I

103D CONGRESS

1ST SESSION H. R. 3626

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

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 TITLES.

4 (a) TITLE I.—Title I of this Act may be cited as the

5 ‘‘Antitrust Reform Act of 1993’’.
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1 (b) TITLE II.—Title II of this Act may be cited as

2 the Communications Reform Act of 1993’’.

3 TITLE I—SUPERSESSION OF THE

4 MODIFICATION OF FINAL

5 JUDGMENT

6 SEC. 101. AUTHORIZATION FOR BELL OPERATING COM7 PANY TO ENTER COMPETITIVE LINES OF

8 BUSINESS.

9 (a) APPLICATION.—

10 (1) IN GENERAL.—After the applicable date

11 specified in paragraph (2), a Bell operating company

12 may apply simultaneously to the Attorney General

13 and the Federal Communications Commission for

14 authorization, notwithstanding the Modification of

15 Final Judgment—

16 (A) to provide alarm monitoring services,

17 or

18 (B) to provide interexchange telecommuni19 cations.

20 The application shall describe with particularity the

21 nature and scope of each activity, and of each prod22 uct market or service market, and each geographic

23 market, for which authorization is sought.

24 (2) APPLICABLE DATES.—For purposes of

25 paragraph (1), the applicable date after which a Bell
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1 operating company may apply for authorization shall

2 be—

3 (A) the date of enactment of this Act, with

4 respect to—

5 (i) engaging in any activity described

6 in subparagraph (B), (C), or (D), to the

7 extent, with respect to each market to

8 which the activity relates, that there exists

9 no actual or potential competition,

10 (ii) offering of a service described in

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

12 (iii) providing, through transmission

13 facilities owned by such company, of inter14 state interexchange telecommunications

15 that originate and terminate in exchange

16 areas in which the Bell operating company,

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

18 of such company that is a Bell operating

19 company, provided telephone exchange

20 service as of November 21, 1993,

21 (B) except to the extent that an earlier

22 date is available under subparagraph (A), the

23 date that occurs 18 months after the date of

24 enactment of this Act, with respect to providing

25 interexchange telecommunications through the
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1 acquisition and resale of telecommunications

2 services,

3 (C) except to the extent that an earlier

4 date is available under subparagraph (A) or

5 (B), the date that occurs 60 months after the

6 date of enactment of this Act, with respect to

7 providing any interstate telecommunications,

8 and

9 (D) the date that occurs 66 months after

10 the date of enactment of this Act, with respect

11 to providing alarm monitoring services.

12 (3) INTERAGENCY NOTIFICATION.—Whenever

13 the Attorney General or the Federal Communica14 tions Commission receives an application made

15 under paragraph (1), the recipient of the application

16 shall notify the other of such receipt.

17 (4) PUBLICATION.—Not later than 10 days

18 after receiving an application made under paragraph

19 (1), the Attorney General and the Federal Commu20 nications Commission jointly shall publish the appli21 cation in the Federal Register.

22 (b) SEPARATE DETERMINATIONS BY THE ATTORNEY

23 GENERAL AND THE FEDERAL COMMUNICATIONS COMMIS24 SION.—
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1 (1) COMMENT PERIOD.—Not later than 45 days

2 after the application is published under subsection

3 (a)(4), interested persons may submit comments to

4 the Attorney General, to the Federal Communica5 tions Commission, or to both regarding the applica6 tion. Submitted comments shall be available to the

7 public.

8 (2) INTERAGENCY CONSULTATION.—Before

9 making their respective determinations under para10 graph (3), the Attorney General and the Federal

11 Communications Commission shall consult with each

12 other regarding the application involved.

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

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

15 later than 180 days after the application is received

16 under subsection (a)(1), the Attorney General and

17 the Federal Communications Commission each shall

18 issue separately a written determination, on the

19 record after an opportunity for a hearing, with re20 spect to granting the authorization for which the

21 Bell operating company has applied.

22 (B) Such determination shall be based on clear

23 and convincing evidence.

24 (C) A person who might be injured in its busi25 ness or property as a result of the approval of the
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1 authorization requested shall be permitted to partici2 pate as a party in the proceeding on which the de3 termination is based.

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

5 granting of the authorization requested in the appli6 cation only to the extent that the Attorney General

7 finds that there is no substantial possibility that

8 such company or its affiliates could use monopoly

9 power to impede competition in the market such

10 company seeks to enter. The Attorney General shall

11 deny the remainder of the requested authorization.

12 (ii) The Federal Communications Commission

13 shall approve the granting of the requested author14 ization only to the extent that the Commission finds

15 that granting such request is consistent with the

16 public interest, convenience, and necessity. The

17 Commission shall deny the remainder of the re18 quested authorization.

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

20 180 days after the date of enactment of this Act, the

21 Attorney General and the Federal Communications

22 Commission shall jointly prescribe regulations to es23 tablish procedures and criteria for the expedited de24 termination and approval of applications for pro25 posed interexchange telecommunications services
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1 that are incidental to the provision of another serv2 ice which the Bell operating company may lawfully

3 provide.

