Ma Bell’s New Future: AT&T, Data Transmission, and the Dawn of the Information Age
When business readers picked up the July 1, 1969 issue of Forbes Magazine, they were introduced to a world where the familiar hum of telephones was about to give way to something much larger: data communications. This issue carried a feature titled “A Whole New Market”, exploring how American Telephone & Telegraph (AT&T)—long known as the backbone of U.S. voice communication—was preparing for a seismic shift.
For the first time, readers saw the company’s prediction that data transmission could soon outgrow voice transmission, turning “Ma Bell” from a talk business into a digital powerhouse. Forbes didn’t just report the numbers. It captured a critical moment: the intersection of telecommunications, computing, and regulation—the very foundation of what would become the modern information age.
The year 1969 was a turning point. America was on the brink of sending astronauts to the moon, while at home, the Cold War drove enormous investments in science and technology. Businesses and governments alike were discovering that computers were not just calculators but communication tools, capable of transmitting information at speeds and volumes never seen before.
In this climate, AT&T—already the world’s largest corporation—saw its future in more than long-distance calls. Forbes reported that AT&T earned less than 10% of its $14.1 billion revenues from data communications in 1968, but projected that by 1980, half of its revenues (about $35.5 billion) could come from data transmission. This was a bold claim, showing how seriously the company viewed the technological revolution.
This shift was not happening in isolation. The late 1960s saw:
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The growth of IBM and mainframe computing, creating demand for fast, reliable data links.
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The rise of government and university research networks, laying the groundwork for ARPANET, the precursor to the internet.
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Regulatory battles, as the Federal Communications Commission (FCC) questioned AT&T’s monopoly over both voice and emerging data markets.
Forbes highlighted all of these factors, framing AT&T’s pivot not just as a business move, but as a cultural and economic transformation that could change how Americans worked, learned, and even socialized.
What made this article so significant was how Forbes explained the technical in plain, business-driven language. The magazine broke down the idea that “the same lines that carry a human voice at 120 words per minute can carry a computer talk a second.” In other words, every telephone was now a potential computer input station.
Forbes also pointed out the different breed of equipment needed for data vs. voice: computers required precision, reliability, and new regulatory frameworks. AT&T wasn’t just selling phone calls anymore; it was laying the groundwork for a digital economy.
Perhaps most striking was the cultural metaphor. Forbes described AT&T—long nicknamed “Ma Bell”—as “a hard-working, slightly overweight, graying lady with a monopoly on U.S. telephone service” who was suddenly gaining “sex appeal” thanks to data. This reflected the changing perception of telecommunications: from a staid utility to a sector brimming with futuristic potential.
The feature wasn’t just words. Forbes used photos and charts to make the transformation real.
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Photographs showed AT&T’s innovations:
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An engineer sending a drawing through data transmission.
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A clerk sending information to a computer via keypad.
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An executive reading lists and data from a Picturephone, an early video communication tool.
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A bold bar graph compared 1960, 1968, and the projected 1980 revenues, with a striking red block for data transmission overtaking voice transmission.
For business readers in 1969, these visuals were more than illustrations—they were windows into the future. The Picturephone especially stood out, foreshadowing the video calls and screen-sharing tools we take for granted today.
Yet Forbes also captured the tension of the moment. A sidebar called “The Waiting Game” noted that investors were skeptical. Despite AT&T’s innovations, its stock had not yet surged. Analysts worried about:
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FCC regulations limiting AT&T’s monopoly.
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The slow rollout of microwave and satellite systems.
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The uncertain profitability of computer leasing and new services.
In short, Wall Street wasn’t convinced—yet. Forbes noted that AT&T’s stock, trading at 25 times earnings, looked expensive unless the data revolution delivered big. This cautious tone revealed the challenge of valuing innovation in real time, something that still resonates in today’s tech-driven markets.
By spotlighting AT&T’s pivot, Forbes documented a turning point in American business history. It showed how:
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Computers were moving out of labs and into offices.
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Universities and students were early adopters, using networks for experiments in distance learning and information sharing.
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Regulation, technology, and capital were colliding to shape a brand-new industry.
This wasn’t just a corporate story. It was the beginning of the information economy, the system of digital networks that underpins modern finance, communication, and culture.
For collectors today, the July 1, 1969 Forbes Magazine is a milestone artifact.
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Historical Timing: Published at the dawn of the data revolution, it shows AT&T’s first public steps toward digital dominance.
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Technological Breakthroughs: The inclusion of the Picturephone, revenue forecasts, and investor analysis make it one of the earliest mainstream business discussions of data communications.
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Cultural Value: Its portrayal of “Ma Bell” gaining new appeal captures the optimism and anxiety of late-1960s America, just weeks before the moon landing.
Owning this issue is like holding a time capsule of when computers, telephones, and business strategy began to merge into one story.
Collectors, historians, and investors especially prize issues like this because they don’t just report news—they preserve the exact language, charts, and images that framed how society understood change.
By the late 1960s, Forbes had established itself as one of the most trusted voices in business journalism. Unlike purely technical journals, it blended:
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Hard financial reporting (stock market, earnings, profitability).
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Profiles of industry leaders (executives at AT&T and Bell Labs).
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Forward-looking analysis, helping readers understand not just what was happening, but what it meant.
This mix of detail and vision gave Forbes a unique authority. Its role in chronicling AT&T’s leap into data showed how the magazine could take a complex, emerging topic and make it accessible to executives, investors, and students alike.
If you’re a collector of vintage Forbes magazines, this issue is especially valuable. It’s not just a business magazine—it’s a record of the birth of the digital age.
👉 Browse the full collection of original Forbes magazines here:
Original Forbes Magazines Collection
From the 1920s through the late 20th century, Forbes captured decades of economic history: booms, recessions, breakthroughs, and the rise of global business empires. Each issue is a tangible link to the decisions, risks, and ideas that shaped modern life.
The July 1, 1969 Forbes Magazine issue on AT&T’s move into data communications remains one of the most important business features of its era. It documented how the world’s largest telephone company began reinventing itself for a future defined by computers, data, and digital networks.
Holding this issue is holding a moment when voice gave way to data, when the Picturephone previewed Zoom calls, and when investors cautiously watched the dawn of the information age.
For anyone who values history, technology, or business, vintage Forbes magazines are not just reading material—they are living artifacts. And through them, the past speaks directly to us.