History
Prior to the Bell System divestiture on January 1, 1984, American Telephone & Telegraph Company (AT&T) through its Bell System companies held a natural monopoly for telephone service within the United States. AT&T owned the local loop, including the telephone wiring within the customer premises and the customer telephone equipment. A similar arrangement existed with smaller, regional telephone companies such as GTE.
As a result of deregulation of the telephone system, unbundling of the local loop, and lawsuits by companies wishing to sell third-party equipment to connect to the telephone network, there was a need to delineate the portion of the network which was owned by the customer and the portion owned by the telephone company or the common carrier. Where the portions meet is called the demarcation point.
Read more about this topic: Demarcation Point
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