Telecommunications Act of 1996
The Telecommunications Act of 1996 was the first major overhaul of telecommunications law in almost 62 years. The goal of this law was to break down the barriers of entry into the communications business. The Telecommunications Act of 1996 impacted the way people worked, lived, and learned. The Act affected telephone service, cable programming, video services, broadcast services, and internet services for the first time in American and internet history.
Although controversial, the Telecommunications Act of 1996 addressed many inequalities that had existed in the telecommunications economy prior to the Act's enactment. The Act created separate regulatory institutions for carriers providing different services. For example, there was a regulatory regime for carriers providing only voice telephone service, another for providers of cable television, and a third for information services. In addition, the Act also required incumbent carriers to allow interconnectedness with new entrants of the communications market. This created a more competitive communications market because the new entrants to the communications market were often priced out by the incumbent firms. Prior to the Act, incumbent firms charged obscene fees for new entrants to interconnect with existing networks.
Despite manufacturing competitive equality in the telecommunications market, the Telecommunications Act of 1996 also gave too much power to television broadcasting companies. The Act removed the limit of the number of stations a television company could own as long as the company did not reach more than 35% of the national audience. Because of this, a handful of television companies began owning the great majority of the television market. The public began to argue that the Act's ownership modifications created too much consolidation in the broadcast media and lessened broadcasters' commitments to serving the public interest. Many worried that these media companies held a monopoly on the flow of information in the United States and around the world. Twenty years later, about 90 percent of the country's major media companies are owned by six corporations.
FCC Telecommunications Act of 1996
Broadcast Law Blog
Although controversial, the Telecommunications Act of 1996 addressed many inequalities that had existed in the telecommunications economy prior to the Act's enactment. The Act created separate regulatory institutions for carriers providing different services. For example, there was a regulatory regime for carriers providing only voice telephone service, another for providers of cable television, and a third for information services. In addition, the Act also required incumbent carriers to allow interconnectedness with new entrants of the communications market. This created a more competitive communications market because the new entrants to the communications market were often priced out by the incumbent firms. Prior to the Act, incumbent firms charged obscene fees for new entrants to interconnect with existing networks.
Despite manufacturing competitive equality in the telecommunications market, the Telecommunications Act of 1996 also gave too much power to television broadcasting companies. The Act removed the limit of the number of stations a television company could own as long as the company did not reach more than 35% of the national audience. Because of this, a handful of television companies began owning the great majority of the television market. The public began to argue that the Act's ownership modifications created too much consolidation in the broadcast media and lessened broadcasters' commitments to serving the public interest. Many worried that these media companies held a monopoly on the flow of information in the United States and around the world. Twenty years later, about 90 percent of the country's major media companies are owned by six corporations.
FCC Telecommunications Act of 1996
Broadcast Law Blog
Comments
Post a Comment