BEECHER - NAWC

Water ComparedStructural ChangeTable 3-4Highlights of the Telecommunications Act of 1996Local Telephone Competitiona Prohibits state or local barriers to market entry.a Allows competitively neutral management of rights-of-way.a Defines rural telephone company and addresses rural market entry.o Requires all telecommunications carriers to interconnect directly or indirectly with other carriers.Universal Serviceo Defines universal service as an evolving level of telecommunications services that the FCC determines areessential, have been subscribed to by a majority of customers, are being deployed in public networks bycarriers and are consistent with the public interest, convenience, and necessity. States may add to thedefmition, provide they meet specified requirements.a The FCC is directed to base its universal service policies on the principle that specific, predictable, andsufficient federal and state mechanisms to preserve and advance universal service should be provided.a The FCC and the state are required to ensure that universal service is affordable.o Specifies eligibility criteria for a carrier to receive universal service support.a Provides that rates for interexchange services shall be no higher for subscribers in rural and high-cost areasthan in urban areas; interstate interexchange rates shall be no higher in one state than another (toll rateaveraging).o Provides for extending lower cost and affordable telecommunications services to schools, libraries, and ruralhealth-care providers.a Local exchange carriers will be required to make facilities and functions available to eligible carriers lackingeconomies of scale or scope.Bell Operating Company Entry into Long Distance and Manufacturinga Bell Operating Companies (BOC) can offer inter-LATA services originating outside their in-region States.a BOCs will be authorized to offer in-region inter-LATA services as soon as they comply with networksharingprovisions of the law.o BOCs must provide long-distance, manufacturing, inter-LATA, and other services through a separateaffiliate for a minimum of three years.a Places conditions and limitations on implementation of joint marketing, toll dialing parity, and alannmonitoring services.Telephone Company Providing Video Programminga Telephone companies may offer video programming directly to subscribers under regulations that varyaccording to the video service provided.a A telephone company may own more than I 0 percent interest in a cable company, and vice versa, underspecified conditions.Deregulationa The FCC must review regulations every two years and discontinue applying unnecessary regulations.a Specifies other tariff and filing changes.Indecencya Prohibits the use of computers and other telecommunications devices to transmit obscene material with theintent to annoy, abuse, threaten or harass, or to convey indecent material to a minor.a Carriers are not liable unless they knowingly and intentionally penni! a facility under their control to beused for these prohibited purposes.Source: U.S. Telephone Association, "Summary of Telecommunications Act of 1996"http://www.usta.org/billsurnm.html.NAWC 71 September 1998