DirecTV is an American direct broadcast satellite service provider based in El Segundo, California and is a subsidiary of AT&T. Its satellite service, launched on June 17, 1994, transmits digital satellite television and audio to households in the United States, Latin America and the Caribbean, its primary competitors are cable television providers. On July 24, 2015, after receiving approval from the United States Federal Communications Commission and United States Department of Justice, AT&T acquired DirecTV in a transaction valued at $67.1 billion. As of Q1 2017, DirecTV U. S. had 21 million revenues of $12 billion. On November 30, 2016, DirecTV Now, their internet streaming TV service, was launched. In 1953, Howard Hughes created the Howard Hughes Medical Institute, to which he transferred full ownership of Hughes Aircraft. Ostensibly created as a non-profit medical research foundation, HHMI was accused of being used by Hughes as a tax shelter. Following Hughes' death in 1976, HHMI was incorporated in 1977, litigation ensued to determine whether it would be allowed to maintain its interest in Hughes Aircraft.
In 1984, the court appointed a new board for HHMI, which proceeded to sell off Hughes Aircraft to General Motors on December 20, 1985, for an estimated $5.1 billion. General Motors merged Hughes Aircraft with its subsidiary Delco Electronics to create Hughes Electronics Corporation; the new subsidiary was composed of four units: Delco Electronics Company, Hughes Aircraft Company, Hughes Space and Communications Company, Hughes Network Systems. Stanley E. Hubbard founded United States Satellite Broadcasting in 1981 and was a leading proponent for the development of direct-broadcast satellite service in the United States. USSB was awarded five frequencies at the coveted 101-degree west satellite location. Hughes Communications, Inc. was awarded 27 frequencies at the same 101-degree location. After many years, the technology was developed to enable the building of high-power satellites, digital compression standards were developed that allowed multiple digital television channels to be sent through each satellite frequency.
Hughes attempted to create a joint venture with NBC, News Corp. and Cablevision in 1990, to launch the first high-power digital television service called Sky Cable. Failing to do so, the company instead created DirecTV as a separate division and secured an agreement with USSB to build and launch the first high-power direct-broadcast satellite system. DirecTV's name is a portmanteau of "direct" and "TV". Hughes/DirecTV turned to Thomson Consumer Electronics to develop the digital satellite system for the service that would be capable of receiving 175 channels on a small 18-inch dish; these dishes utilized a new generation of smaller, lighter receiver dishes based on military technology introduced by the Global Broadcast System, which predated DirecTV's viability by ten years. Hughes was awarded the contract to build and launch the new high-powered satellites, USSB and DirecTV agreed that the new satellites would carry the two separate programming services: USSB and DirecTV; the USSB and DirecTV programming services were launched on June 17, 1994.
Digital Equipment Corporation provided the hardware for DirecTV, Matrixx Marketing provided customer care via the Matrixx Plus department, DBS Systems created the billing software. In December 1998, DirecTV acquired USSB for $1.3 billion, combined the two satellite services. In 1999, DirecTV acquired PrimeStar, a competitor in the satellite television industry, for $1.83 billion increasing its share of the satellite television market in the US. In September 1996, Hughes purchased 70% of PanAmSat for $3 billion. In 1997, GM transferred it to Delphi Automotive Systems; that same year, Hughes Aircraft was sold to Raytheon for $9.5 billion. Raytheon filed a lawsuit in 1999 accusing Hughes of overstating the value of Hughes Aircraft by $1 billion. A $635.5-million settlement was reached in 2001. In 2000, Hughes Space and Communications was sold to Boeing for $3.75 billion, which it claimed had been overvalued by Hughes. Hughes settled with Boeing for $360 million; these sales left DirecTV, PanAmSat and Hughes Network Systems as the remaining components of Hughes Electronics.
