 --> 0:12:46.120
<v Speaker 1>of electrons, well, electrons are particles, but in the lab

0:12:46.200 --> 0:12:49.840
<v Speaker 1>we have, I say, we scientists have observed that electrons

0:12:49.880 --> 0:12:53.160
<v Speaker 1>could also behave like waves. And so this was that

0:12:53.240 --> 0:12:56.199
<v Speaker 1>whole wave particle duality thing you can hear about in

0:12:56.760 --> 0:13:00.880
<v Speaker 1>various types of particle physics, quantum mechanics, that kind thing. Uh,

0:13:01.040 --> 0:13:03.040
<v Speaker 1>we won't go into it here because it's outside the

0:13:03.040 --> 0:13:06.720
<v Speaker 1>realm of this podcast, but fascinating stuff. So it's no

0:13:06.720 --> 0:13:10.400
<v Speaker 1>no surprise they got the Nobel Prize. Now nineteen nine,

0:13:10.640 --> 0:13:15.000
<v Speaker 1>the telephone is deployed as quote a weapon of preparedness

0:13:15.120 --> 0:13:19.120
<v Speaker 1>end quote. That's also when Western Electric makes signal core

0:13:19.320 --> 0:13:22.160
<v Speaker 1>sets leading up to the US involvement in World War Two.

0:13:22.160 --> 0:13:25.960
<v Speaker 1>So signal core sets are essentially kind of like radio telephones.

0:13:26.000 --> 0:13:28.920
<v Speaker 1>It is something that certain h certain units in World

0:13:28.960 --> 0:13:31.720
<v Speaker 1>War Two had access to in order to maintain communications.

0:13:32.240 --> 0:13:36.240
<v Speaker 1>And UH just showed that this company was still very

0:13:36.320 --> 0:13:40.560
<v Speaker 1>much involved in government uh projects, which will become important

0:13:40.600 --> 0:13:42.520
<v Speaker 1>in just a minute. But before we get to that,

0:13:43.320 --> 0:13:46.800
<v Speaker 1>let's take a quick break to thank our sponsor. You've

0:13:46.840 --> 0:13:50.000
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0:13:50.040 --> 0:13:53.640
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0:13:58.920 --> 0:14:01.319
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0:14:01.320 --> 0:14:04.280
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0:14:04.320 --> 0:14:07.800
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0:14:08.200 --> 0:14:11.439
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0:14:11.520 --> 0:14:14.920
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0:14:15.000 --> 0:14:17.800
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0:14:17.880 --> 0:14:21.400
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0:14:24.480 --> 0:14:26.400
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0:14:26.480 --> 0:14:29.720
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0:14:29.760 --> 0:14:31.840
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0:14:31.840 --> 0:14:34.520
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0:14:34.840 --> 0:14:37.280
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0:14:37.400 --> 0:14:39.960
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0:14:40.080 --> 0:14:42.600
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0:14:42.640 --> 0:14:45.280
<v Speaker 1>sent you go to Hulu plus dot com Forward slash

0:14:45.320 --> 0:14:48.160
<v Speaker 1>Tech now and uh, you know, I always like to

0:14:48.200 --> 0:14:51.160
<v Speaker 1>talk about the shows I watch when I use Hulu Plus,

0:14:51.840 --> 0:14:54.840
<v Speaker 1>I gotta talk about Community. Community is one of those

0:14:54.840 --> 0:14:57.400
<v Speaker 1>shows where when I watched the first couple of episodes,

0:14:57.440 --> 0:15:00.440
<v Speaker 1>it didn't quite grab me. But as I again to

0:15:00.480 --> 0:15:03.520
<v Speaker 1>get more invested in the characters and really enjoy the

0:15:03.560 --> 0:15:06.760
<v Speaker 1>way that jokes would play out, not just over an episode,

0:15:07.040 --> 0:15:10.600
<v Speaker 1>but over several episodes, I couldn't help but feel that

0:15:10.720 --> 0:15:13.360
<v Speaker 1>was a really clever, really funny show. So if you

0:15:13.400 --> 0:15:16.040
<v Speaker 1>like running gags and if you listen to this show,

0:15:16.680 --> 0:15:19.960
<v Speaker 1>you pretty much have to go check out Community. And

0:15:19.960 --> 0:15:23.680
<v Speaker 1>we're back, all right. So now we're up to nineteen

0:15:23.960 --> 0:15:28.520
<v Speaker 1>forty one. And we talked earlier about how Bell Labs

0:15:28.640 --> 0:15:34.880
<v Speaker 1>was was pioneering coaxial cable development in the laboratory is

0:15:34.920 --> 0:15:39.000
<v Speaker 1>when they actually installed the first non experimental coaxial cable

0:15:39.280 --> 0:15:43.840
<v Speaker 1>for Bell service between Minneapolis, Minnesota and Steven's Point, Wisconsin.

0:15:43.960 --> 0:15:46.560
<v Speaker 1>So this is physical cable they're laying down for the

0:15:46.560 --> 0:15:50.840
<v Speaker 1>transmission of signals as opposed to transmitting them over the air.

0:15:51.400 --> 0:15:54.280
<v Speaker 1>UM and uh, and it was a success. Ended up

0:15:54.320 --> 0:15:58.760
<v Speaker 1>being the basis for the cable industry, also for the

0:15:58.800 --> 0:16:04.720
<v Speaker 1>early internet industry. Pretty impressive stuff. Now, this is when

0:16:04.760 --> 0:16:08.320
<v Speaker 1>World War two is being waged around the world, mostly

0:16:08.360 --> 0:16:13.560
<v Speaker 1>and of course the European and UH Southeast Asia theaters. Um.

0:16:13.600 --> 0:16:18.240
<v Speaker 1>This is also a time when Bell employees would serve

0:16:18.440 --> 0:16:21.920
<v Speaker 1>in World War two. UH and and Bell companies would

0:16:21.960 --> 0:16:24.280
<v Speaker 1>wind up producing more than one thousand two D defense

0:16:24.360 --> 0:16:29.240
<v Speaker 1>projects for all all kinds of stuff. I mean, you know, materials, radios, radar,

0:16:29.440 --> 0:16:34.320
<v Speaker 1>mind fuses, all of that technical stuff that needed to happen. Yeah.

0:16:34.400 --> 0:16:37.120
<v Speaker 1>So that another government project that was a big part

0:16:37.160 --> 0:16:39.400
<v Speaker 1>of what a T and T was doing at that

0:16:39.480 --> 0:16:43.640
<v Speaker 1>point was when A T and T begins automation of

0:16:43.760 --> 0:16:48.160
<v Speaker 1>long distance switching. So now there at this point. The

0:16:48.240 --> 0:16:51.080
<v Speaker 1>rolling it out would take years, sure, but but it

0:16:51.160 --> 0:16:54.000
<v Speaker 1>was just not only local service but also across different

0:16:54.320 --> 0:16:58.800
<v Speaker 1>local UH networks. Right right, local operators connecting to the

0:16:58.840 --> 0:17:02.520
<v Speaker 1>long distance one. We're starting to see the switching become automated. UH.

