arket forces. Because of the pervasive nature of information and communications technolo- gies and the services that derive from them, coupled with the large prizes to be won, the telecommunications sector is subject to a lot of attention from policymak- ers. Regulation has been a government priority since the early twentieth century. But particularly over the past 22 years or so, telecommunications policy and regu- lation have been prominent on the agendas of governments around the world, focusing on deregulation (Telecommunications Act of 1997) and intellectual prop- erty protection (Digital Millennium Copyright Act), which are both very important for the industry. This reflects the global trend toward liberalization, including, in many countries, privatization of the former monopoly telcos. However, interest from policymakers in telecommunications goes much deeper than this. A great deal of this interest stems from the extended reach and wide impact that informa- tion and communications technologies have. Here are some examples: Telephony, e-mail, and information services permit contact between friends and families and offer convenience to people in running their day-to-day lives. Thus, these services have major economic and social implications. In the business arena, information and communications technologies offer business efficiency and enable the creation of new business activities. Thus, they have major employment and economic implications. Chapter 1 Telecommunications Technology Fundamentals Multimedia and the Internet offer new audio, video, and data services that affect entertainment and education, among other areas. These new services overlap with traditional radio and television broadcasting, and major cul- tural implications are appearing. News delivery influences peoples' perceptions of governments and their own well-being, thereby influencing voter attitudes. Telecommunications brings attention to cultural trends, with major political as well as cultural implications. Government applications of i