II

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Telecommunications

5 Infrastructure Act of 1993’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) it is in the public interest to encourage the

9 further development of the Nation’s telecommuni-
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1 cations infrastructure as a means of enhancing the

2 quality of life and promoting economic development

3 and international competitiveness;

4 (2) telecommunications infrastructure develop5 ment is particularly crucial to the continued eco6 nomic development of rural areas that may lack an

7 adequate industrial or service base for continued de8 velopment;

9 (3) advancements of the Nation’s telecommuni10 cations infrastructure will increase the public welfare

11 by helping to speed the delivery of new services, such

12 as distance learning, remote medical sensing, and

13 distribution of health information;

14 (4) greater infrastructure development is need15 ed to bring advanced telecommunications services to

16 small business, disadvantaged, residential, low-in17 come, educational, medical, and rural users;

18 (5) increased competition in telecommunications

19 services will encourage infrastructure development

20 and have beneficial effects on the price, universal

21 availability, variety, and quality of telecommuni22 cations services;

23 (6) the emergence of competition in tele24 communications services has already contributed,

25 and can be expected to continue contributing, to the
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1 modernization of the infrastructure; competition in

2 the long distance industry and the communications

3 equipment market has brought about lower prices

4 and higher quality services;

5 (7) competition for local communications serv6 ices has already begun to benefit the public; com7 petitive access providers have deployed thousands of

8 miles of optical fiber in their local networks; local ex9 change carriers have been prompted by competition

10 to accelerate the installation of optical fiber in their

11 own networks;

12 (8) a diversity of telecommunications carriers

13 aids network reliability by providing redundant ca14 pacity, thereby lessening the impact of any network

15 failure;

16 (9) competition must proceed under rules that

17 are fair to all telecommunications carriers and pro18 tect consumers;

19 (10) all telecommunications carriers, including

20 competitors to the telephone companies, should con21 tribute to universal service and should make their

22 networks available for interconnection by others;

23 (11) national policy is needed to advance com24 petition in the provision of all telecommunications

25 services;
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1 (12) removal of all State and local barriers to

2 entry into the telecommunications services market

3 and provision of national standards for interconnec4 tion are essential to the development of a national,

5 interstate telecommunications infrastructure;

6 (13) current Federal and State regulatory poli7 cies must be revised and supplemented to advance

8 the development of competition in the telecommuni9 cations services market;

10 (14) increasing the availability of interconnec11 tion and interoperability among the facilities of tele12 communications carriers will help stimulate the de13 velopment of competition among providers;

14 (15) telecommunications number portability will

15 eliminate a significant barrier to competition in the

16 provision of telecommunications services;

17 (16) restrictions on resale and sharing of tele18 communications networks retard the growth of com19 petition and restrict the diversity of services avail20 able to the public;

21 (17) additional regulatory measures are needed

22 to allow consumers in rural markets and non23 competitive markets the opportunity to benefit from

24 high-quality telecommunications capabilities;
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1 (18) regulatory flexibility for existing providers

2 of telephone exchange service is necessary to allow

3 them to respond to competition;

4 (19) the Federal Communications Commission

5 should take steps to ensure network reliability and

6 the development of network standards;

7 (20) access to switched, digital telecommuni8 cations service for all segments of the population

9 promotes the core First Amendment goal of diverse

10 information sources by enabling individuals and or11 ganizations alike to publish and otherwise make in12 formation available in electronic form;

13 (21) the national welfare will be enhanced if

14 community newspapers are provided ease of entry

15 into the operation of information services dissemi16 nated through electronic means primarily to cus17 tomers in the localities served by such newspapers at

18 reasonable, nondiscriminatory rates to such news19 papers;

20 (22) a clear national mandate is needed for full

21 participation in access to telecommunications net22 works and services by individuals with disabilities;

23 (23) the obligations of telecommunications car24 riers includes the duty to furnish telecommuni25 cations services which are designed to be fully acces-
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1 sible to individuals with disabilities in accordance

2 with such standards as the Federal Communications

3 Commission may prescribe;

4 (24) it is in the public interest to encourage

5 competition to existing cable television service pro6 viders; and

7 (25) amending the legal barriers to telephone

8 company provision of video programming will en9 courage competition to existing cable television serv10 ice providers and encourage telephone companies to

11 upgrade their telecommunications facilities to enable

12 them to deliver video programming, as long as tele13 phone companies are prohibited from buying or com14 bining with existing cable companies.

