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Impact of 1996 Telecommunications Act

TELECOMMUNICATIONS ACT OF 1996 AND ITS IMPACT ON BUSINESS

This research paper summarizes the principal features of the federal Telecommunications Act of 1996 (TCA), as it has been interpreted by the Federal Communications Commission (FCC) and the federal courts, and its principal impact on business.

2. Technological Developments Which Led to TCA

4. Regulatory and Judicial Framework and Interpretations

TCA represented the first major overhaul of American telecommunications (telecom) law since the Communications Act of 1934, which it effectively replaced. Its principal aim was to reduce or to eliminate many federal and state legal and regulatory barriers to entry and competition in the telecom industry that have prevented the telephone, cable television and broadcasting industries from competing in each other's markets and to promote thereby growth and technological progress within it. TCA's genesis lay in the remarkable technological changes which have occurred in recent decades in the telecom industry, which rendered the previous pattern of law and regulation obsolete. While dismantling or substantially modifying many (but not all) such barriers, Congress left many of its statutory mandates vague, which in effect left it up to the FCC and the federal courts to give them substance. The principal impact of TCA on business has been a large number of mega-mergers among major players in the American telecom industry and a corresponding increase in concentrated economic power within important segments of that industry. It, nevertheless, together with continuing business and consumer demand for new and advanced telecom products and services and continued technological progress, has spawned fierce competition for emerging new markets and a number of smaller, often highly innovative participants. Further progress toward accomplishment of the goals of TCA have been frustrated by the perpetuation of monopolistic practices in some...

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Impact of 1996 Telecommunications Act. (1969, December 31). In LotsofEssays.com. Retrieved 16:23, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1692234.html