Final answer:
The 1996 Telecommunications Act is true to have facilitated media company concentration by allowing single entities to own more radio and television stations, thus increasing the number of media conglomerates and reducing competition.
Step-by-step explanation:
The statement that the 1996 Telecommunications Act facilitated the concentration of media companies is true. This act significantly changed the landscape of media ownership by lifting the cap on the number of radio and television stations a single entity could own. The regulation changes allowed for networks to acquire a larger number of cable stations as well, which led to a reduction in competition and an increase in media conglomerates. This act shifted the role of the Federal Communications Commission (FCC) from a regulator to a monitor, with the responsibility to oversee the purchase of stations to avoid monopolies and to adjudicate consumer complaints against radio, television, and telephone companies. Despite creating opportunities for media expansion, it has also been criticized for its potential to raise cable prices and allow companies to shirk their public interest obligations.
Examples of media consolidation that the act permitted can be seen in the current media landscape where a small number of companies control a significant majority of the outlets. For instance, as of 2014, only five corporations controlled 90% of US media outlets. This dramatic consolidation raises concerns about the diversity of viewpoints available to the public and the potential influence of a few firms on the media marketplace. The FCC, while now focused more on monitoring, still intervenes in certain cases, such as the proposed 2006 merger between AT&T and BellSouth, which was blocked due to concerns about reduced competition among mobile phone service providers.