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Following the introduction of the first telephone of practical value in 1876-1877, a number of private telephone companies were formed, including The Telephone Company (in 1878) and the Edison Telephone Company (in 1879). Other similar companies also sprang up throughout the country. The Telephone Company and the Edison Telephone Company amalgamated in 1880 to form the United Telephone Company and, in 1889, with other companies, combined with the National Telephone Company. The National Telephone Company swiftly became the most prominent of the telephone companies, although following a ruling in 1880 on the legal powers of the Postmaster General under the Telegraph Act 1869, it operated under licence from the Postmaster General, which also began to operate its own telephone service in competition with the National Telephone Company. In 1896, the Post Office acquired the National Telephone Company's trunk (long distance) network, restricting the company to the provision of a network of local telephone services. In 1905, an agreement was reached between the Postmaster General and the National Telephone Company that the Post Office would purchase the National Telephone Company's system on expiry of its licence in 1911. The entire UK telephone service (with the exception of the service operated by Kingston-upon-Hull Borough Council) passed to Post Office control on 1 January 1912.