Government regulation
Although the growth of radiobroadcasting in the United States was spectacularly swift, in the early years it also proved to be chaotic, unplanned, and unregulated. Furthermore, business arrangements that were being made between the leading manufacturers of radio equipment and the leading broadcasters seemed to threaten monopoly. Congress responded by passing the Radio Act of 1927, which, although directed primarily against monopoly, also set up the agency that is now called the Federal Communications Commission (FCC) to allocate wavelengths to broadcasters. The government’s attack on monopoly resulted eventually in four radio networks—the National Broadcasting Company, the Columbia Broadcasting System, the Mutual Broadcasting System, and the American Broadcasting Company—while the FCC permitted orderly growth and ensured the survival of educational radio stations.