International Bell Telephone Company
Encyclopedia
The International Bell Telephone Company (IBTC) of Brussels, Belgium
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...

, was created in 1879 by the National Bell Telephone Company
Bell Telephone Company
The Bell Telephone Company, a common law joint stock company, was organized in Boston, Massachusetts on July 9, 1877 by Alexander Graham Bell's father-in-law Gardiner Greene Hubbard, who also helped organize a sister company — the New England Telephone and Telegraph Company...

 of Boston, Massachusetts, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, initially to sell imported telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...

s and switchboards
Telephone switchboard
A switchboard was a device used to connect a group of telephones manually to one another or to an outside connection, within and between telephone exchanges or private branch exchanges . The user was typically known as an operator...

 in Continental Europe
Continental Europe
Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands....

.

The International Bell rapidly evolved into an important European telephone service provider
Telephone company
A telephone company is a service provider of telecommunications services such as telephony and data communications access. Many were at one time nationalized or state-regulated monopolies...

 and manufacturer, with major operations in several countries.

International Bell Telephone Company organization

In 1879 Gardiner Hubbard
Gardiner Greene Hubbard
Gardiner Greene Hubbard was a U.S. lawyer, financier, and philanthropist. He was one of the founders of the Bell Telephone Company and the first president of the National Geographic Society.- Biography :...

, father-in-law of Alexander Graham Bell
Alexander Graham Bell
Alexander Graham Bell was an eminent scientist, inventor, engineer and innovator who is credited with inventing the first practical telephone....

 and the first president of the Bell Telephone Company
Bell Telephone Company
The Bell Telephone Company, a common law joint stock company, was organized in Boston, Massachusetts on July 9, 1877 by Alexander Graham Bell's father-in-law Gardiner Greene Hubbard, who also helped organize a sister company — the New England Telephone and Telegraph Company...

, founded the International Bell Telephone Company in order to promote sales of its telephone equipment throughout Europe. During his tour of the continent the Belgian government
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

 offered him the greatest financial incentives to establish his European headquarters in their country.

The International Bell Telephone Company (IBTC) shortly evolved into a holding company for its various telephone service and production divisions, with its major manufacturing arm being the Bell Telephone Manufacturing Company (BTM), which was founded in Antwerp, Belgium, on 26 April 1882. BTM was created as a joint venture by the International Bell Telephone Company of New York
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

 and the Western Electric Company of Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...

. BTM then established la Compagnie Belge du Téléphone Bell (Bell Telephone Company of Belgium) in the same year as its Belgian operating subsidiary, one of several companies that provided telephone services in the country, the others having evolved principally from telegraph carriers.

The corporate parent (IBTC) also established multiple other divisions as national companies across Continental Europe
Continental Europe
Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands....

 and Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

.

Bell Telephone Manufacturing Company

The Bell Telephone Manufacturing Company (BTM) was opened on 26 April 1882 as the principal manufacturing arm to assist the International Bell with its growth throughout all of Europe, where many countries had nationalistic trade policies favouring domestic suppliers. BTM was owned 45% by American Bell Telephone, and 55% by Bell's major U.S. supplier, Western Electric
Western Electric
Western Electric Company was an American electrical engineering company, the manufacturing arm of AT&T from 1881 to 1995. It was the scene of a number of technological innovations and also some seminal developments in industrial management...

 (of which Bell was also a majority stakeholder). It was created for "...the production, sale, purchase and leasing of equipment for telephony and telegraphy and everything directly or indirectly related to electricity" Later, as demand for services bloomed, the Bell Telephone Company had insufficient operating funds to quickly increase the telephone exchange network, resulting in Western Electric buying out all 45% of the shares held by Bell in 1890.

Ezra Gilliland of Western Electric helped establish the manufacturing arm, at which point a young university educated, multilingual American, Francis R. Welles, took over its leadership, with the title of "Administrateur Delegue". Welles would lead the overseas BTM division for the next 30 years, assisted also by Louis De Graaf, an authorised agent. Subsidiary manufacturing plants were started up in major cities throughout all of Europe, since national policies favoured local manufacturers.

In the year after its founding BTM employed 35 people, and its workshops were accommodated within a small plant at No. 4 Boudewijnstraat, Antwerp. By 1885, the Bell Antwerp facility had completed its conversion from importing telephones and switchboards from the U.S., to local manufacturing, with production more than doubling annually as BTM began to supply their other divisions throughout Europe. By 1900, BTM was also its new parent's (AT&T
AT&T Corporation
AT&T Corp., originally American Telephone and Telegraph Company, is an American telecommunications company that provides voice, video, data, and Internet telecommunications and professional services to businesses, consumers, and government agencies. AT&T is the oldest telecommunications company...

