Sunday, November 21, 2010

What has been the main impact of the Telecom Act?

The Telecom act changed was proposed to change and hopefully help ownership rules that applied.  By changing these rules they wanted to let the free market overcome ownership rules that were previously applied by the FCC.  Their idea was that competition and new technology advances would itself change the market and drive down prices.    The Supreme Court’s ruling now allowed competing broadband providers access to their respective networks.  Due to this cable companies will have to jack up prices and rates on television and may eventually be forced to subsidize their existence in the phone business.  As consumers we have the choice of who we pay for the services because there are a variety of different companies.  We can keep anything in mind when picking a particular company and most would have money in mind.  There are a number of different things that this act has impacted by changing some rules and it is something society had to change with.  It was not necessarily a bad thing for consumers because we now have options when we pick a carrier.  This Act was proposed for a reason and like all decisions they have consequences that come with them.

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