IB

103D CONGRESS

2D SESSION H. R. 3626

[Report No. 103–559, Parts I and II]

To supersede the Modification of Final Judgment entered August 24, 1982,

in the antitrust action styled United States v. Western Electric, Civil

Action No. 82–0192, United States District Court for the District of

Columbia; to amend the Communications Act of 1934 to regulate the

manufacturing of Bell operating companies, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 22, 1993

Mr. BROOKS (for himself and Mr. DINGELL) introduced the following bill;

which was referred jointly to the Committees on the Judiciary and Energy and Commerce

JUNE 24, 1994

Reported from the Committee on Energy and Commerce with an Amendment

[Strike out all after the enacting clause and insert the part printed in italic]

JUNE 24, 1994

Additional sponsors: Mr. NADLER, Mr. LAZIO, Mr. BLUTE, Mr. GILMAN, Mr.

FISH, Mr. MOORHEAD, Mr. MARKEY, and Mr. FIELDS of Texas

JUNE 24, 1994

Reported from the Committee on the Judiciary with amendments, committed

to the Committee of the Whole House on the State of the Union, and

ordered to be printed.

[Strike out all after the enacting clause and insert the part printed in Boldface Roman]

[For text of introduced bill, see copy of bill as introduced on November 22, 1993]
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A BILL

To supersede the Modification of Final Judgment entered

August 24, 1982, in the antitrust action styled United

States v. Western Electric, Civil Action No. 82–0192,

United States District Court for the District of Columbia; to amend the Communications Act of 1934 to regulate the manufacturing of Bell operating companies, 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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Antitrust and Communications Reform Act of 1994’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

TITLE I—SUPERSESSION OF THE MODIFICATION OF FINAL

JUDGMENT

Sec. 101. Authorization for Bell operating company to enter competitive lines of

business.

Sec. 102. Authorization as prerequisite.

Sec. 103. Limitations on manufacturing and providing equipment.

Sec. 104. Anticompetitive tying arrangements.

Sec. 105. Enforcement.

Sec. 106. Definitions.

Sec. 107. Relationship to other laws.

Sec. 108. Amendment to definition of antitrust laws appearing in the Clayton

Act.

TITLE II—REGULATION OF MANUFACTURING, ALARM SERVICES

AND ELECTRONIC PUBLISHING BY BELL OPERATING COMPANIES

Sec. 201. Regulation of manufacturing by Bell operating companies.

Sec. 202. Regulation of entry into alarm monitoring services.

Sec. 203. Regulation of electronic publishing.

Sec. 204. Privacy of customer information.
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TITLE III—FEDERAL COMMUNICATIONS COMMISSION RESOURCES

Sec. 301. Authorization of appropriations.

1 TITLE I—SUPERSESSION OF THE

2 MODIFICATION OF FINAL

3 JUDGMENT

4 SEC. 101. AUTHORIZATION FOR BELL OPERATING COMPANY

5 TO ENTER COMPETITIVE LINES OF BUSINESS.

6 (a) APPLICATION.—

7 (1) IN GENERAL.—After the applicable date spec8 ified in paragraph (2), a Bell operating company

9 may apply to the Attorney General and the Federal

10 Communications Commission for authorization, not11 withstanding the Modification of Final Judgment—

12 (A) to provide alarm monitoring services, or

13 (B) to provide interexchange telecommuni14 cations services.

15 The application shall describe with particularity the

16 nature and scope of the activity, and of each product

17 market or service market, and each geographic mar18 ket, for which authorization is sought.

19 (2) APPLICABLE DATES.—For purposes of para20 graph (1), the applicable date after which a Bell oper21 ating company may apply for authorization shall

22 be—

23 (A) the date of the enactment of this Act,

24 with respect to—
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1 (i) engaging in any activity described

2 in subparagraph (B), (C), or (D), to the ex3 tent, with respect to each market to which

4 the activity relates, that there exists no ac5 tual or potential competition,

6 (ii) providing a service described in

7 subsection (b)(3)(D)(iii),

8 (iii) providing, through transmission

9 facilities owned by such company, interstate

10 interexchange telecommunications services

11 that originate and terminate in exchange

12 areas in which the Bell operating company,

13 or an affiliate (as of November 21, 1993) of

14 such company that is a Bell operating com15 pany, provided telephone exchange service

16 on November 21, 1993,

17 (B) except to the extent that an earlier date

18 is available under subparagraph (A), the date

19 that occurs 18 months after the date of the enact20 ment of this Act, with respect to providing

21 interexchange telecommunications services

22 through the acquisition and resale of tele23 communications services,

24 (C) except to the extent that an earlier date

25 is available under subparagraph (A) or (B), the
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1 date that occurs 60 months after the date of the

2 enactment of this Act, with respect to providing

3 any interstate telecommunications, and

4 (D) the date that occurs 66 months after the

5 date of the enactment of this Act, with respect to

6 providing alarm monitoring services.

7 (3) INTERAGENCY NOTIFICATION.—Whenever the

8 Attorney General or the Federal Communications

9 Commission receives an application made under

10 paragraph (1), the recipient of the application shall

11 notify the other of such receipt.

12 (4) PUBLICATION.—Not later than 10 days after

13 receiving an application made under paragraph (1),

14 the Attorney General and the Federal Communica15 tions Commission jointly shall publish the applica16 tion in the Federal Register.

17 (b) SEPARATE DETERMINATIONS BY THE ATTORNEY

18 GENERAL AND THE FEDERAL COMMUNICATIONS COMMIS19 SION.—

20 (1) COMMENT PERIOD.—Not later than 45 days

21 after an application is published under subsection

22 (a)(4), interested persons may submit written com23 ments to the Attorney General, to the Federal Com24 munications Commission, or to both regarding the
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1 application. Submitted comments shall be available to

2 the public.

3 (2) INTERAGENCY CONSULTATION.—Before mak4 ing their respective determinations under paragraph

5 (3), the Attorney General and the Federal Commu6 nications Commission shall consult with each other

7 regarding the application involved.

8 (3) DETERMINATIONS.—(A) After the time for

9 comment under paragraph (1) has expired, but not

10 later than 180 days after receiving an application

11 made under subsection (a)(1), the Attorney General

12 and the Federal Communications Commission each

13 shall issue separately a written determination, on the

14 record after an opportunity for a hearing, with re15 spect to granting the authorization for which the Bell

16 operating company has applied.

17 (B) Such determination shall be based on clear

18 and convincing evidence.

19 (C) Any person who might be injured in its busi20 ness or property as a result of the approval of the au21 thorization requested shall be permitted to participate

22 as a party in the proceeding on which the determina23 tion is based.

24 (D)(i) The Attorney General shall approve the

25 granting of the authorization requested in the appli-
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1 cation only to the extent that the Attorney General

2 finds that there is no substantial possibility that such

3 company or its affiliates could use monopoly power to

4 impede competition in the market such company seeks

5 to enter. The Attorney General shall deny the remain6 der of the requested authorization.

7 (ii) The Federal Communications Commission

8 shall approve the granting of the requested authoriza9 tion only to the extent that the Commission finds that

10 granting the requested authorization is consistent

11 with the public interest, convenience, and necessity.

12 The Commission shall deny the remainder of the re13 quested authorization.

14 (iii) Notwithstanding clauses (i) and (ii), within

15 180 days after the date of the enactment of this Act,

16 the Attorney General and the Federal Communica17 tions Commission shall each prescribe regulations to

18 establish procedures and criteria for the expedited de19 termination and approval of applications to provide

20 interexchange telecommunications services that are

21 incidental to the provision of another service which

22 the Bell operating company may lawfully provide

23 (and that are not described in section 102(c)). In pre24 scribing such regulations, the Attorney General and
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1 the Commission shall consult for the purpose of avoid2 ing inconsistencies in such regulations.

3 (E) In making a determination under subpara4 graph (D)(ii) regarding the public interest, conven5 ience, and necessity, the Commission shall take into

6 account—

7 (i) the probability that granting the re8 quested authorization will secure reduced rates

9 for consumers of the services that are the subject

10 of the application, especially residential subscrib11 ers,

12 (ii) whether granting the requested author13 ization will result in increases in rates for con14 sumers of exchange service,

15 (iii) the extent to which granting the re16 quested authorization will expedite the delivery

17 of new services and products to consumers,

18 (iv) the extent to which the Commission’s

19 regulations or other laws and regulations will

20 preclude the applicant from engaging in preda21 tory pricing or other coercive economic practices

22 with respect to the services that are the subject

23 of the application,

24 (v) the extent to which granting the re25 quested authorization would permit collusive acts
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1 or practices between or among Bell operating

2 companies that are not affiliates of each other,

3 (vi) whether granting the requested author4 ization will result, directly or indirectly, in in5 creasing concentration among providers of the

6 service that is the subject of the application to

7 such an extent that consumers will not be pro8 tected from rates that are unjust or unreasonable

9 or that are unjustly or unreasonably discrimina10 tory, and

11 (vii) in the case of an application to pro12 vide alarm monitoring services, whether the

13 Commission has the capability to enforce effec14 tively the regulations established pursuant to sec15 tion 230 of the Communications Act of 1934 as

16 added by this Act.

17 (F) A determination that approves the granting

18 of any part of a requested authorization shall describe

19 with particularity the nature and scope of each activ20 ity, and of each product market or service market,

21 and each geographic market, to which approval ap22 plies.

23 (4) PUBLICATION.—Not later than 10 days after

24 issuing a determination under paragraph (3), the At25 torney General or the Federal Communications Com-
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1 mission, as the case may be, shall publish in the Fed2 eral Register a brief description of the determination.

3 (5) FINALITY.—A determination made under

4 paragraph (3) shall be final unless a civil action with

5 respect to such determination is timely commenced

6 under subsection (c)(1).

7 (6) AUTHORIZATION GRANTED.—A requested au8 thorization is granted to the extent that—

9 (A)(i) both the Attorney General and the

10 Federal Communications Commission approve

11 under paragraph (3) the granting of the author12 ization, and

13 (ii) neither of their approvals is vacated or

14 reversed as a result of judicial review authorized

15 by subsection (c), or

16 (B) as a result of such judicial review of ei17 ther or both determinations, both the Attorney

18 General and the Federal Communications Com19 mission approve the granting of the requested

20 authorization.

21 (c) JUDICIAL REVIEW.—

22 (1) CIVIL ACTION.—Not later than 45 days after

23 a determination by the Attorney General or the Fed24 eral Communications Commission is published under

25 subsection (b)(4), the Bell operating company that
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1 applied to the Attorney General and the Federal Com2 munications Commission under subsection (a), or any

3 person who might be injured in its business or prop4 erty as a result of the determination regarding such

5 company’s engaging in the activity described in such

6 company’s application, may commence an action in

7 the United States Court of Appeals for the District of

8 Columbia Circuit against the Attorney General or the

9 Federal Communications Commission, as the case

10 may be, for judicial review of the determination re11 garding the application.

12 (2) CERTIFICATION OF RECORD.—As part of the

13 answer to the complaint, the Attorney General or the

14 Federal Communications Commission, as the case

15 may be, shall file in such court a certified copy of the

16 record upon which the determination is based.

17 (3) CONSOLIDATION OF ACTIONS.—The court

18 shall consolidate for review all civil actions com19 menced under this subsection with respect to the ap20 plication.

21 (4) JUDGMENT.—(A) The court shall enter a

22 judgment after reviewing the determination in ac23 cordance with section 706 of title 5 of the United

24 States Code.

25 (B) A judgment—
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1 (i) affirming any part of the determination

2 that approves granting all or part of the re3 quested authorization, or

4 (ii) reversing any part of the determination

5 that denies all or part of the requested authoriza6 tion,

7 shall describe with particularity the nature and scope

8 of each activity, and of each product market or serv9 ice market, and each geographic market, to which the

10 affirmance or reversal applies.

11 SEC. 102. AUTHORIZATION AS PREREQUISITE.

12 (a) PREREQUISITE.—Until a Bell operating company

13 is so authorized in accordance with section 101, it shall

14 be unlawful for such company, directly or through an affili15 ate, to engage in an activity described in section 101(a)(1).

16 (b) GENERAL EXCEPTIONS.—Except in regard to the

17 provision of alarm monitoring services, subsection (a) shall

18 not prohibit a Bell operating company or an affiliate of

19 a Bell operating company from engaging, at any time after

20 the date of the enactment of this Act—

21 (1) in any activity as authorized by an order en22 tered by the United States District Court for the Dis23 trict of Columbia pursuant to section VII or VIII(C)

24 of the Modification of Final Judgment, if—
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1 (A) such order was entered on or before the

2 date of the enactment of this Act, or

3 (B) a request for such authorization was

4 pending before such court on the date of the en5 actment of this Act,

6 (2) in providing interexchange telecommuni7 cations services on an intrastate basis if (A) after the

8 date of enactment of this Act, such telecommuni9 cations have been approved by, or are authorized

10 under the laws of, the State involved, and public no11 tice of the availability of such authority has occurred

12 at least 60 days before the offering of such

13 interexchange telecommunications services, and (B)

14 the Bell operating company is required by regulations

15 prescribed by the Commission and the State, for the

16 services subject to their respective jurisdictions, to pay

17 a nondiscriminatory access charge to the local ex18 change carrier (including itself) that provides the Bell

19 operating company with telephone exchange access,

20 (3) in providing interexchange telecommuni21 cations services through the purchase and resale of

22 telecommunications services obtained from a person

23 who is not an affiliate of such company if—

24 (A) such interexchange telecommunications

25 services originate in any State that, after the
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1 date of the enactment of this Act, approves or

2 authorizes persons that are not affiliates of such

3 company to provide intraexchange toll tele4 communications services in such a manner that

5 customers in such State have the ability to route

6 automatically, without the use of any access

7 code, their intraexchange toll telecommunications

8 to the telecommunications services provider of the

9 customer’s designation from among 2 or more

10 telecommunications services providers (including

11 such company), and

12 (B) not less than 45 days before such

13 company so provides such interexchange tele14 communications services—

15 (i) such company gives public notice of

16 the availability of such approval or author17 ization, and

18 (ii) the Attorney General fails to com19 mence a civil action to enjoin such com20 pany from so providing such interexchange

21 telecommunications services, or

22 (4) in any activity in which the Bell operating

23 company or affiliate was authorized to engage on the

24 date of enactment of this Act, except (A) as specifi25 cally provided in this Act with respect to alarm mon-
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1 itoring and electronic publishing, or (B) as provided

2 in any order of the United States District Court for

3 the District of Columbia that grants only temporary

4 authority.

5 (c) EXCEPTIONS FOR INCIDENTAL SERVICES.—Sub6 section (a) shall not prohibit a Bell operating company or

7 an affiliate of a Bell operating company, at any time after

8 the date of the enactment of this Act—

9 (1) from providing cable service (as such term is

10 defined in section 602 of the Communications Act of

11 1934 (47 U.S.C. 522)) to subscribers,

12 (2) from offering a telecommunications service

13 between exchange areas within a cable system fran14 chise area in a State within which the Bell operating

15 company is not, on the date of enactment of this Act,

16 a provider of telephone exchange service,

17 (3) from offering commercial mobile services

18 within the meaning of section 332(d)(1) of the Com19 munications Act of 1934 (47 U.S.C. 332(d)(1)),

20 (4) from offering a service that permits a cus21 tomer located in one exchange area to retrieve stored

22 information from, or file information for storage in,

23 another exchange area, or
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1 (5) from providing signalling integral to the in2 ternal operation of telephone exchange service net3 works.

4 SEC. 103. LIMITATIONS ON MANUFACTURING AND PROVID5 ING EQUIPMENT.

6 (a) AUTHORIZATION FOR ENTRY.—

7 (1) REQUIRED CONDITIONS.—It shall be unlaw8 ful for a Bell operating company, directly or through

9 an affiliated enterprise, to manufacture or provide

10 telecommunications equipment, or to manufacture

11 customer premises equipment, unless—

12 (A) such company submits to the Attorney

13 General, at any time after the date of the enact14 ment of this Act, the notification described in

15 paragraph (2) and such additional material and

16 information described in such paragraph as the

17 Attorney General may request, and complies

18 with the waiting period specified in paragraph

19 (3), and

20 (B)(i) before the expiration of the waiting

21 period specified in paragraph (3), the Attorney

22 General notifies such company that for purposes

23 of this subsection the Attorney General does not

24 intend to commence such civil action, or
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1 (ii) the Attorney General has not, by the ex2 piration of such waiting period, commenced a

3 civil action to enjoin such company from engag4 ing in the activity described in such notification.

5 (2) NOTIFICATION.—The notification required by

6 paragraph (1) shall be in such form and shall contain

7 such documentary material and information relevant

8 to the proposed activity as is necessary and appro9 priate for the Attorney General to determine whether

10 there is no substantial possibility that such company

11 or its affiliates could use monopoly power to impede

12 competition in the market such company seeks to

13 enter for such activity.

14 (3) WAITING PERIOD.—The waiting period re15 ferred to in paragraph (1) is the 1-year period begin16 ning on the date the notification required by such

17 paragraph is received by the Attorney General.

18 (4) CIVIL ACTION.—Not later than 1 year after

19 receiving a notification required by paragraph (1),

20 the Attorney General may commence a civil action in

21 an appropriate district court of the United States to

22 enjoin the Bell operating company from engaging in

23 the activity described in such notification.

24 (b) EXCEPTION FOR PREVIOUSLY AUTHORIZED AC25 TIVITIES.—Subsection (a) shall not prohibit a Bell operat-
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1 ing company from engaging, at any time after the date of

2 the enactment of this Act—

3 (1) in any activity as authorized by an order en4 tered by the United States District Court for the Dis5 trict of Columbia pursuant to section VII or VIII(C)

6 of the Modification of Final Judgment, if—

7 (A) such order was entered on or before the

8 date of the enactment of this Act, or

9 (B) a request for such authorization was

10 pending before such court on the date of the en11 actment of this Act, or

12 (2) in any activity in which the Bell operating

13 company or affiliate was authorized to engage on the

14 date of enactment of this Act, except (A) as specifi15 cally provided in this Act with respect to alarm mon16 itoring and electronic publishing, or (B) as provided

17 in any order of the United States District Court for

18 the District of Columbia that grants only temporary

19 authority.

20 SEC. 104. ANTICOMPETITIVE TYING ARRANGEMENTS.

21 A Bell operating company with monopoly power in

22 any exchange service market shall not tie (directly or indi23 rectly) in any relevant market the sale of any product or

24 service to the provision of any telecommunications service,

25 if the effect of such tying may be to substantially lessen com-
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1 petition, or to tend to create a monopoly, in any line of

2 commerce.

3 SEC. 105. ENFORCEMENT.

4 (a) EQUITABLE POWERS OF UNITED STATES ATTOR5 NEYS.—It shall be the duty of the several United States at6 torneys, under the direction of the Attorney General, to in7 stitute proceedings in equity in their respective districts to

8 prevent and restrain violations of this Act.

9 (b) CRIMINAL LIABILITY.—Whoever knowingly engages

10 or knowingly attempts to engage in an activity that is pro11 hibited by section 102, 103, or 104 shall be guilty of a fel12 ony, and on conviction thereof, shall be punished to the

13 same extent as a person is punished upon conviction of a

14 violation of section 1 of the Sherman Act (15 U.S.C. 1).

15 (c) PRIVATE RIGHT OF ACTION.—Any person who is

16 injured in its business or property by reason of a violation

17 of this Act—

18 (1) may bring a civil action in any district

19 court of the United States in the district in which the

20 defendant resides or is found or has an agent, without

21 respect to the amount in controversy, and

22 (2) shall recover threefold the damages sustained,

23 and the cost of suit (including a reasonable attorney’s

24 fee).
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1 The court may award under this section, pursuant to a mo2 tion by such person promptly made, simple interest on ac3 tual damages for the period beginning on the date of service

4 of such person’s pleading setting forth a claim under this

5 Act and ending on the date of judgment, or for any shorter

6 period therein, if the court finds that the award of such

7 interest for such period is just in the circumstances.

8 (d) PRIVATE INJUNCTIVE RELIEF.—Any person shall

9 be entitled to sue for and have injunctive relief, in any court

10 of the United States having jurisdiction over the parties,

11 against threatened loss or damage by a violation of this Act,

12 when and under the same conditions and principles as in13 junctive relief is available under section 16 of the Clayton

14 Act (15 U.S.C. 26). In any action under this subsection

15 in which the plaintiff substantially prevails, the court shall

16 award the cost of suit, including a reasonable attorney’s

17 fee, to such plaintiff.

18 (e) JURISDICTION.—(1) Subject to paragraph (2), the

19 courts of the United States shall have exclusive jurisdiction

20 to make determinations with respect to a duty, claim, or

21 right arising under this Act, other than determinations au22 thorized to be made by the Attorney General and the Fed23 eral Communications Commission under section 101(b)(3).
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1 (2) The United States Court of Appeals for the District

2 of Columbia shall have exclusive jurisdiction to review de3 terminations made under section 101(b)(3).

4 (3) No action commenced to assert or enforce a duty,

5 claim, or right arising under this Act shall be stayed pend6 ing any such determination by the Attorney General or the

7 Federal Communications Commission.

8 (f) SUBPOENAS.—In an action commenced under this

9 Act, a subpoena requiring the attendance of a witness at

10 a hearing or a trial may be served at any place within

11 the United States.

12 SEC. 106. DEFINITIONS.

13 For purposes of this title:

14 (1) AFFILIATE.—The term ‘‘affiliate’’ means a

15 person that (directly or indirectly) owns or controls,

16 is owned or controlled by, or is under common owner17 ship or control with, another person. For purposes of

18 this paragraph, to own refers to owning an equity in19 terest (or the equivalent thereof) of more than 50 per20 cent.

21 (2) ALARM MONITORING SERVICES.—The term

22 ‘‘alarm monitoring services’’ means services that de23 tect threats to life, safety, or property, by burglary,

24 fire, vandalism, bodily injury, or other emergency,

25 through the use of devices that transmit signals to a
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1 central point in a customer’s residence, place of busi2 ness, or other fixed premises which—

3 (A) retransmits such signals to a remote

4 monitoring center by means of transmission fa5 cilities of a Bell operating company or its affili6 ates, and

7 (B) serves to alert persons at the monitoring

8 center of the need to inform customers or other

9 persons, or police, fire, rescue, or other security

10 or public safety personnel of the threat at such

11 premises.

