Telecommunications Act Of 1996

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(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 regulated monopoly for almost 100 years. Local telephone services are currently controlled by a handful of RBOCs who have not been known for innovation or cost cutting. Under this new Act, local service was now open for competition. Other companies are permitted to ...

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the Act contained a universal service requirement, which mandated RBOCs to provide rural and other high-cost areas with similar types and quality of services and technologies that they provide to other areas and to do so at reasonable rates. RBOCs were also required to provide special, less expensive access to schools, hospitals, and libraries. RBOCs (with the exception of small RBOCs) were required to contribute to a universal service fund, which was used to partially subsidize the RBOCs providing services under the universal service requirements.
One year after the Act was passed the expected competition for local telephone service had not materialized. The RBOCs launched several court ...

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