AT&T Information Systems

After the breakup of the Bell System, which became effective in January 1984, AT&T Corporation—the world's largest company—was allowed to enter the computer market. In 1979 and 1980, the Federal Communications Commission (FCC) conducted Computer Inquiry I and II, which restricted Western Electric from selling "enhanced services", such as telephone equipment and other unregulated business, except through a fully separated AT&T subsidiary. As a result, American Bell, Inc. was formed, and began operations in 1982.

Observers expected American Bell, with Bell Labs and Western Electric, to challenge market leader IBM, and saw its first 3B series computers in March 1984 as the most important products in the industry since the IBM PC in 1981. AT&T, they thought, had the technology to become an important computer company, while its large size would reassure customers that its products would not become orphaned technology. Employees at American Bell who worked in AT&T facilities that housed Bell Labs and Western Electric offices often encountered bureaucratic red tape, such as restrictions on using the one library in the same building because it was owned by Bell Labs.

American Bell contained two core units:

American Bell Consumer Products - sold residential telephones/terminal equipment

American Bell Advanced Information Systems - sold business telephone/terminal equipment, such as the American Bell Merlin system, PCs, and mid-sized computers running on the company's proprietary Unix operating system.

On January 1, 1983, a year prior to the final breakup of the Bell System in 1984, American Bell Advanced Information Systems (AIS) was launched as an unregulated AT&T subsidiary with a mission to directly challenge IBM in the communications/computer space. Led by Mr. Archie J. McGill, who joined AT&T in 1973 after a rapid rise at the International Business Machines Corporation. McGill was charged with transitioning and positioning the telephone company for the era of deregulated head-to-head competition in the high-tech market. The new enterprise was introduced to the world with a splash on New Year's Eve 1983 at New York Times Square when the traditional New Year's Eve crystal countdown ball was replaced with a crystal version of the new American Bell Advanced Information System's "Globe" logo. In 1984, the American Bell Advanced Information Systems name was changed to AT&T Information Systems.

Logo

The AT&T Globe logo, originally designed by Saul Bass and sometimes informally called the "Death Star" for its visual similarity to the weapon of that name in the Star Wars movie franchise, originated for use with American Bell. When Judge Greene banned AT&T from using any Bell marks whatsoever after the breakup, except for usage of the Bell Labs name, AT&T switched over to the Globe logo.

Post-breakup

Since AT&T was required to divest the Bell logo and trademark to the Baby Bells, American Bell was renamed AT&T Information Systems on January 1, 1984. The business unit, American Bell Advanced Information Systems, was absorbed into AT&T Network Systems, while American Bell Consumer Products, renamed AT&T Consumer Products, became a unit of AT&T Technologies.

AT&T PC 6300

On December 22, 1983, AT&T announced an agreement to acquire a twenty-five percent interest in Italian computer manufacturer, Olivetti. As part of the agreement, the two companies agreed to share manufacturing resources. This allowed AT&T to utilize Olivetti to manufacture its AT&T PC 6300 line of desktop PCs as a re-badged M24 beginning in June 1984.

Although considered AT&T's entry-level product, the PC 6300 featured a 16-bit Intel 8086 processor at nearly twice the clock speed of the IBM Personal Computer, the PC 6300 was intended to compete directly with the IBM Personal Computer AT, and was sold with MS-DOS. It was later marketed for use with Microsoft's Xenix operating system.