Question

Which of the following was the most significant drawback of the Telecommunications Act of 1996?

It raised the cost of telecommunications service.

It halted the telecommunications boom.

lt decreased quality of telecommunications services.

It established telecommunications monopolies.

Answer 1

It established telecommunications monopolies.

Step-by-step explanation:

edg2021

In 1996, President Bill Clinton approved the Federal Telecommunications Act of 1996. This Act deregulated the industry to enable more companies to expand into local areas. The reasoning was that smaller companies would fill demand in areas where consumers had fewer options. Instead, because the bigger companies had more resources, after deregulation they were able to buy out their smaller competitors.

The monopolies, which had been controlled prior to the Act, expanded rapidly. Customers again faced fewer options to choose from when it came to service providers.

Answer 2

It established telecommunications monopolies.

Step-by-step explanation:

The Telecommunications Act of 1996 impact on the music industry is still felt today by musicians and the general radio listening public. The legislation eliminated a cap on nationwide station ownership and allowed an entity to own up to 4 stations in a single market. Within 5 years of the act being signed, radio station ownership dropped from approximately 5100 owners to 3800. Today, iHeartMedia is the largest corporation with 855 radio stations under its name across the nation. The Telecommunications Act was supposed to open the market to more and new radio station ownership; instead, it created an opportunity for a media monopoly. Larger corporations could buy out smaller independent stations, which affected the diversity of music played on air. Instead of DJs and music directors having control of what is played, market researchers and consultants are handling the programming, which lessens the chance of independent artists and local talent being played on air.