Background
Before the development of the telephone in 1876 communication over any distance was often by telegraphy and wireless telegraphy. The General Post Office (GPO), a Government department until 1969, held the monopoly on telegraphic communication in Britain.
The telephone was a marvellous technical innovation, but was very expensive, so their use in the closing decades of the nineteenth century was limited to wealthy homeowners and businesses.
There was not a single, unified system, instead the service was owned and operated by a number of private companies. These companies operated a series of local exchanges to which households and businesses could subscribe. This subscription provided them with a telephone and connection to the network.