12 Such term does not include medical monitoring de13 vices attached to individuals for the automatic sur14 veillance of ongoing medical conditions.

15 (3) ANTITRUST LAWS.—The term ‘‘antitrust

16 laws’’ has the meaning given it in subsection (a) of

17 the first section of the Clayton Act (15 U.S.C. 12(a)),

18 except that such term includes the Act of June 19,

19 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.), commonly

20 known as the Robinson Patman Act, and section 5 of

21 the Federal Trade Commission Act (15 U.S.C. 45) to

22 the extent that such section 5 applies to unfair meth23 ods of competition.

24 (4) BELL OPERATING COMPANY.—The term ‘‘Bell

25 operating company’’ means—
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1 (A) Bell Telephone Company of Nevada, Il2 linois Bell Telephone Company, Indiana Bell

3 Telephone Company, Incorporated, Michigan

4 Bell Telephone Company, New England Tele5 phone and Telegraph Company, New Jersey Bell

6 Telephone Company, New York Telephone Com7 pany, U S West Communications Company,

8 South Central Bell Telephone Company, South9 ern Bell Telephone and Telegraph Company,

10 Southwestern Bell Telephone Company, The Bell

11 Telephone Company of Pennsylvania, The Chesa12 peake and Potomac Telephone Company, The

13 Chesapeake and Potomac Telephone Company of

14 Maryland, The Chesapeake and Potomac Tele15 phone Company of Virginia, The Chesapeake

16 and Potomac Telephone Company of West Vir17 ginia, The Diamond State Telephone Company,

18 The Ohio Bell Telephone Company, The Pacific

19 Telephone and Telegraph Company, or Wiscon20 sin Telephone Company, or

21 (B) any successor or assign of any such

22 company.

23 (5) CUSTOMER PREMISES EQUIPMENT.—The

24 term ‘‘customer premises equipment’’ means equip25 ment employed on the premises of a person (other
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1 than a person engaged in the business of providing a

2 telecommunications service) to originate, route, or ter3 minate telecommunications, and includes software in4 tegral to such equipment.

5 (6) ELECTRONIC PUBLISHING.—The term ‘‘elec6 tronic publishing’’ means the provision via tele7 communications, by a Bell operating company or an

8 affiliate of such company to a person other than an

9 affiliate of such company, of information—

10 (A) which such company or affiliate has, or

11 has caused to be, originated, authored, compiled,

12 collected, or edited, or

13 (B) in which such company or affiliate has

14 a direct or indirect financial or proprietary

15 interest.

16 (7) EXCHANGE AREA.—The term ‘‘exchange

17 area’’ means a contiguous geographic area established

18 by a Bell operating company such that no exchange

19 area includes points within more than 1 metropolitan

20 statistical area, consolidated metropolitan statistical

21 area, or State, except as expressly permitted under the

22 Modification of Final Judgment before the date of the

23 enactment of this Act.
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1 (8) EXCHANGE SERVICE.—The term ‘‘exchange

2 service’’ means a telecommunications service provided

3 within an exchange area.

4 (9) INFORMATION.—The term ‘‘information’’

5 means knowledge or intelligence represented by any

6 form of writing, signs, signals, pictures, sounds, or

7 other symbols.

8 (10) INTEREXCHANGE TELECOMMUNICATIONS

9 SERVICES.—The term ‘‘interexchange telecommuni10 cations services’’ means a telecommunications service

11 between a point located in an exchange area and a

12 point located outside such exchange area. Such term

13 does not include alarm monitoring services or elec14 tronic publishing.

15 (11) MODIFICATION OF FINAL JUDGMENT.—The

16 term ‘‘Modification of Final Judgment’’ means the

17 order entered August 24, 1982, in the antitrust action

18 styled United States v. Western Electric, Civil Action

19 No. 82–0192, in the United States District Court for

20 the District of Columbia, and includes any judgment

21 or order with respect to such action entered on or

22 after August 24, 1982.

23 (12) PERSON.—The term ‘‘person’’ has the mean24 ing given it in subsection (a) of the first section of the

25 Clayton Act (15 U.S.C. 12(a)).
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1 (13) TELECOMMUNICATIONS.—The term ‘‘tele2 communications’’ means the transmission of informa3 tion between points by electromagnetic means.

4 (14) TELECOMMUNICATIONS EQUIPMENT.—The

5 term ‘‘telecommunications equipment’’ means equip6 ment, other than customer premises equipment, used

7 to provide a telecommunications service, and includes

8 software integral to such equipment.

9 (15) TELECOMMUNICATIONS SERVICE.—The term

10 ‘‘telecommunications service’’ means the offering for

11 hire of transmission facilities or of telecommuni12 cations by means of such facilities. Such term does

13 not include alarm monitoring services or electronic

14 publishing.

15 (16) TRANSMISSION FACILITIES.—The term

16 ‘‘transmission facilities’’ means equipment (including

17 wire, cable, microwave, satellite, and fiber-optics) that

18 transmits information by electromagnetic means or

19 that directly supports such transmission, but does not

20 include customer premises equipment.

21 SEC. 107. RELATIONSHIP TO OTHER LAWS.

22 (a) MODIFICATION OF FINAL JUDGMENT.—This Act

23 shall supersede the Modification of Final Judgment, except

24 that this Act shall not affect—
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1 (1) section I of the Modification of Final Judg2 ment, relating to AT&T reorganization,

3 (2) section II(A) (including Appendix B) and

4 II(B) of the Modification of Final Judgment, relating

5 to equal access and nondiscrimination,

6 (3) section IV(F) and IV(I) of the Modification

7 of Final Judgment, with respect to the requirements

8 included in the definitions of ‘‘exchange access’’ and

9 ‘‘information access’’,

10 (4) section VIII(B) of the Modification of Final

11 Judgment, relating to printed advertising directories,

12 (5) section VIII(E) of the Modification of Final

13 Judgment, relating to notice to customers of AT&T,

14 (6) section VIII(F) of the Modification of Final

15 Judgment, relating to less than equal exchange access,

16 (7) section VIII(G) of the Modification of Final

17 Judgment, relating to transfer of AT&T assets, in18 cluding all exceptions granted thereunder before the

19 date of the enactment of this Act,

20 (8) with respect to the parts of the Modification

21 of Final Judgment described in paragraphs (1)

22 through (7)—

23 (A) section III of the Modification of Final

24 Judgment, relating to applicability,
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1 (B) section IV of the Modification of Final

2 Judgment, relating to definitions,

3 (C) section V of the Modification of Final

4 Judgment, relating to compliance,

5 (D) section VI of the Modification of Final

6 Judgment, relating to visitorial provisions,

7 (E) section VII of the Modification of Final

8 Judgment, relating to retention of jurisdiction,

9 and

10 (F) section VIII(I) of the Modification of

11 Final Judgment, relating to the court’s sua

12 sponte authority.

13 (b) ANTITRUST LAWS.—Nothing in this Act shall be

14 construed to modify, impair, or supersede the applicability

15 of any other antitrust law.

16 (c) FEDERAL, STATE, AND LOCAL LAW.—(1) Except

17 as provided in paragraph (2), this Act shall not be con18 strued to modify, impair, or supersede Federal, State, or

19 local law unless expressly so provided in this Act.

20 (2) This Act shall supersede State and local law to the

21 extent that such law would impair or prevent the operation

22 of this Act.

23 (d) CUMULATIVE PENALTY.—Any penalty imposed, or

24 relief granted, under this Act shall be in addition to, and

25 not in lieu of, any penalty or relief authorized by any other
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1 law to be imposed with respect to conduct described in this

2 Act.

3 SEC. 108. AMENDMENT TO DEFINITION OF ANTITRUST

4 LAWS APPEARING IN THE CLAYTON ACT.

5 Subsection (a) of the first section of the Clayton Act

6 (15 U.S.C. 12(a)) is amended by inserting ‘‘title I of the

7 Antitrust and Communications Reform Act of 1994;’’ after

8 ‘‘thirteen;’’.

9 TITLE II—REGULATION OF MAN10 UFACTURING, ALARM SERV11 ICES AND ELECTRONIC PUB12 LISHING BY BELL OPERATING

13 COMPANIES

14 SEC. 201. REGULATION OF MANUFACTURING BY BELL OP15 ERATING COMPANIES.

16 Title II of the Communications Act of 1934 (47 U.S.C.

17 201 et seq.) is amended by adding at the end the following

18 new section:

19 ‘‘SEC. 229. REGULATION OF MANUFACTURING BY BELL

20 OPERATING COMPANIES.

21 ‘‘(a) GENERAL AUTHORITY.—Subject to the require22 ments of this section and the regulations prescribed there23 under, but notwithstanding any restriction or obligation

24 imposed before the date of enactment of this section pursu25 ant to the Modification of Final Judgment on the lines of
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1 business in which a Bell operating company may engage,

2 a Bell operating company, through an affiliate of that com3 pany, may manufacture and provide telecommunications

4 equipment and manufacture customer premises equipment.

5 ‘‘(b) SEPARATE MANUFACTURING AFFILIATE.—Any

6 manufacturing or provision authorized under subsection (a)

7 shall be conducted only through an affiliate that is separate

8 from any Bell operating company.

9 ‘‘(c) COMMISSION REGULATION OF MANUFACTURING

10 AFFILIATE.—

11 ‘‘(1) REGULATIONS REQUIRED.—The Commis12 sion shall prescribe regulations to ensure that Bell op13 erating companies and their affiliates comply with

14 the requirements of this section.

15 ‘‘(2) BOOKS, RECORDS, ACCOUNTS.—A manufac16 turing affiliate required by subsection (b) shall—

17 ‘‘(A) maintain books, records, and accounts

18 that are separate from the books, records, and ac19 counts of its affiliated Bell operating company

20 and that identify all financial transactions be21 tween the manufacturing affiliate and its affili22 ated Bell operating company, and

23 ‘‘(B) even if such manufacturing affiliate is

24 not a publicly held corporation, prepare finan25 cial statements which are in compliance with fi-
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1 nancial reporting requirements under the Fed2 eral securities laws for publicly held corpora3 tions, file such statements with the Commission,

4 and make such statements available for public

5 inspection.

6 ‘‘(3) IN-KIND BENEFITS TO AFFILIATE.—Consist7 ent with the provisions of this section, neither a Bell

8 operating company nor any of its nonmanufacturing

9 affiliates shall perform sales, advertising, installation,

10 production, or maintenance operations for a manu11 facturing affiliate, except that—

12 ‘‘(A) a Bell operating company and its

13 nonmanufacturing affiliates may sell, advertise,

14 install, and maintain telecommunications equip15 ment and customer premises equipment after ac16 quiring such equipment from their manufactur17 ing affiliate; and

18 ‘‘(B) institutional advertising, of a type not

19 related to specific telecommunications equip20 ment, carried out by the Bell operating company

21 or its affiliates, shall be permitted.

22 ‘‘(4) DOMESTIC MANUFACTURING REQUIRED.—

23 ‘‘(A) GENERAL RULE.—A manufacturing

24 affiliate required by subsection (b) shall conduct

25 all of its manufacturing within the United
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1 States and, except as otherwise provided in this

2 paragraph, all component parts of customer

3 premises equipment manufactured by such affili4 ate, and all component parts of telecommuni5 cations equipment manufactured by such affili6 ate, shall have been manufactured within the

7 United States.

8 ‘‘(B) EXCEPTION.—Such affiliate may use

9 component parts manufactured outside the Unit10 ed States if—

11 ‘‘(i) such affiliate first makes a good

12 faith effort to obtain equivalent component

13 parts manufactured within the United

14 States at reasonable prices, terms, and con15 ditions; and

16 ‘‘(ii) for the aggregate of telecommuni17 cations equipment and customer premises

18 equipment manufactured and sold in the

19 United States by such affiliate, the cost of

20 the components manufactured outside the

21 United States contained in all such equip22 ment does not exceed 40 percent of the sales

23 revenue derived in any calendar year from

24 such equipment.
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1 ‘‘(C) CERTIFICATION REQUIRED.—Any such

2 affiliate that uses component parts manufactured

3 outside the United States in the manufacture of

4 telecommunications equipment and customer

5 premises equipment within the United States

6 shall—

7 ‘‘(i) certify to the Commission that a

8 good faith effort was made to obtain equiva9 lent parts manufactured within the United

10 States at reasonable prices, terms, and con11 ditions, which certification shall be filed on

12 a quarterly basis with the Commission and

13 list component parts, by type, manufactured

14 outside the United States; and

15 ‘‘(ii) certify to the Commission on an

16 annual basis that such affiliate complied

17 with the requirements of subparagraph

18 (B)(ii), as adjusted in accordance with sub19 paragraph (G).

20 ‘‘(D) REMEDIES FOR FAILURES.—(i) If the

21 Commission determines, after reviewing the cer22 tification required in subparagraph (C)(i), that

23 such affiliate failed to make the good faith effort

24 required in subparagraph (B)(i) or, after review25 ing the certification required in subparagraph
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1 (C)(ii), that such affiliate has exceeded the per2 centage specified in subparagraph (B)(ii), the

3 Commission may impose penalties or forfeitures

4 as provided for in title V of this Act.

5 ‘‘(ii) Any supplier claiming to be damaged

6 because a manufacturing affiliate failed to make

7 the good faith effort required in subparagraph

8 (B)(i) may make complaint to the Commission

9 as provided for in section 208 of this Act, or

10 may bring suit for the recovery of actual dam11 ages for which such supplier claims such affiliate

12 may be liable under the provisions of this Act in

13 any district court of the United States of com14 petent jurisdiction.

15 ‘‘(E) ANNUAL REPORT.—The Commission,

16 in consultation with the Secretary of Commerce,

17 shall, on an annual basis, determine the cost of

18 component parts manufactured outside the Unit19 ed States contained in all telecommunications

20 equipment and customer premises equipment

21 sold in the United States as a percentage of the

22 revenues from sales of such equipment in the pre23 vious calendar year.

24 ‘‘(F) USE OF INTELLECTUAL PROPERTY IN

25 MANUFACTURE.—Notwithstanding subparagraph
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1 (A), a manufacturing affiliate may use intellec2 tual property created outside the United States

3 in the manufacture of telecommunications equip4 ment and customer premises equipment in the

5 United States. A component manufactured using

6 such intellectual property shall not be treated for

7 purposes of subparagraph (B)(ii) as a compo8 nent manufactured outside the United States

9 solely on the basis of the use of such intellectual

10 property.

11 ‘‘(G) RESTRICTIONS ON COMMISSION AU12 THORITY.—The Commission may not waive or

13 alter the requirements of this paragraph, except

14 that the Commission, on an annual basis, shall

15 adjust the percentage specified in subparagraph

16 (B)(ii) to the percentage determined by the Com17 mission, in consultation with the Secretary of

18 Commerce, pursuant to subparagraph (E).

19 ‘‘(5) INSULATION OF RATE PAYERS FROM MANU20 FACTURING AFFILIATE DEBT.—Any debt incurred by

21 any such manufacturing affiliate may not be issued

22 by its affiliated Bell operating company and such

23 manufacturing affiliate shall be prohibited from in24 curring debt in a manner that would permit a credi-
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1 tor, on default, to have recourse to the assets of its af2 filiated Bell operating company.

3 ‘‘(6) RELATION TO OTHER AFFILIATES.—A man4 ufacturing affiliate required by subsection (b) shall

5 not be required to operate separately from the other

6 affiliates of its affiliated Bell operating company, but

7 if an affiliate of a Bell operating company becomes

8 affiliated with a manufacturing entity, such affiliate

9 shall be treated as a manufacturing affiliate of that

10 Bell operating company (except for purposes of sub11 section (c)(3)) and shall comply with the requirements

12 of this section.

13 ‘‘(7) AVAILABILITY OF EQUIPMENT TO OTHER

14 CARRIERS.—A manufacturing affiliate required by

15 subsection (b) shall make available, without discrimi16 nation or preference as to price, delivery, terms, or

17 conditions, to any common carrier any telecommuni18 cations equipment that is used in the provision of

19 telephone exchange service and that is manufactured

20 by such affiliate only if such purchasing carrier—

21 ‘‘(A) does not manufacture telecommuni22 cations equipment, and does not have an affili23 ated telecommunications equipment manufactur24 ing entity; or
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1 ‘‘(B) agrees to make available, to the Bell

2 operating company affiliated with such manu3 facturing affiliate or any common carrier affili4 ate of such Bell operating company, any tele5 communications equipment that is used in the

6 provision of telephone exchange service and that

7 is manufactured by such purchasing carrier or

8 by any entity or organization with which such

9 purchasing carrier is affiliated.

10 ‘‘(8) SALES PRACTICES OF MANUFACTURING AF11 FILIATES.—

12 ‘‘(A) PROHIBITION OF DISCONTINUATION OF

13 EQUIPMENT FOR WHICH THERE IS REASONABLE

14 DEMAND.—A manufacturing affiliate required by

15 subsection (b) shall not discontinue or restrict

16 sales to a common carrier of any telecommuni17 cations equipment that is used in the provision

18 of telephone exchange service and that such affili19 ate manufactures for sale as long as there is rea20 sonable demand for the equipment by such car21 riers; except that such sales may be discontinued

22 or restricted if such manufacturing affiliate dem23 onstrates to the Commission that it is not mak24 ing a profit, under a marginal cost standard im-
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1 plemented by the Commission by regulation, on

2 the sale of such equipment.

3 ‘‘(B) DETERMINATIONS OF REASONABLE

4 DEMAND.—Within 60 days after receipt of an

5 application under subparagraph (A), the Com6 mission shall reach a determination as to the ex7 istence of reasonable demand for purposes of such

8 subparagraph. In making such determination the

9 Commission shall consider—

10 ‘‘(i) whether the continued manufac11 ture of the equipment will be profitable;

12 ‘‘(ii) whether the equipment is func13 tionally or technologically obsolete;

14 ‘‘(iii) whether the components nec15 essary to manufacture the equipment con16 tinue to be available;

17 ‘‘(iv) whether alternatives to the equip18 ment are available in the market; and

19 ‘‘(v) such other factors as the Commis20 sion deems necessary and proper.

21 ‘‘(9) JOINT PLANNING OBLIGATIONS.—Each Bell

22 operating company shall, consistent with the antitrust

23 laws, engage in joint network planning and design

24 with other contiguous common carriers providing tele25 phone exchange service, but agreement with such other
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1 carriers shall not be required as a prerequisite for the

2 introduction or deployment of services pursuant to

3 such joint network planning and design.

4 ‘‘(d) INFORMATION REQUIREMENTS.—

5 ‘‘(1) FILING OF INFORMATION ON PROTOCOLS

6 AND TECHNICAL REQUIREMENTS.—Each Bell operat7 ing company shall, in accordance with regulations

8 prescribed by the Commission, maintain and file with

9 the Commission full and complete information with

10 respect to the protocols and technical requirements for

11 connection with and use of its telephone exchange

12 service facilities. Each such company shall report

13 promptly to the Commission any material changes or

14 planned changes to such protocols and requirements,

15 and the schedule for implementation of such changes

16 or planned changes.

17 ‘‘(2) FILING AS PREREQUISITE TO DISCLOSURE

18 TO AFFILIATE.—A Bell operating company shall not

19 disclose to any of its affiliates any information re20 quired to be filed under paragraph (1) unless that in21 formation is filed promptly, as required by regulation

22 by the Commission.

23 ‘‘(3) ACCESS BY COMPETITORS TO INFORMA24 TION.—The Commission may prescribe such addi25 tional regulations under this subsection as may be
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1 necessary to ensure that manufacturers in competi2 tion with a Bell operating company’s manufacturing

3 affiliate have access to the information with respect to

4 the protocols and technical requirements for connec5 tion with and use of its telephone exchange service fa6 cilities required for such competition that such com7 pany makes available to its manufacturing affiliate.

8 ‘‘(4) PLANNING INFORMATION.—Each Bell oper9 ating company shall provide, to contiguous common

10 carriers providing telephone exchange service, timely

11 information on the planned deployment of tele12 communications equipment.

13 ‘‘(e) ADDITIONAL COMPETITION REQUIREMENTS.—The

14 Commission shall prescribe regulations requiring that any

15 Bell operating company which has an affiliate that engages

16 in any manufacturing authorized by subsection (a) shall—

17 ‘‘(1) provide, to other manufacturers of tele18 communications equipment and customer premises

19 equipment that is functionally equivalent to equip20 ment manufactured by the Bell operating company

21 manufacturing affiliate, opportunities to sell such

22 equipment to such Bell operating company which are

23 comparable to the opportunities which such Company

24 provides to its affiliates; and
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1 ‘‘(2) not subsidize its manufacturing affiliate

2 with revenues from telephone exchange service or tele3 phone toll service.

4 ‘‘(f) COLLABORATION PERMITTED.—Nothing in this

5 section (other than subsection (l)) shall be construed to limit

6 or restrict the ability of a Bell operating company and its

7 affiliates to engage in close collaboration with any manu8 facturer of customer premises equipment or telecommuni9 cations equipment during the design and development of

10 hardware, software, or combinations thereof related to such

11 equipment.

12 ‘‘(g) ACCESSIBILITY REQUIREMENTS.—

13 ‘‘(1) MANUFACTURING.—The Commission shall,

14 within 1 year after the date of enactment of this sec15 tion, prescribe such regulations as are necessary to

16 ensure that telecommunications equipment and cus17 tomer premises equipment designed, developed, and

18 fabricated pursuant to the authority granted in this

19 section shall be accessible and usable by individuals

20 with disabilities, including individuals with func21 tional limitations of hearing, vision, movement, ma22 nipulation, speech, and interpretation of information,

23 unless the costs of making the equipment accessible

24 and usable would result in an undue burden or an

25 adverse competitive impact.
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1 ‘‘(2) NETWORK SERVICES.—The Commission

2 shall, within 1 year after the date of enactment of this

3 section, prescribe such regulations as are necessary to

4 ensure that advances in network services deployed by

5 a Bell operating company shall be accessible and usa6 ble by individuals whose access might otherwise be

7 impeded by a disability or functional limitation, un8 less the costs of making the services accessible and us9 able would result in an undue burden or adverse com10 petitive impact. Such regulations shall seek to permit

11 the use of both standard and special equipment and

12 seek to minimize the need of individuals to acquire

13 additional devices beyond those used by the general

14 public to obtain such access.

