DIVIDED WE GREW

MARCH 25 First AT&T 5ESS(Electronic Switching System) goes intooperation in a Seneca, Ill., Illinois Bell office.

JANUARY 8 AT&T ChairmanCharles Brown and AssistantAttorney General William Baxterannounce signing of the 1982Consent Decree, ending antitrustsuit filed by U .S . Department ofJustice in 1974, when John deButtswas chairman. The new agreement,which modifies 1956 ConsentDecree, is known as the ModifiedFinal Judgment (MFJ) . AT&Tagrees to divest itself of its 22 localtelephone companies whileretaining Long Lines (long-distanceservices), Western Electric(equipment manufacturing) andBell Laboratories . In return, thegovernment removes restrictions ofthe 1956 decree, which limitedAT&T to providing tariffedcommunications services andmanufacturing equipment neededto provide those services, andbarred the company from enteringother fields . [Right : Baxter, Brown,then-General Counsel HowardTrienens . ]

JULY 20RepresentativeTimothy Wirth, D-Colo., withdrawsH.R. 5158, atelecommunica-tions bill thatwould have spunoff AT&T's long-distanceoperations .

en years have passed since the chairman of the world'slargest company made an announcement that altered his-tory. New chapters of this history are still being written asAT&T extends its reach across the globe and the sevenregional Bell companies, still known as the Baby Bells,continue their fight to end restrictions placed on them by

the Consent Decree that broke up the Bell System . This chronology tellsa dramatic story of trials and triumphs, of the transformation from Ma Bellto multinational competitor.

Despite critics who said the company was too large to get out of itsown way, AT&T-in only 10 years-cut long-distance prices over 40 per-cent while proliferating services, improving the world's best telecommu-nications network, introducing innovative products and creating entirenew businesses. Tomorrow's consumers may be as likely to associateAT&T with credit cards and computers as with long-distance calling .

Everything AT&T does is toward one goal: being the world's best atgiving people easy access to each other and to the information and ser-vices they need, no matter where they are or what they're doing .

This look backward actually portends things to come . Bask in the glowof your accomplishments, by all means, but get ready for the next decade .If the first one is any indication, our work is cut out for us.

DECEMBER 16 AT&T files a 471-page reorganization plan with U .S .District Court in Washington,spelling out the redistribution of theBell System's $158 billion in physicalassets and 875 million shares ofoutstanding common stock. AT&Tkeeps 373,000 of 1 million employeesand $40 billion in assets . Shareownersretain their AT&T stock and receiveone share of each of seven regionalholding companies for every 10shares of AT&T stock .

JULY 1 TAT 7, a submarinetelecommunications cable installed byAT&T between Tuckerton, N .J ., andLand's End, England, goes into service,increasing available circuits by morethan 4,000 . [Below; C .S . Long Lines.]

OCTOBER 3 AT&T files largestinterstate long-distance rate plan inits history, proposing basic ratereduction of $7 .75 billion, includingan average 10.5-percent decrease.

AUGUST 3 Chairman CharlesBrown announces that the striated .globe logo used by subsidiaryAmerican Bell will become the AT&Tcorporate signature, in accordancewith Judge Greene's order thatAT&T give up the bell logo.

MARCH 14 AT&T asks FCC towaive two rules for service filings,beginning an ongoing process to reduceregulation of AT&T's tariffed services .

AUGUST

U.S. District Court JudgeHarold Greene issues opinion on proposedagreement, asking for 10 modifications beforeapproving it. These include restrictingregional Bell companies from manufacturingtelecommunications equipment, offeringinformation services and offering long-distance service . Greene also suggests thatthe bell-shaped logo and Yellow Pagesbusiness remain with the divested u nits .AT&T accepts revisions without qualification .

AUGUST 24 Judge Greeneapproves MFJ .

