Automatic Electric
| Company type | Subsidiary |
|---|---|
| Industry | Telecommunications equipment |
| Founded | 1901 in Chicago, Illinois, United States |
| Founder | Almon Strowger |
| Fate | Acquired by General Telephone and Electronics (GT&E) in 1955; operations absorbed into Lucent and eventually Nokia |
| Headquarters | Northlake, Illinois , United States |
Area served | North America and international markets |
| Products | Telephone equipment, automatic switching systems, rotary dials, digital central office switch (GTD-5 EAX) |
| Parent | General Telephone and Electronics (from 1955) |
Automatic Electric Company (A.E. Co.) was a prominent American provider of telephone equipment, mainly catering to independent telephone operators across North America, with additional international activities. Its automatic telephone switching systems positioned it as a crucial long-term vendor of switching technology to the Bell System starting in 1919. As the principal manufacturing branch within the Automatic Electric Group, it was acquired by General Telephone and Electronics (GT&E) in 1955. After various corporate restructurings, its operations were absorbed into Lucent during the 1990s and eventually integrated into Nokia.
History
In 1889, inventor and businessman Almon Strowger from Kansas City, Missouri, launched the Strowger Automatic Telephone Exchange Company in 1891, obtaining patents for the first automatic telephone exchange system. By 1901, Strowger had founded the Automatic Electric Company in Chicago to produce these systems under an exclusive patent license.
Throughout the 1910s and 1920s, Automatic Electric’s Strowger switch technology gained traction among independent telephone firms, preceding Bell System’s adoption of the Panel switch. Following operator strikes in 1919 that pressured Bell System management, Automatic Electric emerged as a major supplier of step-by-step switching equipment, offering cost-effective installation solutions.
In 1955, GT&E acquired Automatic Electric through a merger with Theodore Gary & Company, continuing its operations into the 1980s. GT&E also purchased Lenkurt, a manufacturer of carrier equipment, in 1959 and managed it as a separate division. By 1983, GT&E merged Automatic Electric and Lenkurt into GTE Network Systems, which was later renamed GTE Communication Systems after AT&T rebranded Western Electric.
GTE Microcircuits, recognized for producing a CMOS variant of the widely used 6502 microprocessor, was sold in 1987 to California Micro Devices. By 1989, the remaining assets were reorganized into AG Communication Systems, a joint venture between AT&T and GTE. Simultaneously, GTE divested its interconnect business to Fujitsu GTE (later Fujitsu Business Communication Systems). AG Communication Systems was ultimately incorporated into Lucent, then Alcatel-Lucent, and finally Nokia. Significantly, Alcatel-Lucent also controlled assets of Western Electric, Automatic Electric’s former rival within the Bell System.
Facilities
Founded in 1901, Automatic Electric initially operated out of a six-story building at Morgan and Van Buren Streets in Chicago. The company moved its headquarters to Northlake, Illinois in 1957 while maintaining research facilities in Melrose Park and Elmhurst. It expanded by acquiring a manufacturing plant in Genoa, Illinois from Leich Electric and established an R&D center in Phoenix, Arizona in 1978.
During the mid-1960s, a production facility was constructed in Huntsville, Alabama, dedicated to manufacturing public coin-operated telephones and the Styleline consumer model series. This plant also handled telephone refurbishment before closing in the mid-1980s due to escalating domestic labor expenses amid increasing global competition.
On an international scale, Automatic Electric grew through acquisitions and subsidiaries. In Canada, it purchased Phillips Electric Works located in Brockville, Ontario in 1930. Telephone production continued there until 1953 when the company invested $1.5 million to build a new factory on Strowger Boulevard. This site was sold to BC Tel in 1979 and later became part of Nortel until its closure in 2002.
In England, the Automatic Telephone Manufacturing Company Ltd., established by British Insulated Callender's Cables in 1911, operated a Liverpool factory producing Strowger systems under license. Over time, this company underwent multiple name changes reflecting its expansion into diverse product lines such as Xcel heating devices and traffic signal equipment.
By the 1950s, Automatic Electric maintained two European manufacturing locations: Automatique Electric SA based in Antwerp, Belgium, and Autelco Mediterranea SATAP located in Milan, Italy.
Products
Automatic Electric primarily manufactured automatic stepping switches, with a particular focus on the "Strowger switch" type, which allowed users to connect calls independently without the need for an operator. Their rotary dials are characterized by a single click sound upon release, setting them apart from Western Electric's dials that produce a continuous whirring noise during return. Numerous models are equipped with a unique dual-gong ringer emitting tones separated by a perfect fifth interval, unlike Western Electric's common use of a third interval.
On June 26, 1982, the company introduced their digital class 4/5 central office switch known as the GTD-5 EAX, representing a major step forward in their technological capabilities and product line.