GTE Corporation, formerly General Telephone & Electronics Corporation (1955–1982),[2] was the largest independent telephone company in the United States during the days of the Bell System. The company operated from 1926, with roots tracing further back than that, until 2000, when it was acquired by Bell Atlantic, which then changed its name to Verizon.
The Wisconsin-based Associated Telephone Utilities Company was founded in 1926; it went bankrupt in 1933 during the Great Depression, and was reorganized as General Telephone in 1934.[3] In 1991, it acquired the third-largest independent phone company at that time, Continental Telephone (ConTel).[4] It owned Automatic Electric, a telephone equipment supplier similar in many ways to Western Electric, and Sylvania Electric Products, the only non-communications-oriented company under GTE ownership. GTE provided local telephone service to many areas of the U.S. through operating companies, much as American Telephone & Telegraph provided local telephone service through its 22 Bell Operating Companies.
The company acquired BBN Planet, one of the earliest Internet service providers, in 1997. That division became known as GTE Internetworking, and was later spun off into the independent company Genuity (a name recycled from another Internet company GTE acquired in 1997) to satisfy Federal Communications Commission (FCC) requirements regarding the GTE–Bell Atlantic merger that created Verizon.[5]
GTE operated in Canada via large interests in subsidiary companies such as BC Tel and Quebec-Téléphone. When foreign ownership restrictions on telecommunications companies were introduced, GTE's ownership was grandfathered. When BC Tel merged with Telus (the name given to the privatized Alberta Government Telephones (AGT)) to create BCT.Telus, GTE's Canadian subsidiaries were merged into the new parent, making it the second-largest telecommunications carrier in Canada. As such, GTE's successor, Verizon Communications, was the only foreign telecommunications company with a greater than 20% interest in a Canadian carrier, until Verizon completely divested itself of its shares in 2004.[6]
In the Caribbean, CONTEL purchased several major stakes in the newly independent countries of the British West Indies (namely in Barbados, Jamaica, and Trinidad and Tobago).[7][8][9]
Prior to GTE's merger with Bell Atlantic, GTE also maintained an interactive television service joint-venture called GTE mainStreet (sometimes also called mainStreet USA) as well as an interactive entertainment and video game publishing operation, GTE Interactive Media.[10][11][12]
History
General Telephone
In 1934, General Telephone Corporation was established with John Winn as president. The following year, the company created General Telephone Directory Company as a division. During World War II, General Telephone helped install phone service for military facilities. From 1946 to 1950, General Telephone obtained over 100,000 telephone lines and bought out Leich Electric Company.
General Telephone's holdings included 15 telephone companies across 20 states by 1951, when Donald C. Power was named president of the company under chairman and long-time GT executive Morris F. LaCroix, replacing the retiring Harold Bozell (president 1940 – 1951). Power proceeded to expand the company through the 1950s principally through two acquisitions.
In 1955, Theodore Gary & Company became a part of General Telephone and allowed the company to hold over 2 million telephone lines after the companies merged. It also had a subsidiary, named the General Telephone and Electric Corporation, formed in 1930 with the Transamerica Corporation and British investors to compete against ITT.[13]
In 1959, Sylvania Electric Products merged into General Telephone and was renamed to General Telephone & Electronics Corporation (GT&E).
Merger with Bell Atlantic
Bell Atlantic merged with GTE on June 30, 2000, and named the new entity Verizon Communications. The GTE operating companies retained by Verizon became collectively known as Verizon West division of Verizon (including east coast service territories). The remaining smaller operating companies were sold off or transferred into the remaining ones. Additional properties were sold off within a few years after the merger to CenturyTel, Alltel, and Hawaiian Telcom.
On July 1, 2010, Verizon sold many former GTE properties to Frontier Communications.[20] Additional ex-GTE territories in California, Florida, and Texas were sold to Frontier in 2015 and transferred in 2016, ending Verizon's landline operations outside of the historic Bell Atlantic footprint.[21]
Verizon still operates phone service in non-Bell System areas in Pennsylvania under Verizon North, and in non-Bell System areas in Virginia and Knotts Island, North Carolina under Verizon South.
In September 2024, Verizon announced a deal to acquire Frontier, which will return much of the former GTE network to Verizon ownership.
Operating companies
Prior to the merger with Bell Atlantic, GTE owned the following operating companies in the US:[23]
Following the merger of GTE and Bell Atlantic, some of these companies and/or access lines have been sold off to other companies, such as Alltel, ATEAC,[24] The Carlyle Group, CenturyTel, Citizens/Frontier Communications, and Valor Telecom.
- Contel of Minnesota, Inc.
- Contel of the South, Inc. (Alabama, Indiana, Michigan)
- GTE Alaska Incorporated
- GTE Arkansas Incorporated
External links
References
- FORM 10-K^
- Bell Atlantic and GTE Pick Post-Merger Name The New York Times, April 4, 2000, retrieved March 15, 2015^
- GTE Corporation Encyclopædia Britannica, retrieved January 2, 2014^