Many policy analysts are coming to the conclusion that the Telecommunications Act of 1996 has been a flop. It was supposed to knock down barriers to competition, bring more choices to consumers and cut service costs. But those predictions haven't materialized, according to communications experts.

• They point out that local telephone firms have not, so far, jumped into long-distance or cable-TV services in a big way.

• And long-distance companies have not moved into local services, as had been predicted.

• Even the chairman of the Federal Communications Commission has questioned whether the act is working.

Heritage Foundation analyst Adam D. Thierer says that politicians in Congress "realize that the Telecommunications Act has not lived up to expectations and, on many counts, has been a failure."

What went wrong?

• Telecommunications companies have fought in the courts and before regulatory agencies to protect themselves against threatened competition.

• Knowledgeable observers say the act failed to rein in the FCC's regulatory powers -- giving the agency, instead, a host of new ones.

• For example, the federal agency is now in a position to determine charges for local phone companies if they attempt to branch into long distance service.

• Brookings Institution fellow Robert W. Crandall contends that the act "continues and extends a regulatory framework that is a proven failure."

In an effort to avoid making similar mistakes with regard to the Internet, several members of the House of Representatives have introduced the Internet Protection Act. Its aim is to establish a national policy which would "rely on private initiative and to avoid, to the maximum extent possible, government restriction or supervision" of Internet services.

• It bars regulation of "the rates, charges, practices, classifications, facilities or services for or in connection with the provisions of Internet information services to customers."

• It bans the government from setting "technical provisions or standards for the provision of Internet services."

Thierer makes several suggestions. He would specifically exempt the Internet from universal service requirements, which are responsible for the web of regulations and cross-subsidies of services in the telephone industry. He also would tighten up a section of the act which would allow the FCC to ignore its requirements when "necessary to protect national security... or to assist law enforcement."