While touch tone phones came out in the early 80's, they were mostly used for business phones. This was about the time they broke up Ma Bell. Before that everyone was stuck with the supplied Ma Bell rotary phone. The phone usually came with the house. After the breakup, people had to personally buy one of the new push button phones. They cost about $50 - which was high at the time, (my rent was $100, I paid $120/yr for car insurance, and $20 cash would fill my tank with enough left over to buy dinner and drink all night). People held on to the old phones as long as they could, and could take them with them when they moved.
I remember moving in the mid 80's and calling up the phone company from a phone booth,
"Hey, there's no phone in my new house."
"You have to purchase your own."
"What? How much is that?"
"It's $50, but you can pick out your own color."
If you went in someone's house after about '83 the chances of seeing a rotary phone was about 50/50. Toward the mid to late 80's is when other companies really started to market phones. They were really cheap in construction to the AT&T phones, but they weren't as costly either.
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