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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1086 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1086

 To foster the further development of the Nation's telecommunications 
 infrastructure through the enhancement of competition, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                 June 9 (legislative day, June 7), 1993

  Mr. Danforth (for himself and Mr. Inouye) introduced the following 
 bill; which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
 To foster the further development of the Nation's telecommunications 
 infrastructure through the enhancement of competition, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Telecommunications Infrastructure 
Act of 1993''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) it is in the public interest to encourage the further 
        development of the Nation's telecommunications infrastructure 
        as a means of enhancing the quality of life and promoting 
        economic development and international competitiveness;
            (2) telecommunications infrastructure development is 
        particularly crucial to the continued economic development of 
        rural areas that may lack an adequate industrial or service 
        base for continued development;
            (3) advancements of the Nation's telecommunications 
        infrastructure will increase the public welfare by helping to 
        speed the delivery of new services, such as distance learning, 
        remote medical sensing, and distribution of health information;
            (4) greater infrastructure development is needed to bring 
        advanced telecommunications services to small business, 
        disadvantaged, residential, low-income, educational, medical, 
        and rural users;
            (5) increased competition in telecommunications services 
        will encourage infrastructure development and have beneficial 
        effects on the price, universal availability, variety, and 
        quality of telecommunications services;
            (6) the emergence of competition in telecommunications 
        services has already contributed, and can be expected to 
        continue contributing, to the modernization of the 
        infrastructure; competition in the long distance industry and 
        the communications equipment market has brought about lower 
        prices and higher quality services;
            (7) competition for local communications services has 
        already begun to benefit the public; competitive access 
        providers have deployed thousands of miles of optical fiber in 
        their local networks; local exchange carriers have been 
        prompted by competition to accelerate the installation of 
        optical fiber in their own networks;
            (8) a diversity of telecommunications carriers aids network 
        reliability by providing redundant capacity, thereby lessening 
        the impact of any network failure;
            (9) competition must proceed under rules that are fair to 
        all telecommunications carriers and protect consumers;
            (10) all telecommunications carriers, including competitors 
        to the telephone companies, should contribute to universal 
        service and should make their networks available for 
        interconnection by others;
            (11) national policy is needed to advance competition in 
        the provision of all telecommunications services;
            (12) removal of all State and local barriers to entry into 
        the telecommunications services market and provision of 
        national standards for interconnection are essential to the 
        development of a national, interstate telecommunications 
        infrastructure;
            (13) current Federal and State regulatory policies must be 
        revised and supplemented to advance the development of 
        competition in the telecommunications services market;
            (14) increasing the availability of interconnection and 
        interoperability among the facilities of telecommunications 
        carriers will help stimulate the development of competition 
        among providers;
            (15) telecommunications number portability will eliminate a 
        significant barrier to competition in the provision of 
        telecommunications services;
            (16) restrictions on resale and sharing of 
        telecommunications networks retard the growth of competition 
        and restrict the diversity of services available to the public;
            (17) additional regulatory measures are needed to allow 
        consumers in rural markets and noncompetitive markets the 
        opportunity to benefit from high-quality telecommunications 
        capabilities;
            (18) regulatory flexibility for existing providers of 
        telephone exchange service is necessary to allow them to 
        respond to competition;
            (19) the Federal Communications Commission should take 
        steps to ensure network reliability and the development of 
        network standards;
            (20) access to switched, digital telecommunications service 
        for all segments of the population promotes the core First 
        Amendment goal of diverse information sources by enabling 
        individuals and organizations alike to publish and otherwise 
        make information available in electronic form;
            (21) the national welfare will be enhanced if community 
        newspapers are provided ease of entry into the operation of 
        information services disseminated through electronic means 
        primarily to customers in the localities served by such 
        newspapers at reasonable, nondiscriminatory rates to such 
        newspapers;
            (22) a clear national mandate is needed for full 
        participation in access to telecommunications networks and 
        services by individuals with disabilities;
            (23) the obligations of telecommunications carriers 
        includes the duty to furnish telecommunications services which 
        are designed to be fully accessible to individuals with 
        disabilities in accordance with such standards as the Federal 
        Communications Commission may prescribe;
            (24) it is in the public interest to encourage competition 
        to existing cable television service providers; and
            (25) amending the legal barriers to telephone company 
        provision of video programming will encourage competition to 
        existing cable television service providers and encourage 
        telephone companies to upgrade their telecommunications 
        facilities to enable them to deliver video programming, as long 
        as telephone companies are prohibited from buying or combining 
        with existing cable companies.