0:17:02.640 --> 0:17:07.840
<v Speaker 1>That would be a big it. Proven inefficiency to as

0:17:07.960 --> 0:17:12.000
<v Speaker 1>American households had a telephone, the problem was they all

0:17:12.040 --> 0:17:15.960
<v Speaker 1>wanted to call the other half. Yeah, so darned when

0:17:15.960 --> 0:17:19.199
<v Speaker 1>are they when are the Johnsons get that phone. We

0:17:19.240 --> 0:17:22.000
<v Speaker 1>have more to say about the early days or middling

0:17:22.080 --> 0:17:24.160
<v Speaker 1>days of a T and T, but first let's take

0:17:24.240 --> 0:17:34.960
<v Speaker 1>a quick break. Was when A T and T offers

0:17:35.000 --> 0:17:37.840
<v Speaker 1>mobile telephone service in St. Louis, Missouri, And it's not

0:17:37.880 --> 0:17:43.800
<v Speaker 1>what you're thinking of, Well, I had a car, Yeah,

0:17:44.240 --> 0:17:46.800
<v Speaker 1>these were These were not the kind of handheld devices

0:17:46.840 --> 0:17:50.800
<v Speaker 1>that that even Zach Morris would have many decades later.

0:17:50.960 --> 0:17:54.880
<v Speaker 1>That's saved by the bell reference. That's that's that's after

0:17:54.960 --> 0:17:58.800
<v Speaker 1>my time. But I get it. Um. I think each

0:17:58.960 --> 0:18:01.960
<v Speaker 1>region of service had a single antenna which could handle

0:18:01.960 --> 0:18:05.960
<v Speaker 1>about twenty calls at once at most most and sometimes

0:18:05.960 --> 0:18:08.320
<v Speaker 1>it was between twelve and twenty. It all depended upon

0:18:08.359 --> 0:18:11.960
<v Speaker 1>the antenna. Yeah. These were again using radio signals, sort

0:18:12.000 --> 0:18:15.399
<v Speaker 1>of like those those transatlantic and trans Pacific connections that

0:18:15.440 --> 0:18:18.600
<v Speaker 1>we talked about earlier, but on a more mobile scale.

0:18:18.640 --> 0:18:21.720
<v Speaker 1>You would call in and it would it would communicate

0:18:21.800 --> 0:18:24.240
<v Speaker 1>to it to his tower, kind of similar to cell service,

0:18:24.240 --> 0:18:27.280
<v Speaker 1>but it's not cell service. Yeah, if you if you

0:18:27.359 --> 0:18:30.400
<v Speaker 1>moved outside the range of that antenna, you would not

0:18:30.440 --> 0:18:32.560
<v Speaker 1>be able to place that call because there were there

0:18:32.560 --> 0:18:35.199
<v Speaker 1>weren't cells. You know, we will have to do a

0:18:35.240 --> 0:18:37.480
<v Speaker 1>full episode on how cell phones work at some point

0:18:37.480 --> 0:18:41.120
<v Speaker 1>to explain that handoff process. But there was no handoff process,

0:18:41.119 --> 0:18:42.480
<v Speaker 1>so if you moved out of range, that was it.

0:18:42.840 --> 0:18:45.720
<v Speaker 1>And these mobile telephones were enormous and heavy. They were

0:18:45.720 --> 0:18:47.560
<v Speaker 1>more akin to the sort of stuff you would have

0:18:47.600 --> 0:18:50.520
<v Speaker 1>seen in like if you've ever watched the World War

0:18:50.560 --> 0:18:53.320
<v Speaker 1>two movie where they have one of those backpack radios. Yeah,

0:18:53.359 --> 0:18:55.480
<v Speaker 1>I think I think Patent carries a few around sometimes

0:18:55.520 --> 0:18:57.840
<v Speaker 1>it's a it's a little closer to that, not quite

0:18:57.840 --> 0:19:00.840
<v Speaker 1>as military looking, but similar in size and weight. So

0:19:00.960 --> 0:19:04.080
<v Speaker 1>not something that was terribly useful for the average person,

0:19:04.119 --> 0:19:07.080
<v Speaker 1>but for some people like truck drivers it might come

0:19:07.080 --> 0:19:10.399
<v Speaker 1>in handy or other other people who happened to be

0:19:10.480 --> 0:19:13.720
<v Speaker 1>very mobile but have a large carrying capacity. On the

0:19:13.720 --> 0:19:17.760
<v Speaker 1>middle of times, um, so the this is also the

0:19:17.800 --> 0:19:22.359
<v Speaker 1>year seven when Bell Labs employees invent a particular piece

0:19:22.359 --> 0:19:24.639
<v Speaker 1>of technology that would go on to play a very

0:19:24.680 --> 0:19:28.360
<v Speaker 1>important role I think, and not only telephone industry, but

0:19:29.160 --> 0:19:31.680
<v Speaker 1>computers the future as we know it. But we're talking

0:19:31.680 --> 0:19:34.440
<v Speaker 1>about the transistor. Yep, that it was Bell Labs that

0:19:34.520 --> 0:19:37.399
<v Speaker 1>came up with the transistor. And we've talked about and

0:19:37.440 --> 0:19:39.760
<v Speaker 1>then we talked about these gentlemen before. There were three

0:19:39.800 --> 0:19:43.480
<v Speaker 1>people in particular leading that project who ended up later

0:19:43.520 --> 0:19:47.160
<v Speaker 1>on winning a Nobel Prize for that invention. That's John Bardine,

0:19:47.560 --> 0:19:51.160
<v Speaker 1>Walter Brittaine, and then William Shockley, who we talked about

0:19:51.160 --> 0:19:56.720
<v Speaker 1>recently when we were talking about another company. Shockley's shocking

0:19:56.920 --> 0:19:59.919
<v Speaker 1>views that led the some people to to become the

0:20:00.000 --> 0:20:03.679
<v Speaker 1>traitor usk or something like that. Yeah, yeah, and and

0:20:03.880 --> 0:20:06.400
<v Speaker 1>and this transistor. We talked in the previous episode about

0:20:06.480 --> 0:20:09.439
<v Speaker 1>vacuum tubes being such a huge development in the telecommunications

0:20:09.480 --> 0:20:13.760
<v Speaker 1>industry because they allowed for those first electro mechanical computers

0:20:13.800 --> 0:20:15.959
<v Speaker 1>to to work. And the transistor was what would replace

0:20:16.040 --> 0:20:20.400
<v Speaker 1>these vacuum tubes in anything that was doing computing work. Yeah,

0:20:20.680 --> 0:20:23.320
<v Speaker 1>it would allow you to do amplification, it would allow

0:20:23.359 --> 0:20:27.960
<v Speaker 1>you to do and miniaturization. Maniaturization was the big thing.

0:20:28.200 --> 0:20:32.240
<v Speaker 1>It reduced heat and it allowed for miniaturization, something that

0:20:32.280 --> 0:20:34.760
<v Speaker 1>you couldn't do with vacuum tubes, which meant that our

0:20:34.800 --> 0:20:37.920
<v Speaker 1>computers no longer would take up the space of a building,

0:20:38.040 --> 0:20:40.640
<v Speaker 1>could eventually take up the space of you know, your

0:20:40.720 --> 0:20:44.480
<v Speaker 1>pocket smartphones. All of this really makes me wonder what

0:20:44.600 --> 0:20:46.200
<v Speaker 1>would have happened. If A T and T had not

0:20:46.400 --> 0:20:49.840
<v Speaker 1>had the reach and power and the money to have

0:20:49.920 --> 0:20:52.520
<v Speaker 1>this research and development lab. You know, if if they

0:20:52.560 --> 0:20:55.560
<v Speaker 1>had not been the crazy not quite monopoly sort of

0:20:55.560 --> 0:20:58.040
<v Speaker 1>a monopoly that they were, you know, would you know

0:20:58.280 --> 0:21:01.960
<v Speaker 1>parallel development was going on in some other last Yeah,

0:21:01.960 --> 0:21:04.119
<v Speaker 1>I think we would have eventually seen the transistor, but

0:21:04.160 --> 0:21:06.320
<v Speaker 1>it probably would have come out later, and it probably

0:21:06.359 --> 0:21:10.680
<v Speaker 1>would have taken longer to get ramped up into a

0:21:10.680 --> 0:21:14.359
<v Speaker 1>a form that would be manufacturable, because this early transistor

0:21:14.680 --> 0:21:16.919
<v Speaker 1>was not something you would put in any kind of electronics.