4 (E) In making any determination under sub5 paragraph (D)(ii) of the public interest, convenience,

6 and necessity, the Commission shall take into ac7 count—

8 (i) the probability that approval of the re9 quested authorization will secure reduced rates

10 for consumers of the services that are the sub11 ject of the application, especially residential

12 subscribers,

13 (ii) whether approval of the requested au14 thorization will result in increases in rates for

15 consumers of exchange service,

16 (iii) the extent to which approval of the re17 quested authorization will expedite the delivery

18 of new services and products to consumers,

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

20 regulations will preclude the applicant from en21 gaging in predatory pricing or other coercive

22 economic practices with respect to the services

23 that are the subject of the application,

24 (v) the extent to which approval of the re25 quested authorization would permit collusive
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1 acts or practices between or among Bell operat2 ing companies that are not affiliates of each

3 other,

4 (vi) whether approval of the requested au5 thorization will result, directly or indirectly, in

6 increasing concentration among providers of the

7 service that is the subject of the application to

8 such an extent that consumers will not be pro9 tected from rates that are unjust or unreason10 able or that are unjustly or unreasonably dis11 criminatory, and

12 (vii) in the case of an application to pro13 vide alarm monitoring services, whether the

14 Commission has the capability to enforce effec15 tively the regulations established pursuant to

16 section 230 of the Communications Act of 1934

17 as added by this Act.

18 (F) A determination that approves the granting

19 of any part of a requested authorization shall de20 scribe with particularity the nature and scope of

21 each activity, and of each product market or service

22 market, and each geographic market, to which ap23 proval applies.

24 (4) PUBLICATION.—Not later than 10 days

25 after issuing a determination under paragraph (3),
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1 the Attorney General or the Federal Communica2 tions Commission, as the case may be, shall publish

3 in the Federal Register a brief description of the

4 determination.

5 (5) FINALITY.—A determination made under

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

7 respect to such determination is timely commenced

8 under subsection (c)(1).

9 (6) AUTHORIZATION GRANTED.—Subject to

10 paragraph (7), a requested authorization is granted

11 to the extent that—

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

13 Federal Communications Commission approved

14 under paragraph (3) the granting of the au15 thorization, and

16 (ii) neither of their approvals is vacated or

17 reversed as a result of judicial review author18 ized by subsection (c), or

19 (B) as a result of such judicial review of

20 either or both determinations, both the Attor21 ney General and the Federal Communications

22 Commission approve the granting of the re23 quested authorization.

24 (c) JUDICIAL REVIEW.—
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1 (1) CIVIL ACTION.—Not later than 45 days

2 after a determination by the Attorney General or the

3 Federal Communications Commission is published

4 under subsection (b)(4), the Bell operating company

5 that applied to the Attorney General and the Fed6 eral Communications Commission under subsection

7 (a), or any person who might be injured in its busi8 ness or property as a result of the determination re9 garding such company’s engaging in the activity de10 scribed in such company’s application, may com11 mence a civil action against the Attorney General or

12 the Federal Communications Commission, as the

13 case may be, in the United States Court of Appeals

14 for the District of Columbia for review of the deter15 mination regarding the application.

16 (2) CERTIFICATION OF RECORD.—As part of

17 the answer to the complaint, the Attorney General

18 or the Federal Communications Commission, as the

19 case may be, shall file in such court a certified copy

20 of the record upon which the determination is based.

21 (3) CONSOLIDATION OF ACTIONS.—The court

22 shall consolidate for review all civil actions com23 menced under this subsection with respect to the ap24 plication.
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1 (4) JUDGMENT.—(A) The court shall enter a

2 judgment after reviewing the determination in ac3 cordance with section 706 of title 5 of the United

4 States Code.

5 (B) A judgment—

6 (i) affirming the part of the determination

7 that approves granting all or part of the re8 quested authorization, or

9 (ii) reversing the part of the determination

10 that denies all or part of the requested author11 ization,

12 shall describe with particularity the nature and

13 scope of each activity, and of each product market

14 or service market, and each geographic market, to

15 which the affirmance or reversal applies.

16 SEC. 102. AUTHORIZATION AS PREREQUISITE.

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

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

19 be unlawful for such company, directly or through an af20 filiated enterprise, to engage in an activity described in

21 section 101(a)(1).

22 (b) EXCEPTIONS.—Subsection (a) shall not prohibit

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

24 the date of enactment of this Act—
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1 (1) in any activity as authorized by an order

2 entered by the United States District Court for the

3 District of Columbia pursuant to section VIII(C) of

4 the Modification of Final Judgment, if—

5 (A) such order was entered on or before

6 the date of the enactment of this Act, or

7 (B) a request for such authorization was

8 pending before such court on the date of the

9 enactment of this Act,

10 (2) in providing interexchange telecommuni11 cations on an intrastate basis if, after the date of

12 enactment of this Act, such telecommunications have

13 been approved by, or are authorized under the laws

14 of, the State involved, and public notice of the avail15 ability of such authority has occurred at least 60

16 days before the offering of such interexchange tele17 communications, or

18 (3) in providing interexchange telecommuni19 cations through the purchase and resale of tele20 communications services obtained from a person who

21 is not an affiliate of such company if—

22 (A) such interexchange telecommunications

23 originate in any State that, after the date of

24 the enactment of this Act, approves or author25 izes persons that are not affiliates of such com-
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1 pany to provide intraexchange toll telecommuni2 cations services in such a manner that cus3 tomers in such State have the ability to route

4 automatically, without the use of any access

5 code, their intraexchange toll telecommuni6 cations to the telecommunications services pro7 vider of the customer’s designation from among

8 2 or more telecommunications services providers

9 (including such company), and

10 (B) not less than 45 days before such

11 company so provides such interexchange tele12 communications—

13 (i) such company gives public notice

14 of the availability of such approval or au15 thorization, and

16 (ii) the Attorney General fails to com17 mence a civil action to enjoin such com18 pany from so providing such interexchange

19 telecommunications.

