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Telecommunications Act of 1996
(redirected from Telecom Reform Act)

   Also found in: Wikipedia 0.04 sec.

Telecommunications legislation passed by the U.S. Congress in 1996. Although it covers many aspects of the field, the most controversial has been the deregulation of local phone service, allowing competition in this arena for the first time. Long-distance carriers (IXCs) and cable TV companies can get into the local phone business, while local telcos (the LECs) can get into long distance. Some of the major provisions follow.

Section 251 - Allows states to regulate prices in the local access market.

Section 254 - Extends universal service to everyone no matter how rural, even if others have to subsidize the expense.

Section 271 - Provides a 14-point checklist of requirements for RBOCs to offer intrastate long-distance service.

It Wasn't a Picnic
The RBOCs thought the Act would be a road map for getting into long distance in exchange for ending their local monopolies. What they got were 700 pages of dubious rules that made "deregulating" as complicated as any regulated industry could be. The RBOCs claimed that the Act discriminated against them and that other large telephone companies received more favorable treatment. Complaints and lawsuits ensued.

The Act required that the RBOCs offer competitors access to their local networks at reasonable rates, but both the Supreme Court (1999) and appeals court (2002) said that the FCC should not be deciding how the RBOCs should foster their own competition by unbundling their network services. In 2003, the FCC decided not to force the RBOCs into leasing high-speed lines to competitors. In March 2004, the appeals court upheld that ruling and also overturned a ruling that required the RBOCs to give wireless companies access to their networks. The 2004 rulings were applauded by the RBOCs.


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With wireline telecom provider capital expenditure stalled, and regional Bell telephone companies lobbying Congress to repeal line-sharing provisions of the 1996 Telecom Reform Act, an increasing number of Internet service providers have begun to use unlicensed wireless spectrum to bridge the bandwidth gap in the last mile.
With its AMC and because of the environment created by the Telecom Reform Act of 1996, Wheelhouse is building a next-generation services company that will make an important impact here in Massachusetts as well as worldwide.
We were extremely impressed with the firm's knowledge around the regulatory requirements for RBOC compliance with Section 271 of the Telecom Reform Act, as well as their depth in OSS interconnection.
 
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