0:21:16.960 --> 0:21:18.600
<v Speaker 1>It was more of a proof of concept. If you've

0:21:18.640 --> 0:21:21.399
<v Speaker 1>ever seen a replica of it, it was enormous. I mean,

0:21:21.400 --> 0:21:25.399
<v Speaker 1>it's one transistor. Keep in mind that your average microprocessor

0:21:25.440 --> 0:21:28.480
<v Speaker 1>could have a billion or more transistors on it. This

0:21:28.480 --> 0:21:30.280
<v Speaker 1>thing was big enough to fit like it was, it

0:21:30.280 --> 0:21:34.240
<v Speaker 1>would fit in the palm of your hand. But the wood. Yeah,

0:21:34.320 --> 0:21:36.520
<v Speaker 1>so so this is this is early days yet, so

0:21:36.560 --> 0:21:39.359
<v Speaker 1>I think our world would be significantly different had that

0:21:39.400 --> 0:21:43.760
<v Speaker 1>not happened. So let's move on to Uh. That was

0:21:43.800 --> 0:21:48.200
<v Speaker 1>when A T. T began offering networking services for TV. Yeah,

0:21:48.280 --> 0:21:51.679
<v Speaker 1>in the Northeast and the Midwest, So you know, The

0:21:51.680 --> 0:21:54.359
<v Speaker 1>way it would work is that your your networks, your

0:21:54.400 --> 0:21:57.760
<v Speaker 1>big networks, would use this service to transmit programming to

0:21:57.840 --> 0:22:00.679
<v Speaker 1>affiliated stations in different regions of the states. So that

0:22:00.720 --> 0:22:04.080
<v Speaker 1>way you could have like the Big Network broadcast out

0:22:04.080 --> 0:22:06.440
<v Speaker 1>of some place like New York and then have that

0:22:07.000 --> 0:22:10.680
<v Speaker 1>sent to to an affiliate station that might be far

0:22:10.720 --> 0:22:13.399
<v Speaker 1>across the country. This was also the year that A

0:22:13.480 --> 0:22:16.479
<v Speaker 1>ten T began to build its first microwave relay system

0:22:16.560 --> 0:22:20.800
<v Speaker 1>between New York and Boston. And microwave relay is a

0:22:20.800 --> 0:22:23.040
<v Speaker 1>an improvement on, or not an improvement, but but a

0:22:23.080 --> 0:22:26.600
<v Speaker 1>parallel development on that radio transmission that we've been talking about.

0:22:26.960 --> 0:22:30.119
<v Speaker 1>It's um it's a series of antennas or dishes that

0:22:30.240 --> 0:22:33.240
<v Speaker 1>carry data via microwave, and these can be sent to

0:22:33.320 --> 0:22:36.359
<v Speaker 1>narrow beams directly to the receiving devices, which means that

0:22:36.400 --> 0:22:39.800
<v Speaker 1>you can have multiple devices working within the same bandwidth

0:22:40.280 --> 0:22:43.879
<v Speaker 1>at the same time. So you dramatically increased capacity that way,

0:22:44.119 --> 0:22:47.080
<v Speaker 1>right right, UM. You know, they've also got a higher

0:22:47.080 --> 0:22:49.440
<v Speaker 1>bandwidth and other radio waves. But you do have to

0:22:49.520 --> 0:22:52.280
<v Speaker 1>have a direct line of sight, which means that you

0:22:52.280 --> 0:22:54.959
<v Speaker 1>know it's it's you can't have something behind a hill

0:22:55.040 --> 0:22:56.919
<v Speaker 1>or behind a tree. Or behind a house. It's not

0:22:56.960 --> 0:23:01.320
<v Speaker 1>gonna work. Yeah, So there were limitations, but still dramatic

0:23:01.359 --> 0:23:06.520
<v Speaker 1>improvements in being able to transmit information and both data

0:23:06.560 --> 0:23:10.160
<v Speaker 1>and voices it would turn out. Uh So, moving on,

0:23:10.760 --> 0:23:15.160
<v Speaker 1>we now get hit in nine with another antitrust suit.

0:23:15.640 --> 0:23:19.879
<v Speaker 1>We don't actually this would not be resolved for several years,

0:23:19.880 --> 0:23:22.000
<v Speaker 1>and believe us, we will tell you about it when

0:23:22.080 --> 0:23:24.480
<v Speaker 1>that happens. In that timeline. At that time, A T

0:23:24.560 --> 0:23:27.600
<v Speaker 1>and T controlled about eight percent of the telecommunications industry

0:23:27.600 --> 0:23:30.040
<v Speaker 1>in the United States, so still holding steady from several

0:23:30.119 --> 0:23:32.439
<v Speaker 1>years before when they were at seventy. But keep in

0:23:32.480 --> 0:23:35.600
<v Speaker 1>mind the industry is growing by leaps and bounds like

0:23:35.680 --> 0:23:39.440
<v Speaker 1>that that of American households with telephones is growing over

0:23:39.440 --> 0:23:42.320
<v Speaker 1>a time. So while A T and t s percentage

0:23:42.400 --> 0:23:46.679
<v Speaker 1>might have gone from the actual numbers are huge all right, Right.

0:23:46.720 --> 0:23:51.000
<v Speaker 1>As of seventy sevent of American households would have a telephone.

0:23:51.119 --> 0:23:53.800
<v Speaker 1>So that's that's the range that it was growing a

0:23:53.920 --> 0:23:57.399
<v Speaker 1>huge jump. Yeah, and back in nine, that's also when

0:23:57.480 --> 0:24:00.320
<v Speaker 1>A T and T introduced the five series tele phone,

0:24:00.920 --> 0:24:03.400
<v Speaker 1>which was one of the most recognizable phones ever introduced.

0:24:03.400 --> 0:24:05.880
<v Speaker 1>Have you ever seen this? It's essentially the base station

0:24:06.000 --> 0:24:09.000
<v Speaker 1>with the rotary dial on it, and then you have

0:24:09.160 --> 0:24:11.800
<v Speaker 1>the back of it. The top back has the cradle

0:24:11.840 --> 0:24:14.960
<v Speaker 1>where the handset sits. And uh, it's just one of

0:24:15.000 --> 0:24:17.320
<v Speaker 1>those phones that once you see it, you're like, oh, yeah,

0:24:17.000 --> 0:24:21.000
<v Speaker 1>that's what even if only phone I've ever seen as

0:24:21.040 --> 0:24:25.000
<v Speaker 1>a smartphone, somehow I recognize that that's a phone. Um, yeah,

0:24:25.320 --> 0:24:27.440
<v Speaker 1>because phones don't like that or sound like that anymore.

0:24:27.440 --> 0:24:30.160
<v Speaker 1>And yet it's still the enduring image, I would say.