SEC. 3. PURPOSES.

    The purposes of this Act are to--
            (1) encourage private investment in, and advancement of, 
        the Nation's telecommunications infrastructure;
            (2) ensure the availability of the widest possible range of 
        competitive choices in the provision of telecommunications and 
        cable television services;
            (3) eliminate the existing regulatory barriers to 
        competition in the provision of telecommunications and cable 
        television services;
            (4) encourage interconnection and interoperability among 
        telecommunications carriers;
            (5) ensure the universal availability of telephone service;
            (6) encourage the continued development and deployment of 
        advanced and reliable capabilities and services in 
        telecommunications networks; and
            (7) protect the privacy interests of users of 
        telecommunications services.

SEC. 4. DEFINITIONS.

    Section 3 of the Communications Act of 1934 (49 U.S.C. 153) is 
amended by adding at the end the following new subsections:
    ``(hh) `Local exchange carrier' means a provider of telephone 
exchange service that is classified by the Commission as a dominant 
carrier.
    ``(ii) `Telecommunications' means the transmission, between or 
among points specified by the user, of information of the user's 
choosing, without change in the form or content of the information as 
sent and received, by means of electromagnetic transmission, with or 
without benefit of any closed transmission medium, including all 
instrumentalities, facilities, apparatus, and services (including the 
collection, storage, forwarding, switching, and delivery of such 
information) essential to such transmission.
    ``(jj) `Telecommunications service' means the offering of--
            ``(1) telecommunications facilities that (A) are owned or 
        controlled by a provider of telephone exchange service or (B) 
        interconnect with the network of a provider of telephone 
        exchange service; or
            ``(2) telecommunications by means of such 
        telecommunications facilities.
Such term does not include information services.
    ``(kk) `Telecommunications carrier' means any provider of 
telecommunications services, except that such term does not include 
hotels, motels, hospitals, and other aggregators of telecommunications 
services as defined in section 226.
    ``(ll) `Telecommunications number portability' means the ability of 
users of telecommunications services to retain existing 
telecommunications numbers without impairment of quality, reliability, 
or convenience when switching from one telecommunications carrier to 
another.
    ``(mm) `Information service' means the offering of a capability for 
generating, acquiring, storing, transforming, processing, retrieving, 
utilizing, or making available information which may be conveyed via 
telecommunications, except that such service does not include any use 
of any such capability for the management, control, or operation of a 
telecommunications system or the management of a telecommunications 
service.
    ``(nn) `Electronic publishing service' means the provision of any 
information which the provider of the information has, or has caused to 
be, originated, authored, compiled, collected, or edited, or in which 
such provider has a direct or indirect financial or proprietary 
interest, and which is disseminated to an unaffiliated person through 
some electronic means.''.

SEC. 5. TELECOMMUNICATIONS COMPETITION.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) 
is amended by adding at the end the following new section:

``SEC. 229. TELECOMMUNICATIONS COMPETITION.

