Can You Hear Me Now? by Dave RussWay back in 1996, Congrss passed Telecommunications Act. This ground breaking piece of legislation was enacted to loosen death grip that incumbent Bell monopolies held on consumers wallets... as well as foster competition in long distance and broadband arenas.
In FCCs own modest declaration... "The Telecommunications Act of 1996 has potential to change way we work, live and learn. It will affect telephone service -- local and long distance, cable programming and other video services, broadcast services and services provided to schools."
"Potential" being key word here.
Oh, it started out well enough... with usual hype and fanfare associated with Internet heyday. New players, fueled by 90s investment frenzy, arose like wildflowers in May... collectively spending billions of dollars on race to blur line between old switched networks and new IP pipelines.
Breakthrough technologies, such as VOIP (Voice-over-Internet Protocol), threatened to shake very foundation of telecommunications world, offering consumers viable new choices. Companies like Net2Phone and Dialpad gave anyone with a computer, microphone and dialup connection, ability to do an end around established long distance carriers.
Soon, VOIP went mainstream, finding its way directly to telephone and bypassing need for a computer. "Pay by month, not by minute" became rallying cry of a new generation of long distance marketers... as concept of flat-rate and "unlimited” long distance blossomed. Consumers and small businesses no longer needed to fear receiving a huge long distance bill come months end... as they stepped off per-minute treadmill.
And all was well... or so it seemed.
But did these cutting edge Internet technologies forever change telecom landscape, as promised? Was it time yet for high-fives at FCC... and was a victory parade in order for consumers?
In a word... No.
Quality and reliability issues, indifferent customer service and unsound business practices... exacerbated by overall telecom meltdown, wiped out most of these alternate providers... burying them in dot.com graveyard.
Meanwhile, Big Three (AT&T, MCI and Sprint) still enjoy lions share of US long distance revenues.
And has local market fared much better? Not really. The 1996 Act required regional Bell incumbents to grant access to their UNE-P (Unbundled Network Element-Platform). But like all good monopolies, Baby Bells have done everything humanly possible to prevent this access. Just ask Covad, NorthPoint and Rhythms... companies that all had far-reaching aspirations of bringing high speed DSL to everyones doorstep.