By Harold Furchtgott-Roth
The writer, who served as one of many 5 commissioners of the Federal Communications fee for numerous years, explains why this and different govt firms that aren't arrange with separation of powers in brain turn out undermining the guideline of legislations.
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Extra info for A Tough Act to Follow?: The Telecommunications Act of 1996 and the Separation of Powers Failure
This may help to account for some of the particular effects of the uncharted regulatory regime in the communications sector. But it does little to explain either why stock valuations initially surged from 1996 through 2000 and the timing of the decline, or why all firms suffered when specific regulatory policies should have hurt some and helped others. We might also take note of the portion of the flood of new investment capital that found its way into the hands of management teams with little or no experience in telecommunications markets, or with poor business plans.
Bad Implementation of a Law. It is the inadequacy of all these hypotheses that brings us to the Telecommunications Act of 1996 itself. Was the Act simply a mistake? No one thought so in the heyday of the mid- and late-1990s, when corporate leaders never made a statement or speech about the communications sector without paying homage to it. After 2001, though, the Act increasingly became a target of blame for the collapse of the telecommunications industry. Perhaps, or so the logic goes, it needed to be scrapped, or at least rewritten.
Although various agencies limited competition in many industries in the first half of the twentieth century, by 1995 government effectively prohibited competition in only a few, such as postal service, electricity, and telecommunications. The Act addressed the communications sector. From then on, or so the law seemed to promise, the individual, not the government, would decide who would offer services, to whom, at what price, and with what features. August 8, 1996. The Act gave the FCC many responsibilities to write new regulations, with firm dates for rules to be completed.