Direct satellite broadcaster were mandated in 1992 to set aside 4% of its channel space for noncommercial educational and informational programming. DirecTV selected C-SPAN, EWTN and the Trinity Broadcasting Network from its current channel lineup plus request additional proposals from other programmers. DirecTV had given PBS Kids, PBS's original application, carriage that did not count against the set aside six weeks before the deadline. DirecTV selected an additional six channels. In 2000, DirecTV introduced the first live in-flight television service for airlines. In September 2000, GM executives, under pressure from GM's shareholders as a result of its poor performance and the greater market worth of Hughes, authorized Hughes executives to begin seeking buyers. In 2001, News Corporation began negotiations to acquire Hughes Electronics in a deal worth $8 billion, which would allow News Corp. to expand its Sky Global Networks satellite television operations into the United States. Negotiations with News Corp. failed, Hughes entered into an agreement on October 28, 2001 to be purchased for $26 billion
AT&T Inc. is an American multinational conglomerate holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world's largest telecommunications company, the second largest provider of mobile telephone services, the largest provider of fixed telephone services in the United States through AT&T Communications. Since June 14, 2018, it is the parent company of mass media conglomerate WarnerMedia, making it the world's largest media and entertainment company in terms of revenue; as of 2018, AT&T is ranked #9 on the Fortune 500 rankings of the largest United States corporations by total revenue. AT&T began its history as Southwestern Bell Telephone Company, a subsidiary of the Bell Telephone Company, founded by Alexander Graham Bell in 1880; the Bell Telephone Company evolved into American Telephone and Telegraph Company in 1885, which rebranded as AT&T Corporation. The 1982 United States v. AT&T antitrust lawsuit resulted in the divestiture of AT&T Corporation's subsidiaries or Regional Bell Operating Companies, resulting in several independent companies including Southwestern Bell Corporation.
In 2005, SBC purchased its former parent AT&T Corporation and took on its branding, with the merged entity naming itself AT&T Inc. and using its iconic logo and stock-trading symbol. In 2006, AT&T Inc. acquired BellSouth, the last independent Baby Bell company, making their joint venture Cingular Wireless wholly owned and rebranding it as AT&T Mobility. The current AT&T reconstitutes much of the former Bell System, includes ten of the original 22 Bell Operating Companies along with the original long distance division. AT&T can trace its origin back to the original Bell Telephone Company founded by Alexander Graham Bell after his patenting of the telephone. One of that company's subsidiaries was American Telephone and Telegraph Company, established in 1885, which acquired the Bell Company on December 31, 1899, for legal reasons, leaving AT&T as the main company. AT&T established a network of subsidiaries in the United States and Canada that held a government-authorized phone service monopoly, formalized with the Kingsbury Commitment, throughout most of the twentieth century.
This monopoly was known as the Bell System, during this period, AT&T was known by the nickname Ma Bell. For periods of time, the former AT&T was the world's largest phone company. In 1982, U. S. regulators broke up the AT&T monopoly, requiring AT&T to divest its regional subsidiaries and turning them each into individual companies. These new companies were known as Regional Bell Operating Companies, or more informally, Baby Bells. AT&T continued to operate long distance services, but as a result of this breakup, faced competition from new competitors such as MCI and Sprint. Southwestern Bell was one of the companies created by the breakup of AT&T Corp; the architect of divestiture for Southwestern Bell was Robert G. Pope; the company soon started a series of acquisitions. This includes the 1987 acquisition of Metromedia mobile business and the acquisition of several cable companies in the early 1990s. In the half of the 1990s, the company acquired several other telecommunications companies, including some Baby Bells, while selling its cable business.
