Ch 16 The Telecommunications Act Of 1996

Ch. 16 – The Telecommunications Act of 1996
a. Introduction
i. Three themes
1. Act facilitated local competition by eliminating state-imposed barriers to competition and by requiring existing local exchange carriers to cooperate with potential competitive entrants.
2. Act increased competition already open to competition – long distance market for instance.
3. Act reformed the funding and definition of universal service relative to new competitive structures.
b. The Local Competition Provisions
i. CLECs to build own infrastructure and then interconnect with incumbents network
ii. Also provisions to allow firms to enter the market without building their own network
1. Resale provisions – purchase services (at a regulated rate) and then resell them under their own name
2. Unbundling provisions – potential competitor could buy components of an incumbents existing telephone network

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