0:24:30.359 --> 0:24:32.960
<v Speaker 1>And that's probably the where the sound that we think

0:24:33.000 --> 0:24:35.800
<v Speaker 1>of as a telephone ring comes from. As well. You know,

0:24:35.840 --> 0:24:38.439
<v Speaker 1>before we all had you know whatever Miley Cyrus ring

0:24:38.480 --> 0:24:41.560
<v Speaker 1>tones are, etcetera. Hey, let's not reveal to the listeners

0:24:41.680 --> 0:24:46.280
<v Speaker 1>what my ringtone is. But we talked about that one

0:24:46.440 --> 0:24:49.960
<v Speaker 1>A T and T introduces customer dialing of domestic long

0:24:49.960 --> 0:24:53.879
<v Speaker 1>distance calls, and it started in Inglewood, New Jersey. So

0:24:54.000 --> 0:24:57.760
<v Speaker 1>before that time, you could make local calls dialing. We

0:24:57.840 --> 0:25:00.480
<v Speaker 1>talked about that earlier, but you would still connect with

0:25:00.480 --> 0:25:03.440
<v Speaker 1>an operator to make a long distance call. Also that year,

0:25:03.800 --> 0:25:09.480
<v Speaker 1>A T and T helped broadcast a live transcontinental television show.

0:25:09.640 --> 0:25:12.760
<v Speaker 1>Actually it was an address that President Harry Truman made

0:25:12.960 --> 0:25:16.200
<v Speaker 1>to the Japan Peace Treaty Conference at the United Nations.

0:25:16.600 --> 0:25:20.919
<v Speaker 1>So big, big development in in just television broadcast at

0:25:20.920 --> 0:25:23.119
<v Speaker 1>that point, right, This was thanks to that to that

0:25:23.160 --> 0:25:25.199
<v Speaker 1>microwave really network that I was talking about that they

0:25:25.200 --> 0:25:27.879
<v Speaker 1>had spent the past few years building um As of

0:25:27.960 --> 0:25:29.879
<v Speaker 1>ninety one, it was a system of a hundred and

0:25:29.920 --> 0:25:33.960
<v Speaker 1>seven towers, some thirty miles apart each and this telecast

0:25:34.040 --> 0:25:37.280
<v Speaker 1>happened only a month after the very first call was

0:25:37.359 --> 0:25:41.240
<v Speaker 1>placed via this microwave network. They moved up their telecast

0:25:41.240 --> 0:25:44.280
<v Speaker 1>schedule by almost a month in order to accommodate President Truman.

0:25:44.560 --> 0:25:47.520
<v Speaker 1>That's pretty incredible that they were able to accommodate that

0:25:47.720 --> 0:25:52.600
<v Speaker 1>so quickly, considering that it was just recently new technology. Yeah,

0:25:52.640 --> 0:25:56.520
<v Speaker 1>that's pretty amazing. Nine. For the first time, Western Electric

0:25:56.600 --> 0:26:00.679
<v Speaker 1>begins to produce telephones in different colors, giving choices to consumers.

0:26:00.760 --> 0:26:03.959
<v Speaker 1>So it wasn't just black telephones anymore. Now you can

0:26:04.000 --> 0:26:07.520
<v Speaker 1>get them in beige. Uh. Nine fifty six was the

0:26:07.560 --> 0:26:11.800
<v Speaker 1>resolution of that anti trust lawsuit. Yeah, so this was

0:26:12.000 --> 0:26:14.879
<v Speaker 1>a big deal. So part of the antitrust lawsuit mad

0:26:15.000 --> 0:26:18.199
<v Speaker 1>that A T and T agreed to restrict itself to

0:26:18.480 --> 0:26:23.200
<v Speaker 1>just dealing with the telephone industry and also occasionally doing

0:26:23.280 --> 0:26:25.520
<v Speaker 1>any sort of projects for the federal government that was

0:26:25.640 --> 0:26:28.520
<v Speaker 1>asked of it, but otherwise to stay out of other

0:26:28.560 --> 0:26:34.080
<v Speaker 1>industries television, of the slowly burgeoning computer industry that was

0:26:34.160 --> 0:26:36.120
<v Speaker 1>going on at the time. So essentially they were they

0:26:36.119 --> 0:26:39.400
<v Speaker 1>were saying, all right, you know, we we don't want

0:26:39.440 --> 0:26:42.520
<v Speaker 1>any trouble, Mr. United States Government, we will back off.

0:26:42.680 --> 0:26:46.040
<v Speaker 1>So this is the first of that of that telco

0:26:46.160 --> 0:26:50.680
<v Speaker 1>industry regulation. But we'll get into a one that directly

0:26:50.680 --> 0:26:53.280
<v Speaker 1>affected A T and T even more than this did

0:26:53.440 --> 0:26:56.160
<v Speaker 1>another couple of decades, but see an even bigger one. Um.

0:26:56.440 --> 0:27:00.360
<v Speaker 1>This particular consent decree also included a stipulation that had

0:27:00.400 --> 0:27:03.960
<v Speaker 1>to place its patents for the transistor which which our friends,

0:27:04.480 --> 0:27:07.800
<v Speaker 1>uh the nice Studeley, Dudes, Bardine and Britain, et cetera,

0:27:07.880 --> 0:27:10.560
<v Speaker 1>and Shockley yes, uh, they won the Nobel Prize for

0:27:10.560 --> 0:27:14.040
<v Speaker 1>it this year. Um, they had to place the patents

0:27:14.080 --> 0:27:16.679
<v Speaker 1>for that transistor in the public domain and be willing

0:27:16.680 --> 0:27:21.280
<v Speaker 1>to license their tech for about dollars, which according to

0:27:21.280 --> 0:27:24.200
<v Speaker 1>that Bureau of Labor Statistics calculator, would be about two

0:27:24.280 --> 0:27:27.800
<v Speaker 1>hundred and fifteen thousand dollars. Right, And when you think

0:27:27.840 --> 0:27:32.880
<v Speaker 1>about the benefit of transistors. It's it's fortunate that that happened,

0:27:33.119 --> 0:27:35.720
<v Speaker 1>absolutely because imagine a world where a T and T

0:27:35.920 --> 0:27:38.639
<v Speaker 1>had had held onto that for yeah, I had what

0:27:38.720 --> 0:27:40.960
<v Speaker 1>if they had had exclusive rights to the transistor the

0:27:40.960 --> 0:27:44.600
<v Speaker 1>way they had exclusive rights to the telephone company. Certainly,

0:27:44.760 --> 0:27:47.439
<v Speaker 1>everything that we talked about in our in our last

0:27:47.760 --> 0:27:50.320
<v Speaker 1>in our in our last few podcasts where we've talked

0:27:50.320 --> 0:27:54.520
<v Speaker 1>about companies that were like fair Child Semiconductor and also

0:27:54.600 --> 0:27:58.320
<v Speaker 1>things like Texas Instruments and other companies that that did

0:27:58.400 --> 0:28:01.679
<v Speaker 1>pioneering work with transistors, Obviously that would not have been

0:28:01.760 --> 0:28:05.720
<v Speaker 1>the case had they not been allowed to license that technology.

0:28:05.760 --> 0:28:10.960
<v Speaker 1>So yeah, big big decision there also was when service

0:28:11.040 --> 0:28:14.000
<v Speaker 1>opened up for the TAT one, which was the Transatlantic

0:28:14.320 --> 0:28:17.800
<v Speaker 1>UH telephone cable. Now, this is a cable that actually

0:28:17.880 --> 0:28:21.360
<v Speaker 1>did stretch all the way from the United States to Europe,

0:28:21.840 --> 0:28:24.919
<v Speaker 1>and the initial capacity was for thirty six calls at

0:28:24.920 --> 0:28:27.800
<v Speaker 1>a time, so much better than that one call at

0:28:27.800 --> 0:28:30.240
<v Speaker 1>a time radio method they had been using decades before.