During this time, the company changed its name to SBC Communications. By 1998, the company was in the top 15 of the Fortune 500, by 1999 the company was part of the Dow Jones Industrial Average. In 2005, SBC purchased AT&T for $16 billion. After this purchase, SBC adopted the better-known AT&T name and brand, with the original AT&T Corp. still existing as the long-distance landline subsidiary of the merged company. The current AT&T claims the original AT&T Corp.'s history as its own, though its corporate structure only dates from 1983. It retains SBC's pre-2005 stock price history, all regulatory filings prior to 2005 are for Southwestern Bell/SBC, not AT&T Corp. In September 2013, AT&T Inc. announced it would expand into Latin America through a collaboration with América Móvil. In December 2013, AT&T announced plans to sell its Connecticut wireline operations to Stamford-based Frontier Communications. AT&T purchased the Mexican carrier Iusacell in late 2014, two months purchased the Mexican wireless business of NII Holdings, merging the two companies to create AT&T Mexico.
In July 2015, AT&T purchased DirecTV for $48.5 billion, or $67.1 billion including assumed debt, subject to certain conditions. AT&T subsequently announced plans to converge its existing U-verse home internet and IPTV brands with DirecTV, to create AT&T Entertainment. In an effort to increase its media holdings, on October 22, 2016, AT&T announced a deal to buy Time Warner for $108.7 billion. AT&T owns a 2% stake in Canadian-domiciled entertainment company Lionsgate. On July 13, 2017, it was reported that AT&T would introduce a cloud-based DVR streaming service as part of its effort to create a unified platform across DirecTV and its DirecTV Now streaming service, with U-verse to be added soon. In October 2018, it was announced that the service Is set to launch in 2019On September 12, 2017, it was reported that AT&T planned to launch a new cable TV-like service for delivery over-the-top over its own or a competitor's broadband network sometime next year. On November 20, 2017, Assistant Attorney General Makan Delrahim filed a lawsuit for the United States Department of Justice Antitrust Division to block the merger with Time Warner, saying it "will harm competition, result in higher bills for consumers and less innovation."
In order for AT&T to acquire Time Warner, the Department of Justice stated that the company must
Birmingham is a city located in the north central region of the U. S. state of Alabama. With an estimated 2017 population of 210,710, it is the most populous city in Alabama. Birmingham is the seat of Alabama's most populous and fifth largest county; as of 2017, the Birmingham-Hoover Metropolitan Statistical Area had a population of 1,149,807, making it the most populous in Alabama and 49th-most populous in the United States. Birmingham serves as an important regional hub and is associated with the Deep South and Appalachian regions of the nation. Birmingham was founded in 1871, during the post-Civil War Reconstruction era, through the merger of three pre-existing farm towns, most notably Elyton; the new city was named for Birmingham, the UK's second largest city and, at the time, a major industrial city. The Alabama city annexed smaller neighbors and developed as an industrial center, based on mining, the new iron and steel industry, rail transport. Most of the original settlers who founded Birmingham were of English ancestry.
The city was developed as a place where cheap, non-unionized immigrant labor, along with African-American labor from rural Alabama, could be employed in the city's steel mills and blast furnaces, giving it a competitive advantage over unionized industrial cities in the Midwest and Northeast. From its founding through the end of the 1960s, Birmingham was a primary industrial center of the southern United States, its growth from 1881 through 1920 earned it nicknames such as "The Magic City" and "The Pittsburgh of the South". Its major industries were steel production. Major components of the railroad industry and railroad cars, were manufactured in Birmingham. Since the 1860s, the two primary hubs of railroading in the "Deep South" have been Birmingham and Atlanta; the economy diversified in the latter half of the 20th century. Banking, telecommunications, electrical power transmission, medical care, college education, insurance have become major economic activities. Birmingham ranks as one of the largest banking centers in the U.
S. Also, it is among the most important business centers in the Southeast. In higher education, Birmingham has been the location of the University of Alabama School of Medicine and the University of Alabama School of Dentistry since 1947. In 1969 it gained the University of Alabama at Birmingham, one of three main campuses of the University of Alabama System, it is home to three private institutions: Samford University, Birmingham-Southern College, Miles College. The Birmingham area has major colleges of medicine, optometry, physical therapy, law and nursing; the city has three of the state's five law schools: Cumberland School of Law, Birmingham School of Law, Miles Law School. Birmingham is the headquarters of the Southwestern Athletic Conference and the Southeastern Conference, one of the major U. S. collegiate athletic conferences. Birmingham was founded on June 1, 1871, by the Elyton Land Company, whose investors included cotton planters and railroad entrepreneurs, it sold lots near the planned crossing of the Alabama & Chattanooga and South & North Alabama railroads, including land, a part of the Benjamin P. Worthington plantation.