JANUARY 1 Federal CommunicationsCommission's second Computer Inquiryruling, known as CI-Il, takes effect, requiringAT&T to offer regulated and non-regulatedproducts and services in two separate entities

JULY 28 Telstar 3, first of a new generation ofcommercial telecommunications satellites capable oftransmitting 93,600 simultaneous telephone conversations,is launched.

OCTOBER 1Functional divestiturebegins within thecompany. Tape is laid onfloors of switchingoffices shared by AT&Tand local telephonecompanies to separateworkers and equipment .

NOVEMBER 21Stock trading begins forthe "new" AT&T and theseven regional holdingcompanies . AT&T starts at$19 per share .

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Divestiture : Decree to break upthe Bell System goes into effect . AT&T and 22local Bell operating companies begin splittingbills for local service, long distance andequipment rentals. AT&T takes over 120 millionphone leases from Bell companies. AT&T has373,000 employees, 100 outside the United States .[Above: AT&T Communications Chairman MorryTanenbaum .]

MAY 1 AT&T Bell Laboratoriesmathematician Narendra Karmarkarinvents a major breakthrough in thelarge-scale decision-making processknown as linear programming : theKarmarkar algorithm.

JUNE 1 s AT&Tand 29 co-ownersbegin plans for TAT-8 to link Europe withNorth Americausing underseafiber-optic cabledesigned by AT&TBell Laboratories .

JUNE Y Reach OutAmerica, anationwide optional calling plan forinterstate long distance, takes effect .AT&T becomes the only long-distance provider to offer such a planfor consumers. Competitors go afterthe more lucrative business market .

APRIL 30 Saying divestitureand competition eliminate the need,AT&T asks FCC for relief from CI-IIrestrictions that prevent AT&TInformation Systems fromcombining operations andmarketing efforts with other AT&Tunits.

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Y AT&T officiallyenters general-purpose computerbusiness with family of six 3Bcomputers. AT&T's computerstrategy is to push UNIX operatingsystem and software development.

MAY 8 TheOlympic torch runacross the United Statesbegins in New York .Before it ends in LosAngeles on July 28, 200AT&T employees wearingthe new corporate logowill carry the torch orescort torch carriersthrough 32 states, helperby hundreds of AT&Tvolunteers .

MARCH 1 AT&T wins 10-year, $489-millionDefense CommercialTelecommunications Networkcontract to provide large,private, digital, integratedvoice, data and videogovernment network.

APRIL. 28 System75, a digital businessPBX (private branchexchange), introduced .

JANUARY S International 800service begins between U .S . andCanada . (By December 1991, I-800Service reaches 57 countries .)

NOVEMBER 28 AT&T unveils theCard Caller public telephone, whichaccepts an AT&T calling card instead ofcoins.

GUST 27 AT&T TechnologiesChairman Jim Olson says 11,000positions will be eliminated by end of1984 to reduce costs.

NOVEMBER R AT&Tannounces it will spend $2billion to upgrade its long-distance network andmake it 40-percent digitalby 1990. (By July 1989 thenetwork was 95-percentdigital; today it is virtually100-percent digital.)

JANUARY 1 AT&T Credit Corp.is formed to help AT&T customersfinance equipment and services.AT&T begins its second post-divestiture year with 24 overseassales offices selling products in 90countries . Corporate goals are todiversify global product and serviceofferings, retain domestic long-distance leadership and strengthencomputer market foothold .

MARCH 1 4 The Netherlandsnames AT&T and PhilipsTelecommunications, a joint venture,primary supplier of digital switchingequipment in plan to digitize itsnational telecommunications network .JANUARY 2+9 AT&T Bell

Laboratories combines 10 laserbeams on a single optical fiber, a newlightwave record .

APRIL 12 FCC waiverallows AT&T InformationSystems to integratemanufacturing and certainother operations withAT&T Technologies . Largebusiness systems, generalbusiness systems andconsumer products unitsare formed, and a servicesdivision supports all.

JUNE 26 AT&T introduces itsfirst personal computer, the PC 6300 .

