Business Services Industry

Baby Bell Phone Firms Outlast Their Rivals.

Knight Ridder/Tribune Business News, June, 2002

By Joelle Tessler, San Jose Mercury News, Calif. Knight Ridder/Tribune Business News

Jun. 28--When the Justice Department forced the breakup of AT&T in 1984, the Baby Bell local phone companies were seen as telecom's biggest losers, stuck in the stodgy, slow-growth business of providing basic dial tones and phone books.

Nearly 20 years later, with this week's spectacular implosion of WorldCom, the nation's No. 2 long-distance provider, the Baby Bells are starting to look like the real survivors.

The new competitive landscape ushered in by the Telecommunications Act brought a slew of new challengers to the Baby Bells. But six years after the passage of the landmark law, most of those rivals are dead or dying. The Baby Bells have simply...

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