According to Wikipedia, rotary dial telephones came about:

The first patent for a rotary dial is due to Almon Brown Strowger (November 29, 1892) as U.S. Patent 486,909, but the commonly known form with holes in the finger wheel was not introduced until ca. 1904. While used in telephone systems of the independent telephone companies, rotary dial service in the Bell System in the United States was not common until the introduction of the Western Electric model 50AL in 1919."

This video was aired in the late 1940's, as it took some time after the Great Depression, and the installation of poles around WWII, and shortly thereafter. The description of the first rotary telephones being made available in Binghamton:

I love these old videos, and thanks to local history buffs like Edward Brewer and Bob Bullock making this information available, we are able to get them to other local history lovers like yourselves! I'm only in my thirties, but I am really into this local history stuff, and I remember my grandparents being upset with me for messing with their rotary phone while growing up. Do you still have a rotary phone sitting around somewhere in your home?

Check out this photo gallery of images from the first rotary phones coming in to the Binghamton area: