Final answer:
B)The Telecommunications Act of 1996 is responsible for expanding the digital communications industry to new entrants, marking the beginning of the dot-com era by reducing government restrictions and allowing for more competition.
Step-by-step explanation:
The act that expanded the digital communications industry to new entrants, thus beginning the dot-com era, was b. the Telecommunications Act of 1996. This act brought significant changes to the industry, including a move towards deregulation. The Telecommunications Act of 1996 removed the limits on the number of radio and television stations a single company could own, allowed networks to purchase numerous cable stations, and changed the role of the Federal Communications Commission (FCC) from regulator to monitor. Importantly, this act was part of a broader wave of deregulation that sought to reduce government restrictions on the industries, giving way to increased competition and entry of new firms into the market, including within the field of telecommunications.
The Telecommunications Act of 1996 also had implications for Internet service and digital television, with the FCC adopting a 'hands-off' policy towards the emerging Internet to avoid encouraging a monopoly system. This approach was consistent with the general sense that markets could provide services adequately, which led to deregulation across various industries. However, the FCC still retained powers to control aspects of Internet service, such as pricing and competition, yet it was cautious in exercising these powers.