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FREDRIKSON & BI'RON, P.A. <br /> Attorneys At Lau' <br /> • <br /> Cable Television Franchising Authorities and Other Interested Persons <br /> February 16, 1996 <br /> Page 2 <br /> SUMMARY OF THE <br /> TELECOMMUNICATIONS ACT OF 1996 ; <br /> I. General Policy. The stated purpose of the Act is to provide "a competitive, de- <br /> regulatory national policy framework designed to accelerate rapidly private sector <br /> deployment of advanced telecommunications and information technologies and services <br /> to all Americans by opening all telecommunications markets to competition..." <br /> H. Key Provisions. Every American will feel the effect of the Telecommunications Act of <br /> 1996 in some way. Some of the Act's key provisions are: <br /> A. Telephone Service. <br /> 1. Competition for Local Service. No longer will most consumers be <br /> forced to purchase local telephone service from a Regional Bell Operating • <br /> Company (RBOC) (i.e. US WEST, Ameritech, NYNEX). The <br /> Telecommunications Act allows other telecommunications providers to <br /> compete for this business. <br /> 2. Interconnection Requirements. Most telecommunications providers must <br /> interconnect their facilities with those of other telecommunication's <br /> providers. <br /> 3-. Competition for Toll Service. Local telephone companies are not the <br /> only ones who will be facing new competition. Long distance providers <br /> will as well. The Act allows RBOCs, which have been barred from' <br /> providing interstate long distance services since 1984, to compete in the <br /> long distance market. RBOCs must be certified to provide long distance <br /> service pursuant to rules to be released by the FCC. <br /> B. Effect on State and Local Governments. <br /> 1. Preservation of Regulatory Powers. The Telecommunications Act <br /> preserves the rights of state and local governments to "manage the public <br /> rights-of-way" and to require "fair and reasonable compensation from <br /> telecommunications providers for the use of public rights-of-way on a <br /> nondiscriminatory basis. The Act also preserves state and local • <br /> governmental rights to preserve and advance universal service, ensure the <br /> continued quality-of telecommunications services, safeguard the rights of <br /> consumers and protect the safety and welfare of citizens. <br />