"Scene 1: Act 2:
The Telecommunications Act Of 1996"

Business Long Distance - Guaranteed Lowest Rate Program

The Telecommunications Act Of 1996 was the long-needed overhaul of the original Telecommunications Act Of 1934. While the earlier Act provided for regulations concerning the provision of telecommunication services, it did little to regulate an increase in prices.

As major giants in the industry such as Bell Atlantic, AT&T, and MCI Communications, to name a few of the players, controlled the monopolies of telecommunications, the prices to the customer rose steadily for the use of these services. The Telecommunications Act Of 1996 helped to deregulate this industry.

The deregulation of telecommunication services was a controversial issue. It was expected that the dismantling of the telecommunications monopolies would allow other telecommunication companies to spring into the competition, thus creating lower rates to the customer.

Many customers were concerned that the deregulation Act would actually create a rise in the rates for their telecommunication services.

Influences of the Telecommunications Act Of 1996

Because of the concern of customers regarding the deregulation of telecommunication services, Congress came together in a single, great combined effort to alleviate these concerns to the public. This bill was a voted show of unusual bipartisan support.

The public had a right to be concerned, at least in the beginning, as their fears began to come to life. The large, now broken monopolies focused their discounts of telecommunication services on the larger business markets to maintain profit levels. The individual consumer saw no change, or even a rise in the prices for their services.

It took new companies time to build up to meet the needs of customer service demands. It was years before John Q. Public began to see a drop in their rates, thanks to the emerging competition in the telecommunication services markets. Through the passage of time, the revised Telecommunications Act Of 1996 finally started to evidence the intent of its creators and supporters, and customers finally received a much-needed break.