Posted on

What are some of the major provisions of the Telecommunications Act of 1996? What was the fundamental goal and purpose of the provisions in the Act Answer

What are some of the major provisions of the Telecommunications Act of 1996? What was the fundamental goal and purpose of the provisions in the Act? 

The major provision of the Telecommunications Act of 1996 was to open the market to allow competition to enter in. Also, mandate Interconnection of networks and to achieve “universal service” to offer local basic service to as many people as possible. They were trying to deregulate the industry in telephone service, telecommunications equipment manufacturing, cable television, radio and  television broadcasting. This was major restructuring of the industry. They were trying to update communication laws and stimulate competition.

The main provision of the telecommunication Act 1996 was competition, efficiency, and explicit mechanisms to further universal services. This was to be achieved through the removal of barriers that formerly restricted which lines of business competitors could enter and also it imposes statutory “obligations” and empowers the Federal communication commission to implement these provisions.

The act has failed to achieve its intended purpose reason being the implementation has been placed in the hands of regulators with the incentive to pursue the illusion of competition rather than reality of competition. Take for example currently we have only two giant phone companies that is AT&T and Verizon, which i think the act did less to improve the situation in the industry.  

 

Leave a Reply

Your email address will not be published. Required fields are marked *