The first business at that crossroads was the trading post and country store operated by Marre and Allen. The site of the railroad crossing was notable for its proximity to nearby deposits of iron ore and limestone – the three main raw materials used in making steel. Birmingham is the only place where significant amounts of all three minerals can be found in close proximity. From the start the new city was planned as a center of industry; the city's founders, organized as the Elyton Land Company, named it in honor of Birmingham, one of the world's premier industrial cities, to emphasize that point. The growth of the planned city was impeded by an outbreak of cholera and a Wall Street crash in 1873. Soon afterward, however, it began to develop at an explosive rate; the Tennessee Coal and Iron Company became the leading steel producer in the South by 1892. In 1907 U. S. Steel became the most important political and economic force in Birmingham, it resisted new industry, however. In 1911, the town of Elyton and several other surrounding towns were absorbed into Birmingham.
From the early 20th century, the city grew so it earned the sobriquet "The Magic City". The downtown was redeveloped from a low-rise commercial and residential district into a busy grid of neoclassical mid- and high-rise buildings crisscrossed by streetcar lines. Between 1902 and 1912, four large office buildings were constructed at the intersection of 20th Street, the central north-south spine of the city, 1st Avenue North, which connected the warehouses and industrial facilities along the east-west railroad corridor; this early group of skyscrapers was nicknamed the "Heaviest Corner on Earth". Birmingham was hit by the 1916 Irondale earthquake. A few buildings in the area were damaged; the earthquake was felt as far as Atlanta and neighboring states. While excluded from the best-paying industrial jobs, African Americans joined the migration of residents from rural areas to the city, drawn by economic opportunity; the Great Depression of the 1930s struck Birmingham hard, as the sources of capital fueling the city's growth dried up at the same time farm laborers, driven off the land, made their way to the city in search of work.
Hundreds poured into many riding in empty boxcars. "Hobo jungles" were established in Boyles, the Twenty-fourth Street Viaduct, G
Cricket Wireless LLC is a prepaid wireless service provider in the United States, a wholly owned subsidiary of AT&T Inc. It offers mobile voice and data using parent AT&T's nationwide network. Cricket Wireless was founded in 1999 by Inc.. On July 12, 2013, AT&T Inc. agreed to acquire Cricket's parent company Leap Wireless International for $1.2 billion. The merger was approved by the Federal Communications Commission on March 13, 2014, that same day, Leap Wireless announced the completion of its acquisition by AT&T. Cricket's first market was Chattanooga, Tennessee, in 1999 and through much of its early growth became known as a network focused on small, rural markets. On September 4, 2007, competing carrier MetroPCS announced a $5.3 billion bid to merge with Leap Wireless. Leap informally rejected the bid less than two weeks later. MetroPCS withdrew the bid less than two months on November 1, 2007. On September 17, 2007, Cricket launched Wireless Broadband Service using EV-DO. On December 12, 2007, Cricket agreed to acquire Hargray Communications Group's wireless telecommunications business.
On April 8, 2008, Cricket launched in Oklahoma City. On September 29, 2008, Cricket announced that they had entered into a 10-year roaming agreement with MetroPCS covering both companies' existing and future markets; the companies entered into a spectrum exchange agreement covering licenses in certain markets. On November 13, 2008, Cricket launched "Premium Extended Coverage", a roaming partnership with 14 wireless companies. On February 2009, Cricket launched in Chicago. On March 10, 2009, Cricket launched in the Philadelphia market, including eastern Pennsylvania, South Jersey and Delaware. On June 23, 2009, Cricket launched in the DC and Baltimore markets. On September 28, 2009, Cricket changed its domain name to "mycricket.com". On April 13, 2010, Cricket launched Cricket Navigator, a GPS application that offers audible turn-by-turn navigation, hyper-local search and maps. On August 2010, Cricket and Sprint signed a five-year wholesale agreement which allows Cricket to utilize Sprint's nationwide 3G EVDO network in the U.