0:28:30.320 --> 0:28:32.120
<v Speaker 1>And they were also of a higher quality the calls

0:28:32.160 --> 0:28:34.879
<v Speaker 1>that you could place than via radio. And the cost

0:28:35.040 --> 0:28:37.639
<v Speaker 1>was a near twelve dollars for the first three minutes,

0:28:37.640 --> 0:28:40.240
<v Speaker 1>which translates to about a hundred and three bucks today,

0:28:40.600 --> 0:28:42.760
<v Speaker 1>So a hundred three dollar phone call for three minutes,

0:28:42.880 --> 0:28:45.760
<v Speaker 1>and we're also slightly more secure. There is less chance

0:28:45.800 --> 0:28:49.320
<v Speaker 1>of somebody else. Yeah, it's a lot harder to tap

0:28:49.360 --> 0:28:53.000
<v Speaker 1>into a phone line when it's underwater, not that I

0:28:53.040 --> 0:28:57.200
<v Speaker 1>speak from experience. Was also the year that the first

0:28:57.280 --> 0:29:01.520
<v Speaker 1>picture phone system was tested. And and by picture phone,

0:29:01.840 --> 0:29:04.000
<v Speaker 1>I mean this is this isn't FaceTime, it's you know,

0:29:04.240 --> 0:29:06.360
<v Speaker 1>it would send an image about once every two seconds.

0:29:06.800 --> 0:29:09.160
<v Speaker 1>And we're gonna get a little bit more into picture

0:29:09.160 --> 0:29:12.840
<v Speaker 1>phone shenanigans. In the following years, Yeah, T and T

0:29:12.960 --> 0:29:17.840
<v Speaker 1>introduced the first commercial modem, which was meant for enterprise customers,

0:29:17.880 --> 0:29:22.440
<v Speaker 1>not not average consumers. So it allowed for computers to

0:29:22.520 --> 0:29:25.400
<v Speaker 1>make a direct connection to one another. There's not such

0:29:25.440 --> 0:29:27.840
<v Speaker 1>a thing as as a network yet that that would

0:29:28.040 --> 0:29:30.720
<v Speaker 1>come into play once arpa net really would give her

0:29:31.360 --> 0:29:34.479
<v Speaker 1>would rise up in a couple of years. But modems,

0:29:34.520 --> 0:29:37.320
<v Speaker 1>of course, became very important for that kind of technology

0:29:37.360 --> 0:29:41.120
<v Speaker 1>to exist. A. T. And also began research work in

0:29:41.280 --> 0:29:48.240
<v Speaker 1>lasers and fiber optics. That again another transformative technology in telecommunications.

0:29:48.320 --> 0:29:51.160
<v Speaker 1>Speaking of transformative technologies, I believe you have a really

0:29:51.200 --> 0:29:55.600
<v Speaker 1>important note. I included this one just for Lauren because

0:29:55.680 --> 0:29:59.600
<v Speaker 1>Lauren's a girl. You know, girls like pink. So I

0:29:59.640 --> 0:30:03.520
<v Speaker 1>know that because the technology industries have taught me numerous

0:30:03.560 --> 0:30:06.040
<v Speaker 1>times by all the pink electronics that are out there,

0:30:06.120 --> 0:30:08.200
<v Speaker 1>that pink is for girls, and girls like pink, and

0:30:08.240 --> 0:30:11.640
<v Speaker 1>if you don't like pink, then something's wrong, right right? Absolutely? Yeah.

0:30:11.720 --> 0:30:15.000
<v Speaker 1>So anyway, obviously I don't really believe any of that,

0:30:15.040 --> 0:30:17.720
<v Speaker 1>but the introduction of the Pink Princess phone game in

0:30:17.800 --> 0:30:20.360
<v Speaker 1>nineteen fifty nine, and then I have a note here

0:30:20.360 --> 0:30:22.640
<v Speaker 1>which says, don't hit me, Lauren, Lauren, please don't hit me.

0:30:22.640 --> 0:30:24.720
<v Speaker 1>All Right, we're gonna take a quick break to thank

0:30:24.720 --> 0:30:34.960
<v Speaker 1>our sponsor while Lauren calms down. Alright, we're back. Lauren,

0:30:35.680 --> 0:30:39.280
<v Speaker 1>has your murderous rage kind of died down to just

0:30:39.280 --> 0:30:42.040
<v Speaker 1>just a loathing. No, yeah, I guess. I mean, you know,

0:30:42.040 --> 0:30:45.760
<v Speaker 1>it's it's just normal, normal levels at okay um no,

0:30:45.960 --> 0:30:48.640
<v Speaker 1>so okay. So coming back to the timeline, in nineteen

0:30:49.880 --> 0:30:52.480
<v Speaker 1>launched Echo, which was a balloon off which data could

0:30:52.520 --> 0:30:55.680
<v Speaker 1>be bounced. And this is about to become important because

0:30:55.840 --> 0:30:58.800
<v Speaker 1>in nineteen sixty two they would launch Telestar one, which

0:30:58.840 --> 0:31:02.760
<v Speaker 1>was the very first active communications satellite. Right. Remember that

0:31:02.880 --> 0:31:05.080
<v Speaker 1>at this time, the satellites that have been launched into

0:31:05.200 --> 0:31:10.120
<v Speaker 1>orbit would usually transmit a very weak, very simple signal

0:31:10.520 --> 0:31:13.360
<v Speaker 1>just to alert people on the ground that in fact

0:31:13.480 --> 0:31:16.200
<v Speaker 1>it existed, right. It was just a ping really. Yeah,

0:31:16.200 --> 0:31:18.240
<v Speaker 1>So like spot Nick, it was the machine that went

0:31:18.320 --> 0:31:20.880
<v Speaker 1>ping and went around the world a few times, and

0:31:21.080 --> 0:31:23.320
<v Speaker 1>people on the ground could detect it, but you couldn't

0:31:23.360 --> 0:31:26.360
<v Speaker 1>communicate with it. You couldn't use it to bounce signals

0:31:26.400 --> 0:31:28.440
<v Speaker 1>off of it. It was really just there as a

0:31:28.440 --> 0:31:31.120
<v Speaker 1>proof of concept, right. So the Tellstar one allowed for

0:31:31.200 --> 0:31:35.280
<v Speaker 1>actual live transmission of television across the Atlantic. Yeah. And

0:31:35.280 --> 0:31:38.800
<v Speaker 1>and the first phone call transferred through space was between

0:31:38.800 --> 0:31:41.080
<v Speaker 1>the A. T and T chairman and the Vice President

0:31:41.120 --> 0:31:43.880
<v Speaker 1>of the United States within thirty minutes. That also tested

0:31:44.000 --> 0:31:46.440
<v Speaker 1>live and taped television and other data. Though the whole

0:31:46.440 --> 0:31:49.239
<v Speaker 1>project was a collaboration with NASA actually, but it was

0:31:49.320 --> 0:31:53.680
<v Speaker 1>the first privately sponsored space launch. Yeah. And now look

0:31:53.680 --> 0:31:56.840
<v Speaker 1>at our world. Private private sponsored space launches are are

0:31:56.880 --> 0:31:59.520
<v Speaker 1>becoming the way that we're getting into space these days.

0:32:00.120 --> 0:32:03.640
<v Speaker 1>Nineteen three, A T and T introduces touch tone service,

0:32:04.120 --> 0:32:07.400
<v Speaker 1>so we start to see the rotary dial begin to disappear,

0:32:07.800 --> 0:32:10.560
<v Speaker 1>and now we have the keypad, the familiar keypad. If

0:32:10.600 --> 0:32:13.480
<v Speaker 1>you've ever used an old phone with a keypad on it.