15 ‘‘(3) COMPATIBILITY.—The regulations pre16 scribed under paragraphs (1) and (2) shall require

17 that whenever an undue burden or adverse competi18 tive impact would result from the manufacturing or

19 network services requirements in such paragraphs, the

20 manufacturing affiliate that designs, develops, or fab21 ricates the equipment or the Bell operating company

22 that deploys the network service shall ensure that the

23 equipment or network service in question is compat24 ible with existing peripheral devices or specialized

25 customer premises equipment commonly used by per-
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1 sons with disabilities to achieve access, unless doing

2 so would result in an undue burden or adverse com3 petitive impact.

4 ‘‘(4) DEFINITIONS.—As used in this subsection:

5 ‘‘(A) UNDUE BURDEN.—The term ‘undue

6 burden’ means significant difficulty or expense.

7 In determining whether an activity would result

8 in an undue burden, the following factors shall

9 be considered:

10 ‘‘(i) the nature and cost of the activity;

11 ‘‘(ii) the impact on the operation of the

12 facility involved in the manufacturing of

13 the equipment or deployment of the network

14 service;

15 ‘‘(iii) the financial resources of the

16 manufacturing affiliate in the case of man17 ufacturing of equipment, for as long as ap18 plicable regulatory rules prohibit cross-sub19 sidization of equipment manufacturing with

20 revenues from regulated telecommunications

21 service or when the manufacturing activities

22 are conducted in a separate subsidiary;

23 ‘‘(iv) the financial resources of the Bell

24 operating company in the case of network

25 services, or in the case of manufacturing of
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1 equipment if applicable regulatory rules

2 permit cross-subsidization of equipment

3 manufacturing with revenues from regu4 lated telecommunications services and the

5 manufacturing activities are not conducted

6 in a separate subsidiary; and

7 ‘‘(v) the type of operation or operations

8 of the manufacturing affiliate or Bell oper9 ating company as applicable.

10 ‘‘(B) ADVERSE COMPETITIVE IMPACT.—In

11 determining whether the activity would result in

12 an adverse competitive impact, the following fac13 tors shall be considered:

14 ‘‘(i) whether such activity would raise

15 the cost of the equipment or network service

16 in question beyond the level at which there

17 would be sufficient consumer demand by the

18 general population to make the equipment

19 or network service profitable; and

20 ‘‘(ii) whether such activity would, with

21 respect to the equipment or network service

22 in question, put the manufacturing affiliate

23 or Bell operating company, as applicable,

24 at a competitive disadvantage in compari25 son with one or more providers of one or
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1 more competing products and services. This

2 factor may only be considered so long as

3 competing manufacturers and network serv4 ice providers are not held to the same obli5 gation with respect to access by persons

6 with disabilities.

7 ‘‘(C) ACTIVITY.—For the purposes of this

8 paragraph, the term ‘activity’ includes—

9 ‘‘(i) the research, design, development,

10 deployment, and fabrication activities nec11 essary to comply with the requirements of

12 this section; and

13 ‘‘(ii) the acquisition of the related ma14 terials and equipment components.

15 ‘‘(5) EFFECTIVE DATE.—The regulations re16 quired by this subsection shall become effective 18

17 months after the date of enactment of this section.

18 ‘‘(h) PUBLIC NETWORK ENHANCEMENT.—A Bell oper19 ating company manufacturing affiliate shall, as a part of

20 its overall research and development effort, establish a per21 manent program for manufacturing research and develop22 ment of products and applications for the enhancement of

23 the public switched telephone network and to promote public

24 access to advanced telecommunications services. Such pro25 gram shall focus its work substantially on developing tech-
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1 nological advancements in public telephone network appli2 cations, telecommunication equipment and products, and

3 access solutions to new services and technology, including

4 access by (1) public institutions, including educational and

5 health care institutions; and (2) people with disabilities

6 and functional limitations. Notwithstanding the limita7 tions in subsection (a), a Bell operating company and its

8 affiliates may engage in such a program in conjunction

9 with a Bell operating company not so affiliated or any of

10 its affiliates. The existence or establishment of such a pro11 gram that is jointly provided by manufacturing affiliates

12 of Bell operating companies shall satisfy the requirements

13 of this section as it pertains to all such affiliates of a Bell

14 operating company.

15 ‘‘(i) ADDITIONAL RULES AUTHORIZED.—The Commis16 sion may prescribe such additional rules and regulations

17 as the Commission determines necessary to carry out the

18 provisions of this section. The Commission shall prescribe

19 regulations to implement this section within 270 days after

20 the date of enactment of this section.

21 ‘‘(j) ADMINISTRATION AND ENFORCEMENT AUTHOR22 ITY.—

23 ‘‘(1) COMMISSION REGULATORY AUTHORITY.—

24 For the purposes of administering and enforcing the

25 provisions of this section and the regulations pre-
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1 scribed thereunder, the Commission shall have the

2 same authority, power, and functions with respect to

3 any Bell operating company or any affiliate thereof

4 as the Commission has in administering and enforc5 ing the provisions of this title with respect to any

6 common carrier subject to this Act.

7 ‘‘(2) PRIVATE ACTIONS.—Any common carrier

8 that provides telephone exchange service and that is

9 injured by an act or omission of a Bell operating

10 company or its manufacturing affiliate which violates

11 the requirements of paragraph (7) or (8) of subsection

12 (c), or the Commission’s regulations implementing

13 such paragraphs, may initiate an action in a district

14 court of the United States to recover the full amount

15 of damages sustained in consequence of any such vio16 lation and obtain such orders from the court as are

17 necessary to terminate existing violations and to pre18 vent future violations; or such regulated local tele19 phone exchange carrier may seek relief from the Com20 mission pursuant to sections 206 through 209.

21 ‘‘(k) EXISTING MANUFACTURING AUTHORITY.—Noth22 ing in this section shall prohibit any Bell operating com23 pany from engaging, directly or through any affiliate, in

24 any manufacturing activity in which any Bell operating
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1 company or affiliate was authorized to engage on the date

2 of enactment of this section.

3 ‘‘(l) ANTITRUST LAWS.—Nothing in this section shall

4 be construed to modify, impair, or supersede the applicabil5 ity of any of the antitrust laws.

6 ‘‘(m) DEFINITIONS.—As used in this section:

7 ‘‘(1) The term ‘affiliate’ means any organization

8 or entity that, directly or indirectly, owns or controls,

9 is owned or controlled by, or is under common owner10 ship with a Bell operating company. The terms

11 ‘owns’, ‘owned’, and ‘ownership’ mean an equity in12 terest of more than 10 percent.

13 ‘‘(2) The term ‘Bell operating company’ means

14 those companies listed in appendix A of the Modifica15 tion of Final Judgment, and includes any successor

16 or assign of any such company, but does not include

17 any affiliate of any such company.

18 ‘‘(3) The term ‘customer premises equipment’

19 means equipment employed on the premises of a per20 son (other than a carrier) to originate, route, or ter21 minate telecommunications.

22 ‘‘(4) The term ‘manufacturing’ has the same

23 meaning as such term has in the Modification of

24 Final Judgment.
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1 ‘‘(5) The term ‘manufacturing affiliate’ means

2 an affiliate of a Bell operating company established

3 in accordance with subsection (b) of this section.

4 ‘‘(6) The term ‘Modification of Final Judgment’

5 means the decree entered August 24, 1982, in United

6 States v. Western Electric Civil Action No. 82–0192

7 (United States District Court, District of Columbia),

8 and includes any judgment or order with respect to

9 such action entered on or after August 24, 1982, and

10 before the date of enactment of this section.

11 ‘‘(7) The term ‘telecommunications’ means the

12 transmission, between or among points specified by

13 the user, of information of the user’s choosing, without

14 change in the form or content of the information as

15 sent and received, by means of an electromagnetic

16 transmission medium, including all instrumentalities,

17 facilities, apparatus, and services (including the col18 lection, storage, forwarding, switching, and delivery

19 of such information) essential to such transmission.

20 ‘‘(8) The term ‘telecommunications equipment’

21 means equipment, other than customer premises

22 equipment, used by a carrier to provide telecommuni23 cations services, and includes software integral to

24 such equipment (including upgrades).
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1 ‘‘(9) The term ‘telecommunications service’

2 means the offering for hire of telecommunications fa3 cilities, or of telecommunications by means of such fa4 cilities.’’.

5 SEC. 202. REGULATION OF ENTRY INTO ALARM MONITOR6 ING SERVICES.

7 (a) AMENDMENT.—Title II of the Communications Act

8 is amended by adding at the end the following new section:

9 ‘‘SEC. 230. REGULATION OF ENTRY INTO ALARM MONITOR10 ING SERVICES.

11 ‘‘(a) REGULATIONS REQUIRED.—The Commission

12 shall prescribe regulations—

13 ‘‘(1) to establish such requirements, limitations,

14 or conditions as are (A) necessary and appropriate in

15 the public interest with respect to the provision of

16 alarm monitoring services by Bell operating compa17 nies and their affiliates, and (B) effective at such

18 time as a Bell operating company or any of its affili19 ates is authorized to provide alarm monitoring serv20 ices;

21 ‘‘(2) to prohibit Bell operating companies and

22 their affiliates, at that or any earlier time after the

23 date of enactment of this section, from recording in

24 any fashion the occurrence or the contents of calls re25 ceived by providers of alarm monitoring services for
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1 the purposes of marketing such services on behalf of

2 the Bell operating company, any of its affiliates, or

3 any other entity; and

4 ‘‘(3) to establish procedures for the receipt and

5 review of complaints concerning violations by such

6 companies of such regulations, or of any other provi7 sion of this Act or the regulations thereunder, that re8 sult in material financial harm to a provider of

9 alarm monitoring services.

10 ‘‘(b) EXPEDITED CONSIDERATION OF COMPLAINTS.—

11 The procedures established under subsection (a)(3) shall en12 sure that the Commission will make a final determination

13 with respect to any complaint described in such subsection

14 within 120 days after receipt of the complaint. If the com15 plaint contains an appropriate showing that the alleged

16 violation occurred, as determined by the Commission in ac17 cordance with such regulations, the Commission shall, with18 in 60 days after receipt of the complaint, issue a cease and

19 desist order to prevent the Bell operating company and its

20 affiliates from continuing to engage in such violation pend21 ing such final determination.

22 ‘‘(c) REMEDIES.—The Commission may use any rem23 edy available under title V of this Act to terminate and

24 punish violations described in subsection (a)(2). Such rem25 edies may include, if the Commission determines that such
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1 violation was willful or repeated, ordering the Bell operat2 ing company to cease offering alarm monitoring services.

3 ‘‘(d) RULEMAKING SCHEDULE.—The Commission

4 shall prescribe the regulations required by subsection (a)(2)

5 within 180 days after the date of enactment of this section

6 and shall prescribe the regulations required by subsection

7 (a)(1) and (a)(3) prior to the date on which any Bell oper8 ating company may commence providing alarm monitoring

9 services pursuant to title I of the Antitrust and Commu10 nication Reform Act of 1994.

11 ‘‘(e) DEFINITIONS.—

12 ‘‘(1) IN GENERAL.—As used in this section, the

13 terms ‘Bell operating company’, ‘affiliate’, and

14 ‘alarm monitoring services’ have the meanings pro15 vided in section 106 of the Antitrust and Commu16 nication Reform Act of 1994.

17 ‘‘(2) AFFILIATE.—The term ‘affiliate’ means a

18 person that (directly or indirectly) owns or controls,

19 is owned or controlled by, or is under common owner20 ship or control with, another person. For purposes of

21 this paragraph, to own refers to owning an equity in22 terest (or the equivalent thereof) of more than 10 per23 cent.’’.
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1 SEC. 203. REGULATION OF ELECTRONIC PUBLISHING.

2 Title II of the Communications Act of 1934 (47 U.S.C.

3 201 et seq.) is amended by adding at the end thereof the

4 following new section:

5 ‘‘SEC. 231. REGULATION OF ELECTRONIC PUBLISHING.

6 ‘‘(a) IN GENERAL.—

7 ‘‘(1) PROHIBITION.—A Bell operating company

8 and any affiliate shall not engage in the provision of

9 electronic publishing that is disseminated by means of

10 such Bell operating company’s or any of its affiliates’

11 basic telephone service.

12 ‘‘(2) PERMITTED ACTIVITIES OF SEPARATED AF13 FILIATE.—Nothing in this section shall prohibit a

14 separated affiliate or electronic publishing joint ven15 ture from engaging in the provision of electronic pub16 lishing or any other lawful service in any area.

17 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in this

18 section shall prohibit a Bell operating company or af19 filiate from engaging in the provision of any lawful

20 service other than electronic publishing in any area

21 or from engaging in the provision of electronic pub22 lishing that is not disseminated by means of such Bell

23 operating company’s or any of its affiliates’ basic

24 telephone service.
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1 ‘‘(b) SEPARATED AFFILIATE OR ELECTRONIC PUB2 LISHING JOINT VENTURE REQUIREMENTS.—A separated

3 affiliate or electronic publishing joint venture shall—

4 ‘‘(1) maintain books, records, and accounts that

5 are separate from those of the Bell operating company

6 and from any affiliate and that record in accordance

7 with generally accepted accounting principles all

8 transactions, whether direct or indirect, with the Bell

9 operating company;

10 ‘‘(2) not incur debt in a manner that would per11 mit a creditor upon default to have recourse to the as12 sets of the Bell operating company;

13 ‘‘(3) prepare financial statements that are not

14 consolidated with those of the Bell operating company

15 or an affiliate, provided that consolidated statements

16 may also be prepared;

17 ‘‘(4) file with the Commission annual reports in

18 a form substantially equivalent to the Form 10–K re19 quired by regulations of the Securities and Exchange;

20 ‘‘(5) after 1 year from the effective date of this

21 section, not hire as corporate officers sales and mar22 keting management personnel whose responsibilities

23 at the separated affiliate or electronic publishing joint

24 venture will include the geographic area where the

25 Bell operating company provides basic telephone serv-
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1 ice, or network operations personnel whose respon2 sibilities at the separated affiliate or electronic pub3 lishing joint venture would require dealing directly

4 with the Bell operating company, any person who

5 was employed by the Bell operating company during

6 the year preceding their date of hire, provided that

7 this requirement shall not apply to persons subject to

8 a collective bargaining agreement that gives such per9 sons rights to be employed by a separated affiliate or

10 electronic publishing joint venture of the Bell operat11 ing company;

12 ‘‘(6) not provide any wireline telephone exchange

13 service in any telephone exchange area where a Bell

14 operating company with which it is under common

15 ownership or control provides basic telephone ex16 change service except on a resale basis;

17 ‘‘(7) not use the name, trademarks, or service

18 marks of an existing Bell operating company except

19 for names or service marks that are or were used in

20 common with the entity that owns or controls the Bell

21 operating company;

22 ‘‘(8) have performed annually by March 31, or

23 any other date prescribed by the Commission, a com24 pliance review—
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1 ‘‘(A) which is conducted by an independent

2 entity which is subject to professional, legal, and

3 ethical obligations for the purpose of determining

4 compliance during the preceding calendar year

5 with any provision of this section that imposes

6 a requirement on such separated affiliate or elec7 tronic publishing joint venture; and

8 ‘‘(B) the results of which are maintained by

9 the separated affiliate for a period of 5 years

10 subject to review by any lawful authority;

11 ‘‘(9) within 90 days of receiving a review de12 scribed in paragraph (8), file a report of any excep13 tions and corrective action with the Commission and

14 allow any person to inspect and copy such report sub15 ject to reasonable safeguards to protect any propri16 etary information contained in such report from

17 being used for purposes other than to enforce or pur18 sue remedies under this section.

19 ‘‘(c) BELL OPERATING COMPANY REQUIREMENTS.—A

20 Bell operating company under common ownership or con21 trol with a separated affiliate or electronic publishing joint

22 venture shall—

23 ‘‘(1) not provide a separated affiliate any facili24 ties, services, or basic telephone service information

25 unless it makes such facilities, services, or informa-
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1 tion available to unaffiliated entities upon request

2 and on the same terms and conditions;

3 ‘‘(2) carry out transactions with a separated af4 filiate in a manner equivalent to the manner that un5 related parties would carry out independent trans6 actions and not based upon the affiliation;

7 ‘‘(3) carry out transactions with a separated af8 filiate, which involve the transfer of personnel, assets,

9 or anything of value, pursuant to written contracts or

10 tariffs that are filed with the Commission and made

11 publicly available;

12 ‘‘(4) carry out transactions with a separated af13 filiate in a manner that is auditable in accordance

14 with generally accepted accounting principles;

15 ‘‘(5) value any assets that are transferred to a

16 separated affiliate at the greater of net book cost or

17 fair market value;

18 ‘‘(6) value any assets that are transferred to the

19 Bell operating company by its separated affiliate at

20 the lesser of net book cost or fair market value;

21 ‘‘(7) except for—

22 ‘‘(A) instances where Commission or State

23 regulations permit in-arrears payment for

24 tariffed telecommunications services; or
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1 ‘‘(B) the investment by an affiliate of divi2 dends or profits derived from a Bell operating

3 company,

4 not provide debt or equity financing directly or indi5 rectly to a separated affiliate;

6 ‘‘(8) comply fully with all applicable Commis7 sion and State cost allocation and other accounting

8 rules;

9 ‘‘(9) have performed annually by March 31, or

10 any other date prescribed by the Commission, a com11 pliance review—

12 ‘‘(A) which is conducted by an independent

13 entity which is subject to professional, legal, and

14 ethical obligations for the purpose of determining

15 compliance during the preceding calendar year

16 with any provision of this section that imposes

17 a requirement on such Bell operating company;

18 and

19 ‘‘(B) the results of which are maintained by

20 the Bell operating company for a period of 5

21 years subject to review by any lawful authority;

22 ‘‘(10) within 90 days of receiving a review de23 scribed in paragraph (9), file a report of any excep24 tions and corrective action with the Commission and

25 allow any person to inspect and copy such report sub-
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1 ject to reasonable safeguards to protect any propri2 etary information contained in such report from

3 being used for purposes other than to enforce or pur4 sue remedies under this section;

5 ‘‘(11) if it provides facilities or services for tele6 communication, transmission, billing and collection,

7 or physical collocation to any electronic publisher, in8 cluding a separated affiliate, for use with or in con9 nection with the provision of electronic publishing

10 that is disseminated by means of such Bell operating

11 company’s or any of its affiliates’ basic telephone

12 service, provide to all other electronic publishers the

13 same type of facilities and services on request, on the

14 same terms and conditions or as required by the

15 Commission or a State, and unbundled and individ16 ually tariffed to the smallest extent that is technically

17 feasible and economically reasonable to provide;

18 ‘‘(12) provide network access and interconnec19 tions for basic telephone service to electronic publish20 ers at any technically feasible and economically rea21 sonable point within the Bell operating company’s

22 network and at just and reasonable rates that are

23 tariffed (so long as rates for such services are subject

24 to regulation) and that are not higher on a per-unit

25 basis than those charged for such services to any other
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1 electronic publisher or any separated affiliate engaged

2 in electronic publishing;

3 ‘‘(13) if prices for network access and inter4 connection for basic telephone service are no longer

5 subject to regulation, provide electronic publishers

6 such services on the same terms and conditions as a

7 separated affiliate receives such services;

8 ‘‘(14) if any basic telephone service used by elec9 tronic publishers ceases to require a tariff, provide

10 electronic publishers with such service on the same

11 terms and conditions as a separated affiliate receives

12 such service;

13 ‘‘(15) provide reasonable advance notification at

14 the same time and on the same terms to all affected

15 electronic publishers of information if such informa16 tion is within any one or more of the following cat17 egories:

18 ‘‘(A) such information is necessary for the

19 transmission or routing of information by an

20 interconnected electronic publisher;

21 ‘‘(B) such information is necessary to en22 sure the interoperability of an electronic publish23 er’s and the Bell operating company’s networks;

24 or
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1 ‘‘(C) such information concerns changes in

2 basic telephone service network design and tech3 nical standards which may affect the provision

4 of electronic publishing;

5 ‘‘(16) not directly or indirectly provide anything

6 of monetary value to a separated affiliate unless in

7 exchange for consideration at least equal to the great8 er of its net book cost or fair market value, except the

9 investment by an affiliate of dividends or profits de10 rived from a Bell operating company;

11 ‘‘(17) not discriminate in the presentation or

12 provision of any gateway for electronic publishing

13 services or any electronic directory of information

14 services, which is provided over such Bell operating

15 company’s basic telephone service;

16 ‘‘(18) have no directors, officers or employees in

17 common with a separated affiliate;

18 ‘‘(19) not own any property in common with a

19 separated affiliate;

20 ‘‘(20) not perform hiring or training of person21 nel performed on behalf of a separated affiliate;

22 ‘‘(21) not perform the purchasing, installation,

23 or maintenance of equipment on behalf of a separated

24 affiliate, except for telephone service that it provides
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1 under tariff or contract subject to the provisions of

2 this section; and

3 ‘‘(22) not perform research and development on

4 behalf of a separated affiliate.

5 ‘‘(d) CUSTOMER PROPRIETARY NETWORK INFORMA6 TION.—Consistent with section 232 of this Act, a Bell oper7 ating company or any affiliate shall not provide to any

8 electronic publisher, including a separated affiliate or elec9 tronic publishing joint venture, customer proprietary net10 work information for use with or in connection with the

11 provision of electronic publishing that is disseminated by

12 means of such Bell operating company’s or any of its affili13 ates’ basic telephone service that is not made available by

14 the Bell operating company or affiliate to all electronic pub15 lishers on the same terms and conditions.

16 ‘‘(e) COMPLIANCE WITH SAFEGUARDS.—No Bell oper17 ating company or affiliate thereof (including a separated

18 affiliate) shall act in concert with another Bell operating

19 company or any other entity in order to knowingly and

20 willfully violate or evade the requirements of this section.