MARCH 2+6 The AT&T UNIXpersonal computer and 28 UNIX softwareprograms are introduced.

JANUARY 16 Bob Allen,executive vice president-corporate administration andfinance, becomes chairman ofAT&T Information Systems,succeeding Chuck Marshall, whobecomes executive vice presidentresponsible for human resourcesand external affairs. RandyTobias, senior vice president, isnamed chairman of AT&TCommunications . MorrisTanenbaum, former chairman ofAT&T Communications, isappointed executive vicepresident of AT&T .

DECEMBER 19 FCC sets$1 monthly subscriber lineconnection charge forresidential and single-linebusiness telephone customers,effective June 1, 1985, andincreasing to $2 on June 1,1986 . The charges shift morelocal costs to local telephonecustomers.

JULY 1 AT&T BellLaboratories introducesa more efficienttechnique for routingcalls through the long-distance network,called dynamic non-hierarchical routing .

JULY 1 The nationalprocess of choosing a long-distance carrier, known asequal access, begins inCharleston, W. Va.

JULY 1 8 AT&T opens a UNIXSystems office in Tokyo, responsiblefor marketing, licensing and softwaredevelopment in the Far East .

JANUARY 31 FCC proposes to end CI-IIrequirement that AT&T sell customer premisesequipment and enhanced services through fullyseparate, unregulated subsidiaries .

MAY

Jim Olson is electedpresident and chief operating officerof AT&T, effective June 1 .

JULY Japan ENS Corp . formed byAT&T and 18 Japanese firms toprovide value-added network servicein Japan.

SEPTEMBER 9 New venture, AT&TConversant Systems, is formed to developsystems for automated informationdelivery and control through speech .

OCTOBER 9 AT&T introduces the AT&T PC 6300Plus, the first personal computer that cansimultaneously run AT&T's powerful UNIX operatingsystem and the MS-DOS operating system .

NOVEMBER 4 Software DefinedNetwork, developed by Bell Labs, isannounced . It allows businesscustomers to use portions of AT&T'snetwork as a private network .

AUGUST 21 AT&TInformation Systemsannounces it will cut24,000 jobs .

MAY 20 Accunet, a family ofdigital services, is introduced . Itallows transmission of data, video andgraphics through the AT&T network.

JUNE 1 Interstate long-distance rates cut 5 .6percent, saving customers$1 .1 billion a year .

SEPTEMBER 28 Direct-billing trial for residence long-distance customers begins inMinnesota .

DECEMBER The Spanish government approvesan AT&T and Compania Telefonica Nacional de Espanajoint venture, AT&T Microelectronics de Espana, tomanufacture semiconductors for European market.

JANUARY 22 AT&Topens factory in Singapore tomanufacture telephones .

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1 FCC relieves AT&TInformation Systems and AT&TCommunications of CI-II structural separationregarding marketing of customer premisesequipment . AT&T can now offer customers asingle point of contact for equipment andnetwork services.

AUGUST 1 FCCallows Tariff 12 to go intoeffect. It will enable AT&Tto offer combinations oftariffed and non-tariffednetwork services .

JULY 1 AT&T Technologiesmerger with AT&T InformationSystems results from CI-II waivers .

MAY 23 AT&TCommunications opens itsfirst offices overseas-inLondon and Tokyo-topromote internationalvoice and data services .

JUNE 21 The NationalSecurity Agency awardsAT&T a contract valued at$946 million for 3Bcomputers and softwareservices .

JULY 3 AT&T uses the Karmarkar algorithm to facilitate design of thecompany's long-distance network .

APRIL 22 AT&T introduces industry'sfirst voice-recognition cellular telephone .

MAY 22 AT&T and fourinternational partners announceplans for a second undersea trans-Atlantic fiber-optic cable, TAT 9 .

FEBRUARY 26 AT&Topens a sales office inMunich, West Germany, tooffer chip technologiesdirectly to Europeanequipment manufacturers .

AUGUST 3 ChairmanCharles Brown retires .