15 SEC. 3. PURPOSES.

16 The purposes of this Act are to—

17 (1) encourage private investment in, and ad18 vancement of, the Nation’s telecommunications in19 frastructure;

20 (2) ensure the availability of the widest possible

21 range of competitive choices in the provision of tele22 communications and cable television services;

23 (3) eliminate the existing regulatory barriers to

24 competition in the provision of telecommunications

25 and cable television services;
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1 (4) encourage interconnection and interoper2 ability among telecommunications carriers;

3 (5) ensure the universal availability of telephone

4 service;

5 (6) encourage the continued development and

6 deployment of advanced and reliable capabilities and

7 services in telecommunications networks; and

8 (7) protect the privacy interests of users of tele9 communications services.

10 SEC. 4. DEFINITIONS.

11 Section 3 of the Communications Act of 1934 (49

12 U.S.C. 153) is amended by adding at the end the following

13 new subsections:

14 ‘‘(hh) ‘Local exchange carrier’ means a provider of

15 telephone exchange service that is classified by the Com16 mission as a dominant carrier.

17 ‘‘(ii) ‘Telecommunications’ means the transmission,

18 between or among points specified by the user, of informa19 tion of the user’s choosing, without change in the form

20 or content of the information as sent and received, by

21 means of electromagnetic transmission, with or without

22 benefit of any closed transmission medium, including all

23 instrumentalities, facilities, apparatus, and services (in24 cluding the collection, storage, forwarding, switching, and
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1 delivery of such information) essential to such trans2 mission.

3 ‘‘(jj) ‘Telecommunications service’ means the offering

4 of—

5 ‘‘(1) telecommunications facilities that (A) are

6 owned or controlled by a provider of telephone ex7 change service or (B) interconnect with the network

8 of a provider of telephone exchange service; or

9 ‘‘(2) telecommunications by means of such tele10 communications facilities.

11 Such term does not include information services.

12 ‘‘(kk) ‘Telecommunications carrier’ means any pro13 vider of telecommunications services, except that such

14 term does not include hotels, motels, hospitals, and other

15 aggregators of telecommunications services as defined in

16 section 226.

17 ‘‘(ll) ‘Telecommunications number portability’ means

18 the ability of users of telecommunications services to re19 tain existing telecommunications numbers without impair20 ment of quality, reliability, or convenience when switching

21 from one telecommunications carrier to another.

22 ‘‘(mm) ‘Information service’ means the offering of a

23 capability for generating, acquiring, storing, transforming,

24 processing, retrieving, utilizing, or making available infor25 mation which may be conveyed via telecommunications,
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1 except that such service does not include any use of any

2 such capability for the management, control, or operation

3 of a telecommunications system or the management of a

4 telecommunications service.

5 ‘‘(nn) ‘Electronic publishing service’ means the provi6 sion of any information which the provider of the informa7 tion has, or has caused to be, originated, authored, com8 piled, collected, or edited, or in which such provider has

9 a direct or indirect financial or proprietary interest, and

10 which is disseminated to an unaffiliated person through

11 some electronic means.’’.

12 SEC. 5. TELECOMMUNICATIONS COMPETITION.

13 Title II of the Communications Act of 1934 (47

14 U.S.C. 201 et seq.) is amended by adding at the end the

15 following new section:

16 ‘‘SEC. 229. TELECOMMUNICATIONS COMPETITION.

17 ‘‘(a) REMOVAL OF BARRIERS TO ENTRY.—Subject to

18 the provisions of section 301 of this Act, and after one

19 year has elapsed following the date of enactment of this

20 section, no State or local statute or regulation, or other

21 State or local legal requirement, shall prohibit or limit in

22 a manner inconsistent with Federal regulations or with

23 this Act the ability of any entity to provide interstate or

24 intrastate telecommunications services.
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1 ‘‘(b) REGULATORY AUTHORITY.—The Commission

2 shall retain full authority to regulate the entry and oper3 ations of foreign entities or domestic affiliates of foreign

4 entities seeking to provide telecommunications services.

