An introduction to the history of the telecommunications act of 1996 in the united states
The goal of this new law is to let anyone enter any communications business -- to let any communications business compete in any market against any other. Since most studies report very small price elasticities of demand for access, the overconsumption effect may be small, and most of the distortion caused by Universal Service may be a wealth transfer effect.
Telecommunications act of 1996 pdf
Please let us know what topics most interest you or where you have questions about this new law. To achieve this goal, the funds required to subsidize service were extracted from inter- and intra-LATA long distance service. The Consumers Union also raises one other major point. Consumer activist Ralph Nader argued that the Act was an example of corporate welfare spawned by political corruption, because it gave away to incumbent broadcasters valuable licenses for broadcasting digital signals on the public airwaves. The government sought a divestiture of Western Electric. Cable service provided by telephone companies. New considerations analogous to the traditional public, educational, and government PEG requirements include extensions to non-video services and making fiber available to local governments and possibly for other customers. To maximize efficiency, subsidies should not be hidden in traffic sensitive elements. Not later than 12 months after the date of enactment of this section, the Federal Communications Commission shall promulgate rules implementing the provisions of this paragraph which shall be applicable to applications filed under this paragraph after the effective date of such rules. Preemption of franchising authority regulation of telecommunications services. In addition, it set rules against child pornography and other objectionable content on the Internet. The existence of such high profit margins is what facilitates the imposition of a vertical price squeeze. Economides and White , show that, for a wide range of parameters, the allocative efficiency losses of the application of ECPR are higher than the productive efficiency losses that would result if an inefficient entrant entered when the ECPR was not applied. In California, a typical consumer can choose from at least long distance companies.
A number of the features of an efficient universal service program, as described earlier, help accomplish this goal. Mobile services direct access to long distance carriers.
This framework will minimize to the maximum extent possible the problem of secondary distortions that I identified earlier. Against this backdrop, issues posed by open access in broadband have prompted FCC initiatives.
The Act introduces fundamental changes in the structure of telecommunications markets in the United States. The official citation for the new Act is: Telecommunications Act ofPub.
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