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31 S. Ill. U. L.J. [i] (2006-2007)

handle is hein.journals/siulj31 and id is 1 raw text is: SOUTHERN ILLINOIS UNIVERSITY LAW JOURNAL Volume 31 Fall 2006 ARTICLES THE TELECOMMUNICATIONS ACT OF 1996: How IT FAILED, AND How IT SUCCEEDED (BUT NOT AS EXPECTED) H. James Nelson ......................................1 The most difficult part of a telecommunications system is the last mile: the link from the central infrastructure to the end user. In the late 20' century, this last mile was under the monopolistic control of the regional Bell Operating Companies. The Telecommunications Act of 1996 had, at its core, the requirement that monopoly be broken and the last mile be made available to other companies thus increasing competition, decreasing consumer cost, and increasing the range of services available. Unfortunately, due to technical hurdles and bureaucratic red tape, this was never realized. However, another provision of the Act inspired an explosion of technological innovation, bypassing the last mile and bringing about unprecedented growth in mobile phones, the Internet, digital cable, fiber, and other forms of communication. This article describes the technology climate that existed prior to 1996 and the legislation that led up to the Telecommunications Act of 1996. It continues with a description of the technological and bureaucratic hurdles that the competition had to deal with in order to enter the local market. The article ultimately concludes with a description of today's technological landscape and how competition bypassed the BOC's hurdles. Articles Editor, Erin R. Doyle A NEW TELECOM ACT--REMARKS Richard E. Wiley .................................. 17 This article begins by taking you back to where the telecommunications industry and regulation stood a decade ago; explaining the rationale behind the structure of the 1996 Act; looking at what has changed over the past 10 years; and, finally, previewing what might lie ahead as Congress considers the possibility of yet another rewrite of our national communications legislation. A decade ago, although convergence (that is, the use of the same technological platform to provide multiple services) had been talked about for years, the telecom industry still was characterized by distinct segments (or silos). For example, there was a separate long distance market; local telephone service was dominated by 8 companies; and the Internet was in its infancy for commercial purposes. The purpose of the Telecommunication Act of 1996 was sweeping yet plainly worded: To promote competition and reduce regulation in order to secure lower prices and higher quality services for American telecommunications consumers and encourage the rapid deployment of new telecommunications technologies. To this end, the Act sought to eliminate boundaries between industry segments in an effort to extend competition to previously monopolistic areas such as local telephone and cable television service. Over the past decade since the Act was enacted, every segment of the telecom industry has undergone a radical transformation. In fact, it is difficult to say today how much longer there will even be discrete industry segments. This technological convergence has been accompanied by unprecedented consolidation among traditional players whose once-secure markets are eroding out from under them. The simple fact is that

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