Telecommunications Act of 1996 - Major Provisions

Major Provisions

The 1996 Telecommunications Act is divided into seven Titles:

Title I, "Telecommunications Service" : Helps to outline the general duties of the telecommunication carriers as well as the obligations of all Local Exchange Carriers (LECs) and the additional obligations of Incumbent Local Exchange Carriers (ILECs).

Sec. 102. Eligible telecommunications carriers.

Sec. 103. Exempt telecommunications companies

Sec. 104. Nondiscrimination principle.

Sec. 151. Bell operating company provisions.

Title II, "Broadcast Services" : Outlines the granting and licensing of broadcast spectrum by the government, including a provision to issue licenses to current television stations to commence digital television broadcasting, the use of the revenues generated by such licensing, the terms of broadcast licenses, the process of renewing broadcast licenses, direct broadcast satellite services, automated ship distress and safety systems, and restrictions on over-the-air reception devices

Sec. 201. Broadcast spectrum flexibility.

Sec. 202. Broadcast ownership.

Sec. 203. Term of licenses.

Sec. 204. Broadcast license renewal procedures.

Sec. 205. Direct broadcast satellite service.

Sec. 206. Automated ship distress and safety systems.

Sec. 207. Restrictions on over-the-air reception devices.

Title III, "Cable Services" : Outlines the Cable Act reform, cable services provided by telephone companies, the preemption of franchising authority regulation of telecommunication services, video programming accessibility, and competitive availability of navigation devices.

Sec. 301. Cable Act reform.

Sec. 302. Cable service provided by telephone companies.

Sec. 303. Preemption of franchising authority regulation of telecommunications services.

Sec. 304. Competitive availability of navigation devices.

Sec. 305. Video programming accessibility.

Title IV, "Regulatory Reform" : Outlines regulatory forbearance, a biennial review of regulations, regulatory relief, and the elimination of unnecessary Commission regulations and functions.

Sec. 401. Regulatory forbearance.

Sec. 402. Biennial review of regulations; regulatory relief.

Sec. 403. Elimination of unnecessary Commission regulations and functions.

Title V, "Obscenity and Violence" :

outlines regulations regarding obscene programming on cable television, the scrambling of cable channels for nonsubscribers, the scrambling of sexually explicit adult video service programming, the cable operators' refusal to carry certain programs, coercion and enticement of minors, and online family empowerment, including a requirement for the manufacture of televisions that block programs using V-chip technology. Title V also gives a clarification of the current laws regarding communication of obscene materials through the use of a computer.

Sec. 501. Short title.

Sec. 502. Obscene or harassing use of telecommunications facilities under the Communications Act of 1934.

Sec. 503. Obscene programming on cable television.

Sec. 504. Scrambling of cable channels for nonsubscribers.

Sec. 505. Scrambling of sexually explicit adult video service programming.

Sec. 506. Cable operator refusal to carry certain programs.

Sec. 507. Clarification of current laws regarding communication of obscene materials through the use of computers.

Sec. 508. Coercion and enticement of minors.

Sec. 509. Online family empowerment.

Sec. 551. Parental choice in television programming.

Sec. 552. Technology fund.

Sec. 561. Expedited review.

Title VI, "Effect on Other Laws" : Outlines the applicability of consent decrees and other laws and the preemption of local taxation with respect to direct-to-home sales.

Sec. 601. Applicability of consent decrees and other law.

Sec. 602. Preemption of local taxation with respect to direct-to-home services.

Title VII, "Miscellaneous Provisions" : Outlines provisions relating to the prevention of unfair billing practices for information or services provided over toll-free telephone calls, privacy of consumer information, pole attachments, facilities siting, radio frequency emission standards, mobile services direct access to long distance carriers, advanced telecommunications incentives, the telecommunications development fund, the National Education Technology Funding Corporation, a report on the use of advance telecommunications services for medical purposes, and outlines the authorization of appropriations.

Sec. 701. Prevention of unfair billing practices for information or services provided over toll-free telephone calls.

Sec. 702. Privacy of customer information.

Sec. 703. Pole attachments.

Sec. 704. Facilities siting; radio frequency emission standards.

Sec. 705. Mobile services direct access to long distance carriers.

Sec. 706. Advanced telecommunications incentives.

Sec. 707. Telecommunications Development Fund.

Sec. 708. National Education Technology Funding Corporation.

Sec. 709. Report on the use of advanced telecommunications services for medical purposes.

Sec. 710. Authorization of appropriations.

The Act makes a significant distinction between providers of telecommunications services and information services. The term 'telecommunications service' means the offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.' On the other hand, the term 'information service' means the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing, but does not include any use of any such capability for the management, control, or operation of a telecommunications system or the management of a telecommunications service. The distinction comes into play when a carrier provides information services. A carrier providing information services is not a 'telecommunications carrier' under the act. For example, a carrier is not a 'telecommunications carrier' when it is selling broadband Internet access. This distinction becomes particularly important because the act enforces specific regulations against 'telecommunications carriers' but not against carriers providing information services. With the convergence of telephone, cable, and internet providers, this distinction has created much controversy.

The Act both deregulated and created new regulations. Congress forced local telephone companies to share their lines with competitors at regulated rates if "the failure to provide access to such network elements would impair the ability of the telecommunications carrier seeking access to provide the services that it seeks to offer." (Section 251(3)(2)(B)) This led to the creation of a new group of telephone companies, "Competitive Local Exchange Carriers" (CLECs), that compete with "ILECs" or incumbent local exchange carriers.

Most media ownership regulations were eased, and the cap on radio station ownership was eliminated.

Title V of the 1996 Act is the Communications Decency Act, aimed at regulating Internet indecency and obscenity, but was ruled unconstitutional by the U.S. Supreme Court for violating the First Amendment. Portions of Title V remain, including the Good Samaritan Act, which protects ISPs from liability for third party content on their services, and legal definitions of the Internet.

The U.S. Congress is currently considering legislation that would overhaul the Telecommunications Act of 1996.

The Act codified the concept of universal service and led to creation of the Universal Service Fund and E-rate. The Act employs the following terms of art: "Information service" which is defined as:

"The offering of a capability for generating, acquiring, storing, transforming, :processing, retrieving, utilizing, or making available

information via telecommunications.” (Title I, Section 3(20) of the 1934 Act)