    ``(a) Removal of Barriers to Entry.--Subject to the provisions of 
section 301 of this Act, and after one year has elapsed following the 
date of enactment of this section, no State or local statute or 
regulation, or other State or local legal requirement, shall prohibit 
or limit in a manner inconsistent with Federal regulations or with this 
Act the ability of any entity to provide interstate or intrastate 
telecommunications services.
    ``(b) Regulatory Authority.--The Commission shall retain full 
authority to regulate the entry and operations of foreign entities or 
domestic affiliates of foreign entities seeking to provide 
telecommunications services. Notwithstanding section 332(c)(2), to the 
extent that they provide telecommunications services, 
telecommunications carriers shall be deemed common carriers under this 
Act, except where the provision of telecommunications services by such 
carriers is de minimis.
    ``(c) Obligations of Telecommunications Carriers.--Notwithstanding 
any other provision of this Act, the Commission shall prescribe 
regulations to require each telecommunications carrier, upon bona fide 
request, to provide to any entity seeking to provide telecommunications 
services or information services, on reasonable terms and conditions--
            ``(1) interconnection to the carrier's telecommunications 
        facilities at any technically feasible point within the 
        carrier's network;
            ``(2) nondiscriminatory access to any of the carrier's 
        telecommunications facilities and information necessary to the 
        transmission and routing of any telecommunications service or 
        information service and the interoperability of both carriers' 
        networks;
            ``(3) nondiscriminatory access, where technically feasible, 
        to the poles, ducts, conduits and rights of way owned or 
        controlled by the carrier;
            ``(4) nondiscriminatory access to the network functions of 
        the carrier's telecommunications network, which shall be 
        offered on an unbundled basis; and
            ``(5) telecommunications services and network functions 
        without any restrictions on the resale or sharing of those 
        services and functions.
The States may prescribe regulations implementing paragraphs (1) 
through (5) for intrastate services so long as such regulations are not 
inconsistent with those prescribed by the Commission.
    ``(d) Universal Service.--
            ``(1) Role of telecommunications carriers.--All 
        telecommunications carriers shall contribute to the 
        preservation and advancement of universal service.
            ``(2) Role of states.--The States, in coordination with the 
        Commission, shall ensure the preservation and advancement of 
        universal service.
            ``(3) Assistance to certain persons.--In administering this 
        subsection, the States and the Commission shall have as their 
        goal directly assisting individuals or entities that cannot 
        afford the cost of their telecommunications service or 
        equipment.
    ``(e) Consumer Information.--As competition for telecommunications 
services develops, the Commission and State regulatory authorities 
shall take action to ensure that consumers are given the information 
necessary to make informed choices among their telecommunications 
alternatives.
    ``(f) Telecommunications Number Portability.--The Commission shall 
prescribe regulations to ensure that--
            ``(1) telecommunications number portability shall be 
        available, upon request, as soon as technically feasible; and
            ``(2) an impartial entity shall administer 
        telecommunications numbering and make such numbers available on 
        an equitable basis.
    ``(g) Reciprocal Compensation Agreements.--Telecommunications 
carriers shall compensate each other on a reciprocal and equivalent 
basis for termination of telecommunications services on each other's 
networks. Compensation shall be determined by negotiation between 
carriers, or by the Commission's decision if negotiation fails.
    ``(h) Regulatory Flexibility for Competitive Services.--
            ``(1) Exemption from requirement to file schedules of 
        charges.--The Commission may exempt a telecommunications 
        carrier from the provisions of section 203 to the extent that 
        the carrier does not have market power.
            ``(2) Pricing flexibility.--The Commission and the States 
        may permit telecommunications carriers to have pricing 
        flexibility for services that the Commission finds are 
        competitive. In implementing this subsection, the Commission 
        and the States shall ensure that rates for basic telephone 
        service and for services that are not competitive remain just 
        and reasonable and that universal service is preserved and 
        advanced.
    ``(i) Rules for Foreign Ownership.--The provisions of section 
310(b) shall not apply to any lawful foreign ownership in a 
telecommunications carrier prior to May 24, 1993, if that carrier was 
not regulated as a common carrier prior to the date of enactment of 
this section and is deemed to be a common carrier under this Act.''.

SEC. 6. INFRASTRUCTURE INVESTMENT.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 230. INFRASTRUCTURE INVESTMENT.

