The Telecommunications Act of 1996 at 30, Part 2: Why It Failed in Many Ways

Unfortunate regulatory history forced Congress to explore major reforms to traditional communications and media policies, and after an intense debate, the Telecommunications Act of 1996 passed. While Congress hoped to “promote competition and reduce regulation,” the Telecom Act ultimately yielded micromanaged, partial liberalization. The law did not initiate far-reaching deregulation or agency abolition—which was what the Carter administration and Congress did in the late 1970s by sweeping away the regulatory regime that once governed the commercial airline marketplace. The Telecom Act instead retained much of the traditional regulatory apparatus. It tweaked some old rules, introduced new ones, and even empowered the FCC to engage in new types of market manipulation.