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A telecommunications company[a] is a kind of electronic communications service provider, more precisely a telecommunications service provider (TSP), that provides telecommunications services such as telephony and data communications access. Many traditional solely telephone companies now function as internet service providers (ISPs), and the distinction between a telephone company and ISP has tended to disappear completely over time, as the current trend for supplier convergence in the industry develops.[2] Additionally, with advances in technology development, other traditional separate industries such as cable television, Voice-over IP (VoIP), and satellite providers offer similar competing features as the telephone companies to both residential and businesses leading to further evolution of corporate identity have taken shape.
Due to the nature of capital expenditure involved in the past, most telecommunications companies were government-owned agencies or privately owned monopolies operated in most countries under close state-regulations. But today there are many private players in most regions of the world, and even most of the government owned companies have been opened up to competition in-line with World Trade Organization (WTO) policy agenda. Historically these government agencies were often referred to, primarily in Europe, as PTTs (postal, telegraph and telephone services).[3] Telecommunications companies are common carriers, and in the United States are also known as local exchange carriers. With the advent of mobile telephony, telecommunications companies now include wireless carriers, or mobile network operators and even satellite providers (Iridium).
Over time software companies have also evolved to provide telephone services over the Internet.
The telecommunications service provider has the responsibility for the acceptance, transmission, and delivery of messages.[4] The telecommunications service user is responsible for the information content of the message.
For purposes of regulation by the Federal Communications Commission under the U.S. Communications Act of 1934 and Telecommunications Act of 1996, the definition of telecommunications service is "the offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used."[5] Telecommunications, in turn, is defined as "the transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information as sent and received."[6]
In 1913, the Kingsbury Commitment allowed more than 20,000 independent telecommunications companies in the United States to use the long distance trunks of Bell Telephone Company.[7][8]