Sunday, November 21, 2010

1996 Converge

The main impact of the Telecommunications Act of 1996 has been the converging of companies to create larger companies that would basically run the communication of that specific area. “The Telecommunications Act triggered a merger frenzy among infrastructure companies intent of offering “one-stop shopping” for conventional phone service as well as cell phone, cable TV, and Internet and making themselves big enough to compete globally. . . The Telecommunications Act had other impacts besides the enabling of mega-mergers. Long distance is perhaps the biggest success story, with hundreds of competitors slashing rates in half their 1996 levels. Internet telephony (calls placed over the Internet instead of conventional phone networks) is an innovative technology that further cut costs” (374). As you can see the Telecommunications Act of 1996 was influential in many communicative ways. In fact, now companies that once offered only traditional telephone services currently also offer cable TV, and Internet services.

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