In February of 1996, the U.S. Congress enacted the Telecommunications Act of 1996. The Act was one of the most substantial changes in the regulation of any industry in recent history. The Act replaced all current laws, FCC regulations, and the consent degree and subsequent court rulings under which AT&T was broken into the "baby Bells." It also overruled all existing state laws and prohibited states from introducing new laws. Practically overnight, the telecommunications industry went from a highly regulated and legally restricted monopoly to open competition. Or almost open competition. It has been more than three years since the Act became law, and while we have seen some changes, they have not been as substantial as many analysts, law- makers, and regulators had anticipated. The Act addressed five major areas of telecommunications: 1) Local telephone service, 2) Long distance telephone service, 3) Cable television service, 4) Radio and television broadcasting, 5) Censorship of the internet.
             The primary goal of the Act was to promote competition for local telephone services, long distance telephone services, and cable TV services. Inter-exchange carriers (IXC) (such as AT&T, Sprint, and MCI) and cable TV companies (such as TCI and Jones Inter-cable) are permitted to offer local telephone service. The "baby Bells" or Regional Bell Operating Companies (RBOC) (also called Local Exchange Carriers (LEC) such as BellSouth and Ameritech were permitted to offer long distance telephone services and cable TV services. The RBOC were also permitted to manufacture their own equipment and to offer online information services and electronic publishing (but under tight controls until 2000). Incidentally, electric utility companies, another traditionally highly regulated industry, were permitted to enter the local telephone market.
             I believe that the Act made the most impact on Local telephone service. Local telephone service had been a regul...