Communications Laws

After more than sixty years, the communication act of 1934 was amended in the year 1996 and The Telecommunication Act, 1996 was formed. For the first time internet was included in broadcasting and spectrum allotment space.

Communication Law in United States of America:

Earlier, the communication act 1934 was the federal legal framework for monitoring the communication policies and broadcasting industry in United States of America. Though it defined a federal framework but most of the regulations pertaining to state communication scenario were left with states.

With changes in the communication era and new case laws passed by court of law paved the way for competition in the communication and broadcasting era which was earlier dominated by state monopolies. This also asked for an overhaul of the old communication law. In view of the changes, The Telecommunication Act, 1996 was passed.

The laws laid down some important provisions which are as follows:

  • The new law required any new entrant to provide for interconnection of their network with the existing and new incumbent players.
  • The law states different rates for inter-carrier compensation rates and it should factor in the additional cost of terminating such calls.
  • Under the present law, the local bell operating companies were allowed to offer free long distance calls once they can show that local markets have been thrown open for competition.
  • To create a healthy competition, the law requires the local exchange carriers to provide the network infrastructure to the new entrants at cost based wholesale rate until the time the new entrants build their own network.
  • The new law also marks a significant difference between telecommunication service provider and information services provider.
  • The law aimed at deregulating the market to create a healthy competitive market.

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