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                    $         THE HISTORY OF ESS          $
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It may be recalled that such a system was the specific end in view when the project that had culminated in the invention of the transistor had been launched back in the 1930s. After successful accomplishment of that planned miracle in 1947-48, further delays were brought about by financial stringency and the need for further development of the transistor itself. In the early 1950s, a Labs team began serious work on electronic switching. As early as 1955, Western Electric became involved when five engineers from the Hawthorne works were assigned to collaborate with the Labs on the project. The president of AT&T in 1956, wrote confidently, "At Bell Labs, development of the new electronic switching system is going full speed ahead. We are sure this will lead to many improvements in service and also to greater efficiency. The first service trial will start in Morris, Ill., in 1959." Shortly thereafter, Kappel said that the cost of the whole project would probably be $45 million.

But it gradually became apparent that the development of a commercially usable electronic switching system -in effect, a computerized telephone exchange - presented vastly greater technical problems than had been anticipated, and that, accordingly, Bell Labs had vastly underestimated both the time and the investment needed to do the job. The year 1959 passed without the promised first trial at Morris, Illinois; it was finally made in November 1960, and quickly showed how much more work remained to be done. As time dragged on and costs mounted, there was a concern at AT&T and some-thing approaching panic at Bell Labs. But the project had to go forward; by this time the investment was too great to be sacrificed, and in any case, forward projections of increased demand for telephone service indicated that within a phew years a time would come when, without the quantum leap in speed and flexibility that electronic switching would provide, the national network would be unable to meet the demand. In November 1963, an all-electronic switching system went into use at the Brown Engineering Company at Cocoa Beach, Florida. But this was a small installation, essentially another test installation, serving only a single company. Kappel's tone on the subject in the 1964 annual report was, for him, an almost apologetic: "Electronic switching equipment must be manufactured in volume to unprecedented standards of reliability.... To turn out the equipment economically and with good speed, mass production methods must be developed; but, at the same time, there can be no loss of precision..." Another year and millions of dollars later, on May 30, 1965, the first commercial electric central office was put into service at Succasunna, New Jersey.

Even at Succasunna, only 200 of the town's 4,300 subscribers initially had the benefit of electronic switching's added speed and additional services, such as provision for three party conversations and automatic transfer of incoming calls. But after that, ESS was on its way. In January 1966, the second commercial installation, this one serving 2,900 telephones, went into service in Chase, Maryland. By the end of 1967 there were additional ESS offices in California, Connecticut, Minnesota, Georgia, New York, Florida, and Pennsylvania; by the end of 1970 there were 120 offices serving 1.8 million customers; and by 1974 there were 475 offices serving 5.6 million customers.

The difference between conventional switching and electronic switching is the difference between "hardware" and "software"; in the former case, maintenance is done on the spot, with screwdriver and pliers, while in the case of electronic switching, it can be done remotely, by computer, from a central point, making it possible to have only one or two technicians on duty at a time at each switching center.

The development program, when the final figures were added up, was found to have required a staggering four thousand man-years of work at Bell Labs and to have cost not $45 million but $500 million!