The RBOCs are still very heavily regulated, but not from the top. Instead, they struggle politically, economically and legally, in what seems an endless turmoil, in a patchwork of overlapping federal and state jurisdictions. Increasingly, like other major American corporations, the RBOCs are becoming multinational, acquiring important commercial interests in Europe, Latin America, and the Pacific Rim. But this, too, adds to their legal and political predicament.
The people of what used to be Ma Bell are not happy about their fate. They feel ill-used. They might have been grudgingly willing to make a full transition to the free market; to become just companies amid other companies. But this never happened. Instead, AT&T and the RBOCS ("the Baby Bells") feel themselves wrenched from side to side by state regulators, by Congress, by the FCC, and especially by the federal court of Judge Harold Greene, the magistrate who ordered the Bell breakup and who has been the de facto czar of American telecommunications ever since 1983.
Bell people feel that they exist in a kind of paralegal limbo today. They don't understand what's demanded of them. If it's "service," why aren't they treated like a public service? And if it's money, then why aren't they free to compete for it? No one seems to know, really. Those who claim to know keep changing their minds. Nobody in authority seems willing to grasp the nettle for once and all.
Telephone people from other countries are amazed by the American telephone system today. Not that it works so well; for nowadays even the French telephone system works, more or less. They are amazed that the American telephone system STILL works AT ALL, under these strange conditions.
Bell's "One System" of long-distance service is now only about eighty percent of a system, with the remainder held by Sprint, MCI, and the midget long-distance companies. Ugly wars over dubious corporate practices such as "slamming" (an underhanded method of snitching clients from rivals) break out with some regularity in the realm of long-distance service. The battle to break Bell's long-distance monopoly was long and ugly, and since the breakup the battlefield has not become much prettier. AT&T's famous shame-and-blame advertisements, which emphasized the shoddy work and purported ethical shadiness of their competitors, were much remarked on for their studied psychological cruelty.
There is much bad blood in this industry, and much long-treasured resentment. AT&T's post-breakup corporate logo, a striped sphere, is known in the industry as the "Death Star" (a reference from the movie Star Wars, in which the "Death Star" was the spherical high-tech fortress of the harsh-breathing imperial ultra-baddie, Darth Vader.) Even AT&T employees are less than thrilled by the Death Star. A popular (though banned) T-shirt among AT&T employees bears the old-fashioned Bell logo of the Bell System, plus the newfangled striped sphere, with the before-and-after comments: "This is your brain—This is your brain on drugs!" AT&T made a very well-financed and determined effort to break into the personal computer market; it was disastrous, and telco computer experts are derisively known by their competitors as "the pole-climbers." AT&T and the Baby Bell arbocks still seem to have few friends.
Under conditions of sharp commercial competition, a crash like that of January 15, 1990 was a major embarrassment to AT&T. It was a direct blow against their much-treasured reputation for reliability. Within days of the crash AT&T's Chief Executive Officer, Bob Allen, officially apologized, in terms of deeply pained humility:
"AT&T had a major service disruption last Monday. We didn't live up to our own standards of quality, and we didn't live up to yours. It's as simple as that. And that's not acceptable to us. Or to you.... We understand how much people have come to depend upon AT&T service, so our AT&T Bell Laboratories scientists and our network engineers are doing everything possible to guard against a recurrence.... We know there's no way to make up for the inconvenience this problem may have caused you."
Mr Allen's "open letter to customers" was printed in lavish ads all over the country: in the Wall Street Journal, USA Today, New York Times, Los Angeles Times, Chicago Tribune, Philadelphia Inquirer, San Francisco Chronicle Examiner, Boston Globe, Dallas Morning News, Detroit Free Press, Washington Post, Houston Chronicle, Cleveland Plain Dealer, Atlanta Journal Constitution, Minneapolis Star Tribune, St. Paul Pioneer Press Dispatch, Seattle Times/Post Intelligencer, Tacoma News Tribune, Miami Herald, Pittsburgh Press, St. Louis Post Dispatch, Denver Post, Phoenix Republic Gazette and Tampa Tribune.
In another press release, AT&T went to some pains to suggest that this "software glitch" might have happened just as easily to MCI, although, in fact, it hadn't. (MCI's switching software was quite different from AT&T's—though not necessarily any safer.) AT&T also announced their plans to offer a rebate of service on Valentine's Day to make up for the loss during the Crash.