20 SEC. 103. LIMITATIONS ON MANUFACTURING AND PROVID21 ING EQUIPMENT.

22 (a) ABSOLUTE LIMITATION.—Until the expiration of

23 the 1-year period beginning on the date of the enactment

24 of this Act, it shall be unlawful for a Bell operating com25 pany, directly or through an affiliated enterprise, to manu-
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1 facture or provide telecommunications equipment, or to

2 manufacture customer premises equipment.

3 (b) QUALIFIED LIMITATION.—

4 (1) REQUIRED CONDITIONS.—After the expira5 tion of the 1-year period beginning on the date of

6 the enactment of this Act, it shall be lawful for a

7 Bell operating company, directly or through an af8 filiated enterprise, to manufacture or provide tele9 communications equipment, or to manufacture cus10 tomer premises equipment, if—

11 (A) such company submits to the Attorney

12 General the notification described in paragraph

13 (2) and such additional material and informa14 tion described in such paragraph as the Attor15 ney General may request, and complies with the

16 waiting period specified in paragraph (3), and

17 (B) before the expiration of the waiting pe18 riod specified in paragraph (3)—

19 (i) the Attorney General fails to com20 mence a civil action to enjoin such com21 pany from engaging in the activity de22 scribed in such notification, or

23 (ii) the Attorney General notifies such

24 company that for purposes of this sub25 section the Attorney General does not in-
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1 tend to commence such civil action before

2 the expiration of such waiting period.

3 (2) NOTIFICATION.—The notification required

4 by paragraph (1) shall be in such form and shall

5 contain such documentary material and information

6 relevant to the proposed activity as is necessary and

7 appropriate for the Attorney General to determine

8 whether there is no substantial possibility that such

9 company or its affiliates could use monopoly power

10 to impede competition in the market such company

11 seeks to enter for such activity.

12 (3) WAITING PERIOD.—The waiting period re13 ferred to in paragraph (1) is the 1-year period be14 ginning on the date the notification required by such

15 paragraph is received by the Attorney General.

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

17 receiving a notification required by paragraph (1),

18 the Attorney General may commence a civil action

19 an appropriate district court of the United States to

20 enjoin the Bell operating company from engaging in

21 the activity described in such notification.

22 (c) EXCEPTION FOR PREVIOUSLY AUTHORIZED AC23 TIVITIES.—Subsections (a) and (b) shall not prohibit a

24 Bell operating company from engaging, at any time after

25 the date of enactment of this Act, in any activity as au-
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1 thorized by an order entered by the United States District

2 Court for the District of Columbia pursuant to section

3 VIII(C) of the Modification of Final Judgment, if—

4 (1) such order was entered on or before the

5 date of the enactment of this Act, or

6 (2) a request for such authorization was pend7 ing before such court on the date of the enactment

8 of this Act.

9 SEC. 104. ANTICOMPETITIVE TYING ARRANGEMENTS.

10 A Bell operating company with monopoly power in

11 any exchange service market shall not tie (directly or indi12 rectly) in any relevant market the sale of any product or

13 service to the provision of any telecommunications service,

14 if the effect of such tying may be to substantially lessen

15 competition, or to tend to create monopoly, in any line

16 of commerce.

17 SEC. 105. ENFORCEMENT.

18 (a) EQUITABLE POWERS OF UNITED STATES ATTOR19 NEYS.—It shall be the duty of the several United States

20 attorneys, under the direction of the Attorney General, to

21 institute proceedings in equity in their respective districts

22 to prevent and restrain violations of this Act.

23 (b) CRIMINAL LIABILITY.—Whoever knowingly en24 gages or knowingly attempts to engage in an activity that

25 is prohibited by section 102, 103, or 104 shall be guilty
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1 of a felony, and on conviction thereof, shall be punished

2 to the same extent as a person is punished upon conviction

3 of a violation of section 1 of the Sherman Act

4 (15 U.S.C. 1).

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

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

7 of this Act—

8 (1) may bring a civil action in any district court

9 of the United States in the district in which the de10 fendant resides or is found or has an agent, without

11 respect to the amount in controversy, and

12 (2) shall recover threefold the damages sus13 tained, and the cost of suit (including a reasonable

14 attorney’s fee).

15 The court may award under this section, pursuant to a

16 motion by such person promptly made, simple interest on

17 actual damages for the period beginning on the date of

18 service of such person’s pleading setting forth a claim

19 under this Act and ending on the date of judgment, or

20 for any shorter period therein, if the court finds that the

21 award of such interest for such period is just in the

22 circumstances.

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

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

25 court of the United States having jurisdiction over the
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1 parties, against threatened loss or damage by a violation

2 of this Act, when and under the same conditions and prin3 ciples as injunctive relief is available under section 16 of

4 the Clayton Act (15 U.S.C. 26). In any action under this

5 subsection in which the plaintiff substantially prevails, the

6 court shall award the cost of suit, including a reasonable

7 attorney’s fee, to such plaintiff.

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

9 the courts of the United States shall have exclusive juris10 diction to make determinations with respect to a duty,

11 claim, or right arising under this Act, other than deter12 minations authorized to be made by the Attorney General

13 and the Federal Communications Commission under sec14 tion 101(b)(3).

15 (2) The United States Court of Appeals for the Dis16 trict of Columbia shall have exclusive jurisdiction to review

17 determinations made under section 101(b)(3).

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

19 claim, or right arising under this Act shall be stayed pend20 ing any such determination by the Attorney General or

21 the Federal Communications Commission.

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

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

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

25 the United States.
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1 SEC. 106. DEFINITIONS.

2 For purposes of this Act:

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

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

5 is owned or controlled by, or is under common own6 ership or control with, another person. For purposes

7 of this paragraph, to own refers to owning an equity

8 interest (or the equivalent thereof) of more than 50

9 percent.

