But as technology evolved, the potential for competition became more apparent. In the last several decades, the FCC has tried to ease or eliminate anachronistic restrictions, but the confines of the agency's statutory authority have been a limiting factor in this regard. The new Act begins to address the realities of today's converging marketplace by eliminating barriers that inhibit or preclude the entry of new competitors into various industry sectors. However, because of a concern that the BOCs' monopoly control of the local telephone market also would allow them to dominate long distance service, the legislation requires as a prerequisite to entry that the local market first be opened to competition. However, in order to ensure the competitive benefits of two wires to the home, the legislation generally prohibits a cable operator from acquiring a telephone company or vice-versa in the same market.
Broadcasters are also beneficiaries of the deregulatory provisions of the new statute.
It substantially liberalizes restrictions on the number of broadcast stations that one entity can own by eliminating the national radio limits and relaxing the national cap on TV ownership. It also eases restrictions on radio ownership within the same local market, but leaves local TV ownership restrictions in place pending further FCC review. Despite its generally deregulatory tone, the legislation contains several provisions that would permit government regulation of content. The legislation requires the television industry to establish a system for rating such programming, although the FCC is permitted to step in if it is dissatisfied with the system. In addition, the Act would prohibit any person from sending patently offensive communications to a minor via a computer or from making such communications generally available on the Internet.