During this time, the two companies were consolidated into one, and named the National Bell Telephone Company. In November 1879, the patent suit was settled out of court. Western Union left the telephone business and sold its system of 56,000 telephones in 55 cities to Bell. Bell agreed to stay out of the telegraph business and paid Western Union a 20 percent royalty on telephone equipment leases for the next 17 years...
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Western Union left the telephone business and sold its system of 56,000 telephones in 55 cities to Bell. Bell agreed to stay out of the telegraph business and paid Western Union a 20 percent royalty on telephone equipment leases for the next 17 years. In an effort to promote the telephone, Bell licensed numerous local operating companies...
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