S. On August 12, 2010, Cricket was a launch operator for the Kyocera Rio low-cost touch phone. On May 31, 2012, Cricket iPhone 4S availability on its network. On September 5, 2012, electronic retailer RadioShack, in partnership with Leap, launched RadioShack No Contract Wireless, a service powered by Cricket. On October 21, 2012, Cricket discontinued its daily PayGO plans. On July 12, 2013, AT&T Inc. agreed to buy Cricket Wireless' parent for $1.2 billion. On March 13, 2014, the Federal Communications Commission approved the acquisition between AT&T and Leap Wireless. On May 18, 2014, Cricket's website and Aio Wireless's website were redirected to the new cricketwireless.com site. This signaled the beginning of operations as the new Cricket. GSM operations for Cricket Wireless began this day as well. All Aio Wireless dealer stores were converted to the Cricket brand and the Aio Wireless brand was retired. On September 24, 2015 Cricket Wireless launched their variants of Apple's iPhone 6s and 6s Plus smartphones.
Cricket Wireless' advantage is the Cricket Protect insurance plan, which covers users from physical damage, water damage and theft. Prior to its acquisition by AT&T, Cricket's CDMA network used its home network and roaming agreements with Sprint, among other CDMA carriers. However, Cricket's CDMA network was shut down and the spectrum was reframed for use on AT&T's HSPA+ and LTE networks. Following the acquisition by AT&T, Cricket Wireless released devices that use AT&T's 3G, 4G, 4G LTE networks. Cricket Wireless users on the "Smart" and "Unlimited" plans can roam in Mexico and Canada at no additional costs. Cricket Wireless noted on their old website that CDMA service would be terminated as early as September 2015. Most devices prior to the merger would not be compatible on the GSM network except the iPhone 4s, iPhone 5, iPhone 5c, iPhone 5s. Compatible iPhone devices would only require a new SIM card. In October 2014, Cricket Wireless came under scrutiny for intercepting and modifying its customers' email traffic to downgrade and prevent encryption of the conversation and its metadata.
An engineer at a digital security and privacy firm, Golden Frog, first noticed the issue in September 2013 via their Aio Wireless connection. Upon further investigation by the privacy firm in June 2014, Golden Frog determined that Cricket masked the STARTTLS command in email server responses, thereby "putting its customers at serious risk by inhibiting their ability to protect online communications." In October, a Washington Post investigation revealed that "Cricket did not address repeated questions about the issue and did not alert customers, many of whom rely on Cricket as their sole Internet service, that they would not be able to protect their e-mails from prying eyes. AT&T, which absorbed Cricket when it acquired Leap Wireless last spring, did not respond to a request for comment." The EFF published a technical analysis condemning ISPs like Cricket from tampering with customer internet traffic. AT&T Mobility, another subsidiary of AT&T Inc. AT&T PREPAID, AT&T Mobility's prepaid service Official website Cricket Newsroom AT&T
History of AT&T
The history of AT&T dates back to the invention of the telephone itself. The Bell Telephone Company was established in 1879 by Alexander Graham Bell, the inventor of the telephone. Bell established American Telephone and Telegraph Company in 1885, which acquired the Bell Telephone Company and became the primary phone company in the United States; this company maintained a monopoly on telephone service in the United States until anti-trust regulators split the company in 1982. AT&T Corporation was purchased by one of its Baby Bells, the former Southwestern Bell, in 2005 and the combined company became known as AT&T Inc; the formation of the Bell Telephone Company superseded an agreement between Alexander Graham Bell and his financiers, principal among them Gardiner Greene Hubbard and Thomas Sanders. Renamed the National Bell Telephone Company in March 1879, it became the American Bell Telephone Company in March 1880. By 1881, it had bought a controlling interest in the Western Electric Company from Western Union.