    ``(a) Rural Markets and Noncompetitive Markets.--If State 
regulatory authorities fail to achieve the goal of ensuring that 
telecommunications carriers provide consumers in rural markets and 
noncompetitive markets with access to high quality telecommunications 
network facilities and capabilities which--
            ``(1) provide subscribers with sufficient network capacity 
        to access information services that provide a combination of 
        voice, data, image, and video; and
            ``(2) are available at nondiscriminatory rates that are 
        based on reasonably identifiable costs of providing such 
        services,
then the Commission may take any action necessary to achieve that goal.
    ``(b) Full Effectuation.--The Commission shall have the authority 
to preempt any State or local statute or regulation, or other State or 
local legal requirement, that prevents the full effectuation of the 
goal embodied in subsection (a).
    ``(c) State Regulatory Incentives.--The States are encouraged to 
implement regulatory incentives to promote the development of high 
quality telecommunications network facilities and capabilities. If 
regulatory incentives fail to result in the deployment of high quality 
telecommunications network facilities and capabilities in rural markets 
and noncompetitive markets, the States may adopt other methods to 
ensure that the goal of subsection (a) is achieved.
    ``(d) Network Standards and Planning.--
            ``(1) Network standards.--
                    ``(A) Interconnection and interoperability 
                standards.--The Commission shall encourage 
                telecommunications carriers and telecommunications 
                equipment manufacturers to develop standards to ensure 
                interconnection and interoperability of 
                telecommunications networks.
                    ``(B) Industry assistance.--The Commission shall, 
                when necessary, establish deadlines, create incentives, 
                or use other mechanisms to assist the industry to 
                develop and implement such standards.
                    ``(C) Commission authority to establish 
                standards.--The Commission may establish standards when 
                industry participants fail to reach agreement.
            ``(2) Network planning.--The Commission shall prescribe 
        regulations establishing procedures to ensure that--
                    ``(A) telecommunications carriers shall make 
                available timely information to other such carriers and 
                information service providers in the same geographic 
                area about the deployment of telecommunications 
                equipment, including software integral to such 
                telecommunications equipment, including upgrades, that 
                will affect a telecommunications carrier's or 
                information service provider's ability to interconnect 
                or interoperate in the same geographic area;
                    ``(B) telecommunications carriers shall not be 
                required to share information required under 
                subparagraph (A) with anyone, including carriers with 
                whom they directly compete, except as may be necessary 
                to meet the interconnection and interoperability 
                requirements set forth in this paragraph; and
                    ``(C) the recipient of any information described in 
                subparagraph (A) shall use it only for its own 
                interconnection and interoperability.
            ``(3) Disability access.--The Commission and the States 
        shall ensure that advances in network capabilities and 
        telecommunications services deployed by telecommunications 
        carriers are designed to be accessible to individuals with 
        disabilities.''.

SEC. 7. IMPLEMENTING REGULATIONS AND RURAL DEVELOPMENT.

    The Commission shall issue regulations to implement this Act within 
twelve months after the date of enactment of this Act. Such regulations 
shall take effect within six months after their issuance, except that 
the Commission may extend such effective date for up to twenty-four 
additional months for any small carrier providing telephone exchange 
service in rural areas, upon a showing by the carrier that compliance 
would not be technically feasible without additional time.

SEC. 8. RESTRICTIONS ON OWNERSHIP AND CONTROL OF CABLE TELEVISION 
              SYSTEMS BY TELEPHONE COMPANIES.

    Section 613(b) of the Communications Act of 1934 (47 U.S.C. 533(b)) 
is amended to read as follows:
    ``(b)(1) No local exchange carrier, subject in whole or in part to 
title II of this Act, nor any affiliate of such carrier, owned by, 
operated by, controlled by, or under common control with such carrier, 
may--
            ``(A) purchase or otherwise acquire, directly or 
        indirectly, more than a 5 percent financial interest, any 
        management interest, or any other interest, in any cable system 
        that is providing service within the carrier's telephone 
        exchange service area and is owned by an unaffiliated person; 
        or
            ``(B) enter into any joint venture or partnership with such 
        cable system.
    ``(2) A local exchange carrier shall not provide video programming 
directly to subscribers in its telephone exchange service area unless--
            ``(A) such video programming is provided through a separate 
        subsidiary as set forth in section 233; and
            ``(B) a tariff filed in compliance with the regulations 
        prescribed under section 229 has been approved by the 
        Commission for that area or the Commission has failed, within 
        12 months, to act upon a tariff filed pursuant to section 229 
        for that area.
    ``(3) A local exchange carrier that provides video programming 
directly to subscribers is a cable operator as defined in section 602.
    ``(4) A local exchange carrier shall not engage in practices 
prohibited by the Commission or by a State (including but not limited 
to the improper assignment of costs) that subsidize directly or 
indirectly its video programming operations.
    ``(5) Paragraphs (1) and (2) shall not apply to a local exchange 
carrier to the extent that such carrier provides telephone exchange 
service in an area to which an exemption applies under section 63.58 of 
title 47, Code of Federal Regulations (as in effect on the date of 
enactment of the Telecommunications Infrastructure Act of 1993).
    ``(6) A cable operator shall not provide telecommunications service 
directly to subscribers in its cable service area unless such 
telecommunications service is provided through a separate subsidiary as 
set forth in section 233.
    ``(7) A cable operator shall not engage in practices prohibited by 
the Commission or by a State (including but not limited to the improper 
assignment of costs) that subsidize directly or indirectly its 
telecommunications service.''.

