business. The local operating companies built and maintained the local exchange networks. There were two basic parts to the local services business. Local telephone service typically included both the ability for one subscriber to call another in a common service area and service across a wider geographic area that was not deemed long distance. The second service or capability was also the point where long distance calls were handled, thus the name access network. Together, these two local service entities would later become the basis for creation of the local access and transport area (LATA) in a consent decree1 with the US Department of Justice. Because the local services business was regulated by the PUC in each state, these companies typically were organized and operated locally with unique names and local management. Examples include New Jersey Bell, Chesapeake and Potomac Telephone, Nevada Bell, Mich- igan Bell, and SO on. The long distance business operated under the name of "AT&T Long Lines." AT&T Long Lines, essentially a domestic US business, was American Telephone and Telegraph Company 1899-1983 AT&T Long Lines Western Electric (Long Distance Telephone Service) (Equipment Manufacturing) Bell Operating Companies (Local Telephone Service) FIGURE 2-1 AT&T Business Entities Before 1982 2 INTERNET AND TELECOM: A BRIEF HISTORY responsible for building and maintaining the interstate long distance network and switching gateways to the international network. The long distance business was the first to deploy digital transmission and switching technology. The basic operation of the long distance network was simply to take a call from one local service network, connect it to a peer local company, and terminate the call. The originating company kept track of the date, time, and duration of the call and billed it as a separate item or "Long Distance Call." On a periodic basis, the entities separated the revenue, paid their sup- pliers, employees, and invested in new plant and equipment, all under the watchful eyes 