The Western Electric model 500 telephone series was the standard domestic desk telephone set issued by the Bell System in North America from 1950 through the 1984 Bell System divestiture. The successor to the model 302 telephone, the model 500's modular construction compared to previous types simplified manufacture and repair and facilitated a large number of variants with added features. Touch-tone service was introduced to residential customers in 1963 with the model 1500 telephone, which had a push-button pad for the ten digits. The model 2500 telephone, introduced in 1968, added the * (star) and # (square, pound) keys. The model 500 telephone series and its derivatives were very popular and common among North American businesses and households throughout the latter half of the 20th century. The development of new simpler telephone set designs, the advent of mobile phones, and the decline of traditional landlines into the 21st century led to the decline of the model 500 series and its derivatives, and most sets still in use are primarily kept by seniors and phone enthusiasts for familiarity, collecting, and nostalgia. However, the model 2500 is still produced by several manufacturers as of the early 2020s, with modernized components to ensure compatibility with modern Bluetooth and voice over IP telephony systems.
History The Western Electric 500-type telephone replaced the 300-type, which had been produced since 1936. The model 500 line was designed by the firm of industrial designer Henry Dreyfuss, the product of several years of research and testing in collaboration with Bell Laboratories and Western Electric. Development started in 1946 with early sketches by Bell engineer and Dreyfuss associate Robert Hose, leading to pre-production units in 1948 and field trials with 4000 telephone sets in 1949. AT&T announced the new telephone publicly in 1949 and communicated the first availability of approximately 23,000 sets in the second quarter of 1950 to the Bell System operating companies on May 1, 1950. Third and fourth-quarter production was estimated at 49,000 and 93,000, respectively. Including 20,000 units of a special purpose set (501B), approximately 183,000 units were produced by the end of the first production year. In the following years, the systematic replacement of 25 million 300-type telephones commenced because of the new model's much improved electrical and acoustic efficiency. This efficiency permitted the new model to be used on long rural loops, which previously required special sets with local batteries to power the transmitter, not just on urban short loops because it contained a self-adjusting gain control. This also permitted the use of thinner loop wires and thus delivered cost savings in the build-out of the network. A 1953 Western Electric ad noted that the “500” phone “has already been introduced on a limited scale and will be put in use as opportunity permits, in places where it can serve best.” The replacement of 300-series telephones with 500-series sets created large stockpiles of 300-type components that had not reached their intended service life. The accelerating demand for new telephone service in the 1950s created pressure on the manufacturing facilities, which the Bell System alleviated by reusing these older components to refurbish used 302 telephone sets with a new modern housing that had a look-alike appearance to the 500 models, but were electrically identical to the older 302 telephones. This program commenced in 1955, and the converted set was labeled as the model 5302 telephone. It was produced until the mid-1960s in the refurbishing shops of each Bell Operating Company, not on the assembly lines of Western Electric factories. From the 1949 field trials until 1953, only black sets of the 500-type telephone were manufactured. Telephones in color were introduced in several stages from 1954 until 1957, as manufacturing capability was refined and material selection processes were completed. In the 1960s, after the introduction of touch-tone service in November 1963 in various locations of the telephone network, the basic 500-type chassis was retrofitted with a new housing and face plate, and a ten-key push-button keypad. This was designated as the model 1500 telephone, and a twelve-button model 2500 was introduced in 1968. The 1970s brought the conversion to modular connector technology, replacing the hard-wired cords with cords terminated on both ends with 4P4C connectors for the handset cord and 6P4C plugs for the line cord.
Ownership and AT&T divestiture As with most telephones in the United States, the 500-series telephones were owned by the local Bell Operating Company and leased on a monthly basis to customers. Choices for telephone styles and colors were limited. AT&T, the principal owner of the operating companies and Western Electric, strictly enforced policies against buying and using telephone sets by other manufacturers on their network to ensure the technical integrity of their network and avoid competition. Most phones made by Western Electric, starting in about 1968, carried this disclaimer molded into their housing: "BELL SYSTEM PROPERTY--NOT FOR SALE." Telephones were also sometimes labeled with a sticker or ink stamp marking the operating company's name that owned the phone. After consumers started buying telephones from other manufacturers, in the wake of legal developments not favoring AT&T's ban against third-party equipment, AT&T changed its policy for the Design Line telephone series by selling customers the telephone housing but retaining ownership of the electrical components, so customers were still required to pay AT&T a monthly leasing fee. In 1983, after the court ordered the Bell System divestiture, AT&T started selling telephone sets outright to the public through its newly created American Bell division. Many customers were offered the option to buy the leased telephones they had in service. AT&T closed its USA consumer telephone manufacturing plants in 1986 and moved production offshore to Singapore, China, and Thailand, and in the 1990s to Mexico; this let them produce telephones at a lower cost.
Design features
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