Telecommunication Act Essay example
The primary goal of the Act was to promote competition for local telephone services, long distance telephone services, and cable TV services. Inter-exchange carriers (IXC) (such as AT&T, Sprint, and MCI) and cable TV companies (such as TCI and Jones Inter-cable) are permitted to offer local telephone service. The "baby Bells" or Regional Bell Operating Companies (RBOC) (also called Local Exchange Carriers (LEC) such as BellSouth and Ameritech were permitted to offer long distance telephone services and cable TV services. The RBOC were also permitted to manufacture their own equipment and to offer online information services and electronic publishing (but under tight controls until 2000). Incidentally, electric utility companies, another traditionally highly regulated industry, were permitted to enter the local telephone market.
I believe that the Act made the most impact on Local telephone service. Local telephone service had been a regulated monopoly for almost 100 years. Local telephone services are currently controlled by a handful of RBOCs who have not been known for innovation or cost cutting. Under this new Act, local