SEPTEMBER 11' Olivetti andAT&T announce that Olivetti willmanufacture and market AT&T'sSystem 75 digital PBX in Italy.

MAY 14 Brussels selected as siteof AT&T sales headquarters forEurope, Middle East and Africa .

JUNE 9 Bell Labsunveils a photonicswitching chip, the first"optical transistor"prototype of a devicethat could become theprimary component ofan optical computer.

SEPTEMBER 1 Jim Olson is electedchairman . Bob Allen is named president ;Randy Tobias is named vice chairman andhead of AT&T Communications and AT&TInformation Systems; Chuck Marshall and

Morry Tanenbaum are named vice chairmen .AT&T Communications and AT&T Informa-tion Systems merge operations .The two-year initial phase of equal accessends. Three of four customers choose AT&T .

JUNE 1 Interstate long-distance rates cut 11 .8percent, a $2 billion annualsavings for customers.

AT&T electronictypewriters go on sale .MARCH 24 AT&T introduces the PC

7300, a UNIX personal computer for the office,along with 28 UNIX software programs .

FEBRUARY 25 AT&TMail, a nationwideelectronic messagingservice, is introducedcommercially.

MAY 15 FCC removes CI-II requirements related to enhancednetwork service offerings . AT&T Information Systems and AT&TCommunications can develop, market and sell new enhanced networkservices once comparably efficient interconnections and open-network-architecture plans are approved .

OCTOBER 15 Olson announces"single-enterprise strategy ."

DECEMBER 18 AT&T charges $3 .2billion against 1986 earnings for plantconsolidations, inventory write-downsand 27,400 job cuts .

MARCH 24 AT&T introduces3B2/600 minicomputer .

Judge Greenerefuses to remove or modify ban onBell companies enteringmanufacturing or long-distancebusinesses, but allows them toprovide information transmissionservices and to enter non-telecommunications businesses.

OCTOBER 19AT&T and SunMicrosystems teamto develop a unifiedversion of the UNIXSystem V operatingsystem and develop acomputer systembased on a Sunmicroprocessor.

SEPTEMBER 9 AT&T joinsSematech, a consortium of 13companies formed to regain worldleadership for U.S . semiconductormanufacturing technology.OCTOBER 29

Olivetti agrees todevelop and produceAT&T personalcomputers . VittorioCassoni, president ofOlivettiManagement ofAmerica, namedsenior vice presidentof AT&T's new datasystems division. JANUARY Interstate long-distance

rates are cut 11 .2 percent, savingcustomers $1 .9 billion a year .

FEBRUARY 2 In first triennialreview of divestiture, the U.S .Department of Justice urges thecourt to allow Bell companies tomanufacture telephoneequipment, provide informationservices, offer long-distanceservices outside their regions andenter non-telecommunicationsbusinesses. AT&T opposesremoval of manufacturing andlong-distance bans.

AUGUST 4 FCCproposes price-capregulation for AT&Tand the local exchangecompanies rather thanprofit limits onregulated operations .Congress andconsumer advocatesoppose, saying it willend rate reductions andlimit competition .

MARCH 6 AT&Turges the FCC tostreamline regulation ofall AT&T competitivelong-distance services,responding to an FCCnotice proposingstreamlining on aservice-by-service basis .

SEPTEMBER 2 AT&Tintroduces 6386WorkGroup Station,3B2/500 and 3B4000 .

DECEMBER 1 A FederalTrade Commission studyconcludes that AT&Ts long-distance prices are lower instates that peimit AT&T tochange its long-distance rateswithout sirict regulatoryoversight

JULY 1 Interstate long-distancerates cut 4.8 percent, a $600 millionannual savings for customers .

AUGUST 20 FCC allows Tariff 12 filing for GeneralElectric digital tandem switched network to go intoeffect, marking the first of several uses of the tariff byAT&T for large commercial customers . AT&T willprovide a $300 million network that will integrate voiceand data services for 700 GE locations .

