Evolution of the Radio Industry

Government regulation of the radio industry in its earliest years allowed radio to become the medium today.
When a new technology becomes available, the U.S. government (or the government of any nation) will examine it to determine how it will affect the nation. From its analysis the government can decide if it needs to take action to regulate the new technology. Indeed, some technologies, like the internet, are derived from government projects. The purpose for regulation is to maximize positive effects and minimize negative ones and also to ensure that one person's use of the new technology does not adversely affect anyone else. Technology can generally expand in a more orderly way and with less negative effects with government intervention than if it was allowed to expand unchecked.
In the case of radio, the government had great effects on the beginning of radio. Straight off, radio was commandeered by the Navy for use in the First World War, which at least brought it some publicity and at most found it improved by the Navy. When it came back into the public domain the government had other effects as well. Firstly, they mandated that American radio stations must be owned by Americans, which prevented more established foreign interests from smothering the first American radio companies. Later the government stepped in again, this time to prevent AT&T from having too large a monopoly over the radio, which allowed for more variety in the future. Another important government action was the Radio act of 1927, which standardized frequencies, among other things. This prevented stations from interfering with one another. It also set standards which the radio industry followed for many years.