10 (2) ALARM MONITORING SERVICES.—The term

11 ‘‘alarm monitoring services’’ means services that de12 tect threats to life, safety, or property, by burglary,

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

14 through the use of devices that transmit signals to

15 a central point in a customer’s residence, place of

16 business, or other fixed premises which—

17 ‘‘(A) retransmits such signals to a remote

18 monitoring center by means of telephone ex19 change service facilities, and

20 ‘‘(B) serves to alert persons at the mon21 itoring center of the need to inform police, fire,

22 rescue, or other security or public safety per23 sonnel of the threat at such premises.

24 Such term does not include medical monitoring de25 vices attached to individuals for the automatic sur26 veillance of ongoing medical conditions.
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1 (3) ANTITRUST LAWS.—The term ‘‘antitrust

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

3 the first section of the Clayton Act (15 U.S.C.

4 12(a)), except that such term includes the Act of

5 June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et

6 seq.), commonly known as the Robinson Patman

7 Act, and section 5 of the Federal Trade Commission

8 Act (15 U.S.C. 45) to the extent that such section

9 5 applies to monopolies, attempts to monopolize, and

10 unlawful restraints of trade.

11 (4) BELL OPERATING COMPANY.—The term

12 ‘‘Bell operating company’’ means—

13 (A) Bell Telephone Company of Nevada,

14 Illinois Bell Telephone Company, Indiana Bell

15 Telephone Company, Incorporated, Michigan

16 Bell Telephone Company, New England Tele17 phone and Telegraph Company, New Jersey

18 Bell Telephone Company, New York Telephone

19 Company, US West Communications Company,

20 South Central Bell Telephone Company, South21 ern Bell Telephone and Telegraph Company,

22 Southwestern Bell Telephone Company, The

23 Bell Telephone Company of Pennsylvania, The

24 Chesapeake and Potomac Telephone Company,

25 The Chesapeake and Potomac Telephone Com-
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1 pany of Maryland, The Chesapeake and Poto2 mac Telephone Company of Virginia, The

3 Chesapeake and Potomac Telephone Company

4 of West Virginia, The Diamond State Tele5 phone Company, The Ohio Bell Telephone

6 Company, The Pacific Telephone and Telegraph

7 Company, or Wisconsin Telephone Company, or

8 (B) any successor or assign of any such

9 company.

10 (5) CUSTOMER PREMISES EQUIPMENT.—The

11 term ‘‘customer premises equipment’’ means equip12 ment employed on the premises of a person (other

13 than a person engaged in the business of providing

14 a telecommunications service) to originate, route, or

15 terminate telecommunications, and includes software

16 relating to such equipment.

17 (6) ELECTRONIC PUBLISHING.—The term

18 ‘‘electronic publishing’’ means the provision via tele19 communications, by a Bell operating company or an

20 affiliate of such company to a person other than an

21 affiliate of such company, of information—

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

23 has caused to be, originated, authored, com24 piled, collected, or edited, or
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1 (B) in which such company or affiliate has

2 a direct or indirect financial or proprietary

3 interest.

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

5 area’’ means a contiguous geographic area estab6 lished by a Bell operating company such that no ex7 change area includes points within more than 1 met8 ropolitan statistical area, consolidated metropolitan

9 statistical area, or State, except as expressly per10 mitted under the Modification of Final Judgment

11 before the date of the enactment of this Act.

12 (8) EXCHANGE ACCESS.—The term ‘‘exchange

13 access’’ means exchange services provided for the

14 purpose of originating or terminating interexchange

15 telecommunications.

16 (9) EXCHANGE SERVICE.—The term ‘‘exchange

17 service’’ means a telecommunications service pro18 vided within an exchange area.

19 (10) INFORMATION.—The term ‘‘information’’

20 means knowledge or intelligence represented by any

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

22 other symbols.

23 (11) INTEREXCHANGE TELECOMMUNI24 CATIONS.—The term ‘‘interexchange telecommuni25 cations’’ means telecommunications between a point
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1 located in an exchange area and a point located out2 side such exchange area. Such term does not include

3 alarm monitoring services or electronic publishing.

4 (12) MODIFICATION OF FINAL JUDGMENT.—

5 The term ‘‘Modification of Final Judgment’’ means

6 the order entered August 24, 1982, in the antitrust

7 action styled United States v. Western Electric, Civil

8 Action No. 82–0192, in the United States District

9 Court for the District of Columbia, and includes any

10 judgment or order with respect to such action en11 tered on or after August 24, 1982.

12 (13) PERSON.—The term ‘‘person’’ has the

13 meaning given it in subsection (a) of the first section

14 of the Clayton Act (15 U.S.C. 12(a)).

15 (14) TELECOMMUNICATIONS.—The term ‘‘tele16 communications’’ means the transmission of infor17 mation between points by electromagnetic means.

18 (15) TELECOMMUNICATIONS EQUIPMENT.—The

19 term ‘‘telecommunications equipment’’ means equip20 ment, other than customer premises equipment, used

21 to provide a telecommunications service, and in22 cludes software relating to such equipment.

23 (16) TELECOMMUNICATIONS SERVICE.—The

24 term ‘‘telecommunications service’’ means the offer25 ing for hire of transmission facilities or of tele-
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1 communications by means of such facilities. Such

2 term does not include alarm monitoring services or

3 electronic publishing.

4 (17) TRANSMISSION FACILITIES.—The term

5 ‘‘transmission facilities’’ means equipment (including

6 wire, cable, microwave, satellite, and fiber-optics)

7 that transmits information by electromagnetic means

8 or that directly supports such transmission, but does

9 not include customer premises equipment.