21 ‘‘(f) TELEPHONE OPERATING COMPANY DIVIDENDS.—

22 Nothing in this section shall prohibit an affiliate from in23 vesting dividends derived from a Bell operating company

24 in its separated affiliate and subsections (i) and (j) of this

25 section shall not apply to any such investment.
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1 ‘‘(g) JOINT MARKETING.—Except as provided in sub2 section (h)—

3 ‘‘(1) a Bell operating company shall not carry

4 out any promotion, marketing, sales, or advertising

5 for or in conjunction with a separated affiliate; and

6 ‘‘(2) a Bell operating company shall not carry

7 out any promotion, marketing, sales, or advertising

8 for or in conjunction with an affiliate that is related

9 to the provision of electronic publishing.

10 ‘‘(h) PERMISSIBLE JOINT ACTIVITIES.—

11 ‘‘(1) JOINT TELEMARKETING.—A Bell operating

12 company may provide inbound telemarketing or refer13 ral services related to the provision of electronic pub14 lishing for a separated affiliate, electronic publishing

15 joint venture, affiliate, or unaffiliated electronic pub16 lisher, provided that if such services are provided to

17 a separated affiliate, electronic publishing joint ven18 ture, or affiliate, such services shall be made available

19 to all electronic publishers on request, on nondiscrim20 inatory terms, at compensatory prices, and subject to

21 regulations of the Commission to ensure that the Bell

22 operating company’s method of providing

23 telemarketing or referral and its price structure do

24 not competitively disadvantage any electronic pub25 lishers regardless of size, including those which do not
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1 use the Bell operating company’s telemarketing serv2 ices.

3 ‘‘(2) TEAMING ARRANGEMENTS.—A Bell operat4 ing company may engage in nondiscriminatory

5 teaming or business arrangements to engage in elec6 tronic publishing with any separated affiliate or with

7 any other electronic publisher provided that the Bell

8 operating company only provides facilities, services,

9 and basic telephone service information as authorized

10 by this section and provided that the Bell operating

11 company does not own such teaming or business ar12 rangement.

13 ‘‘(3) ELECTRONIC PUBLISHING JOINT VEN14 TURES.—A Bell operating company or affiliate may

15 participate on a nonexclusive basis in electronic pub16 lishing joint ventures with entities that are not any

17 Bell operating company, affiliate, or separated affili18 ate to provide electronic publishing services, provided

19 that the Bell operating company or affiliate has not

20 more than a 50 percent direct or indirect equity in21 terest (or the equivalent thereof) or the right to more

22 than 50 percent of the gross revenues under a revenue

23 sharing or royalty agreement in any electronic pub24 lishing joint venture. Officers and employees of a Bell

25 operating company or affiliate participating in an
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1 electronic publishing joint venture may not have more

2 than 50 percent of the voting control over the elec3 tronic publishing joint venture. In the case of joint

4 ventures with small, local electronic publishers, the

5 Commission for good cause shown may authorize the

6 Bell operating company or affiliate to have a larger

7 equity interest, revenue share, or voting control but

8 not to exceed 80 percent. A Bell operating company

9 participating in an electronic publishing joint ven10 ture may provide promotion, marketing, sales, or ad11 vertising personnel and services to such joint venture.

12 ‘‘(i) TRANSACTIONS RELATED TO THE PROVISION OF

13 ELECTRONIC PUBLISHING BETWEEN A TELEPHONE OPER14 ATING COMPANY AND ANY AFFILIATE.—

15 ‘‘(1) RECORDS OF TRANSACTIONS.—Any provi16 sion of facilities, services, or basic telephone service

17 information, or any transfer of assets, personnel, or

18 anything of commercial or competitive value, from a

19 Bell operating company to any affiliate related to the

20 provision of electronic publishing shall be—

21 ‘‘(A) recorded in the books and records of

22 each entity;

23 ‘‘(B) auditable in accordance with generally

24 accepted accounting principles; and
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1 ‘‘(C) pursuant to written contracts or tariffs

2 filed with the Commission or a State and made

3 publicly available.

4 ‘‘(2) VALUATION OF TRANSFERS.—Any transfer

5 of assets directly related to the provision of electronic

6 publishing from a Bell operating company to an affil7 iate shall be valued at the greater of net book cost or

8 fair market value. Any transfer of assets related to the

9 provision of electronic publishing from an affiliate to

10 the Bell operating company shall be valued at the

11 lesser of net book cost or fair market value.

12 ‘‘(3) PROHIBITION OF EVASIONS.—A Bell operat13 ing company shall not provide directly or indirectly

14 to a separated affiliate any facilities, services, or

15 basic telephone service information related to the pro16 vision of electronic publishing which are not made

17 available to unaffiliated companies on the same terms

18 and conditions.

19 ‘‘(j) TRANSACTIONS RELATED TO THE PROVISION OF

20 ELECTRONIC PUBLISHING BETWEEN AN AFFILIATE AND A

21 SEPARATED AFFILIATE.—

22 ‘‘(1) RECORDS OF TRANSACTIONS.—Any facili23 ties, services, or basic telephone service information

24 provided or any assets, personnel, or anything of com25 mercial or competitive value transferred, from a Bell
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1 operating company to any affiliate as described in

2 subsection (i) and then provided or transferred to a

3 separated affiliate shall be—

4 ‘‘(A) recorded in the books and records of

5 each entity;

6 ‘‘(B) auditable in accordance with generally

7 accepted accounting principles; and

8 ‘‘(C) pursuant to written contracts or tariffs

9 filed with the Commission or a State and made

10 publicly available.

11 ‘‘(2) VALUATION OF TRANSFERS.—Any transfer

12 of assets directly related to the provision of electronic

13 publishing from a Bell operating company to any af14 filiate as described in subsection (i) and then trans15 ferred to a separated affiliate shall be valued at the

16 greater of net book cost or fair market value. Any

17 transfer of assets related to the provision of electronic

18 publishing from a separated affiliate to any affiliate

19 and then transferred to the Bell operating company

20 as described in subsection (i) shall be valued at the

21 lesser of net book cost or fair market value.

22 ‘‘(3) PROHIBITION OF EVASIONS.—An affiliate

23 shall not provide directly or indirectly to a separated

24 affiliate any facilities, services, or basic telephone

25 service information related to the provision of elec-
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1 tronic publishing which are not made available to un2 affiliated companies on the same terms and condi3 tions.

4 ‘‘(k) OTHER ELECTRONIC PUBLISHERS.—Except as

5 provided in subsection (h)(3)—

6 ‘‘(1) A Bell operating company shall not have

7 any officers, employees, property, or facilities in com8 mon with any entity whose principal business is pub9 lishing of which a part is electronic publishing.

10 ‘‘(2) No officer or employee of a Bell operating

11 company shall serve as a director of any entity whose

12 principal business is publishing of which a part is

13 electronic publishing.

14 ‘‘(3) For the purposes of paragraphs (1) and (2),

15 a Bell operating company or an affiliate that owns

16 an electronic publishing joint venture shall not be

17 deemed to be engaged in the electronic publishing

18 business solely because of such ownership.

19 ‘‘(4) A Bell operating company shall not carry

20 out—

21 ‘‘(A) any marketing or sales for any entity

22 that engages in electronic publishing; or

23 ‘‘(B) any hiring of personnel, purchasing,

24 or production,

25 for any entity that engages in electronic publishing.
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1 ‘‘(5) The Bell operating company shall not pro2 vide any facilities, services, or basic telephone service

3 information to any entity that engages in electronic

4 publishing, for use with or in connection with the

5 provision of electronic publishing that is disseminated

6 by means of such Bell operating company’s or any of

7 its affiliates’ basic telephone service, unless equivalent

8 facilities, services, or information are made available

9 on equivalent terms and conditions to all.

10 ‘‘(l) TRANSITION.—Any electronic publishing service

11 being offered to the public by a Bell operating company

12 or affiliate on the date of enactment of this section shall

13 have one year from such date of enactment to comply with

14 the requirements of this section.

15 ‘‘(m) SUNSET.—The provisions of this section shall

16 cease to apply to a Bell operating company or its affiliate

17 or separated affiliate in any telephone exchange area on

18 June 30, 2000.

19 ‘‘(n) PRIVATE RIGHT OF ACTION.—

20 ‘‘(1) DAMAGES.—Any person claiming that any

21 act or practice of any Bell operating company, affili22 ate, or separated affiliate constitutes a violation of

23 this section may file a complaint with the Commis24 sion or bring suit as provided in section 207 of this

25 Act (47 U.S.C. 207), and such Bell operating com-
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1 pany, affiliate, or separated affiliate shall be liable as

2 provided in section 206 of this Act (47 U.S.C. 207);

3 except that damages may not be awarded for a viola4 tion that is discovered by a compliance review as re5 quired by subsection (b)(8) or (c)(9) of this section

6 and corrected within 90 days.

7 ‘‘(2) CEASE AND DESIST ORDERS.—In addition

8 to the provisions of paragraph (1), any person claim9 ing that any act or practice of any Bell operating

10 company, affiliate, or separated affiliate constitutes a

11 violation of this section may make application to the

12 Commission for an order to cease and desist such vio13 lation or may make application in any district court

14 of the United States of competent jurisdiction for an

15 order enjoining such acts or practices or for an order

16 compelling compliance with such requirement.

17 ‘‘(o) ANTITRUST LAWS.—Nothing in this section shall

18 be construed to modify, impair, or supersede the applicabil19 ity of any of the antitrust laws.

20 ‘‘(p) EQUAL EMPLOYMENT OPPORTUNITIES.—Any

21 Bell operating company, and any affiliate or joint venture

22 or other business partner of a Bell operating company, that

23 is engaged in the provision of electronic publishing shall

24 be subject to the provisions of section 634 of this Act, except

25 that the Commission shall prescribe by regulation appro-
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1 priate job classifications in lieu of the job classifications

2 in subsection (d)(3)(A) of such section.

3 ‘‘(q) DEFINITIONS.—As used in this section—

4 ‘‘(1) The term ‘affiliate’ means any entity that,

5 directly or indirectly, owns or controls, is owned or

6 controlled by, or is under common ownership or con7 trol with, a Bell operating company. Such term shall

8 not include a separated affiliate.

9 ‘‘(2) The term ‘basic telephone service’ means

10 any wireline telephone exchange service or wireline

11 telephone exchange facility provided by a Bell operat12 ing company in a telephone exchange area, except—

13 ‘‘(A) a competitive wireline telephone ex14 change service provided in a telephone exchange

15 area where another entity provides a wireline

16 telephone exchange service that was provided on

17 January 1, 1984, and

18 ‘‘(B) a commercial mobile service provided

19 by an affiliate that is required by the Commis20 sion to be a corporate entity separate from the

21 Bell operating company.

22 ‘‘(3) The term ‘basic telephone service informa23 tion’ means network and customer information of a

24 Bell operating company and other information ac-
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1 quired by a Bell operating company as a result of its

2 engaging in the provision of basic telephone service.

3 ‘‘(4) The term ‘control’ has the meaning that it

4 has in 17 C.F.R. 240.12b–2, the regulations promul5 gated by the Securities and Exchange Commission

6 pursuant to the Securities Exchange Act of 1934 (15

7 U.S.C. 78a et seq.) or any successor provision to such

8 section.

9 ‘‘(5)(A) The term ‘electronic publishing’ means

10 the dissemination, provision, publication, or sale to

11 an unaffiliated entity or person, using a Bell operat12 ing company’s basic telephone service of—

13 ‘‘(i) news,

14 ‘‘(ii) business, financial, legal, consumer, or

15 credit material;

16 ‘‘(iii) editorials;

17 ‘‘(iv) columns;

18 ‘‘(v) sports reporting;

19 ‘‘(vi) features;

20 ‘‘(vii) advertising;

21 ‘‘(viii) photos or images;

22 ‘‘(ix) archival or research material;

23 ‘‘(x) legal notices or public records;
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1 ‘‘(xi) scientific, educational, instructional,

2 technical, professional, trade, or other literary

3 materials; or

4 ‘‘(xii) other like or similar information.

5 ‘‘(B) The term ‘electronic publishing’ shall not

6 include the following network services:

7 ‘‘(i) ‘Information access’ as that term is de8 fined by the Modification of Final Judgment.

9 ‘‘(ii) The transmission of information as a

10 common carrier.

11 ‘‘(iii) The transmission of information as

12 part of a gateway to an information service that

13 does not involve the generation or alteration of

14 the content of information, including data trans15 mission, address translation, protocol conversion,

16 billing management, introductory information

17 content, and navigational systems that enable

18 users to access electronic publishing services,

19 which do not affect the presentation of such elec20 tronic publishing services to users.

21 ‘‘(iv) Voice storage and retrieval services,

22 including voice messaging and electronic mail

23 services.

24 ‘‘(v) Level 2 gateway services as those serv25 ices are defined by the Commission’s Second Re-
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1 port and Order, Recommendation to Congress

2 and Second Further Notice of Proposed Rule3 making in CC Docket No. 87–266 dated August

4 14, 1992.

5 ‘‘(vi) Data processing services that do not

6 involve the generation or alteration of the con7 tent of information.

8 ‘‘(vii) Transaction processing systems that

9 do not involve the generation or alteration of the

10 content of information.

11 ‘‘(viii) Electronic billing or advertising of a

12 Bell operating company’s regulated telecommuni13 cations services.

14 ‘‘(ix) Language translation.

15 ‘‘(x) Conversion of data from one format to

16 another.

17 ‘‘(xi) The provision of information nec18 essary for the management, control, or operation

19 of a telephone company telecommunications sys20 tem.

21 ‘‘(xii) The provision of directory assistance

22 that provides names, addresses, and telephone

23 numbers and does not include advertising.

24 ‘‘(xiii) Caller identification services.
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1 ‘‘(xiv) Repair and provisioning databases

2 for telephone company operations.

3 ‘‘(xv) Credit card and billing validation for

4 telephone company operations.

5 ‘‘(xvi) 911–E and other emergency assist6 ance databases.

7 ‘‘(xvii) Any other network service of a type

8 that is like or similar to these network services

9 and that does not involve the generation or alter10 ation of the content of information.

11 ‘‘(xviii) Any upgrades to these network serv12 ices that do not involve the generation or alter13 ation of the content of information.

14 ‘‘(C) The term ‘electronic publishing’ also shall

15 not include—

16 ‘‘(i) full motion video entertainment on de17 mand; and

18 ‘‘(ii) video programming as defined in sec19 tion 602 of the Communications Act of 1934.

20 ‘‘(6) The term ‘electronic publishing joint ven21 ture’ means a joint venture owned by a Bell operating

22 company or affiliate that engages in the provision of

23 electronic publishing which is disseminated by means

24 of such Bell operating company’s or any of its affili25 ates’ basic telephone service.
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1 ‘‘(7) The term ‘entity’ means any organization,

2 and includes corporations, partnerships, sole propri3 etorships, associations, and joint ventures.

4 ‘‘(8) The term ‘inbound telemarketing’ means the

5 marketing of property, goods, or services by telephone

6 to a customer or potential customer who initiated the

7 call.

8 ‘‘(9) The term ‘own’ with respect to an entity

9 means to have a direct or indirect equity interest (or

10 the equivalent thereof) of more than 10 percent of an

11 entity, or the right to more than 10 percent of the

12 gross revenues of an entity under a revenue sharing

13 or royalty agreement.

14 ‘‘(10) The term ‘separated affiliate’ means a cor15 poration under common ownership or control with a

16 Bell operating company that does not own or control

17 a Bell operating company and is not owned or con18 trolled by a Bell operating company and that engages

19 in the provision of electronic publishing which is dis20 seminated by means of such Bell operating company’s

21 or any of its affiliates’ basic telephone service.

22 ‘‘(11) The term ‘Bell operating company’ means

23 the corporations subject to the Modification of Final

24 Judgment and listed in Appendix A thereof, or any

25 entity owned or controlled by such corporation, or
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1 any successor or assign of such corporation, but does

2 not include an electronic publishing joint venture

3 owned by such corporation or entity.’’.

4 SEC. 204. PRIVACY OF CUSTOMER INFORMATION.

5 (a) PRIVACY OF CUSTOMER PROPRIETARY NETWORK

6 INFORMATION.—

7 (1) AMENDMENT.—Title II of the Communica8 tions Act of 1934 is amended by adding at the end

9 the following new section:

10 ‘‘SEC. 232. PRIVACY OF CUSTOMER PROPRIETARY NETWORK

11 INFORMATION.

12 ‘‘(a) DUTY TO PROVIDE SUBSCRIBER LIST INFORMA13 TION.—Notwithstanding subsections (b), (c), and (d), a car14 rier that provides subscriber list information to any affili15 ated or unaffiliated service provider or person shall provide

16 subscriber list information on a timely and unbundled

17 basis, under nondiscriminatory and reasonable rates, terms,

18 and conditions, to any person upon request.

19 ‘‘(b) PRIVACY REQUIREMENTS FOR COMMON CAR20 RIERS.—A carrier—

21 ‘‘(1) shall not, except as required by law or with

22 the approval of the customer to which the information

23 relates—

24 ‘‘(A) use customer proprietary network in25 formation in the provision of any service except
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1 to the extent necessary (i) in the provision of

2 common carrier communications services, (ii) in

3 the provision of a service necessary to or used in

4 the provision of common carrier communications

5 services, or (iii) to continue to provide a particu6 lar information service that the carrier provided

7 as of March 15, 1994 to persons who were cus8 tomers of such service on that date;

9 ‘‘(B) use customer proprietary network in10 formation in the identification or solicitation of

11 potential customers for any service other than

12 the service from which such information is de13 rived;

14 ‘‘(C) use customer proprietary network in15 formation in the provision of customer premises

16 equipment; or

17 ‘‘(D) disclose customer proprietary network

18 information to any person except to the extent

19 necessary to permit such person to provide serv20 ices or products that are used in and necessary

21 to the provision by such carrier of the services

22 described in subparagraph (A);

23 ‘‘(2) shall disclose customer proprietary network

24 information, upon affirmative written request by the

25 customer, to any person designated by the customer;
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1 ‘‘(3) shall, whenever such carrier provides any

2 aggregate information, or whenever such carrier pro3 vides any compiled information derived from cus4 tomer proprietary network information or any data

5 base to any person to whom disclosure is permitted

6 by paragraph (1), notify the Commission of the avail7 ability of such aggregate information or compiled in8 formation and shall—

9 ‘‘(A) provide such aggregate information on

10 reasonable terms and conditions to any other

11 service or equipment provider upon reasonable

12 request therefor; and

13 ‘‘(B) provide such compiled information on

14 reasonable terms and conditions to any other

15 person to whom disclosure is permitted by para16 graph (1) upon reasonable request therefor; and

17 ‘‘(4) except for disclosures permitted by para18 graph (1)(D), shall not unreasonably discriminate be19 tween affiliated and unaffiliated service or equipment

20 providers in providing access to, or in the use and

21 disclosure of, individual and aggregate information or

22 compiled information made available consistent with

23 this subsection.
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1 ‘‘(c) RULE OF CONSTRUCTION.—This section shall not

2 be construed to prohibit the use or disclosure of customer

3 proprietary network information as necessary—

4 ‘‘(1) to render, bill, and collect for the services

5 identified in subparagraph (A);

6 ‘‘(2) to render, bill, and collect for any other

7 service that the customer has requested;

8 ‘‘(3) to protect the rights or property of the car9 rier;

10 ‘‘(4) to protect users of any of those services and

11 other carriers from fraudulent, abusive, or unlawful

12 use of or subscription to such service; or

13 ‘‘(5) to provide any inbound telemarketing, refer14 ral, or administrative services to the customer for the

15 duration of the call if such call was initiated by the

16 customer and the customer approves of the use of such

17 information to provide such service.

18 ‘‘(d) EXEMPTION PERMITTED.—The Commission may,

19 by rule, exempt from the requirements of subsection (b) car20 riers that have, together with any affiliated carriers, in the

21 aggregate nationwide, fewer than 500,000 access lines in22 stalled if the Commission determines that such exemption

23 is in the public interest or if compliance with the require24 ments would impose an undue economic burden on the car25 rier.
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1 ‘‘(e) REGULATIONS.—The Commission shall prescribe

2 regulations to carry out this section within 1 year after the

3 date of its enactment.

4 ‘‘(f) DEFINITION OF AGGREGATE INFORMATION.—For

5 purposes of this section, the term ‘aggregate information’

6 means collective data that relates to a group or category

7 of services or customers, from which individual customer

8 identities and characteristics have been removed.’’.

9 (2) CONFORMING AMENDMENT.—Section 3 of the

10 Communications Act of 1934 (47 U.S.C. 153) is

11 amended by adding at the end the following:

12 ‘‘(gg) ‘Customer proprietary network information’

13 means—

14 ‘‘(1) information which relates to the quantity,

15 technical configuration, type, destination, and

16 amount of use of telephone exchange service or tele17 phone toll service subscribed to by any customer of a

18 carrier, and is made available to the carrier by the

19 customer solely by virtue of the carrier-customer rela20 tionship;

21 ‘‘(2) information contained in the bills pertain22 ing to telephone exchange service or telephone toll

23 service received by a customer of a carrier; and

24 ‘‘(3) such other information concerning the cus25 tomer as is available to the local exchange carrier by
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1 virtue of the customer’s use of the carrier’s telephone

2 exchange service or interexchange telephone services,

3 and specified as within the definition of such term by

4 such rules as the Commission shall prescribe consist5 ent with the public interest;

6 except that such term does not include subscriber list infor7 mation.

8 ‘‘(hh) ‘Subscriber list information’ means any infor9 mation—

10 ‘‘(1) identifying the names of subscribers of a

11 carrier and such subscribers’ telephone numbers, ad12 dresses, or advertising classifications, or any com13 bination of such names, numbers, addresses, or classi14 fications; and

15 ‘‘(2) that the carrier or an affiliate has published

16 or accepted for future publication.’’.

