Sprint© Corporation
This telecommunications giant
that now serves more than 40 million customers in
more than 70 countries began as a small
independent telephone company in a town of fewer
than 7,000 persons.
In the fall of 1899, Cleyson Leroy Brown
built an electric company on the south shore of
the Smoky Hill River in Abilene, Kansas. It was
the rapid success of the Abilene Electric Light
Works that allowed Brown to expand into the
communications business.
The Bell Telephone Company,
which owned all important patents related to the
telephone, enjoyed a monopoly on local telephone
service. But in small towns, including Abilene,
Bell service was expensive and often viewed by
the public as "big business from the
East." In addition, Bell's patents were
about to expire, paving the way for entrepeneurs
to offer alternatives.
On October 26, 1899, Brown
announced the formation of his own phone company.
The first long distance circuit was hooked up in
February 1900, and, in October 1902, the Brown
Telephone Company was chartered. In September
1911, Brown consolidated his company with three
other Kansas independent telephone companies.
United Telephone Company now controlled seven
major telephone exchanges and was the second
largest telephone company in Kansas. In 1925,
Brown formed United Telephone and Electric
(UT&E) in order to purchase stock in
subsidiary companies across widely separated
geographical areas. At its peak, UT&E
controlled 68 other companies, of which almost 70
per cent were telephone companies.
United Telephone continued to
grow during the first two years of the Great
Depression; in fact, the company acquired large
telephone holdings in Pennsylvania, Indiana, Ohio
and Illinois during this period. By 1933,
however, the total number of subscribers had
dropped dramatically and new government
regulations prevented UT&E from selling
additional stock. This situation, as well as his
declining health, prompted Brown to relinquish
active administration of UT&E in 1934; he
died in 1935.
Economic recovery began about
1937. Expansion and acquisitions led to a
reorganization of UT&E into United Utilities
in 1939. By the 1950's United Utilities had
become the nation's third largest independent
telephone company, conducting business across
five states.
United Utilities continued to
grow, and in 1972 changed its name to United
Telecommunications, Inc. (also known as United
Telecom). In 1984 United Telecom acquired one of
the largest low-cost long distance telephone
businesses in the country, and by the end of 1985
it had more than 4,700 miles of fiber optic
network in place. That same year United Telecom
formed a partnership with GTE, which had recently
acquired Sprint, a low-cost long distance
carrier. In 1989, United Telecom and Sprint
merged into one company with two major divisions
-- long distance (Sprint) and local service
(United Telecom). In 1991, United Telecom
completed its acquisition of Sprint and changed
its corporate name from United Telecommunications
to Sprint Corporation.
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