Telecommunications Act of 1996

The Telecommunications Act of 1996 is a United States federal law enacted by the 104th United States Congress on January 3, 1996, and signed into law on February 8, 1996, by President Bill Clinton. It primarily amended Chapter 5 of Title 47 of the United States Code. The act was the first significant overhaul of United States telecommunications law in more than sixty years, amending the Communications Act of 1934, and represented a major change in American telecommunication law, because it was the first time that the Internet was included in broadcasting and spectrum allotment. The goal of the law was to "let anyone enter any communications business – to let any communications business compete in any market against any other." The legislation's primary goal was deregulation of the converging broadcasting and telecommunications markets. The law's regulatory policies have been criticized, including the effects of dualistic re-regulation of the communications market. Previously, the Communications Act of 1934 ("1934 Act") was the statutory framework for U.S. communications policy, covering telecommunications and broadcasting. The 1934 Act created the FCC, the agency formed to implement and administer the economic regulation of the interstate activities of the telephone monopolies and the licensing of spectrum used for broadcast and other purposes. The Act left most regulation of intrastate telephone services to the states. In the 1970s and 1980s, a combination of technological change, court decisions, and changes in U.S. policy permitted competitive entry into some telecommunications and broadcast markets. In this context, the 1996 Telecommunications Act was designed to allow fewer, but larger corporations, to operate more media enterprises within a sector (such as Clear Channel's dominance in radio), and to expand across media sectors (through relaxation of cross-ownership rules), thus enabling massive and historic consolidation of media in the United States. These changes amounted to a near-total rollback of New Deal market regulation.