17 (b) IMPACT OF CONVERGING COMMUNICATIONS TECH18 NOLOGIES ON CONSUMER PRIVACY.—

19 (1) PROCEEDING REQUIRED.—Within one year

20 after the date of enactment of this Act, the Commis21 sion shall commence a proceeding—

22 (A) to examine the impact of the integra23 tion into interconnected communications net24 works of wireless telephone, cable, satellite, and
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1 other technologies on the privacy rights and rem2 edies of the consumers of those technologies;

3 (B) to examine the impact that the

4 globalization of such integrated communications

5 networks has on the international dissemination

6 of consumer information and the privacy rights

7 and remedies to protect consumers;

8 (C) to propose changes in the Commission’s

9 regulations to ensure that the effect on consumer

10 privacy rights is considered in the introduction

11 of new telecommunications services and that the

12 protection of such privacy rights is incorporated

13 as necessary in the design of such services or the

14 rules regulating such services;

15 (D) to propose changes in the Commission’s

16 regulations as necessary to correct any defects

17 identified pursuant to subparagraph (A) in such

18 rights and remedies; and

19 (E) to prepare recommendations to the Con20 gress for any legislative changes required to cor21 rect such defects.

22 (2) SUBJECTS FOR EXAMINATION.—In conduct23 ing the examination required by paragraph (1), the

24 Commission shall determine whether consumers are
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1 able, and, if not, the methods by which consumers

2 may be enabled—

3 (A) to have knowledge that consumer infor4 mation is being collected about them through

5 their utilization of various communications tech6 nologies;

7 (B) to have notice that such information

8 could be used, or is intended to be used, by the

9 entity collecting the data for reasons unrelated to

10 the original communications, or that such infor11 mation could be sold (or is intended to be sold)

12 to other companies or entities; and

13 (C) to stop the reuse or sale of that informa14 tion.

15 (3) SCHEDULE FOR COMMISSION RESPONSES.—

16 The Commission shall, within 18 months after the

17 date of enactment of this Act—

18 (A) complete any rulemaking required to re19 vise Commission regulations to correct defects in

20 such regulations identified pursuant to para21 graph (1); and

22 (B) submit to the Congress a report con23 taining the recommendations required by para24 graph (1)(C).
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1 TITLE III—FEDERAL COMMU2 NICATIONS COMMISSION RE3 SOURCES

4 SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

5 (a) IN GENERAL.—In addition to any other sums au6 thorized by law, there are authorized to be appropriated to

7 the Federal Communications Commission such sums as

8 may be necessary to carry out this Act and the amendments

9 made by this Act.

10 (b) EFFECT ON FEES.—For purposes of section

11 9(b)(2), additional amounts appropriated pursuant to sub12 section (a) shall be construed to be changes in the amounts

13 appropriated for the performance of activities described in

14 section 9(a).

15 SECTION 1. SHORT TITLES.

16 (a) SHORT TITLE OF THIS ACT.—This Act

17 may be cited as the ‘‘Antitrust and Commu18 nications Reform Act of 1994’’.

19 (b) SHORT TITLES OF DIVISIONS OF THIS

20 ACT.—(1) Title I of this Act may be cited as the

21 ‘‘Antitrust Reform Act of 1994’’.

22 (2) Title II of this Act may be cited as the

23 ‘‘Communications Reform Act of 1994’’.
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1 TITLE I—SUPERSESSION OF THE

2 MODIFICATION OF FINAL

3 JUDGMENT

4 SEC. 101. AUTHORIZATION FOR BELL OPERATING COM5 PANY TO ENTER COMPETITIVE LINES OF

6 BUSINESS.

7 (a) APPLICATION.—

8 (1) IN GENERAL.—After the applicable

9 date specified in paragraph (2), a Bell op10 erating company may apply to the Attor11 ney General and the Federal Communica12 tions Commission for authorization, not13 withstanding the Modification of Final

14 Judgment—

15 (A) to provide alarm monitoring

16 services, or

17 (B) to provide interexchange tele18 communications services.

19 The application shall describe with par20 ticularity the nature and scope of the ac21 tivity, and of each product market or

22 service market, and each geographic

23 market, for which authorization is

24 sought.
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1 (2) APPLICABLE DATES.—For purposes

2 of paragraph (1), the applicable date after

3 which a Bell operating company may

4 apply for authorization shall be—

5 (A) the date of the enactment of

6 this Act, with respect to providing

7 interexchange telecommunications

8 services, and

9 (B) the date that occurs 66

10 months after the date of the enact11 ment of this Act, with respect to pro12 viding alarm monitoring services.

13 (3) INTERAGENCY NOTIFICATION.—When14 ever the Attorney General or the Federal

15 Communications Commission receives an

16 application made under paragraph (1),

17 the recipient of the application shall no18 tify the other of such receipt.

19 (4) PUBLICATION.—Not later than 10

20 days after receiving an application made

21 under paragraph (1), the Attorney Gen22 eral and the Federal Communications

23 Commission jointly shall publish the ap24 plication in the Federal Register.
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1 (b) SEPARATE DETERMINATIONS BY THE AT2 TORNEY GENERAL AND THE FEDERAL COMMU3 NICATIONS COMMISSION.—

4 (1) COMMENT PERIOD.—Not later than

5 45 days after an application is published

6 under subsection (a)(4), interested per7 sons may submit written comments to the

8 Attorney General, to the Federal Commu9 nications Commission, or to both regard10 ing the application. Submitted comments

11 shall be available to the public.

12 (2) INTERAGENCY CONSULTATION.—Be13 fore making their respective determina14 tions under paragraph (3), the Attorney

15 General and the Federal Communications

16 Commission shall consult with each other

17 regarding the application involved.

18 (3) DETERMINATIONS.—(A) After the

19 time for comment under paragraph (1)

20 has expired, but not later than 180 days

21 after receiving an application made

22 under subsection (a)(1), the Attorney

23 General and the Federal Communications

24 Commission each shall issue separately a

25 written determination, on the record
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1 after an opportunity for a hearing, with

2 respect to granting the authorization for

3 which the Bell operating company has

4 applied.

5 (B) Such determination shall be based

6 on a preponderence of the evidence.

7 (C) Any person who would be threat8 ened with loss or damage as a result of

9 the approval of the authorization re10 quested shall be permitted to participate

11 as a party in the proceeding on which the

12 determination is based.

13 (D)(i) The Attorney General shall ap14 prove the granting of the authorization

15 requested in the application only to the

16 extent that the Attorney General finds

17 that there is no substantial possibility

18 that such company or its affiliates could

19 use monopoly power to impede competi20 tion in the market such company seeks to

21 enter. The Attorney General shall deny

22 the remainder of the requested author23 ization.

24 (ii) The Federal Communications

25 Commission shall approve the granting of
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1 the requested authorization only to the

2 extent that the Commission finds that

3 granting the requested authorization is

4 consistent with the public interest, con5 venience, and necessity. The Commission

6 shall deny the remainder of the re7 quested authorization.

8 (iii) Notwithstanding clauses (i) and

9 (ii), within 180 days after the date of the

10 enactment of this Act, the Attorney Gen11 eral and the Federal Communications

12 Commission shall each prescribe regula13 tions to establish procedures and criteria

14 for the expedited determination and ap15 proval of applications for authorization

16 to provide interexchange telecommuni17 cations services that are incidental to the

18 provision of another service which the

19 Bell operating company may lawfully

20 provide. Before prescribing such regula21 tions, the Attorney General and the Com22 mission shall consult with respect to such

23 regulations.

24 (E) In making its determination

25 under subparagraph (D)(ii) regarding the
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1 public interest, convenience, and neces2 sity, the Commission shall take into ac3 count—

4 (i) the probability that granting

5 the requested authorization will se6 cure reduced rates for consumers of

7 the services that are the subject of

8 the application, especially residential

9 subscribers,

10 (ii) whether granting the re11 quested authorization will result in

12 increases in rates for consumers of

13 exchange service,

14 (iii) the extent to which granting

15 the requested authorization will ex16 pedite the delivery of new services

17 and products to consumers,

18 (iv) the extent to which the Com19 mission’s regulations, or other laws

20 or regulations, will preclude the ap21 plicant from engaging in predatory

22 pricing or other anticompetitive eco23 nomic practices with respect to the

24 services that are the subject of the

25 application,
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1 (v) the extent to which granting

2 the requested authorization will per3 mit collusive acts or practices be4 tween or among Bell operating com5 panies that are not affiliates of each

6 other,

7 (vi) whether granting the re8 quested authorization will result, di9 rectly or indirectly, in increasing con10 centration among providers of the

11 service that is the subject of the ap12 plication to such an extent that con13 sumers will not be protected from

14 rates that are unjust or unreasonable

15 or that are unjustly or unreasonably

16 discriminatory, and

17 (vii) in the case of an application

18 to provide alarm monitoring services,

19 whether the Commission has the ca20 pability to enforce effectively the reg21 ulations established pursuant to sec22 tion 230 of the Communications Act

23 of 1934 as added by this Act.

24 (F) A determination that approves the

25 granting of any part of a requested au-
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1 thorization shall describe with particu2 larity the nature and scope of the activ3 ity, and of each product market or serv4 ice market, and each geographic market,

5 to which approval applies.

6 (4) PUBLICATION.—Not later than 10

7 days after issuing a determination under

8 paragraph (3), the Attorney General or

9 the Federal Communications Commis10 sion, as the case may be, shall publish in

11 the Federal Register a brief description

12 of the determination.

13 (5) FINALITY.—A determination made

14 under paragraph (3) shall be final unless

15 a civil action with respect to such deter16 mination is timely commenced under sub17 section (c)(1).

18 (6) AUTHORIZATION GRANTED.—A re19 quested authorization is granted to the

20 extent that—

21 (A)(i) both the Attorney General

22 and the Federal Communications

23 Commission approve under para24 graph (3) the granting of the author25 ization, and
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1 (ii) neither of their approvals is

2 vacated or reversed as a result of ju3 dicial review authorized by sub4 section (c), or

5 (B) as a result of such judicial re6 view of either or both determinations,

7 both the Attorney General and the

8 Federal Communications Commission

9 approve the granting of the requested

10 authorization.

11 (c) JUDICIAL REVIEW.—

12 (1) COMMENCEMENT OF ACTION.—Not

13 later than 45 days after a determination

14 by the Attorney General or the Federal

15 Communications Commission is pub16 lished under subsection (b)(4), the Bell

17 operating company that applied to the

18 Attorney General and the Federal Com19 munications Commission under sub20 section (a), or any person who would be

21 threatened with loss or damage as a re22 sult of the determination regarding such

23 company’s engaging in the activity de24 scribed in such company’s application,

25 may commence an action in the United
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1 States Court of Appeals for the District of

2 Columbia Circuit against the Attorney

3 General or the Federal Communications

4 Commission, as the case may be, for judi5 cial review of the determination regard6 ing the application.

7 (2) CERTIFICATION OF RECORD.—As part

8 of the answer to the complaint, the Attor9 ney General or the Federal Communica10 tions Commission, as the case may be,

11 shall file in such court a certified copy of

12 the record upon which the determination

13 is based.

14 (3) CONSOLIDATION OF ACTIONS.—The

15 court shall consolidate for review all civil

16 actions commenced under this subsection

17 with respect to the application.

18 (4) JUDGMENT.—(A) The court shall

19 enter a judgment after reviewing the de20 termination in accordance with section

21 706 of title 5 of the United States Code.

22 (B) A judgment—

23 (i) affirming any part of the deter24 mination that approves granting all
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1 or part of the requested authoriza2 tion, or

3 (ii) reversing any part of the de4 termination that denies all or part of

5 the requested authorization,

6 shall describe with particularity the na7 ture and scope of the activity, and of

8 each product market or service market,

9 and each geographic market, to which

10 the affirmance or reversal applies.

11 SEC. 102. AUTHORIZATION AS PREREQUISITE.

12 (a) PREREQUISITE.—Until a Bell operating

13 company is so authorized in accordance with

14 section 101, it shall be unlawful for such com15 pany, directly or through an affiliated enter16 prise, to engage in an activity described in

17 section 101(a)(1).

18 (b) EXCEPTIONS.—Except with respect to

19 providing alarm monitoring services, sub20 section (a) shall not prohibit a Bell operating

21 company from engaging, at any time after the

22 date of the enactment of this Act—

23 (1) in any activity as authorized by an

24 order entered by the United States Dis25 trict Court for the District of Columbia
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1 pursuant to section VII or VIII(C) of the

2 Modification of Final Judgment, if—

3 (A) such order was entered on or

4 before the date of the enactment of

5 this Act, or

6 (B) a request for such authoriza7 tion was pending before such court

8 on the date of the enactment of this

9 Act,

10 (2) in providing intrastate

11 interexchange telecommunications serv12 ices if—

13 (A) after the date of the enact14 ment of this Act, the State involved

15 approves or authorizes such company

16 to provide such services, after taking

17 into account the potential effects of

18 such approval or authorization on

19 competition and the public interest,

20 (B) not less than 120 days before

21 such company offers to provide such

22 services, such company gives notice

23 to the public and the Attorney Gen24 eral that such approval or authoriza25 tion is final and that all time for any
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1 State appeal or review has expired,

2 and

3 (C) the Attorney General fails to

4 commence a civil action in accord5 ance with subsection (c) to enjoin

6 such company from providing such

7 services,

8 (3) in providing interexchange tele9 communications services through resale

10 of telecommunications services pur11 chased from a person who is not an affili12 ated enterprise of such company if—

13 (A) the State involved approves or

14 authorizes persons that are not affili15 ated enterprises of such company to

16 provide intraexchange toll tele17 communications services in such a

18 manner that customers in such State

19 have the ability to route automati20 cally, without the use of any access

21 code, their intraexchange toll tele22 communications to the telecommuni23 cations services provider of the cus24 tomer’s designation from among 2 or
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1 more telecommunications services

2 providers (including such company),

3 (B) not less than 120 days before

4 such company so provides such

5 interexchange telecommunications

6 services, such company gives notice

7 to the public and the Attorney Gen8 eral that such approval or authoriza9 tion is final and that all time for any

10 State appeal or review has expired,

11 and

12 (C) the Attorney General fails to

13 commence a civil action in accord14 ance with subsection (c) to enjoin

15 such company from so providing such

16 interexchange telecommunications

17 services,

18 (4) in providing interexchange tele19 communication services to provide cable

20 service if such telecommunication serv21 ices are provided using receive-only an22 tennas, satellite master antenna tele23 vision facilities, and satellite earth sta24 tions, owned and operated solely for the

25 purpose of providing such cable service,
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1 (5) in providing interexchange tele2 communication services to provide cable

3 service within any cable system serving a

4 franchised territory,

5 (6) in providing interexchange tele6 communication services to provide sat7 ellite transmission of cable television pro8 gramming from a satellite uplink site to

9 cable systems or video dialtone systems,

10 solely for the purpose of providing cable

11 service, and

12 (7) in providing interexchange tele13 communication services—

14 (A) to provide interexchange

15 intersystem handoff of wireless mo16 bile radio transmission between adja17 cent wireless systems to allow the

18 continuation of calls in progress with19 out interruption or degradation of

20 service due to the movement of the

21 mobile telephone unit or the charac22 teristics of radio propagation,

23 (B) to carry data concerning—
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1 (i) the location and status of a

2 customer’s wireless mobile radio

3 unit, and

4 (ii) the customer’s instruc5 tions for the handling of incoming

6 communications between such

7 company’s wireless mobile radio

8 system and a wireless system lo9 cated in another exchange area,

10 whenever such customer is located

11 beyond the boundaries of the wireless

12 system to which such customer is

13 subscribed, or

14 (C) to provide for the origination

15 of one-way paging messages and for

16 access to voice storage and retrieval

17 services provided by such company in

18 conjunction with its paging services,

19 if such company provides commercial

20 mobile service in any exchange area in21 volved, if the transmission facilities used

22 to provide such interexchange tele23 communication services are leased by

24 such company on terms and conditions

25 (including price) no more favorable than
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1 those available to the competitors of such

2 company, and if such company provides

3 exchange access and interconnection to

4 such commercial mobile service on terms

5 and conditions (including price) no more

6 favorable than those offered by the com7 petitors of such company.

8 (c) CIVIL ACTION.—(1) For the purpose of

9 paragraph (2) or (3) of subsection (b), the At10 torney General may commence a civil action,

11 not later than 120 days after receiving the no12 tice required by subparagraph (B) of such

13 paragraph, to enjoin such company from pro14 viding interexchange telecommunications

15 services pursuant to such paragraph if the At16 torney General determines that there is a sub17 stantial possibility that such company or its

18 affiliates could use monopoly power to im19 pede competition in the market it seeks to

20 enter with respect to such interexchange tele21 communications services.

22 (2) In the 10-day period beginning—

23 (A) on the date a civil action is com24 menced under paragraph (1), or
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1 (B) 120 days after receiving such no2 tice,

3 whichever is earlier, the Attorney General

4 shall publish in the Federal Register the de5 termination that the Attorney General has

6 made with respect to the existence of such

7 substantial possibility.

8 SEC. 103. LIMITATIONS ON MANUFACTURING AND PROVID9 ING EQUIPMENT.

10 (a) ABSOLUTE LIMITATION.—Until the expi11 ration of the 1-year period beginning on the

12 date of the enactment of this Act, it shall be

13 unlawful for a Bell operating company, di14 rectly or through an affiliated enterprise, to

15 manufacture or provide telecommunications

16 equipment, or to manufacture customer prem17 ises equipment.

18 (b) QUALIFIED LIMITATION.—

19 (1) REQUIRED CONDITIONS.—After the

20 expiration of the 1-year period beginning

21 on the date of the enactment of this Act,

22 it shall be lawful for a Bell operating

23 company, directly or through an affili24 ated enterprise, to manufacture or pro25 vide telecommunications equipment, or
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1 to manufacture customer premises equip2 ment, only as described in a notification

3 to the Attorney General that meets the

4 requirements of paragraph (2) and only

5 if—

6 (A) such company submits to the

7 Attorney General, at any time after

8 the date of the enactment of this Act,

9 the notification described in para10 graph (2) and such additional mate11 rial and information described in

12 such paragraph as the Attorney Gen13 eral may request, and complies with

14 the waiting period specified in para15 graph (3), and

16 (B)(i) the waiting period specified

17 in paragraph (3) expires without the

18 commencement of a civil action by

19 the Attorney General in accordance

20 with paragraph (4) to enjoin such

21 company from engaging in the activ22 ity described in such notification, or

23 (ii) before the expiration of such

24 waiting period, the Attorney General

25 notifies such company in writing that
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1 the Attorney General does not intend

2 to commence such a civil action with

3 respect to such activity.

4 (2) NOTIFICATION.—The notification re5 quired by paragraph (1) shall be in such

6 form and shall contain such documentary

7 material and information relevant to the

8 proposed activity as is necessary and ap9 propriate for the Attorney General to de10 termine whether there is no substantial

11 possibility that such company or its affili12 ates could use monopoly power to impede

13 competition in the market such company

14 seeks to enter for such activity.

15 (3) WAITING PERIOD.—The waiting pe16 riod referred to in paragraph (1) is the 1-

17 year period beginning on the date the no18 tification required by such paragraph is

19 received by the Attorney General.

20 (4) CIVIL ACTION.—Not later than 1

21 year after receiving a notification re22 quired by paragraph (1), the Attorney

23 General may commence a civil action in

24 an appropriate district court of the Unit25 ed States to enjoin the Bell operating
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1 company from engaging in the activity

2 described in such notification, if the At3 torney General determines that there is a

4 substantial possibility that such company

5 or its affiliates could use monopoly power

6 to impede competition in the market it

7 seeks to enter with respect to such activ8 ity.

9 (c) EXCEPTION FOR PREVIOUSLY AUTHORIZED

10 ACTIVITIES.—Subsections (a) and (b) shall not

11 prohibit a Bell operating company from en12 gaging, at any time after the date of the enact13 ment of this Act, in any activity as authorized

14 by an order entered by the United States Dis15 trict Court for the District of Columbia pursu16 ant to section VII or VIII(C) of the Modifica17 tion of Final Judgment, if—

18 (1) such order was entered on or be19 fore the date of the enactment of this Act,

20 or

21 (2) a request for such authorization

22 was pending before such court on the

23 date of the enactment of this Act.
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1 SEC. 104. ANTICOMPETITIVE TYING ARRANGEMENTS.

2 A Bell operating company with monopoly

3 power in any exchange service market shall

4 not tie (directly or indirectly) in any relevant

5 market the sale of any product or service to

6 the provision of any telecommunications serv7 ice, if the effect of such tying may be to sub8 stantially lessen competition, or to tend to

9 create a monopoly, in any line of commerce.

10 SEC. 105. ENFORCEMENT.

11 (a) EQUITABLE POWERS OF UNITED STATES

12 ATTORNEYS.—It shall be the duty of the several

13 United States attorneys, under the direction

14 of the Attorney General, to institute proceed15 ings in equity in their respective districts to

16 prevent and restrain violations of this Act.

17 (b) CRIMINAL LIABILITY.—Whoever know18 ingly engages or knowingly attempts to en19 gage in an activity that is prohibited by sec20 tion 102, 103, or 104 shall be guilty of a felony,

21 and on conviction thereof, shall be punished

22 to the same extent as a person is punished

23 upon conviction of a violation of section 1 of

24 the Sherman Act (15 U.S.C. 1).
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1 (c) PRIVATE RIGHT OF ACTION.—Any person

2 who is injured in its business or property by

3 reason of a violation of this Act—

4 (1) may bring a civil action in any dis5 trict court of the United States in the dis6 trict in which the defendant resides or is

7 found or has an agent, without respect to

8 the amount in controversy, and

9 (2) shall recover threefold the dam10 ages sustained, and the cost of suit (in11 cluding a reasonable attorney’s fee).

12 The court may award under this section, pur13 suant to a motion by such person promptly

14 made, simple interest on actual damages for

15 the period beginning on the date of service of

16 such person’s pleading setting forth a claim

17 under this Act and ending on the date of judg18 ment, or for any shorter period therein, if the

19 court finds that the award of such interest for

20 such period is just in the circumstances.

21 (d) PRIVATE INJUNCTIVE RELIEF.—Any per22 son shall be entitled to sue for and have in23 junctive relief, in any court of the United

24 States having jurisdiction over the parties,

25 against threatened loss or damage by a viola-
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1 tion of this Act, when and under the same con2 ditions and principles as injunctive relief is

3 available under section 16 of the Clayton Act

4 (15 U.S.C. 26). In any action under this sub5 section in which the plaintiff substantially

6 prevails, the court shall award the cost of suit,

7 including a reasonable attorney’s fee, to such

8 plaintiff.

