Aimee M. Adler

The Telecommunications Act of 1996 (the "Act") sought to bring about unprecedented changes in the telecommunications industry. It was enacted to promote competition and reduce regulation in order to secure lower prices and higher quality services for American telecommunications consumers, as well as to encourage the rapid deployment of new telecommunications technologies. Despite its lofty and inspiring goals, the Act has fallen short thus far.

This Note examines the Act's effect on the telephone industry and highlights three reasons for the Act's failure to increase competition and promote deregulation in the industry. First, an increase in the number of mergers has overwhelmed the industry and thereby decreased competition. Second, a conflict of laws between the federal government and the states has raised preemption issues, thereby causing confusion and considerable litigation. Third, the targeting of the Bell Operating Companies by both Congress and the Federal Communications Commission ("FCC") has contributed to litigation and a lack of desire to foster competition in the industry.

This Note also explores some solutions to the Act's inherent faults. It suggests antitrust laws, incentive regulation, competition in the local exchange, or alteration of the FCC as alternate means to achieve the Act's goals. Until the reasons for the Act's failure are resolved, the telecommunications industry will remain regulated and uncompetitive.