In 1996 the U.S. government enacted the Telecommunications Reform Act, w
hich removed government rules preventing local and long-distance phone companies, cable television operators, broadcasters, and wireless services from directly competing with one another. The act spurred consolidation in the industry, as regional companies joined forces to create telecommunications giants that provided telephone, wireless, cable, and Internet services.
In other countries, until the 1990s, most of the telephone companies were owned by each nation’s central government and operated as part of the post office, an arrangement that inevitably led to tight control. Many countries are now privatizing telephone service. In order to escape government regulation at home, U.S. companies are investing heavily in the phone systems of other countries. For example, in 1995 AT&T announced it would attempt to gain a share of the market for telephone services in India. In a reverse trend, European companies are investing in U.S. long-dist
ance carriers.
Other major markets for telephone companies are opening up around the globe as the developing world becomes more technologically advanced. Nonindustrial countries are now trying to leapfrog their development by encouraging private companies to install only the latest technology. In remote places in India and Africa, the use of solar cells is now making it possible to introduce telephones in areas still without electricity
hich removed government rules preventing local and long-distance phone companies, cable television operators, broadcasters, and wireless services from directly competing with one another. The act spurred consolidation in the industry, as regional companies joined forces to create telecommunications giants that provided telephone, wireless, cable, and Internet services.In other countries, until the 1990s, most of the telephone companies were owned by each nation’s central government and operated as part of the post office, an arrangement that inevitably led to tight control. Many countries are now privatizing telephone service. In order to escape government regulation at home, U.S. companies are investing heavily in the phone systems of other countries. For example, in 1995 AT&T announced it would attempt to gain a share of the market for telephone services in India. In a reverse trend, European companies are investing in U.S. long-dist
ance carriers.Other major markets for telephone companies are opening up around the globe as the developing world becomes more technologically advanced. Nonindustrial countries are now trying to leapfrog their development by encouraging private companies to install only the latest technology. In remote places in India and Africa, the use of solar cells is now making it possible to introduce telephones in areas still without electricity
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