The Telecommunications Act of 1996

History In the early part of the twentieth century, the general whim was that all Americans should have phone service. The other general imagination regarding phone service was that the government should assist in promoting this as well. As a solving of these general ideas the telecommunications industry became a natural monopoly. AT&T, which traces its routes to the founding of the telephone, promoted a champion Policy, Single System geared towards Universal Service. Thus by 1920, AT&T emerged as the dominant telecommunications company. Until 1934 AT&T was exceedingly regulated by the states with price control per the governments postulation to protect consumers from abuses often associated with monopolies. The Telecommunications Act of 1934 created the Federal Communications Commission, which took regulating to the federal level. AT&T maintained its natural monopoly experimental condition for years until the government realized that AT&T was partaking in monopolizing the telecommunications industry with no controlling factors. The problems began with the accusation that AT&T practiced illegal exclusion because they only purchased equipment from Western Electric. This was the offshoot of two anti-trust beseems against AT&T. As a result of the suit United States vs.

Western Electric filed in 1949, AT&T retained ownership of Western Electric with the restriction and forebode of not entering into the computer industry. The second anti-trust suit filed in 1974, United States vs. AT&T, had two major issues. The first was that AT&Ts relationship with Western Electric, which AT&T retained in the 1956 settlement, was illegal. The second issue ignited by MCI who was attempting to click the large business market was the fact that AT&T monopolized the long distance market. In 1982, as a result of the lawsuit, AT&T agreed to spin off the regional local telephone companies into seven Regional Bell run Companies (RPOCS) in exchange for retaining its Long Distance services and the tycoon to enter... If you want to get a full essay, order it on our website: Orderessay

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