10 SEC. 107. RELATIONSHIP TO OTHER LAWS.

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

12 shall supersede the Modification of Final Judgment, ex13 cept that this Act shall not affect—

14 (1) section I of the Modification of Final Judg15 ment, relating to AT&T reorganization,

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

17 II(B) of the Modification of Final Judgment, relat18 ing to equal access and nondiscrimination,

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

20 of Final Judgment, with respect to the requirements

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

22 ‘‘information access’’,

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

24 Judgment, relating to printed advertising directories,
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1 (5) section VIII(E) of the Modification of Final

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

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

4 Judgment, relating to less than equal exchange

5 access,

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

7 Judgment, relating to transfer of AT&T assets, in8 cluding all exceptions granted thereunder before the

9 date of the enactment of this Act,

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

11 of Final Judgment described in paragraphs (1)

12 through (7)—

13 (A) section III of the Modification of Final

14 Judgment, relating to applicability,

15 (B) section IV of the Modification of Final

16 Judgment, relating to definitions,

17 (C) section V of the Modification of Final

18 Judgment, relating to compliance,

19 (D) section VI of the Modification of Final

20 Judgment, relating to visitorial provisions,

21 (E) section VII of the Modification of

22 Final Judgment, relating to retention of juris23 diction, and
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1 (F) section VIII(I) of the Modification of

2 Final Judgment, relating to the court’s sua

3 sponte authority.

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

5 construed to modify, impair, or supersede the applicability

6 of any other antitrust law.

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

8 as provided in paragraph (2), this Act shall not be con9 strued to modify, impair, or supersede Federal, State, or

10 local law unless expressly so provided in this Act.

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

12 the extent that such law would impair or prevent the oper13 ation of this Act.

14 (d) CUMULATIVE PENALTY.—Any penalty imposed,

15 or relief granted, under this Act shall be in addition to,

16 and not in lieu of, any penalty or relief authorized by any

17 other law to be imposed with respect to conduct described

18 in this Act.

19 SEC. 108. AMENDMENT TO DEFINITION OF ANTITRUST

20 LAWS APPEARING IN THE CLAYTON ACT.

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

22 (15 U.S.C. 12(a)) is amended by inserting ‘‘the Antitrust

23 Reform Act of 1993;’’ after ‘‘thirteen;’’.
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1 TITLE II—REGULATION OF MAN2 UFACTURING, ALARM SERV3 ICES AND ELECTRONIC PUB4 LISHING BY BELL OPERATING

5 COMPANIES

6 SEC. 201. REGULATION OF MANUFACTURING BY BELL OP7 ERATING COMPANIES.

8 Title II of the Communications Act of 1934 (47

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

10 following new section:

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

12 OPERATING COMPANIES.

13 ‘‘(a) GENERAL AUTHORITY.—Subject to the require14 ments of this section and the regulations prescribed there15 under, but notwithstanding any restriction or obligation

16 imposed before the date of enactment of this section pur17 suant to the Modification of Final Judgment on the lines

18 of business in which a Bell operating company may en19 gage, a Bell operating company, through an affiliate of

20 that company, may manufacture and provide tele21 communications equipment and manufacture customer

22 premises equipment.

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

24 manufacturing or provision authorized under subsection
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1 (a) shall be conducted only through an affiliate that is sep2 arate from any Bell operating company.

3 ‘‘(c) COMMISSION REGULATION OF MANUFACTURING

4 AFFILIATE.—

5 ‘‘(1) REGULATIONS REQUIRED.—The Commis6 sion shall prescribe regulations to ensure that Bell

7 operating companies and their affiliates comply with

8 the requirements of this section.

9 ‘‘(2) BOOKS, RECORDS, ACCOUNTS.—A manu10 facturing affiliate required by subsection (b) shall

11 maintain books, records, and accounts separate from

12 its affiliated Bell operating company which identify

13 all financial transactions between the manufacturing

14 affiliate and its affiliated Bell operating company

15 and, even if such manufacturing affiliate is not a

16 publicly held corporation, prepare financial state17 ments which are in compliance with financial report18 ing requirements under the Federal securities laws

19 for publicly held corporations, file such statements

20 with the Commission, and make such statements

21 available for public inspection.

22 ‘‘(3) IN-KIND BENEFITS TO AFFILIATE.—Con23 sistent with the provisions of this section, neither a

24 Bell operating company nor any of its

25 nonmanufacturing affiliates shall perform sales, ad-
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1 vertising, installation, production, or maintenance

2 operations for a manufacturing affiliate, except

3 that—

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

5 nonmanufacturing affiliates may sell, advertise,

6 install, and maintain telecommunications equip7 ment and customer premises equipment after

8 acquiring such equipment from their manufac9 turing affiliate; and

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

11 related to specific telecommunications equip12 ment, carried out by the Bell operating com13 pany or its affiliates, shall be permitted.

14 ‘‘(4) DOMESTIC MANUFACTURING REQUIRED.—

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

16 affiliate required by subsection (b) shall conduct

17 all of its manufacturing within the United

18 States and, except as otherwise provided in this

19 paragraph, all component parts of customer

20 premises equipment manufactured by such affil21 iate, and all component parts of telecommuni22 cations equipment manufactured by such affili23 ate, shall have been manufactured within the

24 United States.
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1 ‘‘(B) EXCEPTION.—Such affiliate may use

2 component parts manufactured outside the

3 United States if—

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

5 faith effort to obtain equivalent component

6 parts manufactured within the United

7 States at reasonable prices, terms, and

8 conditions; and

9 ‘‘(ii) for the aggregate of tele10 communications equipment and customer

11 premises equipment manufactured and sold

12 in the United States by such affiliate, the

13 cost of the components manufactured out14 side the United States contained in all

15 such equipment does not exceed 40 percent

16 of the sales revenue derived in any cal17 endar year from such equipment.

