Question

The Telecommunications Act of 1996 brought cable fully under the federal rules that had long governed the telephone radio and TV industries. It knocked down regulatory barriers allowing regional phone companies long-distance carriers and cable companies to enter one another's markets. The act allows cable companies to offer telephone services and it permits phone companies to offer Internet services. True or False?

Answer 1

The true statement describes the Telecommunications Act of 1996, which allowed cross-entry of services among cable, telephone, and internet providers, and increased the power of conglomerates in the communication industries. It reflects a significant shift from the FCC's role as a regulator to a monitor, with an emphasis on preventing monopolies.

Step-by-step explanation:

The statement about the Telecommunications Act of 1996 is true. This act indeed marked a significant regulatory shift by permitting companies to enter each other's markets. It allowed cable companies to provide telephone services and enabled phone companies to offer internet services, knocking down previous regulatory barriers. The Act also made significant changes to the radio and television industries, removing ownership limits and allowing networks to acquire numerous cable stations. These actions increased the sway of conglomerates and raised concerns about competition reduction and public interest neglect.

The Federal Communications Commission (FCC), which was founded in 1934, saw an increase in its regulatory activities with the advent of the Telecommunications Act of 1996. The FCC's role transitioned from regulator to monitor, overseeing station purchases to prevent media monopolies and adjudicating consumer complaints. Before the deregulation efforts of the 1990s, government limitations on competition in communication services were the norm, with companies like AT&T holding exclusive rights to provide local and long-distance telephone services.