Question

Which of the following is not true about the aftermath of the Telecommunications Act of 1996?

A) Competition from allowing regional and long-distance phone companies as well as cable companies into each other's markets has kept cable rates low.
B) Consolidation of regional phone, long-distance, cable, and Internet service companies has decreased competition and left consumers with high cable bills.
C) The cable industry has spent almost $150 billion installing and upgrading its technological infrastructure in the United States.
D) Cable companies now bundle digital cable television, Internet, and phone services.
E) All of the options are true.

Answer 1

The statement that competition has kept cable rates low following the Telecommunications Act of 1996 is not true; the Act led to increased consolidation, decreased competition, and higher cable bills.

Step-by-step explanation:

The statement that is not true about the aftermath of the Telecommunications Act of 1996 is: Competition from allowing regional and long-distance phone companies as well as cable companies into each other's markets has kept cable rates low. This statement is incorrect because, in reality, following the deregulation allowed by the Act, there was significant consolidation among service providers, which reduced competition and did not necessarily keep cable rates low. Critics such as Common Cause argue that cable prices have in fact increased, and this consolidation has led to high cable bills for consumers. Therefore, Options B, C, and D start reflecting more accurately the aftermath of the Telecommunications Act of 1996, which includes huge investments in technological infrastructure, the bundling of services, and the decrease in competition due to mergers and acquisitions.