9 (e) JURISDICTION.—(1) Subject to para10 graph (2), the courts of the United States shall

11 have exclusive jurisdiction to make deter12 minations with respect to a duty, claim, or

13 right arising under this Act, other than deter14 minations authorized to be made by the Attor15 ney General and the Federal Communications

16 Commission under section 101(b)(3).

17 (2) The United States Court of Appeals for

18 the District of Columbia shall have exclusive

19 jurisdiction to review determinations made

20 under section 101(b)(3).

21 (3) No action commenced to assert or en22 force a duty, claim, or right arising under this

23 Act shall be stayed pending any such deter24 mination by the Attorney General or the Fed25 eral Communications Commission.
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1 (f) SUBPOENAS.—In an action commenced

2 under this Act, a subpoena requiring the at3 tendance of a witness at a hearing or a trial

4 may be served at any place within the United

5 States.

6 (g) APPLICABILITY OF OTHER LAWS TO EN7 FORCEMENT OF THIS TITLE.—

8 (1) SECTION 5 OF THE CLAYTON ACT.—

9 Section 5 of the Clayton Act (15 U.S.C. 16)

10 shall apply with respect to actions under

11 this section brought by or on behalf of

12 the United States.

13 (2) ANTITRUST CIVIL PROCESS ACT.—Sec14 tion 2(a) of the Antitrust Civil Process

15 Act (15 U.S.C. 1311(a)) is amended—

16 (A) in paragraph (1) by striking

17 ‘‘and’’ at the end,

18 (B) in paragraph (2) by striking

19 the period at the end and inserting

20 ‘‘and’’, and

21 (C) by adding at the end the fol22 lowing:

23 ‘‘(3) title I of the Antitrust and

24 Communications Reform Act of

25 1994.’’.
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1 SEC. 106. DEFINITIONS.

2 For purposes of this title:

3 (1) AFFILIATE.—The term ‘‘affiliate’’

4 means a person that (directly or indi5 rectly) owns or controls, is owned or con6 trolled by, or is under common owner7 ship or control with, another person. For

8 purposes of this paragraph, to own refers

9 to owning an equity interest (or the

10 equivalent thereof) of more than 50 per11 cent.

12 (2) AFFILIATED ENTERPRISE.—The term

13 ‘‘affiliated enterprise’’ has the meaning

14 given such term under the Modification

15 of Final Judgment.

16 (3) ALARM MONITORING SERVICE.—The

17 term ‘‘alarm monitoring service’’ means a

18 service that uses a device located at a

19 residence, place of business, or other

20 fixed premises—

21 (A) to receive signals from other

22 devices located at or about such

23 premises regarding a possible threat

24 at such premises to life, safety, or

25 property, from burglary, fire, vandal-
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1 ism, bodily injury, or other emer2 gency, and

3 (B) to transmit a signal regarding

4 such threat by means of transmission

5 facilities of a Bell operating company

6 or one of its affiliates to a remote

7 monitoring center to alert a person at

8 such center of the need to inform the

9 customer or another person or police,

10 fire, rescue, security, or public safety

11 personnel of such threat,

12 but does not include a service that uses a

13 medical monitoring device attached to an

14 individual for the automatic surveillance

15 of an ongoing medical condition.

16 (4) ANTITRUST LAWS.—The term ‘‘anti17 trust laws’’ has the meaning given it in

18 subsection (a) of the first section of the

19 Clayton Act (15 U.S.C. 12(a)), except that

20 such term includes the Act of June 19,

21 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.),

22 commonly known as the Robinson Pat23 man Act, and section 5 of the Federal

24 Trade Commission Act (15 U.S.C. 45) to
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1 the extent that such section 5 applies to

2 unfair methods of competition.

3 (5) BELL OPERATING COMPANY.—The

4 term ‘‘Bell operating company’’ means—

5 (A) Bell Telephone Company of

6 Nevada, Illinois Bell Telephone Com7 pany, Indiana Bell Telephone Com8 pany, Incorporated, Michigan Bell

9 Telephone Company, New England

10 Telephone and Telegraph Company,

11 New Jersey Bell Telephone Company,

12 New York Telephone Company, US

13 West Communications Company,

14 South Central Bell Telephone Com15 pany, Southern Bell Telephone and

16 Telegraph Company, Southwestern

17 Bell Telephone Company, The Bell

18 Telephone Company of Pennsylvania,

19 The Chesapeake and Potomac Tele20 phone Company, The Chesapeake and

21 Potomac Telephone Company of

22 Maryland, The Chesapeake and Poto23 mac Telephone Company of Virginia,

24 The Chesapeake and Potomac Tele25 phone Company of West Virginia, The
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1 Diamond State Telephone Company,

2 The Ohio Bell Telephone Company,

3 The Pacific Telephone and Telegraph

4 Company, or Wisconsin Telephone

5 Company,

6 (B) any successor or assign of any

7 such company, or

8 (C) any affiliate of any person de9 scribed in subparagraph (A) or (B).

10 (6) CABLE SERVICE.—The term ‘‘cable

11 service’’ has the meaning given such term

12 in section 602 of the Communications Act

13 of 1934 (47 U.S.C. 522).

14 (7) CARRIER.—The term ‘‘carrier’’ has

15 the meaning given such term in section 3

16 of the Communications Act of 1934 (47

17 U.S.C. 153).

18 (8) COMMERCIAL MOBILE SERVICE.—The

19 term ‘‘commercial mobile service’’ has the

20 meaning given such term in section 332

21 of the Communications Act of 1934 (47

22 U.S.C. 332).

23 (9) CUSTOMER PREMISES EQUIPMENT.—

24 The term ‘‘customer premises equipment’’

25 means equipment employed on the prem-
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1 ises of a person (other than a carrier) to

2 originate, route, or terminate tele3 communications, and includes software

4 integral to such equipment.

5 (10) ELECTRONIC PUBLISHING.—The

6 term ‘‘electronic publishing’’ means the

7 provision via telecommunications, by a

8 Bell operating company or an affiliate of

9 such company to a person other than an

10 affiliate of such company, of informa11 tion—

12 (A) which such company or affili13 ate has, or has caused to be, origi14 nated, authored, compiled, collected,

15 or edited, or

16 (B) in which such company or af17 filiate has a direct or indirect finan18 cial or proprietary interest.

19 (11) EXCHANGE ACCESS.—The term ‘‘ex20 change access’’ means exchange services

21 provided for the purpose of originating

22 or terminating interexchange tele23 communications.

24 (12) EXCHANGE AREA.—The term ‘‘ex25 change area’’ means a contiguous geo-
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1 graphic area established by a Bell operat2 ing company such that no exchange area

3 includes points within more than 1 met4 ropolitan statistical area, consolidated

5 metropolitan statistical area, or State, ex6 cept as expressly permitted under the

7 Modification of Final Judgment before

8 the date of the enactment of this Act.

9 (13) EXCHANGE SERVICE.—The term

10 ‘‘exchange service’’ means a telecommuni11 cations service provided within an ex12 change area.

13 (14) INFORMATION.—The term ‘‘infor14 mation’’ means knowledge or intelligence

15 represented by any form of writing, signs,

16 signals, pictures, sounds, or other sym17 bols.

18 (15) INTEREXCHANGE TELECOMMUNI19 CATIONS.—The term ‘‘interexchange tele20 communications’’ means telecommuni21 cations between a point located in an ex22 change area and a point located outside

23 such exchange area. Such term does not

24 include alarm monitoring services or

25 electronic publishing.
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1 (16) MANUFACTURE.—The term ‘‘manu2 facture’’ has the meaning given such term

3 under the Modification of Final Judg4 ment.

5 (17) MODIFICATION OF FINAL JUDG6 MENT.—The term ‘‘Modification of Final

7 Judgment’’ means the order entered Au8 gust 24, 1982, in the antitrust action

9 styled United States v. Western Electric,

10 Civil Action No. 82–0192, in the United

11 States District Court for the District of

12 Columbia, and includes any judgment or

13 order with respect to such action entered

14 on or after August 24, 1982.

15 (18) PERSON.—The term ‘‘person’’ has

16 the meaning given it in subsection (a) of

17 the first section of the Clayton Act (15

18 U.S.C. 12(a)).

19 (19) STATE.—The term ‘‘State’’ means

20 any of the several States, the District of

21 Columbia, the Commonwealth of Puerto

22 Rico, the Commonwealth of the Northern

23 Mariana Islands, the Federated States of

24 Micronesia, the Republic of the Marshall
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1 Islands, Palau, or any territory or posses2 sion of the United States.

3 (20) TELECOMMUNICATIONS.—The term

4 ‘‘telecommunications’’ means the trans5 mission of information between points by

6 electromagnetic means.

7 (21) TELECOMMUNICATIONS EQUIP8 MENT.—The term ‘‘telecommunications

9 equipment’’ means equipment, other than

10 customer premises equipment, used by a

11 carrier to provide a telecommunications

12 service, and includes software integral to

13 such equipment.

14 (22) TELECOMMUNICATIONS SERVICE.—

15 The term ‘‘telecommunications service’’

16 means the offering for hire of trans17 mission facilities or of telecommuni18 cations by means of such facilities. Such

19 term does not include alarm monitoring

20 services or electronic publishing.

21 (23) TRANSMISSION FACILITIES.—The

22 term ‘‘transmission facilities’’ means

23 equipment (including wire, cable, micro24 wave, satellite, and fiber-optics) that

25 transmits information by electromagnetic
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1 means or that directly supports such

2 transmission, but does not include cus3 tomer premises equipment.

4 SEC. 107. RELATIONSHIP TO OTHER LAWS.

5 (a) MODIFICATION OF FINAL JUDGMENT.—

6 This Act shall supersede the Modification of

7 Final Judgment, except that this Act shall not

8 affect—

9 (1) section I of the Modification of

10 Final Judgment, relating to AT&T reorga11 nization,

12 (2) section II(A) (including Appendix

13 B) and II(B) of the Modification of Final

14 Judgment, relating to equal access and

15 nondiscrimination,

16 (3) section III of the Modification of

17 Final Judgment, relating to applicability

18 and effect,

19 (4) section IV(F) and IV(I) of the

20 Modification of Final Judgment, with re21 spect to the requirements included in the

22 definitions of ‘‘exchange access’’ and ‘‘in23 formation access’’,
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1 (5) section VIII(B) of the Modification

2 of Final Judgment, relating to printed ad3 vertising directories,

4 (6) section VIII(E) of the Modification

5 of Final Judgment, relating to notice to

6 customers of AT&T,

7 (7) section VIII(F) of the Modification

8 of Final Judgment, relating to less than

9 equal exchange access, and

10 (8) section VIII(G) of the Modification

11 of Final Judgment, relating to transfer of

12 AT&T assets, including all exceptions

13 granted thereunder before the date of the

14 enactment of this Act, and

15 (9) with respect to the parts of the

16 Modification of Final Judgment de17 scribed in paragraphs (1) through (7)—

18 (A) section III of the Modification

19 of Final Judgment, relating to appli20 cability,

21 (B) section IV of the Modification

22 of Final Judgment, relating to defini23 tions,
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1 (C) section V of the Modification

2 of Final Judgment, relating to compli3 ance,

4 (D) section VI of the Modification

5 of Final Judgment, relating to

6 visitorial provisions,

7 (E) section VII of the Modification

8 of Final Judgment, relating to reten9 tion of jurisdiction, and

10 (F) section VIII(I) of the Modifica11 tion of Final Judgment, relating to

12 the court’s sua sponte authority.

13 (b) ANTITRUST LAWS.—Except as provided

14 in section 105(g), nothing in this Act shall be

15 construed to modify, impair, or supersede the

16 applicability of any of the antitrust laws.

17 (c) FEDERAL, STATE, AND LOCAL LAW.—(1)

18 Except as provided in paragraph (2), this Act

19 shall not be construed to modify, impair, or

20 supersede Federal, State, or local law unless

21 expressly so provided in this Act.

22 (2) This Act shall supersede State and

23 local law to the extent that such law would

24 impair or prevent the operation of this Act.
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1 (d) CUMULATIVE PENALTY.—Any penalty

2 imposed, or relief granted, under this title

3 shall be in addition to, and not in lieu of, any

4 penalty or relief authorized by any other law

5 to be imposed with respect to conduct de6 scribed in this title.

7 TITLE II—REGULATION OF MAN8 UFACTURING, ALARM SERV9 ICES AND ELECTRONIC PUB10 LISHING BY BELL OPERATING

11 COMPANIES

12 SEC. 201. REGULATION OF MANUFACTURING BY BELL OP13 ERATING COMPANIES.

14 Title II of the Communications Act of 1934

15 (47 U.S.C. 201 et seq.) is amended by adding

16 at the end the following new section:

17 ‘‘SEC. 229. REGULATION OF MANUFACTURING BY BELL

18 OPERATING COMPANIES.

19 ‘‘(a) GENERAL AUTHORITY.—Subject to the

20 requirements of this section and the regula21 tions prescribed thereunder, but notwith22 standing any restriction or obligation im23 posed before the date of enactment of this sec24 tion pursuant to the Modification of Final

25 Judgment on the lines of business in which a
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1 Bell operating company may engage, a Bell

2 operating company, through an affiliate of

3 that company, may manufacture and provide

4 telecommunications equipment and manufac5 ture customer premises equipment.

6 ‘‘(b) SEPARATE MANUFACTURING AFFILI7 ATE.—Any manufacturing or provision author8 ized under subsection (a) shall be conducted

9 only through an affiliate that is separate from

10 any Bell operating company.

11 ‘‘(c) COMMISSION REGULATION OF MANUFAC12 TURING AFFILIATE.—

13 ‘‘(1) REGULATIONS REQUIRED.—The

14 Commission shall prescribe regulations

15 to ensure that Bell operating companies

16 and their affiliates comply with the re17 quirements of this section.

18 ‘‘(2) BOOKS, RECORDS, ACCOUNTS.—A

19 manufacturing affiliate required by sub20 section (b) shall maintain books, records,

21 and accounts separate from its affiliated

22 Bell operating company which identify

23 all financial transactions between the

24 manufacturing affiliate and its affiliated

25 Bell operating company and, even if such
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1 manufacturing affiliate is not a publicly

2 held corporation, prepare financial state3 ments which are in compliance with fi4 nancial reporting requirements under

5 the Federal securities laws for publicly

6 held corporations, file such statements

7 with the Commission, and make such

8 statements available for public

9 inspection.

10 ‘‘(3) IN-KIND BENEFITS TO AFFILIATE.—

11 Consistent with the provisions of this sec12 tion, neither a Bell operating company

13 nor any of its nonmanufacturing affili14 ates shall perform sales, advertising, in15 stallation, production, or maintenance

16 operations for a manufacturing affiliate,

17 except that—

18 ‘‘(A) a Bell operating company

19 and its nonmanufacturing affiliates

20 may sell, advertise, install, and main21 tain telecommunications equipment

22 and customer premises equipment

23 after acquiring such equipment from

24 their manufacturing affiliate; and
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1 ‘‘(B) institutional advertising, of a

2 type not related to specific tele3 communications equipment, carried

4 out by the Bell operating company or

5 its affiliates, shall be permitted.

6 ‘‘(4) DOMESTIC MANUFACTURING RE7 QUIRED.—

8 ‘‘(A) GENERAL RULE.—A manufac9 turing affiliate required by sub10 section (b) shall conduct all of its

11 manufacturing within the United

12 States and, except as otherwise pro13 vided in this paragraph, all compo14 nent parts of customer premises

15 equipment manufactured by such af16 filiate, and all component parts of

17 telecommunications equipment man18 ufactured by such affiliate, shall have

19 been manufactured within the United

20 States.

21 ‘‘(B) EXCEPTION.—Such affiliate

22 may use component parts manufac23 tured outside the United States if—

24 ‘‘(i) such affiliate first makes a

25 good faith effort to obtain equiva-
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1 lent component parts manufac2 tured within the United States at

3 reasonable prices, terms, and con4 ditions; and

5 ‘‘(ii) for the aggregate of tele6 communications equipment and

7 customer premises equipment

8 manufactured and sold in the

9 United States by such affiliate,

10 the cost of the components manu11 factured outside the United

12 States contained in all such

13 equipment does not exceed 40

14 percent of the sales revenue de15 rived in any calendar year from

16 such equipment.

17 ‘‘(C) CERTIFICATION REQUIRED.—

18 Any such affiliate that uses compo19 nent parts manufactured outside the

20 United States in the manufacture of

21 telecommunications equipment and

22 customer premises equipment within

23 the United States shall—

24 ‘‘(i) certify to the Commission

25 that a good faith effort was made
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1 to obtain equivalent parts manu2 factured within the United States

3 at reasonable prices, terms, and

4 conditions, which certification

5 shall be filed on a quarterly basis

6 with the Commission and list

7 component parts, by type, manu8 factured outside the United

9 States; and

10 ‘‘(ii) certify to the Commission

11 on an annual basis that such affil12 iate complied with the require13 ments of subparagraph (B)(ii), as

14 adjusted in accordance with sub15 paragraph (G).

16 ‘‘(D) REMEDIES FOR FAILURES.—(i)

17 If the Commission determines, after

18 reviewing the certification required

19 in subparagraph (C)(i), that such af20 filiate failed to make the good faith

21 effort required in subparagraph (B)(i)

22 or, after reviewing the certification

23 required in subparagraph (C)(ii), that

24 such affiliate has exceeded the per25 centage specified in subparagraph
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1 (B)(ii), the Commission may impose

2 penalties or forfeitures as provided

3 for in title V of this Act.

4 ‘‘(ii) Any supplier claiming to be

5 damaged because a manufacturing af6 filiate failed to make the good faith

7 effort required in subparagraph (B)(i)

8 may make complaint to the Commis9 sion as provided for in section 208 of

10 this Act, or may bring suit for the re11 covery of actual damages for which

12 such supplier claims such affiliate

13 may be liable under the provisions of

14 this Act in any district court of the

15 United States of competent jurisdic16 tion.

17 ‘‘(E) ANNUAL REPORT.—The Com18 mission, in consultation with the Sec19 retary of Commerce, shall, on an an20 nual basis, determine the cost of com21 ponent parts manufactured outside

22 the United States contained in all

23 telecommunications equipment and

24 customer premises equipment sold in

25 the United States as a percentage of
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1 the revenues from sales of such

2 equipment in the previous calendar

3 year.

4 ‘‘(F) USE OF INTELLECTUAL PROP5 ERTY IN MANUFACTURE.—Notwithstand6 ing subparagraph (A), a manufactur7 ing affiliate may use intellectual

8 property created outside the United

9 States in the manufacture of tele10 communications equipment and cus11 tomer premises equipment in the

12 United States. A component manufac13 tured using such intellectual prop14 erty shall not be treated for purposes

15 of subparagraph (B)(ii) as a compo16 nent manufactured outside the Unit17 ed States solely on the basis of the

18 use of such intellectual property.

19 ‘‘(G) RESTRICTIONS ON COMMISSION

20 AUTHORITY.—The Commission may not

21 waive or alter the requirements of

22 this paragraph, except that the Com23 mission, on an annual basis, shall ad24 just the percentage specified in sub25 paragraph (B)(ii) to the percentage
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1 determined by the Commission, in

2 consultation with the Secretary of

3 Commerce, pursuant to subparagraph

4 (E).

5 ‘‘(5) INSULATION OF RATE PAYERS FROM

6 MANUFACTURING AFFILIATE DEBT.—Any

7 debt incurred by any such manufacturing

8 affiliate may not be issued by its affili9 ated Bell operating company and such

10 manufacturing affiliate shall be prohib11 ited from incurring debt in a manner that

12 would permit a creditor, on default, to

13 have recourse to the assets of its affili14 ated Bell operating company.

15 ‘‘(6) RELATION TO OTHER AFFILIATES.—A

16 manufacturing affiliate required by sub17 section (b) shall not be required to oper18 ate separately from the other affiliates of

19 its affiliated Bell operating company, but

20 if an affiliate of a Bell operating company

21 becomes affiliated with a manufacturing

22 entity, such affiliate shall be treated as a

23 manufacturing affiliate of that Bell oper24 ating company and shall comply with the

25 requirements of this section.
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1 ‘‘(7) AVAILABILITY OF EQUIPMENT TO

2 OTHER CARRIERS.—A manufacturing affili3 ate required by subsection (b) shall make

4 available, without discrimination or self5 preference as to price, delivery, terms, or

6 conditions, to any common carrier any

7 telecommunications equipment that is

8 used in the provision of telephone ex9 change service and that is manufactured

10 by such affiliate so long as each such pur11 chasing carrier—

12 ‘‘(A) does not either manufacture

13 telecommunications equipment, or

14 have an affiliated telecommuni15 cations equipment manufacturing en16 tity; or

17 ‘‘(B) agrees to make available, to

18 the Bell operating company affiliated

19 with such manufacturing affiliate or

20 any common carrier affiliate of such

21 Bell operating company, any tele22 communications equipment that is

23 used in the provision of telephone ex24 change service and that is manufac25 tured by such purchasing carrier or
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1 by any entity or organization with

2 which such purchasing carrier is af3 filiated.

4 ‘‘(8) SALES PRACTICES OF MANUFACTUR5 ING AFFILIATES.—

6 ‘‘(A) PROHIBITION OF DISCONTINU7 ATION OF EQUIPMENT FOR WHICH THERE

8 IS REASONABLE DEMAND.—A manufac9 turing affiliate required by sub10 section (b) shall not discontinue or

11 restrict sales to a common carrier of

12 any telecommunications equipment

13 that is used in the provision of tele14 phone exchange service and that

15 such affiliate manufactures for sale

16 as long as there is reasonable demand

17 for the equipment by such carriers;

18 except that such sales may be discon19 tinued or restricted if such manufac20 turing affiliate demonstrates to the

21 Commission that it is not making a

22 profit, under a marginal cost stand23 ard implemented by the Commission

24 by regulation, on the sale of such

25 equipment.
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1 ‘‘(B) DETERMINATIONS OF REASON2 ABLE DEMAND.—Within 60 days after

3 receipt of an application under sub4 paragraph (A), the Commission shall

5 reach a determination as to the exist6 ence of reasonable demand for pur7 poses of such subparagraph. In mak8 ing such determination the Commis9 sion shall consider—

10 ‘‘(i) whether the continued

11 manufacture of the equipment

12 will be profitable;

13 ‘‘(ii) whether the equipment is

14 functionally or technologically

15 obsolete;

16 ‘‘(iii) whether the components

17 necessary to manufacture the

18 equipment continue to be avail19 able;

20 ‘‘(iv) whether alternatives to

21 the equipment are available in

22 the market; and

23 ‘‘(v) such other factors as the

24 Commission deems necessary and

25 proper.
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1 ‘‘(9) JOINT PLANNING OBLIGATIONS.—

2 Each Bell operating company shall, con3 sistent with the antitrust laws (including

4 title I of the Antitrust and Communica5 tions Reform Act of 1994), engage in joint

6 network planning and design with other

7 contiguous common carriers providing

8 telephone exchange service, but agree9 ment with such other carriers shall not

10 be required as a prerequisite for such in11 troduction or deployment.

