The purpose of the Communications Act of 1934 was to develop regulations for interstate and foreign communication over any electronic medium in order to make communication available to all United States citizens as quickly and efficiently as possible while keeping cost reasonable. The creation of this act was deemed necessary because it facilitated a centralized authority for effectively and securely governing communications within the United States. Thus was born the Federal Communications Commission and placed in charge of carrying out the provisions of this and all future acts concerning telecommunications.

Effectively, this act wrested control from the Interstate Commerce Commission, who was previously responsible for all matters relating to interstate telecommunications.
One main staple of the act was to regulate common carriers, the entities that operate the facilities used for telecommunications purposes. The regulation's scope was limited to interstate and international entities. State regulatory commissions were responsible for monitoring and regulating intrastate communications.

The Communications Act of 1934 also instituted the following licensing and operational rules for radio stations:

1) Air time must be allotted free of charge to public interest groups.
2) The use of obscene or perverse language was expressly forbidden on regulated airwaves.
3) Stations were granted exemption from FCC censorship.
4) Political candidates were to be granted equal shares of available airtime, leveling the field.

There were originally seven members appointed to the FCC’s Board of Commissioners, a number that was reduced to five in 1983. These members were and continue to be appointed by the President of the United States and ratified by the Senate. Members serve for five years and no political party may have more than three members on the board.

In 1962 the act was amended with the Satellite Communications Act. This simply granted the FCC authority to regulate the satellite communications industry. Likewise in 1992, the Cable Act gave the FCC greater control over cable television regulation. The Telecommunications Act of 1996 modified the 1934 Act extensively and was largely instituted to update the archaic language of the 1934 Act.