[ed. Like your cable company? Do you like paying metered rates for internet use and data transfer when cloud computing, streaming Netflix, Spotify and other web-based technologies are amping up broadband requirements for the use of their products? Read this article. The more things change the more they stay the same.]
by Matthew Lasar
Hopping mad about metered billing? Spluttering about tethering restrictions and early termination fees? Raging over data caps? You're not alone. Perhaps you can take some comfort from this editorial in The New York Times:
"The greedy and extortionate nature of the telephone monopoly is notorious. Controlling a means of communication which has now become indispensable to the business and social life of the country, the company takes advantage of the public's need to force from it every year an extortionate tribute".Yes, that's how The Times saw it—in 1886. And the newspaper's readers applauded these words. But reading Richard R. John's wonderful book, Network Nation: Inventing American Telecommunications, one is struck by the contrasts between then and now. The issues are often recognizable; the players a little less so.
Nothing whatever
It was 1887, and Charles M. Fay, General Manager of the Chicago Telephone Exchange, had had about as much as he could take. The pseudo populist legislatures that kowtowed to telephone subscriber groups were on a rampage, Fay warned in a lengthy screed that appeared in the National Telephone Exchange Association's annual journal. Now they were demanding rate caps and price regulation—but for whom?
The poor and working class have "nothing whatever" to do with the telephone, and never will, Fay insisted. "Telephone users are men whose business is so extended and whose time is so valuable as to demand rapid and universal communication," he continued, leaving to posterity this remarkable claim about the service:
"A laborer who goes to work with his dinner basket has no occasion to telephone home that he will be late to dinner; the small householder, whose grocer lives just around corner, would not pay once cent for a telephone wherewith to reach him; the villager, whose deliberate pace is never hurried, will walk every time the few steps necessary to see his neighbor in order to save a nickel. The telephone, like the telegraph, post office and the railroad, is only upon extraordinary occasions used or needed by the poor. It is demanded, and daily depended upon, and should be liberally paid for by the capitalist, mercantile, and manufacturing classes."To be fair, Fay was right about the immediate moment. Given 1887 telephone subscription rates, hardly any workers or villagers bought regular telephone service. They couldn't afford it. But the Bell System's big problem in 1887 wasn't the poor and struggling masses. It was those "mercantile and manufacturing" types—also up in arms at Bell franchise prices.
Appalled at schemes like "measured service" for billing consumers for local calls, telephone subscribers launched municipal and state-wide reform campaigns, backed independent network providers, and ran "rate strikes" on more than one occasion.
"Telephomania," Fay bitterly called the phenomenon—the "only fit word" to describe these ingrates. But their largely forgotten uprisings made a difference.
"By demonstrating the vulnerability of operating companies to legislative intervention," writes John, "they goaded a new generation of telephone managers into providing telephone service to thousands of potential telephone users whom their predecessors had ignored. The popularization of the telephone was the result."
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