The Telecommunications Act of 1996 attempted to bring more competition to the telephone market for both local and long distance service. It permitted firms that served competitive local markets to enter the long distance market, and it attempted to implement a single layer of regulation at the federal level. However, some state and local regulation will exist for years to come.

The deregulation that was brought about by this act enabled competition within the local exchange areas that had been effectively monopolies for many years. It also provided new regulations such as forcing the local carriers to share their communications facilities with competitors at rates established under the act's guidelines and ensuring that each competitor was treated in a fair and equitable manner.

Additional provisions of the ...