SEC. 9. INTEREXCHANGE SERVICES ASSOCIATED WITH CABLE TELEVISION 
              SERVICE.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this act, is further amended by adding at the end the 
following new section:

``SEC. 231. INTEREXCHANGE SERVICES ASSOCIATED WITH CABLE TELEVISION 
              SERVICE.

    ``(a) Authority.--Subject to the requirements of this section and 
any regulations prescribed thereunder, but notwithstanding any 
restriction or obligation imposed before the date of enactment of this 
section pursuant to the Modification of Final Judgment on the lines of 
business in which a Bell Telephone Company may engage, a Bell Telephone 
Company may, solely for the purpose of providing cable service, own and 
operate--
            ``(1) receive-only antennas, satellite master antenna 
        television facilities, and satellite earth stations; and
            ``(2) inter-LATA distribution facilities.
    ``(b) Restrictions.--A Bell Telephone Company--
            ``(1) may own and operate the antennas, stations, and 
        facilities described in subsection (a)(1) and (2) only through 
        one or more affiliates that are totally separate from the 
        Company;
            ``(2) may use inter-LATA distribution facilities only 
        insofar as such use is necessary to provide cable service 
        across LATA boundaries; and
            ``(3) may neither select nor recommend--
                    ``(A) the satellite uplink service, or
                    ``(B) the satellite transponder service that 
                receives the uplink transmission and provides the 
                downlink transmission,
        used for any of the receive-only antennas, satellite master 
        antenna television facilities, or satellite earth stations 
        owned and operated by the Company as authorized by this 
        section.
    ``(c) Definitions.--As used in this section:
            ``(1) The term `Bell Telephone Company' means any of the 
        companies listed in appendix A of the Modification of Final 
        Judgment, and includes any successor or assign of any such 
        company, but does not include any affiliate of any such 
        company.
            ``(2) The term `Modification of Final Judgment' means the 
        decree entered August 24, 1982, in United States v. Western 
        Electric, Civil Action No. 82-0192 (United States District 
        Court, District of Columbia).
            ``(3) The term `LATA' means the local access and transport 
        area as defined in the Modification of Final Judgment.
            ``(4) The term `cable service' has the meaning given that 
        term under section 602.''.

SEC. 10. INTEREXCHANGE SERVICES RELATING TO CELLULAR MOBILE RADIO 
              SERVICES.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 232. INTEREXCHANGE SERVICES RELATING TO CELLULAR MOBILE RADIO 
              SERVICES.

