The Telecommunications Act of 1996 produced the most sweeping reform of the nation's telecom laws since the enactment of the 1934 Act by deregulating the local telephone businesses and abolishing legal barriers to entry.

Under the 1996 Act, the rules governing interconnection, collocation and resale are established jointly by the Federal Communications Commission ("FCC") and the state Public Utility Commissions ("PUCs"), with the state PUCs taking the dominant role. The Act created the opportunity for competition in local telephone markets, essentially mandating a shift in market share to new entrants.

Since 1996, there has been massive start-up investment in the Competitive Local Exchange Industry. These newly constructed networks ensure the reality of long-term competition and the strengthening of one of America's most strategic economic assets - the local communications infrastructure of the 21st century.