Carterphone Decision

A 1968 ruling by the Federal Communications Commission that established the right of telephone company customers to connect their own equipment to the public phone network, if the customer-provided equipment did no harm to the network. The Carterphone itself was a two-way radio transceiver equipped with an acoustic coupler for a standard telephone handset. The earpiece in the handset played into the microphone of the radio and the radio speaker played into the handset's mouthpiece. The Bell System attempted to prohibit use of this device, prompting a complaint that led the FCC to issue the Carterphone decision.

The Federal Communications Commission (FCC) hands down The Caterphone Decision, which opens up the Bell Telephone network to equipment manufactured and approved from other groups besides Bell Telephone. This decision allows devices such as modems to be connected to the telephone network in the 1970's.


On June 26th a landmark decision in telecom history as the Carterphone 
Decision is rendered by the FCC. Under this decision, the FCC struck down 
existing interstate telephone tariffs prohibiting attachment of connection 
to the public telephone system of any equipment or device that was not 
supplied by the telephone companies (Bell System). The suit, which began 
October 28, 1966 centered on the desire of Carter Electronics of Dallas to 
interconnect private mobile radio systems with the nationwide exchange and 
message toll telephone network. The Carterphone Decision created the 
interconnect industry and allowed manufacturers other than Western Electric 
to sell their telephone devices to business nationwide. The telephone 
companies still managed a minor victory by convincing the FCC that Bell 
System manufactured "interface devices" had to be placed between any 
non-telephone company equipment and the public telephone system. These 
interface devices were struck down in 1978 when the FCC determined that 
any equipment manufactured to FCC regulations could connect to the public 
network via industry standard network termination devices (RJ11C, RJ21X, 
etc.) In the mid-1980's the former Bell System companies were successfully 
sued for the fees paid by customers for these interface devices (which were 
determined to be unnecessary) during the ten year period from 1968 to 1978.

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