Only three years earlier, Western Union had turned down Gardiner Hubbard's offer to sell it all rights to the telephone for $100,000. In 1880, the management of American Bell created; the project was the first of its kind to create a nationwide long-distance network with a commercially viable cost-structure. This project was formally incorporated into a separate company named American Telephone and Telegraph Company on March 3, 1885. Starting from New York, the network reached Chicago in 1892. Bell's patent on the telephone expired in 1893, but the company's much larger customer base made its service much more valuable than alternatives and substantial growth continued. On December 30, 1899, the American Telephone and Telegraph Company bought the assets of American Bell. With this transfer of assets, AT&T became the parent of the Bell System. National long distance service reached San Francisco with the First transcontinental telephone call in 1915. Transatlantic services started in 1927 using two-way radio, but the first trans-Atlantic telephone cable did not arrive until Sept. 25, 1956, with TAT-1.
As a result of a combination of regulatory actions by government and actions by AT&T, the firm gained what most regard as monopoly status. In 1907, AT&T president Theodore Vail made it known that he was pursuing a goal of "One Policy, One System, Universal Service." AT&T began purchasing competitors. To avoid antitrust action, in a deal with the government, Vail agreed to the Kingsbury Commitment of 1913. One of the three terms of the agreement forbade AT&T from acquiring any more independent phone companies without the approval of the Interstate Commerce Commission. G. W. Brock says in The Telecommunications Industry: The Dynamics Of Market Structure, " provision allowed Bell and the independents to exchange telephones in order to give each other geographical monopolies. So long as only one company served a given geographical area there was little reason to expect price competition to take place." AT&T focused on purchasing companies within specific geographic areas that increased its effective control of the telephone system market, while selling its less-desirable and acquired companies to independent buyers.
Included in the Kingsbury Commitment was the requirement that AT&T allow competitors to connect through its phone lines, which reduced the incentive of these companies to build competing long-distance lines. In 1913, after vacuum-tube inventor Lee de Forest began to suffer financial difficulties, AT&T bought De Forest's vacuum-tube patents for the bargain price of $50,000. In particular, AT&T acquired ownership of the'Audion', the first triode vacuum tube, which amplified telephone signals; the patent increased AT&T's control over the manufacture and distribution of long-distance telephone services, allowed the Bell System to build the United States's first coast-to coast telephone line. Thanks to the pressures of World War I, AT&T and RCA owned all useful patents on vacuum tubes. RCA staked a position in wireless communication; some patent allies and partners in RCA were angered when the two companies' research on tubes began to overlap, there were many patent disputes. Around 1917, the idea that everyone in the country should have phone service and that the government should promote that began being discussed in government.
AT&T agreed, saying in a 1917 annual report: "A combination of like activities under proper control and regulation, the service to the public would be better, more progressive and economical than competitive systems." In 1918 the federal government nationalized the entire telecommunications industry, with national security as the stated intent. Rates were regulated so that customers in large cities would pay higher rates to subsidize those in more remote areas. Vail was appointed to manage the telephone system with AT&T being paid a percentage of the telephone revenues. AT&T profited well from the nationalization arrangement. States began regulating rates so that those in rural areas would not have to pay high prices, competition was regulated or prohibited in local markets. Potential competitors were forbidden from installing new lines to compete, with state governments wishing to avoid "duplication." The claim was that telephone service was a "natural monopoly," meaning that
The National Broadcasting Company is an American English-language commercial terrestrial television network, a flagship property of NBCUniversal, a subsidiary of Comcast. The network is headquartered at 30 Rockefeller Plaza in New York City, with additional major offices near Los Angeles and Philadelphia; the network is one of the Big Three television networks. NBC is sometimes referred to as the "Peacock Network", in reference to its stylized peacock logo, introduced in 1956 to promote the company's innovations in early color broadcasting, it became the network's official emblem in 1979. Founded in 1926 by the Radio Corporation of America, NBC is the oldest major broadcast network in the United States. At that time the parent company of RCA was General Electric. In 1930, GE was forced to sell the companies as a result of antitrust charges. In 1986, control of NBC passed back to General Electric through its $6.4 billion purchase of RCA. Following the acquisition by GE, Bob Wright served as chief executive officer of NBC, remaining in that position until his retirement in 2007, when he was succeeded by Jeff Zucker.
