Sunday, November 21, 2010

What has been the main impact of the Telecom Act?


The development of the Telecommunications Act of 1996 brought new possibilities and had different impacts in the industry. One of them was that it enabled companies to merge and local telephone companies were able to offer cable and satellite TV and vice versa. Companies were able to compete globally and there were a succession of various big companies merging, giving them more power over others. The most significant impact this act had was long distance. With companies going global and the nation moving towards a more globalized world, long distance became an important factor in people’s lives, so companies needed to provide this service to ensure their success. Competition played a huge role on prices but as competitors began to drop, prices started to rise. Also, with technology being so innovative day by day consumers were looking more into what the companies could offer besides basic options, therefore the true competition is now placed in the providers that offer different technologies.

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