18 ‘‘(C) CERTIFICATION REQUIRED.—Any

19 such affiliate that uses component parts manu20 factured outside the United States in the manu21 facture of telecommunications equipment and

22 customer premises equipment within the United

23 States shall—

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

25 good faith effort was made to obtain equiv-
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•HR 3626 IH

1 alent parts manufactured within the

2 United States at reasonable prices, terms,

3 and conditions, which certification shall be

4 filed on a quarterly basis with the Commis5 sion and list component parts, by type,

6 manufactured outside the United States;

7 and

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

9 annual basis that such affiliate complied

10 with the requirements of subparagraph

11 (B)(ii), as adjusted in accordance with

12 subparagraph (G).

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

14 Commission determines, after reviewing the cer15 tification required in subparagraph (C)(i), that

16 such affiliate failed to make the good faith ef17 fort required in subparagraph (B)(i) or, after

18 reviewing the certification required in subpara19 graph (C)(ii), that such affiliate has exceeded

20 the percentage specified in subparagraph

21 (B)(ii), the Commission may impose penalties

22 or forfeitures as provided for in title V of this

23 Act.

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

25 because a manufacturing affiliate failed to
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1 make the good faith effort required in subpara2 graph (B)(i) may make complaint to the Com3 mission as provided for in section 208 of this

4 Act, or may bring suit for the recovery of actual

5 damages for which such supplier claims such

6 affiliate may be liable under the provisions of

7 this Act in any district court of the United

8 States of competent jurisdiction.

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

10 in consultation with the Secretary of Commerce,

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

12 component parts manufactured outside the

13 United States contained in all telecommuni14 cations equipment and customer premises

15 equipment sold in the United States as a per16 centage of the revenues from sales of such

17 equipment in the previous calendar year.

18 ‘‘(F) USE OF INTELLECTUAL PROPERTY IN

19 MANUFACTURE.—Notwithstanding subpara20 graph (A), a manufacturing affiliate may use

21 intellectual property created outside the United

22 States in the manufacture of telecommuni23 cations equipment and customer premises

24 equipment in the United States. A component

25 manufactured using such intellectual property
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1 shall not be treated for purposes of subpara2 graph (B)(ii) as a component manufactured

3 outside the United States solely on the basis of

4 the use of such intellectual property.

5 ‘‘(G) RESTRICTIONS ON COMMISSION AU6 THORITY.—The Commission may not waive or

7 alter the requirements of this paragraph, except

8 that the Commission, on an annual basis, shall

9 adjust the percentage specified in subparagraph

10 (B)(ii) to the percentage determined by the

11 Commission, in consultation with the Secretary

12 of Commerce, pursuant to subparagraph (E).

13 ‘‘(5) INSULATION OF RATE PAYERS FROM MAN14 UFACTURING AFFILIATE DEBT.—Any debt incurred

15 by any such manufacturing affiliate may not be is16 sued by its affiliated Bell operating company and

17 such manufacturing affiliate shall be prohibited from

18 incurring debt in a manner that would permit a

19 creditor, on default, to have recourse to the assets

20 of its affiliated Bell operating company.

21 ‘‘(6) RELATION TO OTHER AFFILIATES.—A

22 manufacturing affiliate required by subsection (b)

23 shall not be required to operate separately from the

24 other affiliates of its affiliated Bell operating com25 pany, but if an affiliate of a Bell operating company
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1 becomes affiliated with a manufacturing entity, such

2 affiliate shall be treated as a manufacturing affiliate

3 of that Bell operating company and shall comply

4 with the requirements of this section.

5 ‘‘(7) AVAILABILITY OF EQUIPMENT TO OTHER

6 CARRIERS.—A manufacturing affiliate required by

7 subsection (b) shall make available, without discrimi8 nation or self-preference as to price, delivery, terms,

9 or conditions, to any common carrier any tele10 communications equipment that is used in the provi11 sion of telephone exchange service and that is manu12 factured by such affiliate so long as each such pur13 chasing carrier—

14 ‘‘(A) does not either manufacture tele15 communications equipment, or have an affili16 ated telecommunications equipment manufac17 turing entity; or

18 ‘‘(B) agrees to make available, to the Bell

19 operating company affiliated with such manu20 facturing affiliate or any common carrier affili21 ate of such Bell operating company, any tele22 communications equipment that is used in the

23 provision of telephone exchange service and that

24 is manufactured by such purchasing carrier or
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1 by any entity or organization with which such

2 purchasing carrier is affiliated.

3 ‘‘(8) SALES PRACTICES OF MANUFACTURING

4 AFFILIATES.—

5 ‘‘(A) PROHIBITION OF DISCONTINUATION

6 OF EQUIPMENT FOR WHICH THERE IS REASON7 ABLE DEMAND.—A manufacturing affiliate re8 quired by subsection (b) shall not discontinue or

9 restrict sales to a common carrier of any tele10 communications equipment that is used in the

11 provision of telephone exchange service and that

12 such affiliate manufactures for sale as long as

13 there is reasonable demand for the equipment

14 by such carriers; except that such sales may be

15 discontinued or restricted if such manufactur16 ing affiliate demonstrates to the Commission

17 that it is not making a profit, under a marginal

18 cost standard implemented by the Commission

19 by regulation, on the sale of such equipment.

