The Telecom Act Turns 30

February 8 is the thirtieth anniversary of the Telecommunications Act of 1996. The legislation brought sweeping changes to the industry and was the impetus for me to start my consulting company in 1997. The Act was both overdue and premature. It was overdue because market forces had been creating pressure for rule changes since the divestiture of AT&T into the Baby Bell companies in 1984. The divestiture brought long-distance competition, but it was clear that the public wanted broader competition for voice service instead of only being bombarded by companies offering cheaper long-distance rates. The Act held out the possibility of real competition for voice services to the majority of the country. I say the Act was clearly premature because it did not anticipate the explosion of residential broadband that began only a few years after the ink was dry on the new law. The public interest in the Internet quickly swamped any public interest in voice competition.