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A Mixed Record in Telecom
Thomas W. Hazlett, "Economic and Political Consequences of the 1996 Telecommunications Act," in Regulation (No. 3, 2000), Cato Institute, 1000 Massachusetts Avenue N.W., Washington, D.C. 20001.
In 1996, Congress passed the Telecommunications Act, a major overhaul of the regulations of the telecommunications industry. In 1982, AT&T was broken up into several regional companies known as Bell Operating Companies (BOCs). Barred from entering the long-distance market, they could maintain monopolies on the local level. The Telecom Act allowed BOCs to offer long-distance service, but only if they convinced the Federal Communications Commission (FCC) it was in the "public interest" and passed a 14-point checklist. So far, few local monopolies have been allowed to enter the long-distance market.
The Telecom Act has led to some progress in local ...