Introduction

The Internet was created as a system of interconnected networks of communications lines and controlling computers. Formally, the Internet is an “enhanced service” under the Federal Communications Commission categories and is exempted from regulation. The Internet is created by the integration of multiple networks provided by independent entities with no overall control other than standards for interconnection protocols. The Telecommunications Act of 1996 accelerated the process of integration in the communication industry that was already under way. Although the Telecommunications Act of 1996 eliminated the prohibitions imposed on the Regional Bell Operating Companies, the content issues remain relevant for future policy. The fundamental issue is the tradeoff between full freedom for an incumbent company to benefit from potential economies of scope by providing a wide variety of services versus restrictions to prevent the anticompetitive use of an established market position.