Essay The Telecommunications Act

723 Words Jan 24th, 2012 3 Pages
The Telecommunications Act of 1996
The Telecommunication Act of 1996 changes the telecommunications regulation and open the market for competition. In all the others regulatory government encouraged natural monopolies. In this act the state removed the outdated barriers that protect the monopolies from competition and affirmatively promote efficient competition using tools forged by Congress. State and federal regulators devoted their efforts over many decades to regulating the prices and practices of these monopolies and protecting them against competitive entry.
The Telecommunication Act of 1996 established three principal goals: 1. Opening the local exchange and exchange access market to competitive entry. 2. Promoting
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However, AT&T was still the giant telecommunication company.
In 1956, the final judgment limited the Bell System to common carrier communications and government projects but preserving the long-standing relationships between the manufacturing, research and operating arms of the Bell System. In this judgment AT&T retained Bell Laboratories and Western Electric Company. This final judgment brought to a close the Justice Department's seven-year-old antitrust suit against AT&T and Western Electric which sought separation of the Bell System's manufacturing from its operating and research functions. AT&T was still controlling the telecommunication industry.
In 1982, AT&T was requested to divestiture its stock ownership in Western Electric; termination of exclusive relationship between AT&T and Western Electric; divestiture by Western Electric of its fifty percent interest in Bell Telephone Laboratories, AT&T's telecommunications research and development facility, is a jointly owned subsidiary in which AT&T and Western Electric each own 50% of the stock; separation of telephone manufacturing from provision of telephone service; and the compulsory licensing of patents owned by AT&T on a non-discriminatory basis.
It was in the Telecommunication Act of 1996 that true competition was

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