) main supplier of telephone systems to Asia, the Middle East and South America, and the facility had increased to a staff of 700 operating from a greatly expanded plant.

The Antwerp facility was largely responsible for introducing the telephone to much of Europe, with its first manual and rotary dial telephone exchanges
Rotary dial
The rotary dial is a device mounted on or in a telephone or switchboard that is designed to send electrical pulses, known as pulse dialing, corresponding to the number dialed. The early form of the rotary dial used lugs on a finger plate instead of holes. Almon Brown Strowger filed the first patent...

. In 1884 the very first European intercity line was created between Antwerp and Brussels, and in 1887 the first international line in Europe was opened between Brussels and Paris.

By the end of the nineteenth century European governments moved to nationalize
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 their phone companies, and the telephone service concessions of la Compagnie Belge du Téléphone Bell were allowed to expire or were purchased by the Belgian government.

Belgium

The first telephone exchanges in Belgium were opened in 1878. A company was formed in Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...

 in 1879, and others followed. Competition was recognised as unsatisfactory, and the various companies were encouraged to amalgamate. The Compagnie Belge du Téléphone Bell (the Bell Telephone Company of Belgium) was formed in 1882, as the Belgian subsidiary of the International Bell Telephone Company of New York. By the end of 1886, the Belgian division had a total 6,900 kilometers of telephone lines, and 3,532 subscribers in seven cities, including Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...

, Antwerp, Charleroi
Charleroi
Charleroi is a city and a municipality of Wallonia, located in the province of Hainaut, Belgium. , the total population of Charleroi was 201,593. The metropolitan area, including the outer commuter zone, covers an area of and had a total population of 522,522 as of 1 January 2008, ranking it as...

, Ghent
Ghent
Ghent is a city and a municipality located in the Flemish region of Belgium. It is the capital and biggest city of the East Flanders province. The city started as a settlement at the confluence of the Rivers Scheldt and Lys and in the Middle Ages became one of the largest and richest cities of...

, Verviers
Verviers
Verviers is a Walloon city and municipality located in the Belgian province of Liège. The Verviers municipality includes the old communes of Ensival, Lambermont, Petit-Rechain, Stembert, and Heusy...

, and Liège
Liège
Liège is a major city and municipality of Belgium located in the province of Liège, of which it is the economic capital, in Wallonia, the French-speaking region of Belgium....

.

Switzerland

The first exchange in Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

 was opened in Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...

, operated under a license granted by the IBTC to a group of business men on July 24, 1880. During 1881 exchanges were subsequently opened in Geneva
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...

, Lausanne
Lausanne
Lausanne is a city in Romandy, the French-speaking part of Switzerland, and is the capital of the canton of Vaud. The seat of the district of Lausanne, the city is situated on the shores of Lake Geneva . It faces the French town of Évian-les-Bains, with the Jura mountains to its north-west...

, and Winterthur by the government, which shortly after bought out the Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...

 exchange. Fourteen exchanges were in operation at the end of 1883, and twice as many a year later.

Netherlands

The Nederlandsche Bell Telefoon Maatschappij (Dutch Bell Telephone Company) was formed in Holland in 1881. By the end of 1886, the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

 division had a total of 3,700 kilometers of telephone line, plus 2,623 subscribers in eight cities, including Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...

, Rotterdam
Rotterdam
Rotterdam is the second-largest city in the Netherlands and one of the largest ports in the world. Starting as a dam on the Rotte river, Rotterdam has grown into a major international commercial centre...

, The Hague
The Hague
The Hague is the capital city of the province of South Holland in the Netherlands. With a population of 500,000 inhabitants , it is the third largest city of the Netherlands, after Amsterdam and Rotterdam...

, Groningen, Haarlem, and Arnhem
Arnhem
Arnhem is a city and municipality, situated in the eastern part of the Netherlands. It is the capital of the province of Gelderland and located near the river Nederrijn as well as near the St. Jansbeek, which was the source of the city's development. Arnhem has 146,095 residents as one of the...

.

Italy

In Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

, the company quickly established exchanges in Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...

, Turin
Turin
Turin is a city and major business and cultural centre in northern Italy, capital of the Piedmont region, located mainly on the left bank of the Po River and surrounded by the Alpine arch. The population of the city proper is 909,193 while the population of the urban area is estimated by Eurostat...

, and Genoa
Genoa
Genoa |Ligurian]] Zena ; Latin and, archaically, English Genua) is a city and an important seaport in northern Italy, the capital of the Province of Genoa and of the region of Liguria....

, and exchanges in a dozen of the other largest cities were started in 1881 by other interests under the auspices of a group of Parisian financiers. By the end of 1886, the Italian division had a total of 8,073 subscribers in twelve cities, plus approximately 12,500 kilometers of telephone lines. The largest exchanges were in Rome
Rome
Rome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...