DECEMBER 1 2AT&T 800 READYLINEgives small businessesthe benefits of 800Service on existingphone lines .

DECEMBER 18 AT&T andIllinois Bell deploy anexperimental Integrated ServicesDigital Network (ISDN) forMcDonald's, capable of handlingvoice, data and video .

JANUARY , Three-year, $7 .5-billion plan toexpand digital networktechnology is announced .

FEBRUARY 25 While the price-cap proposalgoes unresolved, the FCC extends through 1989AT&T's 12 .2-percent authorized rate of return on itsregulated interstate operations .

MAY 9 Seeking to compete against discountpricing tactics of other business long-distancecarriers, AT&T files Tariff 15 with FCC, whichwould permit AT&T to match competitors'customer-specific discounts .

OCTOBER 28 AT&Twins billion-dollar computercontract from the U .S . AirForce.

NOVEMBER 11Chairman Bob Allencharts a new direction forAT&T, designed to focusemployees more directlyon pleasing customers .

EFCC postponesreview of price-capproposal untilJanuary 1989.

JULY 20 Chairman Bob Allenfreezes hiring and announces planto transfer up to several thousandemployees from staff to sales jobs .

AT&T and GTE joint ventureformed to bring new ISDN andother advanced technology fea-tures to GTE's telephone switch-ing systems.

APRIL 25 VittorioCassoni announces hewill return to Olivetti.Bob Kavner, AT&Tsenior VP and chieffinancial officer, replacesCassoni as head of datasystems .

JANUARY 1 AT&T and Petrofermjointly announce a new, environmentallysafe solvent made from orange peels forcleaning circuit boards .

APRIL 1 Chairman JimOlson dies of cancer . Thefollowing night, April 19,Bob Allen is named tosucceed him. He addressesthe annual meeting ofshareholders the next day .

SEPTEMBER 1 FCCallows first Tariff 15 services(for Holiday Corp .) to gointo effect, but institutesinvestigation of single-customer pricing bycarriers.

NOVEMBER 1 FCCapproves AT&T OpenNetwork Architecture forenhanced services .

MAY 1 FCC proposes a revised price-capplan for AT&T and the Bell telephone companies,saying it could save consumers $1 .6 billion overthe next four years . The proposal provides for aconsumer productivity dividend that wouldrequire AT&T and Bell companies to pass someof their expected cost savings on to customers .

NOVEMBER 20 AT&T CreditCorp. becomes one of 20 largestleasing finance companies .MARCH 7 Judge Greene allows the Bell companies

to offer information transmission and related services,such as electronic mail. He continues ban oninformation services and electronic "yellow pages ."

JANUARY 1 Long-distance ratesare reduced by 3 .5 percent, savingcustomers $772 million a year .

JAT&T agrees tobuy up to 20percent of SunMicrosystemsover the nextthree years.

DECEMBER 3 In grantingAT&T's request for a ruling,Judge Greene confirms that the"manufacturing" restrictionprohibits the Bell companies fromdesigning, developing orfabricating telecommunicationsequipment and software .

a AT&T establishesUNIX Software Operation as a newbusiness unit to operate separatelyfrom AT&T's computer business .

FCC rules that AT&T mustoffer its Tariff 12 discounts to all largecustomers, including companies that reselllong-distance services .

AT&T and Intel agree to jointlydevelop personal computers that work in AT&Tcomputer networks. Three days later, AT&T andOlivetti announce the end of their five-yearpartnership .

SEPTEMER 25AT&T makes its firstmajor acquisition inGreat Britain ; IntelGroup Ltd., a Britishinformation-servicescompany.

. ViceChairman ChuckMarshall retires .

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TheFCC votes to adoptprice caps for theregulation of AT&T'slong-distancebusiness, rather thanlimiting its profits .The move allowsAT&T to set its ownprices within limitsset by the FCC andkeep increased profitsrealized from costreductions.

