Share This Article:

A Critical Evaluation of Telecommunication Act 1996

Abstract Full-Text HTML Download Download as PDF (Size:92KB) PP. 83-90
DOI: 10.4236/jssm.2008.11008    4,745 Downloads   8,593 Views   Citations


Telecommunication Act 1996 was considered as a milestone in the history of US telecommunication sector, as it aimed at breaking monopoly in local telecommunication market and creating competition. During last 10 years, the pace of competition in local telephony market has been very slow. Baby Bells still hold a strong dominance and a near monop-oly position. They have even spread their monopoly to long distance market by mergers and acquisitions. This shows the failure of the Act. Local monopoly breaking policy, vertical reintegration, universal service and UNE pricing are the major reasons of this failure. Local loop is a natural monopoly and further investment by multiple companies is not efficient. Idea of universal service should be dropped.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

K. Janjua, S. Ahmed Noor and S. Alamgir Khan, "A Critical Evaluation of Telecommunication Act 1996," Journal of Service Science and Management, Vol. 1 No. 1, 2008, pp. 83-90. doi: 10.4236/jssm.2008.11008.


[1] Samuelson A. Paul, Nordhaus D. William (1995). “Economics.” McGRAW HILL Inc., pp. 154.
[2] Pindyck S. Robert , Rubinfeld L. Daniel (1998). “Mi-croeconomics.” Prentice Hall International Inc., pp. 353.
[3] Varian R. Hal (1992). “Intermediate Microeconomics – A modern Approach.” W.W. Norton & Company, pp. 430.
[4] Woroch A. Glenn (2002). “Local Network Competition.” Handbook of Telecommunication Economics, Els-vier,2002.
[5] Bomsel Olivier & Blanc G.L. (1999). “System growth in the US telecom industry: Analysis of the technical, in-dustrial and regulatory process in the US telecom indus-try.”Advanced Workshop in Regulation and Competition, Newport, USA, May 26-28, 1999.
[8] Goldstein, Fred R. (2005). “The great telecom meltdown.” Artech House, Inc., pp. 20.
[9] AT&T. “Milestones in AT&T History.” Available at
[10] AT&T. “Brief History: The Bell System.” Available at
[11] Nicholas Economides (1997). “The Telecommunications Act of 1996 and its Impact.” The Annual Telecom-munications Policy Conference, Tokyo, Japan, December 4, 1997.
[12] AT&T. “A Brief History: Post Divestiture.”Available at
[13] Teece D. (1995). “Telecommunication in Transition: Unbundling, reintegration and competition.” Center for research in Management, University of California, Berkeley.
[14] John R. Richard (2006). “Postal Networks and American Telecommunications.” XIV History Congress, Helsinki Finland, 2006 Session 107.
[15] Congress (1996). “Telecommunications Act of 1996, Pub. LA. No. 104-104, 110 Stat. 56 (1996).” Available at
[16] FCC, Industry Analysis and Technology Division, Wireline Competition Bureau (2007). “Local Telephone-Competition: Status as of December 31, 2005.” available at
[17] FCC, Industry Analysis and Technology Division, Wireline Competition Bureau (2007). Trends in Tele-phone Service. Available at
[18] Congress (1996). “Section 271(C)(2)(B), Telecom-munications Act of 1996, Pub. LA. No. 104-104, 110 Stat. 56(1996).”Available at
[20] FCC, Industry Analysis and Technology Division, Wireline Competition Bureau(2006). “Telephone sub-scribership in united states.” Available at
[21] Randolph J. May & Larry F. Darby (2002). “Comments of the Progress and Freedom Foundation Before the Federal Communications Commission, Review of the Section 251 Unbundling Obligations of Incumbent Local Exchange Carriers. CC Dkt. No. 01-338” (filed April 5, 2002).
[22] Eisenach A. Jeffrey, Lenard M. Thomas (2003). “Telecom Deregulation and the Economy: The Impact of “UNE-P” on Jobs, Investment and Growth.” The Progress and Freedom Foundation Release 10.3.
[23] Grandall W. Robert, Waverman L. (2000). “Who Pays for Universal Service.” Brookings Institution Press, pp. 47.
[24] Turner S. Derek (2006). “Universal Service Reforms & Convergence: USF policy for the 21st century.” 34th re-search conference on communication, Information and Internet Policy (TPRC) (Sept. 29 – Oct. 1, 2006) Arling-ton, VA.
[25] Rosenberg Edwin, Perez-Chavolla Lilia, Liu Jing (2006). “Universal Service.” The National Regulatory Research Institute.
[26] Gifford L. Raymond, Peters M. Adam, Riordan H. Michael (2005). “Digital Age Communication Act : Pro-posal of the universal service working group, release 2.0.” The Progress and Freedom Foundation.

comments powered by Disqus

Copyright © 2018 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.