February 2016

Was the 1996 Telecommunications Act successful in promoting competition?

[Commentary] Evaluating legislative success is more art than science. Today our nation commemorates the 20th anniversary of the Telecommunications Act of 1996 becoming law, and there is now a sufficient period to evaluate whether the act has achieved what it was intended to accomplish. One of the clear legislative targets was to have competition serve as a force for broadband network development nationwide. The act’s legislative history reflects the goal of Congress “to accelerate the deployment of an advanced capability that will enable subscribers in all parts of the United States to send and receive information in all its forms—voice, data, graphics, and video— over a high-speed switched, interactive, broadband, transmission capability.”

It’s fair to say that the law did not achieve immediate success. Five years after its enactment, only New York and Texas had determined that there was sufficient competition in the local telephone market to enable the Baby Bells operating there to also offer long-distance telephone service. By 2001, concentration within the industry actually increased, with only four companies in the United States handling 95 percent of local telecommunications service: Verizon, SBC, BellSouth and Qwest. Fast forward to today’s telecommunications environment, where permitting both local telephone and cable companies to offer broadband service (including video) has been a powerful driver for new investment to facilities upgrades or new construction. And the National Broadband Map shows that all parts of the country (50 states along with all U.S. territories) now have broadband service, as the law intended. These metrics do not demonstrate that the Telecommunications Act of 1996 was an unqualified success, but they are evidence of the law’s real economic and consumer benefits. We can only hope that the additional passage of time will continue to support what Congress admirably set in motion two decades ago.

Telecom Act at 20: Assessing the Rewrite

Feb 8 marks the 20th anniversary of the Telecommunications Act of 1996, which updated the Communications Act of 1934 let cable into the phone business and phones into cable. A polling of some policymakers and watchers show their views on the impact of the principally deregulatory rule rewrite:

Former Rep Rick Boucher (D-VA), former chair, House Communications Subcommittee: “My involvement in formulating the ‘96 act began in 1988 when I joined with then Sen Al Gore (D-TN) in introducing legislation to allow telephone companies to offer cable TV service (multi-channel video distribution services) in their telephone service areas. My ‘birthday wish’ for the act is that Congress adopt much-needed legislation recognizing the digital and mobile era into which telecommunications has emerged. The 96 act was about analog services and to a large extent 'plain old telephone services.' These provisions will help to modernize the 96 act for the digital era.

Commissioner Michael O'Rielly of the Federal Communications Commission: "Today marks the 20th Anniversary of the signing into law of the Telecommunications Act of 1996. I vividly remember‎ the events leading up to that moment and recall the strong leadership of my then boss, House Commerce Committee Chairman Tom Bliley (R-VA). The signing represented so much promise of what could be and reflected found trust between legislators. It is a shame that many of the deals struck in the law were not actually honored and many provisions have since been abused beyond recognition by regulators, the courts and advocates. My wish would be for the Commission to focus on the future of communications, rather than trying to drag new innovations into old fights."

[From 1996]: Web Users Dress Pages in Black As A Protest of Communications Act

More than a thousand World Wide Web pages donned mourning colors Feb 8 to protest provisions of a new telecommunications law. Web site owners put black background on their home pages to signify grief over the telecommunications reform bill that President Clinton signed. They believe it will diminish their First Amendment right to free speech. In addition to coloring their pages black, most web site owners included an explanation of the protest.

The World Wide Web is the graphical part of the Internet, with text as well as sound and pictures. The focal point of the protest is language in the telecommunications bill that allows fines of $250,000 and jail sentences of two years for any one who makes "indecent" material available to minors in a public forum online. The bill marks the first time Congress has dealt specifically with content on the Internet. Organizers of the protest say existing laws already prohibit use of the Internet to transmit sexually explicit material and that broadcast-style restrictions are inappropriate for the interactive medium. They also say tools are available that allow individuals to screen Internet content, which leaves such decisions in the hands of individuals rather than the federal government. The Coalition to Stop Net Censorship includes the American Civil Liberties Union, the American Council for the Arts, the Boston Coalition for Freedom of Expression, the Well, Electronic Frontier Foundation, the Libertarian Party, the National Gay and Lesbian Task Force, National Writers Union, People for the American Way, Web Review Magazine and Wired Magazine.

[This post is from Feb 9, 1996]

Congress Starts to Get Serious About Online Privacy

[Commentary] Congress could soon vote on a bill that would require law enforcement agencies to get a search warrant from a judge to obtain e-mails, photographs and other documents Americans have stored online. This important legislation would update the law to reflect how people use the Internet today.

Under the Electronic Communications Privacy Act of 1986, government agents need a warrant if they want access to e-mail stored on the servers of companies like Google and Yahoo, but only if the messages are less than 180 days old. For older messages and other digital files, law enforcement officials can issue subpoenas to technology companies without going to a judge. A bill introduced in the House by Rep Kevin Yoder (R-KS) would require a warrant for all information stored online, regardless of how old it is and what kind of file it is. The legislation includes a sensible exception that would allow civil enforcement agencies like the Securities and Exchange Commission to subpoena messages sent by employees on a corporate computer system. Requiring search warrants will not impose a big burden on law enforcement agencies. Investigators routinely get such warrants by showing judges there is probable cause that the information they are looking for contains evidence of wrongdoing. Legal experts say it is very rare for judges to deny a warrant. As November’s election approaches, expectations for congressional accomplishment will further diminish, especially when accomplishment would involve a show of bipartisanship. That is all the more reason for lawmakers to move fast and pass this worthy bill now.

Working for a Safer Online Environment for Young People

On 9 February 2016, over 100 countries will celebrate Safer Internet Day #SID2016 to encourage the safe and responsible use of online technology, particularly among children and young people. This year’s theme, ‘Play your part for a better Internet’, highlights the role that we all have to play in ensuring the Net is a safe space for children to play and learn.

The Internet is an indispensable educational and social tool for children, with digital literacy fast becoming a necessary skill in the information society. However, though an unprecedented level of services and information is available online, we need to recognize and mitigate against the dangers that the online world can pose for children. We must constantly strive to create an online environment that encourages positive creativity, empowerment and participation while ensuring the safe and secure use of the Internet by those most vulnerable. This increased access to the Internet means it’s ever more important to be aware of, and guard against, the potential dangers faced by young people online, whether the risk comes from grooming, online bullying, being exposed to inappropriate sexual content or the misuse and theft of personal data.