- Major events in telecommunications law in the U.S.
- 1934: The FCC
formed. The FCC is in charge of regulating, licensing and overseeing
federal communications policy, including allocation of all broadcast
spectrum airwaves.
- 1984: AT&T broken up. This opened the way for competition
for long distance and granted local monopolies to the seven "baby
bells" (PacWest, US West, SouthWestern Bell, Nynex, Bell Atlantic,
Ameritech and BellSouth. Also GTE and some other local & regional
monopolies.)
Articles addressing the history and impact of AT&T's breakup
include The
AT&T Antitrust Consent Decree: Should Congress Change the Rules?.)
- 1996: The Telecommunications
Act of 1996. Set up rules by which telephone companies could
compete locally and for long distance, as well as developing new
services (such as wireless and data businesses). Among other things, this
law has enabled the baby bells to merge back together, and to compete
with other companies to sell products. In turn, other companies can
compete with the baby bells in what was formerly their regulated
monopoly.
This law also addressed telecommunications, changing the rules
by which TV and radio broadcasters have played. A large impetus for this
was the media owners, who argued they needed additional incentives to
develop new services such as HDTV and digital broadcasting.
There are also provisions for cable TV. Local Exchange Carriers
are limited in how much controlling stake they can have in cable
companies. Cable companies are encouraged to offer a variety of services,
such as broadband data.
Issues to ponder:
- What relationships exist between providers of these services:
- Cable television
- Local phone service
- Long distance phone service
- Long-haul data communication (Internet & intranet)
- Wireless
- What different issues are there for metropolitan, suburban and
rural areas?
- Take a look at NC's
utilities Commission. How are they structured, and how good
a job do they seem to be doing? Take a look at their recent
Selected Telecommunications Orders
- Do phone companies and others try to cheat each other and the
public? You bet.... read through BellSouth v. LEC for a titillating
example.
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