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Technology drove the change. The rotary dial acted as a timer for a switch to open and close a circuit the right number of times to indicate a number. 1 pulse meant the number 1. 9 pulses indicated 9 of course. The rotary dial was easy to manufacture and was reliable. Exchanges were huge electro-mechanical systems that were designed to respond to the streams of pulses from telephones. As telephone exchanges were developed, they could accept a twin tone as a number identifier and it is much easier to use a keypad to generate the tones than a rotary dial, hence the move to push-button phones. The earliest push button phones were a combination of the two: They would offer the user a set of buttons, but internally, pushing a button would generate the same pulses that a rotary dial would create.

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Q: Who changed the telephone from the rotary dial to pushing the buttons?
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