Telecom Reform Act

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The Telecom Reform Act (TRA), signed into law by United States President Bill Clinton on February 8, 1996, removed barriers that prevented various corporations from competing head to head and was meant to foster competition. The FCC was given a mandate to enforce the act.

Another intention was to offer consumers choice in local phone service. The act proposed more competition in local phone networks. Regional phone companies, ordered to allow competitors to buy access at cost, were free to offer long distance communication of their own, if they met 14 criteria.

As a result of the TRA, a massive consolidation in radio and telecommunications took place. AT&T bought TCI Corp; Bell Atlantic and NYNEX merged; Southwestern Bell and PacTel merged to become SBC and then bought Ameritech; MCI and WorldCom merged.

As part of the Telecom Reform Act, the Communications Decency Act (CDA) was also signed. The CDA was aimed at regulating online pornography but was later defeated in the courts by free speech advocates.

By 1999, 98% of homes had no choice in local service. The only alternative for many are cell phones, which are gradually becoming the primary choice for more Americans.

Reform

The debate about rewriting the act has reached a stalemate in Congress, with several key members of Congress divided between Bell camps and long-distance camps. The Bells argue for less regulation; the long-distance providers believe the act has done a good job, but they aim to cut the amount of litigation.