Sunday, September 26, 2010

Government Regulation and the Early Days of Radio

Government regulation was instrumental in speeding up the process of developing radio and determining ownership and operation. 

From the beginning, American government demanded control over the use of radio. It set up the companies that would develop radio, and then shaped the industry through regulation. After returning radio from the Navy after World War I, the Commerce Department began to regulate broadcasting and grant licenses. This culminated in the Radio Act of 1927, which was more specific than the Radio Act of 1912 and created the Federal Radio Commission. This level of government involvement set a precedent that would continue throughout radio's history and would reappear in new forms of media.

The government’s determination became clear in its early dealings with radio. After World War I, the U.S. Government refused to allow Marconi to buy U.S. Patents and instead demanded that he turn over his American assets to General Electric. Working with AT&T, they created Radio Corporation of America (RCA) and instituted a patent pool for the three companies. The government was instrumental in making sure the United States had the technology and business foundations necessary to accelerate the growth of radio.

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