Finding
The court's decision, which exonerated Hush-A-Phone and prohibited further interference by AT&T toward Hush-A-Phone users, stated that AT&T's prohibition of the device was not "just, fair, and reasonable," as required under the Communications Act of 1934, as the device "does not physically impair any of the facilities of the telephone companies," nor did it "affect more than the conversation of the user."
This victory for Hush-A-Phone is widely considered a watershed moment in the development of a secondary market for terminal equipment. It and the related Carterfone decision are seen as precursors to the entry of MCI Communications and the development of more pervasive telecom competition.
Read more about this topic: Hush-A-Phone V. United States
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