5 Notwithstanding section 332(c)(2), to the extent that they

6 provide telecommunications services, telecommunications

7 carriers shall be deemed common carriers under this Act,

8 except where the provision of telecommunications services

9 by such carriers is de minimis.

10 ‘‘(c) OBLIGATIONS OF TELECOMMUNICATIONS CAR11 RIERS.—Notwithstanding any other provision of this Act,

12 the Commission shall prescribe regulations to require each

13 telecommunications carrier, upon bona fide request, to

14 provide to any entity seeking to provide telecommuni15 cations services or information services, on reasonable

16 terms and conditions—

17 ‘‘(1) interconnection to the carrier’s tele18 communications facilities at any technically feasible

19 point within the carrier’s network;

20 ‘‘(2) nondiscriminatory access to any of the car21 rier’s telecommunications facilities and information

22 necessary to the transmission and routing of any

23 telecommunications service or information service

24 and the interoperability of both carriers’ networks;
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1 ‘‘(3) nondiscriminatory access, where technically

2 feasible, to the poles, ducts, conduits and rights of

3 way owned or controlled by the carrier;

4 ‘‘(4) nondiscriminatory access to the network

5 functions of the carrier’s telecommunications net6 work, which shall be offered on an unbundled basis;

7 and

8 ‘‘(5) telecommunications services and network

9 functions without any restrictions on the resale or

10 sharing of those services and functions.

11 The States may prescribe regulations implementing para12 graphs (1) through (5) for intrastate services so long as

13 such regulations are not inconsistent with those prescribed

14 by the Commission.

15 ‘‘(d) UNIVERSAL SERVICE.—

16 ‘‘(1) ROLE OF TELECOMMUNICATIONS CAR17 RIERS.—All telecommunications carriers shall con18 tribute to the preservation and advancement of uni19 versal service.

20 ‘‘(2) ROLE OF STATES.—The States, in coordi21 nation with the Commission, shall ensure the preser22 vation and advancement of universal service.

23 ‘‘(3) ASSISTANCE TO CERTAIN PERSONS.—In

24 administering this subsection, the States and the

25 Commission shall have as their goal directly assist-
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1 ing individuals or entities that cannot afford the cost

2 of their telecommunications service or equipment.

3 ‘‘(e) CONSUMER INFORMATION.—As competition for

4 telecommunications services develops, the Commission and

5 State regulatory authorities shall take action to ensure

6 that consumers are given the information necessary to

7 make informed choices among their telecommunications

8 alternatives.

9 ‘‘(f) TELECOMMUNICATIONS NUMBER PORT10 ABILITY.—The Commission shall prescribe regulations to

11 ensure that—

12 ‘‘(1) telecommunications number portability

13 shall be available, upon request, as soon as tech14 nically feasible; and

15 ‘‘(2) an impartial entity shall administer tele16 communications numbering and make such numbers

17 available on an equitable basis.

18 ‘‘(g) RECIPROCAL COMPENSATION AGREEMENTS.—

19 Telecommunications carriers shall compensate each other

20 on a reciprocal and equivalent basis for termination of

21 telecommunications services on each other’s networks.

22 Compensation shall be determined by negotiation between

23 carriers, or by the Commission’s decision if negotiation

24 fails.
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1 ‘‘(h) REGULATORY FLEXIBILITY FOR COMPETITIVE

2 SERVICES.—

3 ‘‘(1) EXEMPTION FROM REQUIREMENT TO FILE

4 SCHEDULES OF CHARGES.—The Commission may

5 exempt a telecommunications carrier from the provi6 sions of section 203 to the extent that the carrier

7 does not have market power.

8 ‘‘(2) PRICING FLEXIBILITY.—The Commission

9 and the States may permit telecommunications car10 riers to have pricing flexibility for services that the

11 Commission finds are competitive. In implementing

12 this subsection, the Commission and the States shall

13 ensure that rates for basic telephone service and for

14 services that are not competitive remain just and

15 reasonable and that universal service is preserved

16 and advanced.