20 ‘‘(B) DETERMINATIONS OF REASONABLE

21 DEMAND.—Within 60 days after receipt of an

22 application under subparagraph (A), the Com23 mission shall reach a determination as to the

24 existence of reasonable demand for purposes of
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1 such subparagraph. In making such determina2 tion the Commission shall consider—

3 ‘‘(i) whether the continued manufac4 ture of the equipment will be profitable;

5 ‘‘(ii) whether the equipment is func6 tionally or technologically obsolete;

7 ‘‘(iii) whether the components nec8 essary to manufacture the equipment con9 tinue to be available;

10 ‘‘(iv) whether alternatives to the

11 equipment are available in the market; and

12 ‘‘(v) such other factors as the Com13 mission deems necessary and proper.

14 ‘‘(9) JOINT PLANNING OBLIGATIONS.—Each

15 Bell operating company shall, consistent with the

16 antitrust laws, engage in joint network planning and

17 design with other contiguous common carriers pro18 viding telephone exchange service, but agreement

19 with such other carriers shall not be required as a

20 prerequisite for such introduction or deployment.

21 ‘‘(d) INFORMATION REQUIREMENTS.—

22 ‘‘(1) FILING OF INFORMATION ON PROTOCOLS

23 AND TECHNICAL REQUIREMENTS.—Each Bell oper24 ating company shall, in accordance with regulations

25 prescribed by the Commission, maintain and file
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1 with the Commission full and complete information

2 with respect to the protocols and technical require3 ments for connection with and use of its telephone

4 exchange service facilities. Each such company shall

5 report promptly to the Commission any material

6 changes or planned changes to such protocols and

7 requirements, and the schedule for implementation

8 of such changes or planned changes.

9 ‘‘(2) FILING AS PREREQUISITE TO DISCLOSURE

10 TO AFFILIATE.—A Bell operating company shall not

11 disclose to any of its affiliates any information re12 quired to be filed under paragraph (1) unless that

13 information is filed promptly, as required by regula14 tion by the Commission.

15 ‘‘(3) ACCESS BY COMPETITORS TO INFORMA16 TION.—The Commission may prescribe such addi17 tional regulations under this subsection as may be

18 necessary to ensure that manufacturers in competi19 tion with a Bell operating company’s manufacturing

20 affiliate have access to the information with respect

21 to the protocols and technical requirements for con22 nection with and use of its telephone exchange serv23 ice facilities required for such competition that such

24 company makes available to its manufacturing

25 affiliate.
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1 ‘‘(4) PLANNING INFORMATION.—Each Bell op2 erating company shall provide, to contiguous com3 mon carriers providing telephone exchange service,

4 timely information on the planned deployment of

5 telecommunications equipment.

6 ‘‘(e) ADDITIONAL COMPETITION REQUIREMENTS.—

7 The Commission shall prescribe regulations requiring that

8 any Bell operating company which has an affiliate that

9 engages in any manufacturing authorized by subsection

10 (a) shall—

11 ‘‘(1) provide, to other manufacturers of tele12 communications equipment and customer premises

13 equipment that is functionally equivalent to equip14 ment manufactured by the Bell operating company

15 manufacturing affiliate, opportunities to sell such

16 equipment to such Bell operating company which are

17 comparable to the opportunities which such Com18 pany provides to its affiliates; and

19 ‘‘(2) not subsidize its manufacturing affiliate

20 with revenues from telephone exchange service or

21 telephone toll service.

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

23 section (other than subsection (m)) shall be construed to

24 limit or restrict the ability of a Bell operating company

25 and its affiliates to engage in close collaboration with any
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•HR 3626 IH

1 manufacturer of customer premises equipment or tele2 communications equipment during the design and develop3 ment of hardware, software, or combinations thereof

4 related to such equipment.

5 ‘‘(g) ACCESSIBILITY REQUIREMENTS.—

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

7 within 1 year after the date of enactment of this sec8 tion, prescribe such regulations as are necessary to

9 ensure that telecommunications equipment and cus10 tomer premises equipment designed, developed, and

11 fabricated pursuant to the authority granted in this

12 section shall be accessible and usable by individuals

13 with disabilities, including individuals with func14 tional limitations of hearing, vision, movement, ma15 nipulation, speech, and interpretation of information,

16 unless the costs of making the equipment accessible

17 and usable would result in an undue burden or an

18 adverse competitive impact.

19 ‘‘(2) NETWORK SERVICES.—The Commission

20 shall, within 1 year after the date of enactment of

21 this section, prescribe such regulations as are nec22 essary to ensure that advances in network services

23 deployed by a Bell operating company shall be acces24 sible and usable by individuals whose access might

25 otherwise be impeded by a disability or functional
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•HR 3626 IH

1 limitation, unless the costs of making the services

2 accessible and usable would result in an undue bur3 den or adverse competitive impact. Such regulations

4 shall seek to permit the use of both standard and

5 special equipment and seek to minimize the need of

6 individuals to acquire additional devices beyond

7 those used by the general public to obtain such

8 access.

9 ‘‘(3) COMPATIBILITY.—The regulations pre10 scribed under paragraphs (1) and (2) shall require

11 that whenever an undue burden or adverse competi12 tive impact would result from the manufacturing or

13 network services requirements in such paragraphs,

14 the manufacturing affiliate that designs, develops, or

15 fabricates the equipment or the Bell operating com16 pany that deploys the network service shall ensure

17 that the equipment or network service in question is

18 compatible with existing peripheral devices or spe19 cialized customer premises equipment commonly

20 used by persons with disabilities to achieve access,

21 unless doing so would result in an undue burden or

22 adverse competitive impact.