AT&Tunveils the DefinityCommunications System, amerger of its System 75 andSystem 85 PBXs, formedium and largebusinesses .

DECEMBER 1 AT&Tannounces it will take a $6 .7billion write-down of analogequipment and that 95 percentof domestic switched traffic willbe digital by mid-1989 . It resultsin the company's first annualloss ever. The company alsoannounces its seventhinterstate long-distance ratecut-3.8 percent-for a total of38 percent since 1984.

Italtel, Italy'sleading manufacturer oftelecommunications equipment,selects AT&T as its partner indeveloping and marketing public andprivate equipment for Europe andother markets.

8Y

Cut-overs begin forpublic pay phoneswhose ownerschose non-AT&Tlong-distancecompanies in anequal-accessreferendum .

AT&T cuts long-distance rates by1 .9 percent, or $635million .

AUGUST 24Hewlett-Packard,Siemens and AT&Tannounce the firstagreement forinternational multi-sourcing of fiber-opticcomponents thatcomply withdeveloping computernetworking standards .

The U.S .governmentofficially launchesFTS2000, theworld's largestprivatetelecommunicationssystem, with athree-way, coast-to-coast conferencecall.

FEBRUARY 28AT&T and Zenithannounce an agreementto cooperate ondeveloping high-definition television(HDTV) technologies .

The company unveils AT&TParadyne, a new data communicationsequipment subsidiary formed from theacquired Paradyne Corp . and AT&T'sexisting data communications operations .

The first traps-Pacificfiber-optic cable, TPC- 3/HAW-4, isopened for service between the UnitedStates and Japan, via Hawaii.

Judge Greene rejects requests fromregional Bell companies to offer electronic yellowpages and other electronic directory services, sayingsuch services would "violate the most fundamentalprohibitions and purposes of the [consent] decree ."

Consistentwith Chairman Bob Allen's newdirection for the company,AT&T announces a majorreorganization into smaller,more focused business units . Amonth later, 19 business unitsand 24 supporting divisions aredefined .

DECEMBER 7 AT&T and partners win 60percent of FTS2000 contract, estimated to beworth at least $2.7 billion over 10 years .

TAT 8, first fiber-optic transoceanic cable, is dedicated .[Below; a cross-section of TAT 8.]

NOVEMBER15 AT&T begins offeringdirect-dial long-distance service to Moscow .

The U.S.Court of Appeals for the Districtof Columbia affirms JudgeGreene's decision interpretingthe ban on regional Bellcompany manufacturing toinclude design and developmentas well as fabrication.

MARCH 26 AT&Tintroduces the AT&TUniversal Card, acombination credit card andcalling card .

JUNE 1 2. AT&T approves its millionthUniversal Card account . By year's end 4 .5million accounts are opened .

Under theheadline "AT&T Starts toScore," Fortune magazineruns an article onChairman Bob Allen andthe company's newcompetitiveness .

JULY 3 AT&Tagrees to acquireEasyLinkelectronic-mail,Telex and packet-switched services ofthe BusinessServices Group ofWestern Union for$180 million .Transaction iscompleted Dec . 31 .

An error in a new version

of a network computer program leads to a nine- hour service disruption in AT&Ts long-distancenetwork The company estimates half of thelong-distance, international and tollfree 800 callsattempted on its network were not completed .

OCTOBER 26 FCCrules, 4-0, that AT&Tcan continue to offercustomized networks tolarge businesscustomers throughTariff 12 filings .Separately, FCC rejectsAT&T's Tariff 15 filingfor Holiday Corp . AT&T and

Japan's NEC Corp . agree tocooperate in developing andmanufacturing semiconductorsand related technologies .

JULY AT&T cutslong-distance prices anaverage of 2 .2 percent,or $300 million annually .The 11th decrease sincedivestiture brings thetotal to 43 percent .

Servicebegins on the Trans-Caribbean Cable System,the first fiber-opticsubmarine cable linkingthe U .S . with LatinAmerica .

