The CompuServe Information Service is formed

In 1980, MicroNET service changed its name to the CompuServe Information Service.

There were two reasons for the change. First, CompuServe discovered that the name MicroNet was being used by a modem company and thus there might be confusion in the market place. Second, and more significantly, while the original MicroNET service provided raw access to the CompuServe mainframes, it became obvious that users wanted better, more friendly navigation to the myriad products MicroNet was beginning to offer. Hence, the name CompuServe Information Service (CIS) was born to convey a service that was more user-friendly. Some also referred to CIS as the "Consumer Information Service."

In the beginning, the CompuServe Information Service was a small business unit of the larger, corporate, CompuServe, Inc. So, in essence, CIS became known as the consumer division and the name CompuServe still referred to the corporate commercial time-sharing service.

In 1980, CompuServe was also acquired by H&R Block. A good history of CompuServe can be found at Wikipedia. But what the history doesn't tell, is why HR Block or why be acquired at all.

As a small company in the telecommunications space, CompuServe lived in near-daily fear of the AT&T monopoly. AT&T, and most foreign telephone companies, considered the online industry to be part of the services the telephone company should not only provide but control. This was in the era before telecommunications deregulation and, outside of the US, most telephone companies were owned, or at least controlled, by their respective governments.

In the 1970's and early 1980s, the concept accessing information online was called "teletext" if one-way information access or "videotex" if two-way interactive. Most phone companies worldwide were promoting "telephone terminals" - in essence, video-telephones, as the next-generation telephone. Understandably, they saw CompuServe as an intruder on their turf. In fact, CompuServe was refused entry as an exhibitor to the 1979 Videotext trade show. Just as the large mainframe computer manufacturers looked down on those upstart PC-makers, the telephone companies looked down upon that upstart online service company, CompuServe.

In the US, if you wanted to build your own computer network, as CompuServe had done, you had no choice, but to lease telephone lines from AT&T. Once in 1978, CompuServe discovered that its computer network was abruptly "turned off" because an AT&T employee did not process CompuServe's monthly payment correctly. Corporate CompuServe, at the time, had significant commercial, government, and insurance business in Washington, DC and found its network "off the air" based on this perceived late payment. From that point on CompuServe executives were paranoid that they would always be beholden to AT&T unless they found a large strategic partner. But why H&R Block?