Final answer:
Company A likely purchased broadcasting rights for cable stations once granted permission to provide cable services. This reflects the broader framework of telecommunications where advancements and regulations have shaped how companies operate and compete.
Step-by-step explanation:
If Company A is granted permission to provide cable services to a particular area, then Company A purchased broadcasting rights for the cable stations they believe their viewers want. Traditionally, public utilities such as water and electrical services have operated under a natural monopoly because the installation of multiple sets of infrastructure by different companies would be excessively costly and inefficient.
However, for cable services, the matter is somewhat different; cable networks are capable of operating nationally without local affiliates due to cable and fiber optic technology, which transmits signals through coaxial or fiber optic cables, rather than aerially through local transmission towers.
The Telecommunications Act of 1996 was significant in altering the media landscape by allowing more consolidation, although it also invited criticism for potentially increasing prices and neglecting public interest.
The technological evolution, such as the shift from wired to wireless communication in the telephone industry, has also played a role in determining what is considered a utility and in breaking down older monopolies.