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单词 Telecommunications Act of 1996
释义

Telecommunications Act of 1996

An act of the United States Congress that effectively superseded

the 1982 Modified Final Judgement (MFJ), removing line-of-business restrictions and promising to permit full and open competition in virtually every aspect of communications, from radio broadcasting to CATV to local exchange service and long distance service.The local exchange networks were opened to competition, and the incumbent local exchange carriers (ILECs) were required to lease cable pairs, switch ports, central office (CO) space, and other elements of their networks to competitive local exchange carriers (CLECs).The act specified three ways by which CLECs could provide competing local phone service:

Build and Interconnect: CLECs could build their own wireline or wireless local loops and interconnect with the ILEC and interexchange carrier (IXC) networks.

Bundled Wholesale Purchase: CLECs could purchase bundled local telephone service from the ILECs at government-controlled wholesale prices, which typically were 15–25 percent below retail prices.

Unbundled Service: The CLECs could purchase the very same network elements on an unbundled basis, which essentially were a menu of Unbundled Network Elements (UNEs) from which the

CLECs could choose to lease only what they needed, on a case-by-case basis.

In exchange for yielding their monopoly status in the local exchange, the Regional Bell Operating Companies (RBOCs) were to be permitted to compete in the interstate long-distance market once they demonstrated that they were no longer the dominant carriers in their local exchange markets. The RBOCs demonstrated, over time, that this was case, and all have now been granted interexchange carrier (IXC) status.The act also, in large part, lifted ownership restrictions, enabling the telecommunications carriers to invest, relate, merge, and acquire.The act also effectively deregulated CATV, opened spectrum for broadcast TV stations to introduce high-definition television (HDTV), and formally established a Universal Service Fund (USF) to keep basic telecommunications service rates low in rural areas and to subsidize telecommunications and Internet services to schools and libraries. See also bundled service, CATV, CLEC, CO, HDTV, ILEC, IXC, local loop, MFJ, RBOC, spectrum, UNE, UNE-P, and USF.

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