0:32:13.560 --> 0:32:15.360
<v Speaker 1>Some of you guys just don't even know what that is.

0:32:15.480 --> 0:32:17.520
<v Speaker 1>You to all your all your buttons have appeared on

0:32:17.560 --> 0:32:20.560
<v Speaker 1>a screen. It's it's what the buttons replicate on a screen.

0:32:20.800 --> 0:32:23.600
<v Speaker 1>Skew morphism. Yeah, I want to skew more. Fig dial

0:32:23.840 --> 0:32:26.160
<v Speaker 1>pad where it's the rotary top pad. I'm sure there

0:32:26.160 --> 0:32:28.920
<v Speaker 1>has to be one positive something for me to look

0:32:28.960 --> 0:32:31.120
<v Speaker 1>at more. Now, one of you clever app makers out

0:32:31.120 --> 0:32:35.400
<v Speaker 1>there do that the rotary dial dial face. Uh, I

0:32:35.440 --> 0:32:37.120
<v Speaker 1>don't know why I would give myself. I would just

0:32:37.160 --> 0:32:38.920
<v Speaker 1>be less likely to make phone calls, which I guess

0:32:39.000 --> 0:32:40.840
<v Speaker 1>is a good thing in the wrong run. I no

0:32:40.880 --> 0:32:45.320
<v Speaker 1>one wants to hear from me anyway. I'm alright. A

0:32:45.440 --> 0:32:48.560
<v Speaker 1>t T opens t PC one, which was the first

0:32:48.680 --> 0:32:52.400
<v Speaker 1>submarine telephone cable across the Pacific. So this stretched from

0:32:52.480 --> 0:32:55.520
<v Speaker 1>Japan to Hawaii and they're connected to two cables that

0:32:55.600 --> 0:32:59.720
<v Speaker 1>linked Hawaii with the mainland. Um so experimental picture phone

0:32:59.720 --> 0:33:03.360
<v Speaker 1>service also begins in some cities. It talked about that right.

0:33:03.400 --> 0:33:06.120
<v Speaker 1>It was installed specifically in exhibits at Disneyland and at

0:33:06.120 --> 0:33:09.400
<v Speaker 1>the New York World's Fair. Yeah, so again I had

0:33:09.400 --> 0:33:14.000
<v Speaker 1>a monor and UH and a camera and was very primitive,

0:33:14.080 --> 0:33:16.320
<v Speaker 1>but it was sort of the the predecessor to what

0:33:16.360 --> 0:33:20.000
<v Speaker 1>we would think of as video calls, which still we're

0:33:20.000 --> 0:33:23.800
<v Speaker 1>waiting to take off. N A T and T installs

0:33:23.880 --> 0:33:27.280
<v Speaker 1>a special purpose computer which was the first electronic telephone

0:33:27.320 --> 0:33:30.320
<v Speaker 1>switch in a local telephone exchange in New Jersey, and

0:33:30.360 --> 0:33:32.800
<v Speaker 1>I believe that first which was the four E S S,

0:33:32.840 --> 0:33:35.640
<v Speaker 1>which could handle about five hundred thousand calls per hour,

0:33:35.720 --> 0:33:38.360
<v Speaker 1>which was ten times the amount of the standard electro

0:33:38.400 --> 0:33:41.320
<v Speaker 1>mechanical switch could handle exactly. So now we're moving into

0:33:41.400 --> 0:33:45.280
<v Speaker 1>the digital age and beyond the electro mechanical age. Nineteen

0:33:45.320 --> 0:33:47.960
<v Speaker 1>sixty eight, A T and T introduces nine one one

0:33:48.040 --> 0:33:51.360
<v Speaker 1>as the US nationwide emergency number, first rolled out in

0:33:51.480 --> 0:33:56.040
<v Speaker 1>Huntington's Indiana. Other countries have their own emergency numbers, and uh,

0:33:56.360 --> 0:34:00.560
<v Speaker 1>I have to mention, you know, according to the crowd,

0:34:00.600 --> 0:34:03.720
<v Speaker 1>apparently the UK just changed it to oh one eight

0:34:03.840 --> 0:34:11.879
<v Speaker 1>nine nine eight one nine to five three. I had

0:34:11.920 --> 0:34:15.400
<v Speaker 1>to put that in there. Yeah, No, incredibly important. UM.

0:34:15.440 --> 0:34:22.560
<v Speaker 1>As of nineteen sixty of American households had a phone line. Finally, slackers,

0:34:23.560 --> 0:34:25.239
<v Speaker 1>They just didn't have anyone they wanted to talk to.

0:34:26.120 --> 0:34:29.440
<v Speaker 1>Nineteen seventy A T and T introduces customer dialing for

0:34:29.600 --> 0:34:33.560
<v Speaker 1>international long distance telephone calls, starting with Manhattan and London.

0:34:34.200 --> 0:34:37.760
<v Speaker 1>Um Also that year, a commercial picture phone service debut

0:34:37.800 --> 0:34:44.120
<v Speaker 1>in downtown Pittsburgh and and went absolutely nowhere. Basically nobody

0:34:44.160 --> 0:34:45.880
<v Speaker 1>cared at all. I think they were like, this is

0:34:45.880 --> 0:34:48.120
<v Speaker 1>cumbersome and kind of stupid, and I don't want it.

0:34:48.320 --> 0:34:50.520
<v Speaker 1>I think for a lot of us, video calls are

0:34:50.560 --> 0:34:54.319
<v Speaker 1>still kind of slow to be adopted because it means

0:34:54.320 --> 0:34:57.239
<v Speaker 1>having to keep some part of your house pristine so

0:34:57.280 --> 0:34:59.120
<v Speaker 1>that the people who are calling you don't realize how

0:34:59.160 --> 0:35:02.319
<v Speaker 1>you really live. Always really nervous about about web web

0:35:02.400 --> 0:35:05.120
<v Speaker 1>chat calls at work because I'm like, oh crap, what's

0:35:05.120 --> 0:35:07.719
<v Speaker 1>going on in the background. Is Josh doing something inappropriate

0:35:07.719 --> 0:35:10.440
<v Speaker 1>back there? You know? Buty, Like by inappropriate, I mean

0:35:10.560 --> 0:35:13.600
<v Speaker 1>like using the swords that Chuck has to have a

0:35:13.600 --> 0:35:16.000
<v Speaker 1>fight with someone else in the editorial department, not that

0:35:16.080 --> 0:35:24.200
<v Speaker 1>he would ever do that again. Labs produced the Unix

0:35:24.239 --> 0:35:28.520
<v Speaker 1>operating system. Yeah, huge development here. So the idea was

0:35:28.600 --> 0:35:32.200
<v Speaker 1>to create an operating system that was platform independent, meaning

0:35:32.239 --> 0:35:34.880
<v Speaker 1>that you could put this operating system on different types

0:35:34.880 --> 0:35:37.320
<v Speaker 1>of computers. Because keep in mind, in the early days,

0:35:37.719 --> 0:35:40.440
<v Speaker 1>a lot of these computers had proprietary systems that they

0:35:40.440 --> 0:35:42.759
<v Speaker 1>would operate on, and that was it. You could not

0:35:43.160 --> 0:35:45.680
<v Speaker 1>have You couldn't run the same kind of software for

0:35:45.760 --> 0:35:50.560
<v Speaker 1>one computer and a next Yeah, because exactly because they did,

0:35:50.719 --> 0:35:53.879
<v Speaker 1>they weren't compatible. You had to recompile all of your

