these were popular before headband earphones. ATT had a monopoly on telephones and not much innovation.
If you had to converse with a customer and take down notes or fill out forms you needed to have hands free to shuffle stuff around. Cocking your head over so far to wedge the phone against your shoulder got old. That handle was a help.
Even for average personal home phone users, the old phone co never thought of a speaker phone, so if you had to call a business and get put on hold for…ever… you had that handset against your ear all…that…time.
I remember getting a phone with an ear piece and microphone, hard wire but still soooo much movement.
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