12 ‘‘(d) INFORMATION REQUIREMENTS.—

13 ‘‘(1) FILING OF INFORMATION ON PROTO14 COLS AND TECHNICAL REQUIREMENTS.—Each

15 Bell operating company shall, in accord16 ance with regulations prescribed by the

17 Commission, maintain and file with the

18 Commission full and complete informa19 tion with respect to the protocols and

20 technical requirements for connection

21 with and use of its telephone exchange

22 service facilities. Each such company

23 shall report promptly to the Commission

24 any material changes or planned changes

25 to such protocols and requirements, and
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1 the schedule for implementation of such

2 changes or planned changes.

3 ‘‘(2) FILING AS PREREQUISITE TO DISCLO4 SURE TO AFFILIATE.—A Bell operating com5 pany shall not disclose to any of its affili6 ates any information required to be filed

7 under paragraph (1) unless that informa8 tion is filed promptly, as required by reg9 ulation by the Commission.

10 ‘‘(3) ACCESS BY COMPETITORS TO INFOR11 MATION.—The Commission may prescribe

12 such additional regulations under this

13 subsection as may be necessary to ensure

14 that manufacturers in competition with a

15 Bell operating company’s manufacturing

16 affiliate have access to the information

17 with respect to the protocols and tech18 nical requirements for connection with

19 and use of its telephone exchange service

20 facilities required for such competition

21 that such company makes available to its

22 manufacturing affiliate.

23 ‘‘(4) PLANNING INFORMATION.—Each

24 Bell operating company shall provide, to

25 contiguous common carriers providing
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1 telephone exchange service, timely infor2 mation on the planned deployment of

3 telecommunications equipment.

4 ‘‘(e) ADDITIONAL COMPETITION REQUIRE5 MENTS.—The Commission shall prescribe reg6 ulations requiring that any Bell operating

7 company which has an affiliate that engages

8 in any manufacturing authorized by sub9 section (a) shall—

10 ‘‘(1) provide, to other manufacturers

11 of telecommunications equipment and

12 customer premises equipment that is

13 functionally equivalent to equipment

14 manufactured by the Bell operating com15 pany manufacturing affiliate, opportuni16 ties to sell such equipment to such Bell

17 operating company which are com18 parable to the opportunities which such

19 Company provides to its affiliates; and

20 ‘‘(2) not subsidize its manufacturing

21 affiliate with revenues from telephone ex22 change service or telephone toll service.

23 ‘‘(f) COLLABORATION PERMITTED.—Nothing

24 in this section (other than subsection (m))

25 shall be construed to limit or restrict the abil-
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1 ity of a Bell operating company and its affili2 ates to engage in close collaboration with any

3 manufacturer of customer premises equip4 ment or telecommunications equipment dur5 ing the design and development of hardware,

6 software, or combinations thereof related to

7 such equipment.

8 ‘‘(g) ACCESSIBILITY REQUIREMENTS.—

9 ‘‘(1) MANUFACTURING.—The Commis10 sion shall, within 1 year after the date of

11 enactment of this section, prescribe such

12 regulations as are necessary to ensure

13 that telecommunications equipment and

14 customer premises equipment designed,

15 developed, and fabricated pursuant to

16 the authority granted in this section shall

17 be accessible and usable by individuals

18 with disabilities, including individuals

19 with functional limitations of hearing, vi20 sion, movement, manipulation, speech,

21 and interpretation of information, unless

22 the costs of making the equipment acces23 sible and usable would result in an undue

24 burden or an adverse competitive impact.
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1 ‘‘(2) NETWORK SERVICES.—The Commis2 sion shall, within 1 year after the date of

3 enactment of this section, prescribe such

4 regulations as are necessary to ensure

5 that advances in network services de6 ployed by a Bell operating company shall

7 be accessible and usable by individuals

8 whose access might otherwise be im9 peded by a disability or functional limita10 tion, unless the costs of making the serv11 ices accessible and usable would result in

12 an undue burden or adverse competitive

13 impact. Such regulations shall seek to

14 permit the use of both standard and spe15 cial equipment and seek to minimize the

16 need of individuals to acquire additional

17 devices beyond those used by the general

18 public to obtain such access.

19 ‘‘(3) COMPATIBILITY.—The regulations

20 prescribed under paragraphs (1) and (2)

21 shall require that whenever an undue

22 burden or adverse competitive impact

23 would result from the manufacturing or

24 network services requirements in such

25 paragraphs, the manufacturing affiliate
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1 that designs, develops, or fabricates the

2 equipment or the Bell operating company

3 that deploys the network service shall en4 sure that the equipment or network serv5 ice in question is compatible with exist6 ing peripheral devices or specialized cus7 tomer premises equipment commonly

8 used by persons with disabilities to

9 achieve access, unless doing so would re10 sult in an undue burden or adverse com11 petitive impact.

12 ‘‘(4) DEFINITIONS.—As used in this sub13 section:

14 ‘‘(A) UNDUE BURDEN.—The term

15 ‘undue burden’ means significant dif16 ficulty or expense. In determining

17 whether an activity would result in

18 an undue burden, factors to be con19 sidered include—

20 ‘‘(i) the nature and cost of the

21 activity;

22 ‘‘(ii) the impact on the oper23 ation of the facility involved in

24 the manufacturing of the equip-
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1 ment or deployment of the net2 work service;

3 ‘‘(iii) the financial resources

4 of the manufacturing affiliate in

5 the case of manufacturing of

6 equipment, for as long as applica7 ble regulatory rules prohibit

8 cross-subsidization of equipment

9 manufacturing with revenues

10 from regulated telecommuni11 cations service or when the man12 ufacturing activities are con13 ducted in a separate subsidiary;

14 ‘‘(iv) the financial resources of

15 the Bell operating company in the

16 case of network services, or in the

17 case of manufacturing of equip18 ment if applicable regulatory

19 rules permit cross-subsidization

20 of equipment manufacturing with

21 revenues from regulated tele22 communications services and the

23 manufacturing activities are not

24 conducted in a separate subsidi25 ary; and
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1 ‘‘(v) the type of operation or

2 operations of the manufacturing

3 affiliate or Bell operating com4 pany as applicable.

5 ‘‘(B) ADVERSE COMPETITIVE IM6 PACT.—In determining whether the

7 activity would result in an adverse

8 competitive impact, the following fac9 tors will be considered:

10 ‘‘(i) whether such activity

11 would raise the cost of the equip12 ment or network service in ques13 tion beyond the level at which

14 there would be sufficient

15 consumer demand by the general

16 population to make the equip17 ment or network service profit18 able; and

19 ‘‘(ii) whether such activity

20 would, with respect to the equip21 ment or network service in ques22 tion, put the manufacturing affili23 ate or Bell operating company, as

24 applicable, at a competitive dis25 advantage in comparison with
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1 one or more providers of one or

2 more competing products and

3 services. This factor may only be

4 considered so long as competing

5 manufacturers and network serv6 ice providers are not held to the

7 same obligation with respect to

8 access by persons with disabil9 ities.

10 ‘‘(C) ACTIVITY.—For the purposes

11 of this paragraph, the term ‘activity’

12 includes—

13 ‘‘(i) the research, design, de14 velopment, deployment, and fab15 rication activities necessary to

16 comply with the requirements of

17 this section; and

18 ‘‘(ii) the acquisition of the re19 lated materials and equipment

20 components.

21 ‘‘(5) EFFECTIVE DATE.—The regulations

22 required by this subsection shall become

23 effective 18 months after the date of en24 actment of this section.
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1 ‘‘(6) IMPACT OF ADA.—Nothing in this

2 section shall be interpreted to limit or

3 otherwise affect the application of the

4 Americans with Disabilities Act or its im5 plementing regulations.

6 ‘‘(h) PUBLIC NETWORK ENHANCEMENT.—A

7 Bell operating company manufacturing affili8 ate shall, as a part of its overall research and

9 development effort, establish a permanent

10 program for the manufacturing research and

11 development of products and applications for

12 the enhancement of the public switched tele13 phone network and to promote public access

14 to advanced telecommunications services.

15 Such program shall focus its work substan16 tially on developing technological advance17 ments in public telephone network applica18 tions, telecommunication equipment and

19 products, and access solutions to new services

20 and technology, including access by (1) public

21 institutions, including educational and health

22 care institutions; and (2) people with disabil23 ities and functional limitations. Notwith24 standing the limitations in subsection (a), a

25 Bell operating company and its affiliates may
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1 engage in such a program in conjunction with

2 a Bell operating company not so affiliated or

3 any of its affiliates. The existence or establish4 ment of such a program that is jointly pro5 vided by manufacturing affiliates of Bell oper6 ating companies shall satisfy the require7 ments of this section as it pertains to all such

8 affiliates of a Bell operating company.

9 ‘‘(i) ADDITIONAL RULES AUTHORIZED.—The

10 Commission may prescribe such additional

11 rules and regulations as the Commission de12 termines necessary to carry out the provi13 sions of this section.

14 ‘‘(j) ADMINISTRATION AND ENFORCEMENT AU15 THORITY.—

16 ‘‘(1) COMMISSION REGULATORY AUTHOR17 ITY.—For the purposes of administering

18 and enforcing the provisions of this sec19 tion and the regulations prescribed

20 thereunder, the Commission shall have

21 the same authority, power, and functions

22 with respect to any Bell operating com23 pany as the Commission has in admin24 istering and enforcing the provisions of
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1 this title with respect to any common car2 rier subject to this Act.

3 ‘‘(2) PRIVATE ACTIONS.—Any common

4 carrier that provides telephone exchange

5 service and that is injured by an act or

6 omission of a Bell operating company or

7 its manufacturing affiliate which violates

8 the requirements of paragraph (7) or (8)

9 of subsection (c), or the Commission’s

10 regulations implementing such para11 graphs, may initiate an action in a dis12 trict court of the United States to recover

13 the full amount of damages sustained in

14 consequence of any such violation and

15 obtain such orders from the court as are

16 necessary to terminate existing violations

17 and to prevent future violations; or such

18 regulated local telephone exchange car19 rier may seek relief from the Commission

20 pursuant to sections 206 through 209.

21 ‘‘(k) RULEMAKING REQUIRED.—The Commis22 sion shall prescribe regulations to implement

23 this section within 180 days after the date of

24 enactment of this section.
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1 ‘‘(l) EXISTING MANUFACTURING AUTHOR2 ITY.—Nothing in this section shall prohibit

3 any Bell operating company from engaging,

4 directly or through any affiliate, in any manu5 facturing activity in which any Bell operating

6 company or affiliate was authorized to engage

7 on the date of enactment of this section.

8 ‘‘(m) ANTITRUST LAWS.—Nothing in this

9 section shall be construed to modify, impair,

10 or supersede the applicability of any of the

11 antitrust laws (including title I of the Anti12 trust and Communications Reform Act of

13 1994).

14 ‘‘(n) DEFINITIONS.—As used in this section:

15 ‘‘(1) The term ‘affiliate’ means any or16 ganization or entity that, directly or indi17 rectly, owns or controls, is owned or con18 trolled by, or is under common owner19 ship with a Bell operating company. The

20 terms ‘owns’, ‘owned’, and ‘ownership’

21 mean an equity interest of more than 10

22 percent.

23 ‘‘(2) The term ‘Bell operating com24 pany’ means those companies listed in

25 appendix A of the Modification of Final
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1 Judgment, and includes any successor or

2 assign of any such company, but does not

3 include any affiliate of any such com4 pany.

5 ‘‘(3) The term ‘customer premises

6 equipment’ means equipment employed

7 on the premises of a person (other than a

8 carrier) to originate, route, or terminate

9 telecommunications.

10 ‘‘(4) The term ‘manufacturing’ has the

11 same meaning as such term has under

12 the Modification of Final Judgment.

13 ‘‘(5) The term ‘manufacturing affiliate’

14 means an affiliate of a Bell operating

15 company established in accordance with

16 subsection (b) of this section.

17 ‘‘(6) The term ‘Modification of Final

18 Judgment’ means the decree entered Au19 gust 24, 1982, in United States v. Western

20 Electric Civil Action No. 82–0192 (United

21 States District Court, District of Colum22 bia), and includes any judgment or order

23 with respect to such action entered on or

24 after August 24, 1982, and before the date

25 of enactment of this section.
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1 ‘‘(7) The term ‘telecommunications’

2 means the transmission, between or

3 among points specified by the user, of in4 formation of the user’s choosing, without

5 change in the form or content of the in6 formation as sent and received, by means

7 of an electromagnetic transmission me8 dium, including all instrumentalities, fa9 cilities, apparatus, and services (includ10 ing the collection, storage, forwarding,

11 switching, and delivery of such informa12 tion) essential to such transmission.

13 ‘‘(8) The term ‘telecommunications

14 equipment’ means equipment, other than

15 customer premises equipment, used by a

16 carrier to provide telecommunications

17 services, and includes software integral

18 to such equipment (including upgrades).

19 ‘‘(9) The term ‘telecommunications

20 service’ means the offering for hire of

21 telecommunications facilities, or of tele22 communications by means of such facili23 ties.’’.
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1 SEC. 202. REGULATION OF ENTRY INTO ALARM MONITOR2 ING SERVICES.

3 Title II of the Communications Act is

4 amended by adding at the end the following

5 new section:

6 ‘‘SEC. 230. REGULATION OF ENTRY INTO ALARM MONITOR7 ING SERVICES.

8 ‘‘(a) REGULATIONS REQUIRED.—Not later

9 than 6 years after the date of enactment of

10 this section, the Commission shall prescribe

11 regulations—

12 ‘‘(1) to establish such requirements,

13 limitations, or conditions as are (A) nec14 essary and appropriate in the public in15 terest with respect to the provision of

16 alarm monitoring services by Bell operat17 ing companies and their affiliates, and

18 (B) effective at such time as a Bell operat19 ing company or any of its affiliates is au20 thorized to provide alarm monitoring

21 services;

22 ‘‘(2) to prohibit Bell operating compa23 nies and their affiliates, at that or any

24 earlier time after the date of enactment

25 of this section, from recording or using in

26 any fashion the occurrence or the con-
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1 tents of calls received by providers of

2 alarm monitoring services for the pur3 poses of marketing such services on be4 half of the Bell operating company, any

5 of its affiliates, or any other entity; and

6 ‘‘(3) to establish procedures for the

7 receipt and review of complaints con8 cerning violations by such companies of

9 such regulations, or of any other provi10 sion of this Act or the regulations there11 under, that result in material financial

12 harm to a provider of alarm monitoring

13 services.

14 ‘‘(b) EXPEDITED CONSIDERATION OF COM15 PLAINTS.—The procedures established under

16 subsection (a)(3) shall ensure that the Com17 mission will make a final determination with

18 respect to any complaint described in such

19 subsection within 120 days after receipt of the

20 complaint. If the complaint contains an ap21 propriate showing that the alleged violation

22 occurred, as determined by the Commission

23 in accordance with such regulations, the

24 Commission shall, within 60 days after receipt

25 of the complaint, issue a cease and desist
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1 order to prevent the Bell operating company

2 and its affiliates from continuing to engage in

3 such violation pending such final determina4 tion.

5 ‘‘(c) REMEDIES.—The Commission may use

6 any remedy available under title V of this Act

7 to terminate and punish violations described

8 in subsection (a)(2). Such remedies may in9 clude, if the Commission determines that such

10 violation was willful or repeated, ordering the

11 Bell operating company to cease offering

12 alarm monitoring services.

13 ‘‘(d) DEFINITIONS.—As used in this section,

14 the terms ‘Bell operating company’, ‘affiliate’,

15 and ‘alarm monitoring services’ have the

16 meanings provided in section 106 of the Anti17 trust Reform Act of 1994, except that, for pur18 poses of the term ‘affiliate’, to own shall refer

19 to owning an equity interest of more than 10

20 percent.’’.

21 SEC. 203. REGULATION OF ELECTRONIC PUBLISHING.

22 Title II of the Communications Act of 1934

23 (47 U.S.C. 201 et seq.) is amended by adding

24 at the end thereof the following new section:
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1 ‘‘SEC. 231. REGULATION OF ELECTRONIC PUBLISHING.

2 ‘‘(a) IN GENERAL.—(1) A Bell operating

3 company and any affiliate shall not engage in

4 the provision of electronic publishing that is

5 disseminated by means of such Bell operating

6 company’s or any of its affiliates’ basic tele7 phone service.

8 ‘‘(2) Nothing in this section shall prohibit

9 a separated affiliate or electronic publishing

10 joint venture from engaging in the provision

11 of electronic publishing or any other lawful

12 service in any area.

13 ‘‘(3) Nothing in this section shall prohibit

14 a Bell operating company or affiliate from en15 gaging in the provision of any lawful service

16 other than electronic publishing in any area

17 or from engaging in the provision of elec18 tronic publishing that is not disseminated by

19 means of such Bell operating company’s or

20 any of its affiliates’ basic telephone service.

21 ‘‘(b) SEPARATED AFFILIATE OR ELECTRONIC

22 PUBLISHING JOINT VENTURE REQUIREMENTS.—A

23 separated affiliate or electronic publishing

24 joint venture shall—

25 ‘‘(1) maintain books, records, and ac26 counts that are separate from those of
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1 the Bell operating company and from any

2 affiliate and which record in accordance

3 with generally accepted accounting prin4 ciples all transactions, whether direct or

5 indirect, with the Bell operating com6 pany;

7 ‘‘(2) not incur debt in a manner that

8 would permit a creditor upon default to

9 have recourse to the assets of the Bell op10 erating company;

11 ‘‘(3) prepare financial statements that

12 are not consolidated with those of the

13 Bell operating company or an affiliate,

14 provided that consolidated statements

15 may also be prepared;

16 ‘‘(4) file with the Commission annual

17 reports in a form substantially equivalent

18 to the Form 10–K referenced at 17 C.F.R.

19 249.310 as that section and form are in ef20 fect on the date of enactment;

21 ‘‘(5) after 1 year from the effective

22 date of this section, not hire as corporate

23 officers sales and marketing management

24 personnel whose responsibilities at the

25 separated affiliate or electronic publish-
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1 ing joint venture will include the geo2 graphic area where the Bell operating

3 company provides basic telephone serv4 ice, or network operations personnel

5 whose responsibilities at the separated

6 affiliate or electronic publishing joint

7 venture would require dealing directly

8 with the Bell operating company, any

9 person who was employed by the Bell op10 erating company during the year preced11 ing their date of hire, provided that this

12 requirement shall not apply to persons

13 subject to a collective bargaining agree14 ment that gives such persons rights to be

15 employed by a separated affiliate or elec16 tronic publishing joint venture of the Bell

17 operating company;

18 ‘‘(6) not provide any wireline tele19 phone exchange service in any telephone

20 exchange area where a Bell operating

21 company with which it is under common

22 ownership or control provides basic tele23 phone exchange service except on a re24 sale basis;
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1 ‘‘(7) not use the name, trademarks, or

2 service marks of an existing Bell operat3 ing company except for names, trade4 marks, or service marks that are or were

5 used in common with the entity that

6 owns or controls the Bell operating com7 pany;

8 ‘‘(8) have performed annually by

9 March 31, or any other date prescribed

10 by the Commission, a compliance review

11 which—

12 ‘‘(A) must be conducted by an

13 independent entity which is subject

14 to professional, legal, and ethical obli15 gations for the purpose of determin16 ing compliance during the preceding

17 calendar year with any provision of

18 this section that imposes a require19 ment on such separated affiliate or

20 electronic publishing joint venture;

21 and

22 ‘‘(B) must be maintained by the

23 separated affiliate for a period of 5

24 years subject to review by any lawful

25 authority;
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1 ‘‘(9) within 90 days of receiving a re2 view described in paragraph (8), file a re3 port of such exceptions and any correc4 tive action with the Commission and

5 allow any person to inspect and copy

6 such report subject to reasonable safe7 guards to protect any proprietary infor8 mation contained in such report from

9 being used for purposes other than to en10 force or pursue remedies under this sec11 tion.

