Final answer:
The act specifying that cities could not regulate basic cable fees unless receiving fewer than three over-the-air channels is the Cable Communications Policy Act of 1984.
Step-by-step explanation:
The act that ruled that cities could not regulate basic fees unless the city received fewer than three over-the-air channels is the Cable Communications Policy Act of 1984. This Act, among other regulations, provided cable systems freedom from local rate regulation where there was effective competition. While the Telecommunications Act of 1996 also significantly impacted the broadcasting and communications landscape by relaxing restrictions on media ownership and altering the role of the FCC, it did not specifically address the regulation of basic fees based on the number of over-the-air channels a city received. The Cable Communications Policy Act of 1984, however, directly relates to this aspect of regulation.