17 ‘‘(i) RULES FOR FOREIGN OWNERSHIP.—The provi18 sions of section 310(b) shall not apply to any lawful for19 eign ownership in a telecommunications carrier prior to

20 May 24, 1993, if that carrier was not regulated as a com21 mon carrier prior to the date of enactment of this section

22 and is deemed to be a common carrier under this Act.’’.
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1 SEC. 6. INFRASTRUCTURE INVESTMENT.

2 Title II of the Communications Act of 1934 (47

3 U.S.C. 201 et seq.), as amended by this Act, is further

4 amended by adding at the end the following new section:

5 ‘‘SEC. 230. INFRASTRUCTURE INVESTMENT.

6 ‘‘(a) RURAL MARKETS AND NONCOMPETITIVE MAR7 KETS.—If State regulatory authorities fail to achieve the

8 goal of ensuring that telecommunications carriers provide

9 consumers in rural markets and noncompetitive markets

10 with access to high quality telecommunications network

11 facilities and capabilities which—

12 ‘‘(1) provide subscribers with sufficient network

13 capacity to access information services that provide

14 a combination of voice, data, image, and video; and

15 ‘‘(2) are available at nondiscriminatory rates

16 that are based on reasonably identifiable costs of

17 providing such services,

18 then the Commission may take any action necessary to

19 achieve that goal.

20 ‘‘(b) FULL EFFECTUATION.—The Commission shall

21 have the authority to preempt any State or local statute

22 or regulation, or other State or local legal requirement,

23 that prevents the full effectuation of the goal embodied

24 in subsection (a).

25 ‘‘(c) STATE REGULATORY INCENTIVES.—The States

26 are encouraged to implement regulatory incentives to pro-
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1 mote the development of high quality telecommunications

2 network facilities and capabilities. If regulatory incentives

3 fail to result in the deployment of high quality tele4 communications network facilities and capabilities in rural

5 markets and noncompetitive markets, the States may

6 adopt other methods to ensure that the goal of subsection

7 (a) is achieved.

8 ‘‘(d) NETWORK STANDARDS AND PLANNING.—

9 ‘‘(1) NETWORK STANDARDS.—

10 ‘‘(A) INTERCONNECTION AND INTEROPER11 ABILITY STANDARDS.—The Commission shall

12 encourage telecommunications carriers and tele13 communications equipment manufacturers to

14 develop standards to ensure interconnection and

15 interoperability of telecommunications net16 works.

17 ‘‘(B) INDUSTRY ASSISTANCE.—The Com18 mission shall, when necessary, establish dead19 lines, create incentives, or use other mecha20 nisms to assist the industry to develop and im21 plement such standards.

22 ‘‘(C) COMMISSION AUTHORITY TO ESTAB23 LISH STANDARDS.—The Commission may es24 tablish standards when industry participants

25 fail to reach agreement.
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1 ‘‘(2) NETWORK PLANNING.—The Commission

2 shall prescribe regulations establishing procedures to

3 ensure that—

4 ‘‘(A) telecommunications carriers shall

5 make available timely information to other such

6 carriers and information service providers in the

7 same geographic area about the deployment of

8 telecommunications equipment, including soft9 ware integral to such telecommunications equip10 ment, including upgrades, that will affect a tele11 communications carrier’s or information service

12 provider’s ability to interconnect or interoperate

13 in the same geographic area;

14 ‘‘(B) telecommunications carriers shall not

15 be required to share information required under

16 subparagraph (A) with anyone, including car17 riers with whom they directly compete, except

18 as may be necessary to meet the interconnec19 tion and interoperability requirements set forth

20 in this paragraph; and

21 ‘‘(C) the recipient of any information de22 scribed in subparagraph (A) shall use it only

23 for its own interconnection and interoperability.

24 ‘‘(3) DISABILITY ACCESS.—The Commission

25 and the States shall ensure that advances in network
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1 capabilities and telecommunications services de2 ployed by telecommunications carriers are designed

3 to be accessible to individuals with disabilities.’’.