12 ‘‘(c) BELL OPERATING COMPANY REQUIRE13 MENTS.—A Bell operating company under

14 common ownership or control with a sepa15 rated affiliate or electronic publishing joint

16 venture shall—

17 ‘‘(1) not provide a separated affiliate

18 any facilities, services, or basic telephone

19 service information unless it makes such

20 facilities, services, or information avail21 able to unaffiliated entities upon request

22 and on the same terms and conditions;

23 ‘‘(2) carry out transactions with a sep24 arated affiliate in a manner equivalent to

25 the manner that unrelated parties would
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1 carry out independent transactions and

2 not based upon the affiliation;

3 ‘‘(3) carry out transactions with a sep4 arated affiliate, which involve the trans5 fer of personnel, assets, or anything of

6 value, pursuant to written contracts or

7 tariffs that are filed with the Commission

8 and made publicly available;

9 ‘‘(4) carry out transactions with a sep10 arated affiliate in a manner that is

11 auditable in accordance with generally

12 accepted accounting principles;

13 ‘‘(5) value any assets that are trans14 ferred to a separated affiliate at the

15 greater of net book cost or fair market

16 value;

17 ‘‘(6) value any assets that are trans18 ferred to it by its separated affiliate at

19 the lesser of net book cost or fair market

20 value;

21 ‘‘(7) except for—

22 ‘‘(A) instances where Commission

23 or State regulations permit in-arrears

24 payment for tariffed telecommuni25 cations services; or
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1 ‘‘(B) the investment by an affiliate

2 of dividends or profits derived from a

3 Bell operating company,

4 not provide debt or equity financing di5 rectly or indirectly to a separated affili6 ate;

7 ‘‘(8) comply fully with all applicable

8 Commission and State cost allocation and

9 other accounting rules;

10 ‘‘(9) have performed annually by

11 March 31, or any other date prescribed

12 by the Commission, a compliance review

13 which—

14 ‘‘(A) must be conducted by an

15 independent entity which is subject

16 to professional, legal, and ethical obli17 gations for the purpose of determin18 ing compliance during the preceding

19 calendar year with any provision of

20 this section that imposes a require21 ment on such Bell operating com22 pany; and

23 ‘‘(B) must be maintained by the

24 Bell operating company for a period
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1 of 5 years subject to review by any

2 lawful authority;

3 ‘‘(10) within 90 days of receiving a re4 view described in paragraph (9), file a re5 port of such exceptions and any correc6 tive action with the Commission and

7 allow any person to inspect and copy

8 such report subject to reasonable safe9 guards to protect any proprietary infor10 mation contained in such report from

11 being used for purposes other than to en12 force or pursue remedies under this sec13 tion;

14 ‘‘(11) if it provides facilities or serv15 ices for telecommunication, transmission,

16 billing and collection, or physical colloca17 tion to any electronic publisher, includ18 ing a separated affiliate, for use with or

19 in connection with the provision of elec20 tronic publishing that is disseminated by

21 means of such Bell operating company’s

22 or any of its affiliates’ basic telephone

23 service, provide to all other electronic

24 publishers the same type of facilities and

25 services on request, on the same terms
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1 and conditions or as required by the

2 Commission or a State, and unbundled

3 and individually tariffed to the smallest

4 extent that is technically feasible and

5 economically reasonable to provide;

6 ‘‘(12) provide network access and

7 interconnections for basic telephone

8 service to electronic publishers at any

9 technically feasible and economically rea10 sonable point within the Bell operating

11 company’s network and at just and rea12 sonable rates that are tariffed (so long as

13 rates for such services are subject to reg14 ulation) and that are not higher on a per15 unit basis than those charged for such

16 services to any other electronic publisher

17 or any separated affiliate engaged in

18 electronic publishing;

19 ‘‘(13) if prices for network access and

20 interconnection for basic telephone serv21 ice are no longer subject to regulation,

22 provide electronic publishers such serv23 ices on the same terms and conditions as

24 a separated affiliate receives such serv25 ices;
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1 ‘‘(14) if any basic telephone service

2 used by electronic publishers ceases to

3 require a tariff, provide electronic pub4 lishers with such service on the same

5 terms and conditions as a separated affil6 iate receives such service;

7 ‘‘(15) provide reasonable advance no8 tification at the same time and on the

9 same terms to all affected electronic pub10 lishers of information if such information

11 is within any one or more of the follow12 ing categories:

13 ‘‘(A) such information is nec14 essary for the transmission or routing

15 of information by an interconnected

16 electronic publisher;

17 ‘‘(B) such information is nec18 essary to ensure the interoperability

19 of an electronic publisher’s and the

20 Bell operating company’s networks;

21 or

22 ‘‘(C) such information concerns

23 changes in basic telephone service

24 network design and technical stand-
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1 ards which may affect the provision

2 of electronic publishing;

3 ‘‘(16) not directly or indirectly pro4 vide anything of monetary value to a sep5 arated affiliate unless in exchange for

6 consideration at least equal to the great7 er of its net book cost or fair market

8 value, except the investment by an affili9 ate of dividends or profits derived from a

10 Bell operating company;

11 ‘‘(17) not discriminate in the presen12 tation or provision of any gateway for

13 electronic publishing services or any

14 electronic directory of information serv15 ices, which is provided over such Bell op16 erating company’s basic telephone serv17 ice;

18 ‘‘(18) have no directors, officers or

19 employees in common with a separated

20 affiliate;

21 ‘‘(19) not own any property in com22 mon with a separated affiliate;

23 ‘‘(20) not perform hiring or training of

24 personnel performed on behalf of a sepa25 rated affiliate;
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1 ‘‘(21) not perform the purchasing, in2 stallation or maintenance of equipment

3 on behalf of a separated affiliate, except

4 for telephone service that it provides

5 under tariff or contract subject to the

6 provisions of this section; and

7 ‘‘(22) not perform research and devel8 opment on behalf of a separated affiliate.

9 ‘‘(d) CUSTOMER PROPRIETARY NETWORK IN10 FORMATION.—A Bell operating company or any

11 affiliate shall not provide to any electronic

12 publisher, including a separated affiliate or

13 electronic publishing joint venture, customer

14 proprietary network information for use with

15 or in connection with the provision of elec16 tronic publishing that is disseminated by

17 means of such Bell operating company’s or

18 any of its affiliates’ basic telephone service

19 that is not made available by the Bell operat20 ing company or affiliate to all electronic pub21 lishers on the same terms and conditions.

22 ‘‘(e) COMPLIANCE WITH SAFEGUARDS.—A

23 Bell operating company, affiliate or its sepa24 rated affiliate is prohibited from acting in

25 concert with another Bell operating company
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1 or any entity in order to knowingly and will2 fully violate or evade the requirements of this

3 section.

4 ‘‘(f) TELEPHONE OPERATING COMPANY DIVI5 DENDS.—Nothing in this section shall prohibit

6 an affiliate from investing dividends derived

7 from a Bell operating company in its sepa8 rated affiliate and subsections (i) and (j) of

9 this section shall not apply to any such invest10 ment.

11 ‘‘(g) JOINT MARKETING, ETC.—Except as

12 provided in subsection (h)—

13 ‘‘(1) a Bell operating company shall

14 not carry out any promotion, marketing,

15 sales, or advertising for or in conjunction

16 with a separated affiliate.

17 ‘‘(2) A Bell operating company shall

18 not carry out any promotion, marketing,

19 sales, or advertising for or in conjunction

20 with an affiliate that is related to the pro21 vision of electronic publishing.

22 ‘‘(h) PERMISSIBLE JOINT ACTIVITIES.—

23 ‘‘(1) JOINT TELEMARKETING.—A Bell op24 erating company may provide inbound

25 telemarketing or referral services related
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1 to the provision of electronic publishing

2 for a separated affiliate, electronic pub3 lishing joint venture, affiliate, or unaffili4 ated electronic publisher, provided that

5 if such services are provided to a sepa6 rated affiliate, electronic publishing joint

7 venture, or affiliate, such services shall

8 be made available to all electronic pub9 lishers on request, on nondiscriminatory

10 terms, at compensatory prices, and sub11 ject to regulations of the Commission to

12 ensure that the Bell operating company’s

13 method of providing telemarketing or re14 ferral and its price structure do not com15 petitively disadvantage any electronic

16 publishers regardless of size, including

17 those which do not use the Bell operating

18 company’s telemarketing services.

19 ‘‘(2) TEAMING ARRANGEMENTS.—A Bell

20 operating company may engage in non21 discriminatory teaming or business ar22 rangements to engage in electronic pub23 lishing with any separated affiliate or

24 with any other electronic publisher pro25 vided that the Bell operating company
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1 only provides facilities, services, and

2 basic telephone service information as

3 authorized by this section and provided

4 that the Bell operating company does not

5 own such teaming or business arrange6 ment.

7 ‘‘(3) ELECTRONIC PUBLISHING JOINT VEN8 TURES.—A Bell operating company or af9 filiate may participate on a nonexclusive

10 basis in electronic publishing joint ven11 tures with entities that are not any Bell

12 operating company, affiliate, or sepa13 rated affiliate to provide electronic pub14 lishing services, provided that the Bell

15 operating company or affiliate has not

16 more than a 50 percent direct or indirect

17 equity interest (or the equivalent thereof)

18 or the right to more than 50 percent of

19 the gross revenues under a revenue shar20 ing or royalty agreement in any elec21 tronic publishing joint venture. Officers

22 and employees of a Bell operating com23 pany or affiliate participating in an elec24 tronic publishing joint venture may not

25 have more than 50 percent of the voting
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1 control over the electronic publishing

2 joint venture. In the case of joint ven3 tures with small, local electronic publish4 ers, the Commission for good cause

5 shown may authorize the Bell operating

6 company or affiliate to have a larger eq7 uity interest, revenue share, or voting

8 control but not to exceed 80 percent. A

9 Bell operating company participating in

10 an electronic publishing joint venture

11 may provide promotion, marketing, sales,

12 or advertising personnel and services to

13 such joint venture.

14 ‘‘(i) TRANSACTIONS RELATED TO THE PROVI15 SION OF ELECTRONIC PUBLISHING BETWEEN A

16 TELEPHONE OPERATING COMPANY AND ANY AF17 FILIATE.—

18 ‘‘(1) Any provision of facilities, serv19 ices or basic telephone service informa20 tion or any transfer of assets, personnel,

21 or anything of commercial or competitive

22 value from a Bell operating company to

23 any affiliate related to the provision of

24 electronic publishing shall be—
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1 ‘‘(A) recorded in the books and

2 records of each entity;

3 ‘‘(B) auditable in accordance with

4 generally accepted accounting prin5 ciples; and

6 ‘‘(C) pursuant to written contracts

7 or tariffs filed with the Commission

8 or a State and made publicly avail9 able.

10 ‘‘(2) Any transfer of assets directly re11 lated to the provision of electronic pub12 lishing from a Bell operating company to

13 an affiliate shall be valued at the greater

14 of net book cost or fair market value. Any

15 transfer of assets related to the provision

16 of electronic publishing from an affiliate

17 to the Bell operating company shall be

18 valued at the lesser of net book cost or

19 fair market value.

20 ‘‘(3) A Bell operating company shall

21 not provide an affiliate any facilities,

22 services, or basic telephone service infor23 mation related to the provision of elec24 tronic publishing, which such affiliate

25 then directly or indirectly provides to a
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1 separated affiliate, and which is not

2 made available to unaffiliated companies

3 on the same terms and conditions.

4 ‘‘(j) TRANSACTIONS RELATED TO THE PROVI5 SION OF ELECTRONIC PUBLISHING BETWEEN AN

6 AFFILIATE AND A SEPARATED AFFILIATE.—

7 ‘‘(1) Any facilities, services, or basic

8 telephone service information provided

9 or any assets, personnel, or anything of

10 commercial or competitive value trans11 ferred, from a Bell operating company to

12 any affiliate as described in subsection (i)

13 and then provided or transferred to a

14 separated affiliate shall be—

15 ‘‘(A) recorded in the books and

16 records of each entity;

17 ‘‘(B) auditable in accordance with

18 generally accepted accounting prin19 ciples; and

20 ‘‘(C) pursuant to written contracts

21 or tariffs filed with the Commission

22 or a State and made publicly avail23 able.

24 ‘‘(2) Any transfer of assets directly re25 lated to the provision of electronic pub-
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1 lishing from a Bell operating company to

2 any affiliate as described in subsection (i)

3 and then transferred to a separated affili4 ate shall be valued at the greater of net

5 book cost or fair market value. Any trans6 fer of assets related to the provision of

7 electronic publishing from a separated

8 affiliate to any affiliate and then trans9 ferred to the Bell operating company as

10 described in subsection (i) shall be val11 ued at the lesser of net book cost or fair

12 market value.

13 ‘‘(3) An affiliate shall not provide a

14 separated affiliate any facilities, services,

15 or basic telephone service information re16 lated to the provision of electronic pub17 lishing, which were provided to such af18 filiate directly or indirectly by a Bell op19 erating company, and which is not made

20 available to unaffiliated companies on

21 the same terms and conditions.

22 ‘‘(k) OTHER ELECTRONIC PUBLISHERS.—Ex23 cept as provided in subsection (h)(3)—

24 ‘‘(1) A Bell operating company shall

25 not have any officers, employees, prop-
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1 erty, or facilities in common with any en2 tity whose principal business is publish3 ing of which a part is electronic publish4 ing.

5 ‘‘(2) No officer or employee of a Bell

6 operating company shall serve as a direc7 tor of any entity whose principal busi8 ness is publishing of which a part is elec9 tronic publishing.

10 ‘‘(3) For the purposes of paragraphs

11 (1) and (2), a Bell operating company or

12 an affiliate that owns an electronic pub13 lishing joint venture shall not be deemed

14 to be engaged in the electronic publish15 ing business solely because of such own16 ership.

17 ‘‘(4) A Bell operating company shall

18 not carry out—

19 ‘‘(A) any marketing or sales for

20 any entity that engages in electronic

21 publishing; or

22 ‘‘(B) any hiring of personnel, pur23 chasing, or production,

24 for any entity that engages in electronic

25 publishing.
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1 ‘‘(5) The Bell operating company shall

2 not provide any facilities, services, or

3 basic telephone service information to

4 any entity that engages in electronic pub5 lishing, for use with or in connection

6 with the provision of electronic publish7 ing that is disseminated by means of such

8 Bell operating company’s or any of its af9 filiates’ basic telephone service, unless

10 equivalent facilities, services, or informa11 tion are made available on equivalent

12 terms and conditions to all.

13 ‘‘(l) TRANSITION.—Any electronic publish14 ing service being offered to the public by a

15 Bell operating company or affiliate on the

16 date of enactment of this section shall have

17 one year from such date of enactment to com18 ply with the requirements of this section.

19 ‘‘(m) SUNSET.—The provisions of this sec20 tion shall cease to apply to a Bell operating

21 company or its affiliate or separated affiliate

22 in any telephone exchange area on June 30,

23 2000.

24 ‘‘(n) PRIVATE RIGHT OF ACTION.—
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1 ‘‘(1) Any person claiming that any act

2 or practice of any Bell operating com3 pany, affiliate, or separated affiliate con4 stitutes a violation of this section may

5 file a complaint with the Commission or

6 bring suit as provided in section 207 of

7 the Communications Act of 1934 (47

8 U.S.C. 207), and such Bell operating com9 pany, affiliate, or separated affiliate shall

10 be liable as provided in section 206 of the

11 Communications Act of 1934, (47 U.S.C.

12 207): Provided, however, That damages

13 may not be awarded for a violation that

14 is discovered by a compliance review as

15 required by subsection (b)(8) or (c)(9) of

16 this section and corrected within 90 days.

17 ‘‘(2) In addition to the provisions of

18 paragraph (1), any person claiming that

19 any act or practice of any Bell operating

20 company, affiliate, or separated affiliate

21 constitutes a violation of this section may

22 make application to the Commission for

23 an order to cease and desist such viola24 tion or may make application in any dis25 trict court of the United States of com-
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1 petent jurisdiction for an order enjoining

2 such acts or practices or for an order

3 compelling compliance with such re4 quirement.

5 ‘‘(o) ANTITRUST LAWS.—Nothing in this sec6 tion shall be construed to modify, impair, or

7 supersede the applicability of any of the anti8 trust laws (including title I of the Antitrust

9 and Communications Reform Act of 1994).

10 ‘‘(p) DEFINITIONS.—As used in this sec11 tion—

12 ‘‘(1) The term ‘affiliate’ means any en13 tity that, directly or indirectly, owns or

14 controls, is owned or controlled by, or is

15 under common ownership or control

16 with, a Bell operating company. Such

17 term shall not include a separated affili18 ate.

19 ‘‘(2) The term ‘basic telephone service’

20 means any wireline telephone exchange

21 service, or a wireline telephone exchange

22 service facility, provided by a Bell operat23 ing company in a telephone exchange

24 area, except
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1 ‘‘(A) a competitive wireline tele2 phone exchange service provided in a

3 telephone exchange area where an4 other entity provides a wireline tele5 phone exchange service that was pro6 vided on January 1, 1984, and

7 ‘‘(B) wireless telephone exchange

8 service provided by an affiliate that

9 is required by the Commission to be a

10 corporate entity separate from the

11 Bell operating company.

12 ‘‘(3) The term ‘basic telephone service

13 information’ means network and cus14 tomer information of a Bell operating

15 company and other information acquired

16 by a Bell operating company as a result

17 of its engaging in the provision of basic

18 telephone service.

19 ‘‘(4) The term ‘control’ has the mean20 ing that it has in 17 C.F.R. 240.12b–2, the

21 regulations promulgated by the Securi22 ties and Exchange Commission pursuant

23 to the Securities Exchange Act of 1934 (15

24 U.S.C. 78a et seq.) or any successor provi25 sion to such section.
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1 ‘‘(5) The term ‘customer proprietary

2 network information’ means—

3 ‘‘(A) information which—

4 ‘‘(i) relates to the quantity,

5 technical configuration, type, des6 tination, and amount of use of

7 telephone exchange service or

8 interexchange telephone service

9 subscribed to by any customer of

10 a Bell operating company, and

11 ‘‘(ii) is available to the Bell op12 erating company by virtue of the

13 telephone company-customer re14 lationship; and

15 ‘‘(B) information contained in the

16 bills for telephone exchange service

17 or interexchange telephone service

18 received by a customer of a Bell oper19 ating company.

20 ‘‘(6)(A) The term ‘electronic publish21 ing’ means the dissemination, provision,

22 publication, or sale to an unaffiliated en23 tity or person, using a Bell operating

24 company’s basic telephone service, of—

25 ‘‘(i) news or entertainment;
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1 ‘‘(ii) business, financial, legal,

2 consumer, or credit material;

3 ‘‘(iii) editorials;

4 ‘‘(iv) columns;

5 ‘‘(v) sports reporting;

6 ‘‘(vi) features;

7 ‘‘(vii) advertising;

8 ‘‘(viii) photos or images;

9 ‘‘(ix) archival or research mate10 rial;

11 ‘‘(x) legal notices or public

12 records;

13 ‘‘(xi) scientific, educational, in14 structional, technical, professional,

15 trade, or other literary materials; or

16 ‘‘(xii) other like or similar infor17 mation.

18 ‘‘(B) The term ‘electronic publishing’

19 shall not include the following network

20 services:

21 ‘‘(i) Information access as that

22 term is defined by the Modification of

23 Final Judgment.

24 ‘‘(ii) The transmission of informa25 tion as a common carrier.
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1 ‘‘(iii) The transmission of informa2 tion as part of a gateway to an infor3 mation service that does not involve

4 the generation or alteration of the

5 content of information, including

6 data transmission, address trans7 lation, protocol conversion, billing

8 management, introductory informa9 tion content, and navigational sys10 tems that enable users to access elec11 tronic publishing services, which do

12 not affect the presentation of such

13 electronic publishing services to

14 users.

15 ‘‘(iv) Voice storage and retrieval

16 services, including voice messaging

17 and electronic mail services.

18 ‘‘(v) Level 2 gateway services as

19 those services are defined by the

20 Commission’s Second Report and

21 Order, Recommendation to Congress

22 and Second Further Notice of Pro23 posed Rulemaking in CC Docket No.

24 87–266 dated August 14, 1992.
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1 ‘‘(vi) Data processing services that

2 do not involve the generation or al3 teration of the content of informa4 tion.

5 ‘‘(vii) Transaction processing sys6 tems that do not involve the genera7 tion or alteration of the content of in8 formation.

9 ‘‘(viii) Electronic billing or adver10 tising of a Bell operating company’s

11 regulated telecommunications serv12 ices.

13 ‘‘(ix) Language translation.

14 ‘‘(x) Conversion of data from one

15 format to another.

16 ‘‘(xi) The provision of information

17 necessary for the management, con18 trol, or operation of a telephone com19 pany telecommunications system.

20 ‘‘(xii) The provision of directory

21 assistance that provides names, ad22 dresses, and telephone numbers and

23 does not include advertising.

24 ‘‘(xiii) Caller identification serv25 ices.
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1 ‘‘(xiv) Repair and provisioning

2 databases for telephone company op3 erations.

4 ‘‘(xv) Credit card and billing vali5 dation for telephone company oper6 ations.

7 ‘‘(xvi) 911–E and other emergency

8 assistance databases.

9 ‘‘(xvii) Any other network service

10 of a type that is like or similar to

11 these network services and that does

12 not involve the generation or alter13 ation of the content of information.

14 ‘‘(xviii) Any upgrades to these net15 work services that do not involve the

16 generation or alteration of the con17 tent of information.

18 ‘‘(C) The term ‘electronic publishing’

19 also shall not include—

20 ‘‘(i) full motion video entertain21 ment on demand; and

22 ‘‘(ii) video programming as de23 fined in section 602 of the Commu24 nications Act of 1934.
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1 ‘‘(7) The term ‘electronic publishing

2 joint venture’ means a joint venture

3 owned by a Bell operating company or af4 filiate that engages in the provision of

5 electronic publishing which is dissemi6 nated by means of such Bell operating

7 company’s or any of its affiliates’ basic

8 telephone service.

9 ‘‘(8) The term ‘entity’ means any orga10 nization, and includes corporations, part11 nerships, sole proprietorships, associa12 tions, and joint ventures.

13 ‘‘(9) The term ‘inbound telemarketing’

14 means the marketing of property, goods,

15 or services by telephone to a customer or

16 potential customer who initiated the call.

17 ‘‘(10) The term ‘own’ with respect to

18 an entity means to have a direct or indi19 rect equity interest (or the equivalent

20 thereof) of more than 10 percent of an en21 tity, or the right to more than 10 percent

22 of the gross revenues of an entity under

23 a revenue sharing or royalty agreement.

24 ‘‘(11) The term ‘separated affiliate’

25 means a corporation under common own-
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1 ership or control with a Bell operating

2 company that does not own or control a

3 Bell operating company and is not owned

4 or controlled by a Bell operating com5 pany and that engages in the provision of

6 electronic publishing which is dissemi7 nated by means of such Bell operating

8 company’s or any of its affiliates’ basic

9 telephone service.

10 ‘‘(12) The term ‘Bell operating com11 pany’ means the corporations subject to

12 the Modification of Final Judgment and

13 listed in Appendix A thereof, or any en14 tity owned or controlled by such corpora15 tion, or any successor or assign of such

16 corporation, but does not include an elec17 tronic publishing joint venture owned by

18 such corporation or entity.’’.

Amend the title of the bill so as to read: ‘‘A bill to

supersede the Modification of Final Judgment entered

August 24, 1982, in the antitrust action styled United

States v. Western Electric, Civil Action No. 82–0192,

United States District Court for the District of Columbia; to amend the Communications Act of 1934 to regulate the manufacturing of Bell operating companies; and

for other purposes.’’.
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