"Baby Bells" refers to the regional telephone companies that emerged after the breakup of AT&T in 1984. This breakup was a result of antitrust actions aimed at promoting competition in the telecommunications industry. The original Bell System was divided into several smaller companies, known as the "Baby Bells," which were responsible for providing local telephone services across different regions of the United States. The Baby Bells included companies like Bell Atlantic, Pacific Telesis, and Southwestern Bell. Each of these companies operated independently, allowing for increased competition and innovation in the telecommunications market. Over time, many of the Baby Bells merged or were acquired, leading to the formation of larger telecommunications companies that continue to operate today.