The Telecommunications Act of 1996 is associated with which major change in media ownership?

• A. Looser ownership restrictions allowing more radio stations in the same market
• B. Less ownership flexibility in radio markets
• C. Increased restrictions on media mergers
• D. Creation of a federal media bank

Answer: (A)

Deregulation of ownership rules in the Telecommunications Act of 1996 allowed media companies to own more radio stations in the same market. The act relaxed the strict caps that had limited how many outlets a single company could control, both nationally and within local markets, making it easier for a single company to expand its portfolio of radio stations and to combine different types of media under one ownership. This shift aimed to spur competition and investment but also led to greater consolidation and fewer independent voices in some markets.

That’s why option describing looser ownership restrictions is the best fit. The other choices describe tighter rules, increased merger limits, or a creation of a federal media bank, none of which reflect what happened in 1996.