    ``(a) Provision of Interexchange Services.--
            ``(1) Authority.--Notwithstanding any restriction or 
        obligation imposed before the date of enactment of this section 
        pursuant to the Modification of Final Judgment on the lines of 
        business in which a Bell Telephone Company may engage, a Bell 
        Telephone Company or its cellular affiliate may provide the 
        interexchange services authorized under this section solely as 
        necessary to provide cellular mobile radio services.
            ``(2) Intersystem handoff.--A Bell Telephone Company or its 
        cellular affiliate may provide intersystem handoff, across LATA 
        boundaries, of cellular mobile radio transmissions between 
        adjacent cellular systems, including the provision of such 
        transmission facilities as are necessary to allow the 
        continuation of calls in progress without interruption or 
        degradation of service due to the movement of the mobile 
        telephone unit or the characteristics of radio propagation.
            ``(3) Automatic call delivery.--A Bell Telephone Company or 
        its cellular affiliate may provide the routing of cellular 
        transmissions between its cellular system and a cellular system 
        located in another LATA, for purposes of completing a call to 
        one of its out-of-region cellular customers.
            ``(4) Use of leased facilities.--Interexchange facilities 
        necessary for intersystem handoff across LATA boundaries or 
        inter-LATA routing of cellular transmissions, as permitted 
        under paragraphs (2) and (3), shall be leased by a Bell 
        Telephone Company or its cellular affiliate from a carrier 
        (other than a Bell Telephone Company or its affiliate) 
        authorized to provide interexchange telecommunications.
    ``(b) Equal Access and Presubscription.--Notwithstanding any 
restriction or obligation imposed pursuant to the Modification of Final 
Judgment before the date of enactment of this section, the Commission 
shall prescribe uniform equal access and long distance presubscription 
requirements for providers of all cellular and two-way wireless 
services.
    ``(c) Definitions.--As used in this section, the terms `Bell 
Telephone Company', `Modification of Final Judgment', and `LATA' have 
the meaning given those terms under section 231.''.

SEC. 11. PROVISION OF INFORMATION SERVICES.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end thereof 
the following new section:

``SEC. 233. PROVISION OF INFORMATION SERVICES.

    ``(a) Provision of Information Services.--A Bell Telephone Company 
or an affiliate thereof may provide information services only subject 
to this section and title VI.
    ``(b) Separate Subsidiary.--
            ``(1) In general.--A Bell Telephone Company or affiliate 
        thereof may provide electronic publishing services only through 
        a subsidiary that is separated from the telephone exchange 
        service operations of the Company, in accordance with the 
        requirements of this subsection and the regulations prescribed 
        by the Commission to carry out this subsection.
            ``(2) Transaction requirements.--Any transaction between a 
        subsidiary required by this section and any Bell Telephone 
        Company or between such subsidiary and any other affiliate of 
        the Company shall not be based upon any preference or 
        discrimination in favor of the subsidiary arising out of the 
        subsidiary's affiliation with the Company.
            ``(3) Separate operation and property.--A subsidiary 
        required by this subsection, except for the provision of 
        enhanced emergency services, may not enter into any joint 
        venture or partnership with the Bell Telephone Company or any 
        affiliate of the Company.
            ``(4) Separate commercial activities.--A subsidiary 
        required by this subsection shall carry out directly and 
        separate from the Bell Telephone Company its own marketing and 
        sales.
            ``(5) Books, records, and accounts.--Any subsidiary 
        required by this subsection shall maintain books, records, and 
        accounts in a manner prescribed by the Commission which shall 
        be separate from the books, records, and accounts maintained by 
        the Bell Telephone Company and the other affiliates of the 
        Company, and which shall identify any conduct of business with 
        the Company and any such affiliates.
            ``(6) Provision of services and information.--A Bell 
        Telephone Company may not provide any services (including 
        gateway services) or information to a subsidiary required by 
        this subsection unless such services or information are made 
        available to others on the same terms and conditions.
    ``(c) Prevention of Cross Subsidies.--Any Bell Telephone Company 
that provides information services, or which has an affiliate that is 
engaged in the provision of such services, shall establish and 
administer, in accordance with the requirements of this subsection and 
the regulations prescribed thereunder, a cost allocation system that, 
together with the subsidiary requirements of subsection (b), is 
intended to prohibit any cost of providing such services from being 
subsidized by revenue from telephone exchange service or telephone 
exchange access services.
    ``(d) Provision of Gateway Services.--Any Bell Telephone Company or 
affiliate thereof that offers a gateway service shall make such service 
available concurrently to all of its subscribers under 
nondiscriminatory rates, terms, and conditions, and shall offer gateway 
service functions to all providers of information services on 
nondiscriminatory rates, terms and conditions.
    ``(e) Definitions.--As used in this section:
            ``(1) The term `affiliate' means any organization or entity 
        that, directly or indirectly, owns or controls, or is owned or 
        controlled by, or is under common ownership or control with, a 
        Bell Telephone Company. For purposes of this paragraph, the 
        terms `own', `owned', and `ownership' mean a direct or indirect 
        equity interest (or equivalent thereof) of more than 5 percent 
        of an organization or entity, or the right to more than 5 
        percent of the gross revenues of an organization or entity 
        under a revenue sharing or royalty agreement, or any 
        substantial management or financial interest.
            ``(2) The term `Bell Telephone Company' has the meaning 
        given that term under section 231.
            ``(3) The term `gateway service' means an information 
        service that, at the request of the provider of an electronic 
        publishing service or other information service, provides a 
        subscriber with access to such electronic publishing service or 
        other information service, utilizing the following functions: 
        data transmission, address translation, billing information, 
        protocol conversion, and introductory information content.''.