 (2,022 subscribers), Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...

 (1,089), Genoa
Genoa
Genoa |Ligurian]] Zena ; Latin and, archaically, English Genua) is a city and an important seaport in northern Italy, the capital of the Province of Genoa and of the region of Liguria....

 (950) and Naples
Naples
Naples is a city in Southern Italy, situated on the country's west coast by the Gulf of Naples. Lying between two notable volcanic regions, Mount Vesuvius and the Phlegraean Fields, it is the capital of the region of Campania and of the province of Naples...

 (873).

Sweden and Norway

The International Bell Telephone Company was also responsible for the introduction of the telephone into Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

, and Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

. In 1881, exchanges were established in Stockholm
Stockholm
Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...

, Gothenburg
Gothenburg
Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...

, and Malmo
Malmö
Malmö , in the southernmost province of Scania, is the third most populous city in Sweden, after Stockholm and Gothenburg.Malmö is the seat of Malmö Municipality and the capital of Skåne County...

; however, due to government intervention, the Bell companies were eventually legislated out or squeezed out of their local markets in favour of national firms.

Russia

The Bell Company introduced the telephone to Russia
Russian Empire
The Russian Empire was a state that existed from 1721 until the Russian Revolution of 1917. It was the successor to the Tsardom of Russia and the predecessor of the Soviet Union...

 in 1883 in St. Petersburg (or Petrograd) and Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...

. By the end of 1886, IBTC's Russian division had a total of 3,440 subscribers in six cities, with 9,550 kilometers of telephone lines. Its largest exchanges were in St. Petersburg (1,080 subscribers), followed by Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...

 (690) and Warsaw
Warsaw
Warsaw is the capital and largest city of Poland. It is located on the Vistula River, roughly from the Baltic Sea and from the Carpathian Mountains. Its population in 2010 was estimated at 1,716,855 residents with a greater metropolitan area of 2,631,902 residents, making Warsaw the 10th most...

 (533).

Divestiture

At the very close of 1899, the American Bell Telephone Company was acquired, for business purposes, by its own subsidiary, the American Telephone & Telegraph Company
American Telephone & Telegraph
AT&T Corp., originally American Telephone and Telegraph Company, is an American telecommunications company that provides voice, video, data, and Internet telecommunications and professional services to businesses, consumers, and government agencies. AT&T is the oldest telecommunications company...

 (AT&T), which then became the head of the monolithic and monopolistic
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 Bell System
Bell System
The Bell System was the American Bell Telephone Company and then, subsequently, AT&T led system which provided telephone services to much of the United States and Canada from 1877 to 1984, at various times as a monopoly. In 1984, the company was broken up into separate companies, by a U.S...

.

Significant criticism of AT&T (a monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

) had emerged in the United States that domestic telephone system rates were higher than they needed to be, and that AT&T was using those revenues to subsidize its European operations. Due to that reason and others, and also due to the U.S. Government's regulatory intervention, AT&T president Walter Gifford
Walter Sherman Gifford
Walter Sherman Gifford was born in Salem, Massachusetts, United States. He is best known as the president of the AT&T Corporation from 1925-1948.- Biography :...

 divested almost all international interests held by the Bell System in 1925, with the exceptions of the Bell Telephone Company of Canada and Northern Electric
Northern Electric
Northern Electric was an electricity supply and distribution company serving north east England.-History:It had its origins as the North Eastern Electricity Board, formed as part of the nationalisation of the electricity industry by the Electricity Act 1947....

.

The European division and its subsidiaries were sold to the International Telephone & Telegraph Company
ITT Corporation
ITT Corporation is a global diversified manufacturing company based in the United States. ITT participates in global markets including water and fluids management, defense and security, and motion and flow control...

 of Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...

, at the start of that company's meteoric rise in the international telecommunications industry
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...

.

See also

  • Bell Telephone Company
    Bell Telephone Company
    The Bell Telephone Company, a common law joint stock company, was organized in Boston, Massachusetts on July 9, 1877 by Alexander Graham Bell's father-in-law Gardiner Greene Hubbard, who also helped organize a sister company — the New England Telephone and Telegraph Company...

  • Victorian Internet
    Victorian Internet
    The Victorian Internet: The Remarkable Story of the Telegraph and the Nineteenth Century's On-Line Pioneers is a 1998 book by Tom Standage. It is about the development and uses of the electric telegraph during the second half of the 19th Century and some of the similarities the telegraph shared...

    , describing advances in telecommunications during the 19th century, and their effects on society
  • Mundaneum
    Mundaneum
    The Mundaneum was an institution created in 1910 out of the initiative of two Belgian lawyers Paul Otlet and Henri La Fontaine as part of their documentation science...

    , a precursor to the Internet organized in Brussels in 1910

External links

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