4 SEC. 7. IMPLEMENTING REGULATIONS AND RURAL DEVEL5 OPMENT.

6 The Commission shall issue regulations to implement

7 this Act within twelve months after the date of enactment

8 of this Act. Such regulations shall take effect within six

9 months after their issuance, except that the Commission

10 may extend such effective date for up to twenty-four addi11 tional months for any small carrier providing telephone

12 exchange service in rural areas, upon a showing by the

13 carrier that compliance would not be technically feasible

14 without additional time.

15 SEC. 8. RESTRICTIONS ON OWNERSHIP AND CONTROL OF

16 CABLE TELEVISION SYSTEMS BY TELEPHONE

17 COMPANIES.

18 Section 613(b) of the Communications Act of 1934

19 (47 U.S.C. 533(b)) is amended to read as follows:

20 ‘‘(b)(1) No local exchange carrier, subject in whole

21 or in part to title II of this Act, nor any affiliate of such

22 carrier, owned by, operated by, controlled by, or under

23 common control with such carrier, may—
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1 ‘‘(A) purchase or otherwise acquire, directly or

2 indirectly, more than a 5 percent financial interest,

3 any management interest, or any other interest, in

4 any cable system that is providing service within the

5 carrier’s telephone exchange service area and is

6 owned by an unaffiliated person; or

7 ‘‘(B) enter into any joint venture or partnership

8 with such cable system.

9 ‘‘(2) A local exchange carrier shall not provide video

10 programming directly to subscribers in its telephone ex11 change service area unless—

12 ‘‘(A) such video programming is provided

13 through a separate subsidiary as set forth in section

14 233; and

15 ‘‘(B) a tariff filed in compliance with the regu16 lations prescribed under section 229 has been ap17 proved by the Commission for that area or the Com18 mission has failed, within 12 months, to act upon a

19 tariff filed pursuant to section 229 for that area.

20 ‘‘(3) A local exchange carrier that provides video pro21 gramming directly to subscribers is a cable operator as

22 defined in section 602.

23 ‘‘(4) A local exchange carrier shall not engage in

24 practices prohibited by the Commission or by a State (in25 cluding but not limited to the improper assignment of
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1 costs) that subsidize directly or indirectly its video pro2 gramming operations.

3 ‘‘(5) Paragraphs (1) and (2) shall not apply to a local

4 exchange carrier to the extent that such carrier provides

5 telephone exchange service in an area to which an exemp6 tion applies under section 63.58 of title 47, Code of Fed7 eral Regulations (as in effect on the date of enactment

8 of the Telecommunications Infrastructure Act of 1993).

9 ‘‘(6) A cable operator shall not provide telecommuni10 cations service directly to subscribers in its cable service

11 area unless such telecommunications service is provided

12 through a separate subsidiary as set forth in section 233.

13 ‘‘(7) A cable operator shall not engage in practices

14 prohibited by the Commission or by a State (including but

15 not limited to the improper assignment of costs) that sub16 sidize directly or indirectly its telecommunications serv17 ice.’’.

18 SEC. 9. INTEREXCHANGE SERVICES ASSOCIATED WITH

19 CABLE TELEVISION SERVICE.

20 Title II of the Communications Act of 1934 (47

21 U.S.C. 201 et seq.), as amended by this act, is further

22 amended by adding at the end the following new section:
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1 ‘‘SEC. 231. INTEREXCHANGE SERVICES ASSOCIATED WITH

2 CABLE TELEVISION SERVICE.

3 ‘‘(a) AUTHORITY.—Subject to the requirements of

4 this section and any regulations prescribed thereunder,

5 but notwithstanding any restriction or obligation imposed

6 before the date of enactment of this section pursuant to

7 the Modification of Final Judgment on the lines of busi8 ness in which a Bell Telephone Company may engage, a

9 Bell Telephone Company may, solely for the purpose of

10 providing cable service, own and operate—

11 ‘‘(1) receive-only antennas, satellite master an12 tenna television facilities, and satellite earth sta13 tions; and

14 ‘‘(2) inter-LATA distribution facilities.