0:35:53.880 --> 0:35:57.120
<v Speaker 1>programming into a different language so you would run on

0:35:57.120 --> 0:35:59.279
<v Speaker 1>a different computer. This was kind of an attempt to

0:35:59.520 --> 0:36:02.160
<v Speaker 1>allow a T and T to have a computer system

0:36:02.200 --> 0:36:04.399
<v Speaker 1>where it didn't really matter what hardware they had as

0:36:04.400 --> 0:36:06.399
<v Speaker 1>long as it could run this upbring system. They could

0:36:06.440 --> 0:36:10.400
<v Speaker 1>run the same software across the multiple divisions. Huge development

0:36:10.680 --> 0:36:15.319
<v Speaker 1>absolutely um in nineteen seventy five, armed partially with this

0:36:15.360 --> 0:36:20.040
<v Speaker 1>at begin to computerize its operations. Yeah. Yeah, and the

0:36:20.040 --> 0:36:23.080
<v Speaker 1>computers could handle a much larger call volume. Like you

0:36:23.120 --> 0:36:26.200
<v Speaker 1>mentioned earlier, Lauren, that that one switch was a good example.

0:36:26.640 --> 0:36:30.880
<v Speaker 1>So we're starting to see a rapid rollout of development,

0:36:30.880 --> 0:36:33.520
<v Speaker 1>although it would take probably ten years for this to

0:36:33.560 --> 0:36:37.400
<v Speaker 1>be uh to be complete, because you know, it's a

0:36:37.480 --> 0:36:40.080
<v Speaker 1>huge infrastructure, right, I mean, you're talking about a nationwide

0:36:40.120 --> 0:36:43.279
<v Speaker 1>telephone service. So it's not like you just flip a

0:36:43.280 --> 0:36:47.000
<v Speaker 1>switch and suddenly everything's magically in computer world, right right, Um,

0:36:47.280 --> 0:36:51.360
<v Speaker 1>the in fact, it would take until to complete the transition.

0:36:51.560 --> 0:36:53.840
<v Speaker 1>That's true. The very last toll switch was completed in

0:36:53.920 --> 0:36:56.520
<v Speaker 1>nine so even longer than I said ten years, I

0:36:56.600 --> 0:37:02.160
<v Speaker 1>was way off. N that's when m c I filed

0:37:02.160 --> 0:37:05.440
<v Speaker 1>an antitrust suit against A T and T. Now they

0:37:05.440 --> 0:37:10.160
<v Speaker 1>had started looking at the possibility of pursuing this kind

0:37:10.160 --> 0:37:13.719
<v Speaker 1>of uh legal action back in there, you know, a

0:37:13.760 --> 0:37:15.400
<v Speaker 1>little earlier in the seventies, they had met with the

0:37:15.440 --> 0:37:18.839
<v Speaker 1>Department of Justice, but a T and T ended up

0:37:19.719 --> 0:37:23.680
<v Speaker 1>disconnecting m c i s foreign exchange customers, kind of

0:37:25.160 --> 0:37:28.160
<v Speaker 1>It doesn't say directly in response to m c I

0:37:28.360 --> 0:37:31.719
<v Speaker 1>asking the d o J about this, but you might

0:37:31.760 --> 0:37:34.880
<v Speaker 1>be able to draw that conclusion. So with this antitrust

0:37:35.000 --> 0:37:37.200
<v Speaker 1>lawsuit filed against A T and T, the Department of

0:37:37.239 --> 0:37:40.839
<v Speaker 1>Justice would then look into the matter and file its

0:37:40.880 --> 0:37:43.720
<v Speaker 1>own antitrust lawsuit against A T and T in nineteen

0:37:43.760 --> 0:37:48.480
<v Speaker 1>seventy seven, So that will come into play in just

0:37:48.560 --> 0:37:50.719
<v Speaker 1>a couple of years. Where that's that's the big one

0:37:50.760 --> 0:37:53.279
<v Speaker 1>we talk about, the big This this lawsuit would go

0:37:53.320 --> 0:37:56.720
<v Speaker 1>on for six years. Yeah. So in seventy seven, besides

0:37:56.760 --> 0:37:58.520
<v Speaker 1>the fact that the d O J brought an anti

0:37:58.520 --> 0:38:00.800
<v Speaker 1>trust lawsuit against it, A T. And He also opened

0:38:00.800 --> 0:38:04.080
<v Speaker 1>the first network operations center in New Jersey. Now, this

0:38:04.160 --> 0:38:06.920
<v Speaker 1>allowed A T and T to have a centralized location

0:38:06.920 --> 0:38:09.720
<v Speaker 1>where they can have real time management of its entire

0:38:09.800 --> 0:38:12.800
<v Speaker 1>long distance network. Instead of having a bunch of regional

0:38:12.840 --> 0:38:15.960
<v Speaker 1>offices that all coordinate together, they could actually control everything

0:38:16.000 --> 0:38:20.879
<v Speaker 1>from one spot, like you know, the Empire. That same year,

0:38:21.000 --> 0:38:23.680
<v Speaker 1>A T and T installed the first fiber optic cable

0:38:23.719 --> 0:38:27.560
<v Speaker 1>in a commercial communication system, so using light as opposed

0:38:27.600 --> 0:38:31.920
<v Speaker 1>to electricity through a copper wire on the On his

0:38:32.040 --> 0:38:35.799
<v Speaker 1>first day on the bench, Judge Harold Green drew the A. T.

0:38:35.880 --> 0:38:39.239
<v Speaker 1>And T Anti trust case. Can you imagine that, your

0:38:39.320 --> 0:38:41.680
<v Speaker 1>first day on the bench as a judge and you

0:38:41.760 --> 0:38:43.799
<v Speaker 1>draw the A T and T Anti trust case. I

0:38:43.800 --> 0:38:46.239
<v Speaker 1>think that must in fact be where jokes about like

0:38:46.400 --> 0:38:50.200
<v Speaker 1>the cases of the Mondays come from. That's pretty ridiculous,

0:38:50.360 --> 0:38:52.560
<v Speaker 1>a case of many years of Mondays for that poor

0:38:52.640 --> 0:38:56.120
<v Speaker 1>judge n nine. All right, so in the United States

0:38:56.400 --> 0:38:59.359
<v Speaker 1>they had about a hundred seventy five million, five thirty

0:38:59.400 --> 0:39:02.200
<v Speaker 1>five thousand and telephones active, give or take a few,

0:39:02.360 --> 0:39:05.960
<v Speaker 1>and Bell had more than a million employees. That's incredible.

0:39:06.000 --> 0:39:11.080
<v Speaker 1>A million people working for this company. That's phenomenal. One

0:39:11.280 --> 0:39:14.040
<v Speaker 1>m c I wins its antitrust lawsuit against A T

0:39:14.120 --> 0:39:16.759
<v Speaker 1>and T and the United States versus A T and

0:39:16.840 --> 0:39:20.560
<v Speaker 1>T goes to trial. So the m c I lawsuits over,

0:39:20.800 --> 0:39:24.400
<v Speaker 1>but the Department of Justices lawsuits beginning about it. Yeah,

0:39:24.520 --> 0:39:28.359
<v Speaker 1>so that brings us to January two. We're gonna end

0:39:28.680 --> 0:39:31.839
<v Speaker 1>on this year and we'll pick up in night three

0:39:32.440 --> 0:39:37.440
<v Speaker 1>in our next podcast. But six years of this federal

0:39:37.440 --> 0:39:40.040
<v Speaker 1>antitrust case going on in some form or another, A

0:39:40.160 --> 0:39:43.600
<v Speaker 1>T and T is up against the wall. They have

0:39:43.760 --> 0:39:48.200
<v Speaker 1>really very few options, so they agree to divest themselves

0:39:48.200 --> 0:39:53.600
<v Speaker 1>of the seven regional Bell operating company carriers that they owned.