AT&Tintroduces the Partner andPartner Plus telephone systemsfor small businesses, allowing faxmachines, computer modemsand credit card readers to pluginto the same extension as aPartner telephone .

AT&T raisesthe quarterly dividend on itsstock from 30 to 33 cents pershare, the first increase sincedivestiture.

JANUARY 29 AT&Tintroduces the world's first digitaloptical processor, an experimentalmachine that processes informationwith light rather than electricity .[Above: Bob LaMarche, MichaelPrise and Alan Huang of AT&T BellLaboratories.]

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AT&Tannounces its 10th long-distancerate reduction, for $300 millioneffective Jan . 1,1990, bringing totalreductions to 40 percent from pre-divestiture rates.

An earthquake in the SanFrancisco Bay area leads to the heaviest long-distance calling in AT&T's history : 140 millioncalls in the first 24 hours . AT&T switchesserving the area work flawlessly throughout thecrisis .

OCTOBER 1AT&T offers anenhancedretirement planto more than34,000 managers.More than 10,000accept.

JAT&T announces aninternational discountcalling plan, Reach OutWorld.

APRIL 3 The U.S. Court of Appeals for the Districtof Columbia upholds Judge Greene's ruling that theseven regional Bell companies cannot enter the long-distance or telecommunications-equipment markets,but returns for reconsideration his ruling onmarketing information services .

AT&T introduces atapeless, all-digital answering system forresidential use.

AT&T offers to buy NCR Corp . for $85 pershare . The bid is rebuffed but AT&T per-sists, raising it to $90 per share on Nov . 30and going public with the offer on Dec . 2 .

DECEMBER 5 NCR rejects the $90offer and takes several anti-takeoveractions. AT&T commences cash-tenderoffer for all shares of NCR stock at $90per share .

MARCH 6 Chairman Bob Allen and four other corporate chiefexecutives address a U .S. congressional committee, askingCongress to fully fund the Women, Infants and Children (WIC)food and nutrition program .

APRIL 22 AT&Tannounces the SafariSystems NSX/20 notebookcomputer, a joint venturewith Marubeni Corp.

SEPTEMBER 19NV Philips announcesit will sell its 15percent of AT&TNetwork SystemsInternational toAT&T, raisingAT&T's share of theaffiliate to 74 percent.STET of Italy owns 20percent, andTelefonica de Espanaowns 6 percent.

NOVEMBER 26Callers break the single-day calling record, placing148.4 million calls throughthe AT&T WorldwideIntelligent Network .

JANUARY 4 A cable cut inNewark, NJ ., disrupts long-distance traffic into and out ofNew York City for five hours,shutting down metropolitan-areaairports and financial exchanges .

MAY 6Following fivemonths ofnegotiations,AT&T and NCRannounce that anall-stock mergeragreement hasbeen reached.AT&T will pay theequivalent of $110per NCR share, orabout $7 .4 billion.

JUNE 3 AT&Tannounces it will sell its19-percent stake in SunMicrosystems .

MAY 1 Vice ChairmanMorry Tanenbaum, pioneer inthe use of silicon as acommercial semiconductormaterial, former president ofNew Jersey Bell and the firstchairman of the subsidiaryknown as AT&TCommunications, retires .

FEBRUARY 28 A convoy carryingAT&T employees and equipment followsmilitary troops into just-liberated Kuwait torestore telephone service . By March 2,120outbound international lines are available .

Allen tells shareowners at thecompany's annual meeting that "AT&T is nowfirmly committed to a strategy of growth" andreaffirms the three-pronged approach laid out byformer Chairman James Olson : leadership in corebusinesses, leadership in networked computingand increasing AT&T's global business .

JUNE 5 U.S. Senate approves, 71-24, abill that would permit regional Bellcompanies to manufacturetelecommunications equipment, currentlyprohibited under MFJ provisions .Legislation moves to House ofRepresentatives .