15 ‘‘(b) RESTRICTIONS.—A Bell Telephone Company—

16 ‘‘(1) may own and operate the antennas, sta17 tions, and facilities described in subsection (a)(1)

18 and (2) only through one or more affiliates that are

19 totally separate from the Company;

20 ‘‘(2) may use inter-LATA distribution facilities

21 only insofar as such use is necessary to provide cable

22 service across LATA boundaries; and

23 ‘‘(3) may neither select nor recommend—

24 ‘‘(A) the satellite uplink service, or
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1 ‘‘(B) the satellite transponder service that

2 receives the uplink transmission and provides

3 the downlink transmission,

4 used for any of the receive-only antennas, satellite

5 master antenna television facilities, or satellite earth

6 stations owned and operated by the Company as au7 thorized by this section.

8 ‘‘(c) DEFINITIONS.—As used in this section:

9 ‘‘(1) The term ‘Bell Telephone Company’

10 means any of the companies listed in appendix A of

11 the Modification of Final Judgment, and includes

12 any successor or assign of any such company, but

13 does not include any affiliate of any such company.

14 ‘‘(2) The term ‘Modification of Final Judg15 ment’ means the decree entered August 24, 1982, in

16 United States v. Western Electric, Civil Action No.

17 82–0192 (United States District Court, District of

18 Columbia).

19 ‘‘(3) The term ‘LATA’ means the local access

20 and transport area as defined in the Modification of

21 Final Judgment.

22 ‘‘(4) The term ‘cable service’ has the meaning

23 given that term under section 602.’’.
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1 SEC. 10. INTEREXCHANGE SERVICES RELATING TO CEL2 LULAR MOBILE RADIO SERVICES.

3 Title II of the Communications Act of 1934 (47

4 U.S.C. 201 et seq.), as amended by this Act, is further

5 amended by adding at the end the following new section:

6 ‘‘SEC. 232. INTEREXCHANGE SERVICES RELATING TO CEL7 LULAR MOBILE RADIO SERVICES.

8 ‘‘(a) PROVISION OF INTEREXCHANGE SERVICES.—

9 ‘‘(1) AUTHORITY.—Notwithstanding any re10 striction or obligation imposed before the date of en11 actment of this section pursuant to the Modification

12 of Final Judgment on the lines of business in which

13 a Bell Telephone Company may engage, a Bell Tele14 phone Company or its cellular affiliate may provide

15 the interexchange services authorized under this sec16 tion solely as necessary to provide cellular mobile

17 radio services.

18 ‘‘(2) INTERSYSTEM HANDOFF.—A Bell Tele19 phone Company or its cellular affiliate may provide

20 intersystem handoff, across LATA boundaries, of

21 cellular mobile radio transmissions between adjacent

22 cellular systems, including the provision of such

23 transmission facilities as are necessary to allow the

24 continuation of calls in progress without interruption

25 or degradation of service due to the movement of the
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1 mobile telephone unit or the characteristics of radio

2 propagation.

3 ‘‘(3) AUTOMATIC CALL DELIVERY.—A Bell

4 Telephone Company or its cellular affiliate may pro5 vide the routing of cellular transmissions between its

6 cellular system and a cellular system located in an7 other LATA, for purposes of completing a call to

8 one of its out-of-region cellular customers.

9 ‘‘(4) USE OF LEASED FACILITIES.—

10 Interexchange facilities necessary for intersystem

11 handoff across LATA boundaries or inter-LATA

12 routing of cellular transmissions, as permitted under

13 paragraphs (2) and (3), shall be leased by a Bell

14 Telephone Company or its cellular affiliate from a

15 carrier (other than a Bell Telephone Company or its

16 affiliate) authorized to provide interexchange tele17 communications.

18 ‘‘(b) EQUAL ACCESS AND PRESUBSCRIPTION.—Not19 withstanding any restriction or obligation imposed pursu20 ant to the Modification of Final Judgment before the date

21 of enactment of this section, the Commission shall pre22 scribe uniform equal access and long distance

23 presubscription requirements for providers of all cellular

24 and two-way wireless services.
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1 ‘‘(c) DEFINITIONS.—As used in this section, the

2 terms ‘Bell Telephone Company’, ‘Modification of Final

3 Judgment’, and ‘LATA’ have the meaning given those

4 terms under section 231.’’.