0:39:53.600 --> 0:39:56.800
<v Speaker 1>So like the big ones, which also represented smaller companies

0:39:56.840 --> 0:40:00.200
<v Speaker 1>inside it was up until this point um Jen really

0:40:00.239 --> 0:40:03.440
<v Speaker 1>referred to as Mom Bell and yeah, all the different

0:40:03.480 --> 0:40:07.200
<v Speaker 1>Bell systems, Southwestern Bell, Bell South, you know all these.

0:40:07.280 --> 0:40:09.560
<v Speaker 1>If you've ever heard a company with Bell in the

0:40:09.600 --> 0:40:11.719
<v Speaker 1>title of it as a telephone company, it belonged to

0:40:11.880 --> 0:40:15.279
<v Speaker 1>this at the time. So A T. T essentially is

0:40:15.320 --> 0:40:18.440
<v Speaker 1>getting rid of all of its local calling service. It's

0:40:18.480 --> 0:40:22.839
<v Speaker 1>staying as a long distance carrier, and it also as

0:40:22.880 --> 0:40:24.799
<v Speaker 1>a sort of a concession. I guess you could say,

0:40:24.840 --> 0:40:26.239
<v Speaker 1>you know, it had to get rid of all this

0:40:26.400 --> 0:40:29.520
<v Speaker 1>local stuff so that it could no longer kind of

0:40:29.600 --> 0:40:32.840
<v Speaker 1>maintain this monopoly. But in return, it was allowed to

0:40:32.920 --> 0:40:37.680
<v Speaker 1>go into computer systems. Yeah, so computer communication business. Yeah,

0:40:38.120 --> 0:40:40.600
<v Speaker 1>and it lift this, lifted that that band we talked

0:40:40.640 --> 0:40:45.400
<v Speaker 1>about from the nineteen fifty six judgment. So now while

0:40:45.440 --> 0:40:46.879
<v Speaker 1>A T and T has to get rid of all

0:40:46.880 --> 0:40:48.600
<v Speaker 1>those other companies, and it would take a couple of

0:40:48.719 --> 0:40:50.319
<v Speaker 1>years for them to do this. I mean, obviously you

0:40:50.360 --> 0:40:53.080
<v Speaker 1>can't just do this overnight either, but for them, the

0:40:53.520 --> 0:40:55.400
<v Speaker 1>you know, in return, they get to go into this

0:40:55.440 --> 0:40:58.360
<v Speaker 1>new industry. Um, so it's kind of a you know,

0:40:58.560 --> 0:41:01.640
<v Speaker 1>uh so we lining kind of thing, if you want

0:41:01.680 --> 0:41:03.120
<v Speaker 1>to look at it that way. And I think it

0:41:03.160 --> 0:41:07.640
<v Speaker 1>would turn out, considering the very fast gains in Internet

0:41:07.680 --> 0:41:11.520
<v Speaker 1>popularity over the next couple of decades, to be completely worthwhile, well,

0:41:11.640 --> 0:41:15.040
<v Speaker 1>especially considering that that separation of A T and T

0:41:15.200 --> 0:41:18.640
<v Speaker 1>and those bell operating companies wouldn't last for all of them.

0:41:19.080 --> 0:41:22.360
<v Speaker 1>But that's a spoiler alert. Yeah, so A T and

0:41:22.440 --> 0:41:25.360
<v Speaker 1>T would end up reabsorbing Western Electric, it would become

0:41:25.360 --> 0:41:26.960
<v Speaker 1>part of a T and T formally it was no

0:41:27.000 --> 0:41:31.600
<v Speaker 1>longer spun off. Also, the Bell operating companies would not

0:41:31.680 --> 0:41:35.000
<v Speaker 1>be allowed to offer a long distance service, so A

0:41:35.080 --> 0:41:37.160
<v Speaker 1>T T would remain the long distance carrier, the Bell

0:41:37.200 --> 0:41:40.600
<v Speaker 1>operating companies would become local carriers, and neither was supposed

0:41:40.640 --> 0:41:43.920
<v Speaker 1>to engage in the other's business. So uh, I mean,

0:41:43.960 --> 0:41:46.840
<v Speaker 1>apart from a T T allowing the interconnections, but a

0:41:46.960 --> 0:41:49.200
<v Speaker 1>T T could not go into local service. Bell operating

0:41:49.200 --> 0:41:53.360
<v Speaker 1>companies cannot go into long distance service. Um. And also

0:41:53.719 --> 0:41:58.200
<v Speaker 1>the Bell companies couldn't go into information service or manufacturing. Uh.

0:41:58.280 --> 0:42:01.120
<v Speaker 1>And everyone was supposed to provide had equal access to

0:42:01.200 --> 0:42:03.920
<v Speaker 1>all long distance companies. So in other words, you couldn't

0:42:03.960 --> 0:42:07.080
<v Speaker 1>have Bell South say that A T T was the

0:42:07.120 --> 0:42:10.920
<v Speaker 1>exclusive long distance carrier Bell South customers had to have choice.

0:42:11.719 --> 0:42:15.640
<v Speaker 1>So that's was supposed to set, you know, put us

0:42:15.760 --> 0:42:18.839
<v Speaker 1>all back at square one, reset the playing field, we're

0:42:18.880 --> 0:42:23.520
<v Speaker 1>all on level ground. That was the intent. But I

0:42:23.560 --> 0:42:26.000
<v Speaker 1>think we'll use our next episode to talk about how

0:42:26.040 --> 0:42:28.400
<v Speaker 1>well that turned out. All right, I think it was

0:42:28.440 --> 0:42:30.640
<v Speaker 1>really more, you know, it wasn't it wasn't leveling a

0:42:30.680 --> 0:42:33.720
<v Speaker 1>playing field. It was giving luxury blimps to the people

0:42:33.719 --> 0:42:35.600
<v Speaker 1>at the top of the playing field to kind of

0:42:35.640 --> 0:42:39.440
<v Speaker 1>gently coast downwards a little bit, maybe a diamond encrusted

0:42:39.560 --> 0:42:44.480
<v Speaker 1>uh landing pads for the golden parachutes. And that wraps

0:42:44.560 --> 0:42:48.160
<v Speaker 1>up this classic episode. Next week we will conclude the

0:42:48.200 --> 0:42:52.279
<v Speaker 1>three part which again we could easily extend into another part,

0:42:52.920 --> 0:42:56.160
<v Speaker 1>but we're gonna listen to part three next week. If

0:42:56.200 --> 0:42:59.000
<v Speaker 1>you guys have suggestions for future episodes that I should

0:42:59.000 --> 0:43:02.160
<v Speaker 1>cover on current episodes of tech Stuff, let me know.

0:43:02.680 --> 0:43:04.719
<v Speaker 1>The best way to get in touch with me is

0:43:04.719 --> 0:43:07.080
<v Speaker 1>on Twitter. You can use the handle text stuff h

0:43:07.280 --> 0:43:09.719
<v Speaker 1>s W and I'll talk to you again really soon.

0:43:14.680 --> 0:43:17.719
<v Speaker 1>Text Stuff is an I Heart Radio production. For more

0:43:17.800 --> 0:43:21.200
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0:43:21.320 --> 0:43:24.480
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