In 2003, French media company Vivendi merged its entertainment assets with GE, forming NBC Universal. Comcast purchased a controlling interest in the company in 2011, acquired General Electric's remaining stake in 2013. Following the Comcast merger, Zucker left NBCUniversal and was replaced as CEO by Comcast executive Steve Burke. NBC has thirteen owned-and-operated stations and nearly 200 affiliates throughout the United States and its territories, some of which are available in Canada and/or Mexico via pay-television providers or in border areas over-the-air. During a period of early broadcast business consolidation, radio manufacturer Radio Corporation of America acquired New York City radio station WEAF from American Telephone & Telegraph. Westinghouse, a shareholder in RCA, had a competing outlet in Newark, New Jersey pioneer station WJZ, which served as the flagship for a loosely structured network; this station was transferred from Westinghouse to RCA in 1923, moved to New York City. WEAF acted as a laboratory for AT&T's manufacturing and supply outlet Western Electric, whose products included transmitters and antennas.
The Bell System, AT&T's telephone utility, was developing technologies to transmit voice- and music-grade audio over short and long distances, using both wireless and wired methods. The 1922 creation of WEAF offered a research-and-development center for those activities. WEAF maintained a regular schedule of radio programs, including some of the first commercially sponsored programs, was an immediate success. In an early example of "chain" or "networking" broadcasting, the station linked with Outlet Company-owned WJAR in Providence, Rhode Island. C. WCAP. New parent RCA saw an advantage in sharing programming, after getting a license for radio station WRC in Washington, D. C. in 1923, attempted to transmit audio between cities via low-quality telegraph lines. AT&T refused outside companies access to its high-quality phone lines; the early effort fared poorly, since the uninsulated telegraph lines were susceptible to atmospheric and other electrical interference. In 1925, AT&T decided that WEAF and its embryonic network were incompatible with the company's primary goal of providing a telephone service.
AT&T offered to sell the station to RCA in a deal that included the right to lease AT&T's phone lines for network transmission. RCA spent $1 million to purchase WEAF and Washington sister station WCAP, shut down the latter station, merged its facilities with surviving station WRC; the division's ownership was split among RCA, its founding corporate parent General Electric and Westinghouse. NBC started broadcasting on November 15, 1926. WEAF and WJZ, the flagships of the two earlier networks, were operated side-by-side for about a year as part of the new NBC. On January 1, 1927, NBC formally divided their respective marketing strategies: the "Red Network" offered commercially sponsored entertainment and music programming. Various histories of NBC suggest the color designations for the two networks came from the color of the pushpins NBC engineers used to designate affiliate stations of WEAF and WJZ, or from the use of double-ended red and blue colored pencils. On April 5, 1927, NBC expanded to the West Coast with the launch of the NBC Orange Network known as the Pacific Coast Network.
This was followed by the debut of the NBC Gold Network known as the Pacific Gold Network, on October 18, 1931. The Orange Network carried Red Network programming, the Gold Network carried programming from the Blue Network; the Orange Network recreated Eastern Red Network programming for West Coast stations at KPO in San Francisco. In 1936, the Orange Network affiliate stations became part of the Red Network, at the same time the Gold Network became part of the Blue Network. In the 1930s, NBC developed a network for shortwave radio stations, called the NBC White Network. In 1927, NBC moved its operations to 711 Fifth Avenue in Manhattan, occupying the upper floors of a building de