The 1996 Telecom Act has an undeniable importance for all the telecommunication companies in the United States, as it allowed the small phone service providers to enter in competition with larger phone service providers.
The following are some of the advantages of 1996 Telecom Act:
Changing Phone Number
The 1996 Telecom Act provides guidelines regarding different telecommunication services that are provided by various telecom companies. It provides a strategy for the communications industry so that different small phone service providers can be integrated into a single provider. Moreover, it also lets the phone service users to keep their previous telephone number even if they wish to change their service provider. This act allowed for the portability as you can keep your previous phone number when you go to a new provider.
Long Distance Businesses
The 1996 Telecom Act has revolutionized the communication services as it allows all the local phone service providers to set up their businesses in remote areas. This allows them to compete the other companies by conducting a long distance business. All they need to do is meet the certain specified criteria and they can open up their local service in different areas without facing any legal complications or consequences.
Single Phone Bill
Before this act, there was no chance or opportunity for the local providers to enter into the long distance business. Moreover, it allowed the service users to get a single phone bill instead of separate phone bills for each service. It allowed for the inter-connectedness of all the local service providers in order to facilitate the Americans with faster communication service without any interruptions.
Therefore, the 1996 Telecom Act allowed for advanced information technology services in the United States and provided rules and regulations for different communication services companies to follow regardless of their size. This allowed for smooth and unified working of IT industries all over the United States.
How it still helps businesses today
Today the Telecom Act still protects companies by helping ensure they are not required to spend a certain amount of money per contract. If you have a contract with a phone provider and they are charging you way too much for your office phones, then you can keep the internet with them, but move the telephones without breaking contract. It is considered a Term Contract. If you keep your internet with the company you are still technically holding up your end of the agreement to the term contract. Due to the telecom act they are not able to require you to have a certain number of phones with them or that you spend a certain amount every month. If you choose to switch from Analog or Digital to VoIP you are protected by the term contracts rule.
