Telecomm Act of 1996

1
Telecomm Act of 1996

• A Partial Review with Updates

2
Telephone Service

• Act preempts state laws/regulations that prevent
  or restrict competition
• Both local and long distance
• BOCs (e.g., Qwest) can offer inter-LATA long
  distance, but only after they
• Allow local competition (satisfy a checklist)
• Unbundle and allow resale to competitors
• Pass state PUC muster

3
Universal Service

• Previously done via regulation mandates
• Section 254 of the Act restructures as cross
  subsidies
• Carriers contribute to a Univ. Serv. Fund
• States designate eligible carriers that can draw
  from fund
• Additional subsidies for schools, libraries,
  rural heath care providers

4
Unbundling

• Offering for sale network elements at rates,
  terms and conditions that are just, reasonable,
  and nondiscriminatory.
• ILECs have to sell UNE-P (unbundled network
  element platform) pieces to CLECs at wholesale
  prices

5
Unbundled Network Elements

• Loops, including loops used to provide
  high-capacity and advanced telecommunications
  services
• Network interface devices
• Local circuit switching (except for larger
  customers in major urban markets)
• Dedicated and shared transport
• Signaling and call-related databases
• Operations support systems
• Operator and directory assistance services (taken
  off list in 1999)

6
Triennial Review UNE Changes

• Copper loops still unbundled
• Fiber to the home (FTTH) does not have to be
  unbundled
• Hybrid copper/fiber and data/voice unbundling? It
  depends.
• Broadband line sharing? Phased out.
• Local switching facilities? FCC encourages
  phase-out of UNE-P but also passes the buck to
  states
• Many parts headed for the courts . . .

7
Cable TV

• 1996 Act repeals much regulation from 1992 repeal
  of 1984 deregulation(Its simple reg, dereg,
  reg, dereg, wait and see at next election.)
• Cable/telco cross ownership restrictions eased
• Telcos can also offer video
• Local franchising authorities cant restrict
  cable telephone service

8
Radio TV Broadcasting

• New spectra allocated for HDTV
• Media ownership concentration limits relaxed
• One company can reach 35 of national TV audience
  (up from 25).
• 6/03FCC raises limit to 45 9/03 Senate
  approves undo house next president promises
  veto
• Broadcasters can own cable systems
• No limits on national radio ownership (but limits
  on local concentrations)

9
Internet Online Services

• Communications Decency Act (just part of the 1996
  Act)
• Later found unconstitutional
• Protection for innocent and good Samaritan
  service providers

10
Miscellaneous Tidbits

• Public utilities can offer telecomm services
• (You didnt think that new fiber was just to read
  the meter, did you?)
• TV V-chips

11
A Sampling of the Latest . . .

• FCC backtracks and allows industry proposal for
  E911 911-only numbers
• Controversial broadcast flag digital TV
  anti-piracy mechanism approved
• Wireline-to-wireless local number portability
  (intermodal LNP) to be required
• The FCC will look into regulating VoIP