5 SEC. 11. PROVISION OF INFORMATION SERVICES.

6 Title II of the Communications Act of 1934 (47

7 U.S.C. 201 et seq.), as amended by this Act, is further

8 amended by adding at the end thereof the following new

9 section:

10 ‘‘SEC. 233. PROVISION OF INFORMATION SERVICES.

11 ‘‘(a) PROVISION OF INFORMATION SERVICES.—A

12 Bell Telephone Company or an affiliate thereof may pro13 vide information services only subject to this section and

14 title VI.

15 ‘‘(b) SEPARATE SUBSIDIARY.—

16 ‘‘(1) IN GENERAL.—A Bell Telephone Company

17 or affiliate thereof may provide electronic publishing

18 services only through a subsidiary that is separated

19 from the telephone exchange service operations of

20 the Company, in accordance with the requirements

21 of this subsection and the regulations prescribed by

22 the Commission to carry out this subsection.

23 ‘‘(2) TRANSACTION REQUIREMENTS.—Any

24 transaction between a subsidiary required by this

25 section and any Bell Telephone Company or between
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1 such subsidiary and any other affiliate of the Com2 pany shall not be based upon any preference or dis3 crimination in favor of the subsidiary arising out of

4 the subsidiary’s affiliation with the Company.

5 ‘‘(3) SEPARATE OPERATION AND PROPERTY.—

6 A subsidiary required by this subsection, except for

7 the provision of enhanced emergency services, may

8 not enter into any joint venture or partnership with

9 the Bell Telephone Company or any affiliate of the

10 Company.

11 ‘‘(4) SEPARATE COMMERCIAL ACTIVITIES.—A

12 subsidiary required by this subsection shall carry out

13 directly and separate from the Bell Telephone Com14 pany its own marketing and sales.

15 ‘‘(5) BOOKS, RECORDS, AND ACCOUNTS.—Any

16 subsidiary required by this subsection shall maintain

17 books, records, and accounts in a manner prescribed

18 by the Commission which shall be separate from the

19 books, records, and accounts maintained by the Bell

20 Telephone Company and the other affiliates of the

21 Company, and which shall identify any conduct of

22 business with the Company and any such affiliates.

23 ‘‘(6) PROVISION OF SERVICES AND INFORMA24 TION.—A Bell Telephone Company may not provide

25 any services (including gateway services) or informa-
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1 tion to a subsidiary required by this subsection un2 less such services or information are made available

3 to others on the same terms and conditions.

4 ‘‘(c) PREVENTION OF CROSS SUBSIDIES.—Any Bell

5 Telephone Company that provides information services, or

6 which has an affiliate that is engaged in the provision of

7 such services, shall establish and administer, in accord8 ance with the requirements of this subsection and the reg9 ulations prescribed thereunder, a cost allocation system

10 that, together with the subsidiary requirements of sub11 section (b), is intended to prohibit any cost of providing

12 such services from being subsidized by revenue from tele13 phone exchange service or telephone exchange access

14 services.

15 ‘‘(d) PROVISION OF GATEWAY SERVICES.—Any Bell

16 Telephone Company or affiliate thereof that offers a gate17 way service shall make such service available concurrently

18 to all of its subscribers under nondiscriminatory rates,

19 terms, and conditions, and shall offer gateway service

20 functions to all providers of information services on non21 discriminatory rates, terms and conditions.

22 ‘‘(e) DEFINITIONS.—As used in this section:

23 ‘‘(1) The term ‘affiliate’ means any organiza24 tion or entity that, directly or indirectly, owns or

25 controls, or is owned or controlled by, or is under
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1 common ownership or control with, a Bell Telephone

2 Company. For purposes of this paragraph, the terms

3 ‘own’, ‘owned’, and ‘ownership’ mean a direct or in4 direct equity interest (or equivalent thereof) of more

5 than 5 percent of an organization or entity, or the

6 right to more than 5 percent of the gross revenues

7 of an organization or entity under a revenue sharing

8 or royalty agreement, or any substantial manage9 ment or financial interest.

10 ‘‘(2) The term ‘Bell Telephone Company’ has

11 the meaning given that term under section 231.