OCTOBER 23 The U.S . Court ofAppeals for the District of Columbiaorders FCC to review its 1989 decisionpermitting AT&T to offer Tariff 12 plans .By this date AT&T has 74 contractsincorporating provisions of Tariff 12filings.

AT&T begins Desert Fax, afree facsimile service to U .S . military personnelstationed in the Persian Gulf for OperationDesert Shield, at 400 AT&T Phone Centers andselected domestic military bases . By year's end,people send more than 500,000 faxes . 1

AT&T's most profitableyear ever ends with netincome of $2 .735 billion,or $2.51 per share .

JUNE 6 Poland awards $100 millionorder for switching equipment to AT&T.

AT&T ChairmanBob Allen testifies beforeHouse subcommittee thatallowing regional Bellcompanies to manufacturetelecommunicationsequipment would be "bad forconsumers, for business, forthe telecommunicationsindustry and for the nation ."

AT&T announces earnings of 75 centsper share for the second quarter, an AT&T all-timehigh for any quarter, and says it expects to takeone-time charges of as much as $4 billion againstyear-end earnings . Separately, the companyannounces that AT&T American Transtech,created in 1983 to handle stock transfersassociated with divestiture, will leave theshareowner-services business to concentrate onmarketing services .

SEPTEMBER 18AT&T re-enterscellular-telephonemarket withthree models .

DECEMBER 1AT&T announces thatit will no longer offer

telegraph services,used in modern times for

data transfer and madeobsolete by digital datacommunications services .

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AT&TannouncesTAT-1 and TAT11, two traps-Atlantic cablescarrying 80,000 telephoneconversations each, to go intoservice in 1992 and 1993 .

. . : . .

ICS absorbed intoCommunications Services Group .

AT&T and NCRformally completemerger .

ST 29 AT&Tintroduces its first fourconsumer products for salein Germany.

JULY . Saying an appealscourt forced him to do so, U.S .District Court Judge HaroldGreene agrees to allow regionalBell companies to provideinformation services such aselectronic yellow pages, an activitybarred by the MFJ .

Alex Mandl, formerchairman and CEO of Sea-LandServices, is named AT&T's newchief financial officer.

JUNE 25 To accelerateAT&T's globalization efforts,Vice Chairman RandyTobias assumesresponsibility for all AT&Tplanning, development andoperations outside theUnited States .

JUNE 24 AT&Tfiles with FCC to testwireless personal-communications-network technology.

JULY 24 AT&T's ConsumerProducts unit opens a plant inGuadalajara, Mexico, to manufacturetelephone answering systems . SEPTEMBER 24

NCR head GilWilliamson electedto AT&T board.

AT&T unveilsPublic Phone 2000, capable ofaccepting laptop computer orportable fax machineconnections, sending electronicmail and providing a keyboardfor use as a telecommunicationsdevice for the deaf.

1AT&T ends its 10th yearsince the signing of theConsent Decree with325,000 employees,including 52,000 fromNCR. Employees outsidethe United States nownumber more than50,000.For second

consecutiveyear, AT&Twins U .S . LaborDepartment'shighest awardfor laborprograms.

Consumer Products GroupExecutive Frank Blount takesleave from AT&T to serve aspresident and chief executiveofficer of the New AmericanSchool Development Corp ., anon-profit company set up toimprove the U .S. educationalsystem. Group Executive BobKavner later is named to leadConsumer Products. (Blountretires in December.)

JULY 8 AT&T domesticnetwork handles a record 156.2million calls on the firstbusiness day following a four-day weekend . AUGUST Jerre Stead,

former chairman and CEOof Square D Co ., is namedpresident of AT&T'sBusiness CommunicationsSystems unit.

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A network outage disruptslong-distance calling through New York Cityand halts takeoffs and landings at metropolitanarea airports.

DECEMBER 2 AT&T'sworldwide network handles arecord 157 .8 million calls onMonday after Thanksgiving .All but 211 calls go through onthe first try.