The Telecommunications Act of 1996 Essay

1745 WordsFeb 22, 20137 Pages
The Telecommunications Act of 1996 A natural monopoly was never formally seen to exist in the American telecommunications sector during the 20th century. However, the telecommunications division was heavily regulated by political officials whose intent was to use their power to endorse income redistribution. In 1934, Franklin D. Roosevelt signed the 1934 Communications Act, which thereby, established the Federal Communications Commission, a replacement for the Federal Radio Commission, created under the Radio Act of 1927. The Federal Communications Commission was an independent government agency comprised of five commissioners charged with the regulation of all non-Federal government use of the radio spectrum and wired communications. In pursuit of income redistribution, political regulators defended the obligatory monopoly power of a few telecommunication giants which would place heavy monopoly rent on other constituent groups. Constituent competitors began to take action and by the 1950s, court involvement with regards to industry monopolies began. In later years to come, progress and change would be seen in the telecommunications sector of the United States of America. By the 1980s, the courts were challenged with American antitrust laws, and courts become another source of regulation within the telecommunications industry, which of course, created even more problems. AT&T, the largest American telephone company, was demobilized under a 1982 federal antitrust decree which the company had swayed and worked around for nearly fourteen years, until the management of the decree became too difficult that Congress was forced to take action. The Telecommunications Act of 1996 was Congress' way of resolving any disagreements that arose from the enforcement of the 1982 decree, along with regulation of a divided telecommunications sector. The

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