12 ‘‘(3) The term ‘gateway service’ means an in13 formation service that, at the request of the provider

14 of an electronic publishing service or other informa15 tion service, provides a subscriber with access to

16 such electronic publishing service or other informa17 tion service, utilizing the following functions: data

18 transmission, address translation, billing informa19 tion, protocol conversion, and introductory informa20 tion content.’’.

21 SEC. 12. PRIVACY OF CUSTOMER PROPRIETARY NETWORK

22 INFORMATION.

23 Title II of the Communications Act of 1934 (47

24 U.S.C. 201 et seq.), as amended by this Act, is further

25 amended by adding at the end the following new section:
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1 ‘‘SEC. 234. PRIVACY OF CUSTOMER PROPRIETARY NET2 WORK INFORMATION.

3 ‘‘(a) PRIVACY REQUIREMENTS FOR TELECOMMUNI4 CATIONS CARRIERS.—A telecommunications carrier—

5 ‘‘(1) shall not disclose any customer proprietary

6 network information to any person, except—

7 ‘‘(A) as required by law; or

8 ‘‘(B) upon affirmative written request by

9 the customer to which it relates;

10 ‘‘(2) shall disclose such information, upon af11 firmative written request by the customer, to a serv12 ice provider designated by the customer;

13 ‘‘(3) shall, whenever such telecommunications

14 carrier provides any aggregate information based on

15 customer proprietary network information or any

16 data base or other compilation of customer propri17 etary information to any person, notify the Commis18 sion of the availability of such aggregate or compiled

19 information and shall provide such aggregate or

20 compiled information on the same terms and condi21 tions to any other service provider upon reasonable

22 request therefor; and

23 ‘‘(4) shall not discriminate between affiliated

24 and unaffiliated service providers in providing access

25 to, or in the use and disclosure of, individual and ag-
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1 gregate or compiled information made available con2 sistent with this subsection.

3 ‘‘(b) PROVISION OF SUBSCRIBER LIST INFORMA4 TION.—Notwithstanding subsection (a), a local exchange

5 carrier shall provide subscriber list information under non6 discriminatory and reasonable rates, terms, and conditions

7 to any person upon reasonable request. A local exchange

8 carrier shall provide each of its subscribers with the oppor9 tunity to prohibit or limit disclosure of his or her sub10 scriber list information.

11 ‘‘(c) DEFINITIONS.—As used in this section:

12 ‘‘(1) The term ‘customer proprietary network

13 information’ means—

14 ‘‘(A) information which (i) relates to the

15 quantity, technical configuration, type, destina16 tion, and amount of use of telecommunications

17 service subscribed to by any customer of a tele18 communications carrier, and (ii) is available to

19 the telecommunications carrier by virtue of the

20 telecommunications carrier-customer relation21 ship;

22 ‘‘(B) information contained in the bills for

23 telecommunications service received by a cus24 tomer of a telecommunications carrier; and
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1 ‘‘(C) such other information concerning the

2 customer as is (i) available to the telecommuni3 cations carrier by virtue of the customer’s use

4 of the carrier’s services, and (ii) specified as

5 within the definition of such term by such rules

6 as the Commission shall prescribe consistent

7 with the public interest.

8 ‘‘(2) The term ‘aggregate information’ means

9 collective data that relates to a group or category of

10 services or customers, from which individual cus11 tomer identities or characteristics have been re12 moved.

13 ‘‘(3) The term ‘subscriber list information’

14 means information identifying a local exchange car15 rier subscriber’s name, telephone number, address,

16 billing name and address, or primary director adver17 tising listing, or any combination thereof.’’.

18 SEC. 13. JURISDICTION.

19 Section 2 of the Communications Act of 1934 (47

20 U.S.C. 153) is amended—

21 (1) in subsection (b), by inserting ‘‘and sections

22 229 and 233’’ immediately after ‘‘sections 223

23 through 227, inclusive,’’; and

24 (2) by adding at the end the following new sub25 section:
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1 ‘‘(c)(1) Notwithstanding subsection (b), a State may

2 not regulate the rates, terms, or conditions for the offering

3 of information services, except as provided in title VI.’’.

Æ

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