SEC. 12. PRIVACY OF CUSTOMER PROPRIETARY NETWORK INFORMATION.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 234. PRIVACY OF CUSTOMER PROPRIETARY NETWORK INFORMATION.

    ``(a) Privacy Requirements for Telecommunications Carriers.--A 
telecommunications carrier--
            ``(1) shall not disclose any customer proprietary network 
        information to any person, except--
                    ``(A) as required by law; or
                    ``(B) upon affirmative written request by the 
                customer to which it relates;
            ``(2) shall disclose such information, upon affirmative 
        written request by the customer, to a service provider 
        designated by the customer;
            ``(3) shall, whenever such telecommunications carrier 
        provides any aggregate information based on customer 
        proprietary network information or any data base or other 
        compilation of customer proprietary information to any person, 
        notify the Commission of the availability of such aggregate or 
        compiled information and shall provide such aggregate or 
        compiled information on the same terms and conditions to any 
        other service provider upon reasonable request therefor; and
            ``(4) shall not discriminate between affiliated and 
        unaffiliated service providers in providing access to, or in 
        the use and disclosure of, individual and aggregate or compiled 
        information made available consistent with this subsection.
    ``(b) Provision of Subscriber List Information.--Notwithstanding 
subsection (a), a local exchange carrier shall provide subscriber list 
information under nondiscriminatory and reasonable rates, terms, and 
conditions to any person upon reasonable request. A local exchange 
carrier shall provide each of its subscribers with the opportunity to 
prohibit or limit disclosure of his or her subscriber list information.
    ``(c) Definitions.--As used in this section:
            ``(1) The term `customer proprietary network information' 
        means--
                    ``(A) information which (i) relates to the 
                quantity, technical configuration, type, destination, 
                and amount of use of telecommunications service 
                subscribed to by any customer of a telecommunications 
                carrier, and (ii) is available to the 
                telecommunications carrier by virtue of the 
                telecommunications carrier-customer relationship;
                    ``(B) information contained in the bills for 
                telecommunications service received by a customer of a 
                telecommunications carrier; and
                    ``(C) such other information concerning the 
                customer as is (i) available to the telecommunications 
                carrier by virtue of the customer's use of the 
                carrier's services, and (ii) specified as within the 
                definition of such term by such rules as the Commission 
                shall prescribe consistent with the public interest.
            ``(2) The term `aggregate information' means collective 
        data that relates to a group or category of services or 
        customers, from which individual customer identities or 
        characteristics have been removed.
            ``(3) The term `subscriber list information' means 
        information identifying a local exchange carrier subscriber's 
        name, telephone number, address, billing name and address, or 
        primary director advertising listing, or any combination 
        thereof.''.

SEC. 13. JURISDICTION.

    Section 2 of the Communications Act of 1934 (47 U.S.C. 153) is 
amended--
            (1) in subsection (b), by inserting ``and sections 229 and 
        233'' immediately after ``sections 223 through 227, 
        inclusive,''; and
            (2) by adding at the end the following new subsection:
    ``(c)(1) Notwithstanding subsection (b), a State may not regulate 
the rates, terms, or conditions for the offering of information 
services, except as provided in title VI.''.

                                 <all>

S 1086 IS----2
```