<P> The FCC regulates telecommunications services under Title II of the Communications Act of 1934 . Title II imposes common carrier regulation under which carriers offering their services to the general public must provide services to all customers and may not discriminate based on the identity of the customer or the content of the communication . This is similar to and adapted from regulation of transportation providers (railroad, airline, shipping, etc .) and some public utilities . Wireless carriers providing telecommunications services are also generally subject to Title II regulation except as exempted by the FCC . </P> <P> The FCC regulates interstate telephone services under Title II . The Telecommunications Act of 1996 was the first major legislative reform since the 1934 Act and took several steps to de-regulate the telephone market and promote competition in both the local and long - distance marketplace . </P> <P> The important relationship of the FCC and the American Telephone and Telegraph (AT&T) Company evolved over the decades . For many years, the FCC and state officials agreed to regulate the telephone system as a natural monopoly . The FCC controlled telephone rates and imposed other restrictions under Title II to limit the profits of AT&T and ensure nondiscriminatory pricing . </P> <P> In the 1960s, the FCC began allowing other long - distance companies, namely MCI, to offer specialized services . In the 1970s, the FCC allowed other companies to expand offerings to the public . A lawsuit in 1982 led by the Justice Department after AT&T underpriced other companies, resulted in the Breakup of the Bell System from AT&T . Beginning in 1984, the FCC implemented a new goal that all long - distance companies had equal access to the local phone companies' customers . Effective January 1, 1984, the Bell System's many member - companies were variously merged into seven independent "Regional Holding Companies", also known as Regional Bell Operating Companies (RBOCs), or "Baby Bells". This divestiture reduced the book value of AT&T by approximately 70% . </P>

The chief media and communication regulatory body in the united states is the