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

24 ‘‘(A) UNDUE BURDEN.—The term ‘undue

25 burden’ means significant difficulty or expense.
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•HR 3626 IH

1 In determining whether an activity would result

2 in an undue burden, factors to be considered in3 clude—

4 ‘‘(i) the nature and cost of the activ5 ity;

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

7 the facility involved in the manufacturing

8 of the equipment or deployment of the net9 work service;

10 ‘‘(iii) the financial resources of the

11 manufacturing affiliate in the case of man12 ufacturing of equipment, for as long as ap13 plicable regulatory rules prohibit cross-sub14 sidization of equipment manufacturing

15 with revenues from regulated telecommuni16 cations service or when the manufacturing

17 activities are conducted in a separate sub18 sidiary;

19 ‘‘(iv) the financial resources of the

20 Bell operating company in the case of net21 work services, or in the case of manufac22 turing of equipment if applicable regu23 latory rules permit cross-subsidization of

24 equipment manufacturing with revenues

25 from regulated telecommunications services
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1 and the manufacturing activities are not

2 conducted in a separate subsidiary; and

3 ‘‘(v) the type of operation or oper4 ations of the manufacturing affiliate or

5 Bell operating company as applicable.

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

7 determining whether the activity would result in

8 an adverse competitive impact, the following

9 factors will be considered:

10 (i) whether such activity would raise

11 the cost of the equipment or network serv12 ice in question beyond the level at which

13 there would be sufficient consumer demand

14 by the general population to make the

15 equipment or network service profitable;

16 and

17 (ii) whether such activity would, with

18 respect to the equipment or network serv19 ice in question, put the manufacturing af20 filiate or Bell operating company, as appli21 cable, at a competitive disadvantage in

22 comparison with one or more providers of

23 one or more competing products and serv24 ices. This factor may only be considered so

25 long as competing manufacturers and net-
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1 work service providers are not held to the

2 same obligation with respect to access by

3 persons with disabilities.

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

5 paragraph, the term ‘activity’ includes—

6 (i) the research, design, development,

7 deployment, and fabrication activities nec8 essary to comply with the requirements of

9 this section; and

10 (ii) the acquisition of the related ma11 terials and equipment components.

12 ‘‘(5) EFFECTIVE DATE.—The regulations re13 quired by this subsection shall become effective 18

14 months after the date of enactment of this section.

15 ‘‘(6) IMPACT OF ADA.—Nothing in this section

16 shall be interpreted to limit or otherwise affect the

17 application of the Americans with Disabilities Act or

18 its implementing regulations.

19 ‘‘(h) PUBLIC NETWORK ENHANCEMENT.—A Bell op20 erating company manufacturing affiliate shall, as a part

21 of its overall research and development effort, establish

22 a permanent program for the manufacturing research and

23 development of products and applications for the enhance24 ment of the public switched telephone network and to pro25 mote public access to advanced telecommunications serv-
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1 ices. Such program shall focus its work substantially on

2 developing technological advancements in public telephone

3 network applications, telecommunication equipment and

4 products, and access solutions to new services and tech5 nology, including access by (1) public institutions, includ6 ing educational and health care institutions; and (2) peo7 ple with disabilities and functional limitations. Notwith8 standing the limitations in subsection (a), a Bell operating

9 company and its affiliates may engage in such a program

10 in conjunction with a Bell operating company not so affili11 ated or any of its affiliates. The existence or establishment

12 of such a program that is jointly provided by manufactur13 ing affiliates of Bell operating companies shall satisfy the

14 requirements of this section as it pertains to all such affili15 ates of a Bell operating company.

16 ‘‘(i) ADDITIONAL RULES AUTHORIZED.—The Com17 mission may prescribe such additional rules and regula18 tions as the Commission determines necessary to carry out

19 the provisions of this section.

20 ‘‘(j) ADMINISTRATION AND ENFORCEMENT AUTHOR21 ITY.—

22 ‘‘(1) COMMISSION REGULATORY AUTHORITY.—

23 For the purposes of administering and enforcing the

24 provisions of this section and the regulations pre25 scribed thereunder, the Commission shall have the
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•HR 3626 IH

1 same authority, power, and functions with respect to

2 any Bell operating company as the Commission has

3 in administering and enforcing the provisions of this

4 title with respect to any common carrier subject to

5 this Act.

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

7 that provides telephone exchange service and that is

8 injured by an act or omission of a Bell operating

9 company or its manufacturing affiliate which vio10 lates the requirements of paragraph (7) or (8) of

11 subsection (c), or the Commission’s regulations im12 plementing such paragraphs, may initiate an action

13 in a district court of the United States to recover

14 the full amount of damages sustained in con15 sequence of any such violation and obtain such or16 ders from the court as are necessary to terminate

17 existing violations and to prevent future violations;

18 or such regulated local telephone exchange carrier

19 may seek relief from the Commission pursuant to

20 sections 206 through 209.

21 ‘‘(k) RULEMAKING REQUIRED.—The Commission

22 shall prescribe regulations to implement this section with23 in 180 days after the date of enactment of this section.

24 ‘‘(l) EXISTING MANUFACTURING AUTHORITY.—

25 Nothing in this section shall prohibit any Bell operating
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1 company from engaging, directly or through any affiliate,

2 in any manufacturing activity in which any Bell operating

3 company or affiliate was authorized to engage on the date

4 of enactment of this section.

5 ‘‘(m) ANTITRUST LAWS.—Nothing in this section

6 shall be construed to modify, impair, or supersede the ap7 plicability of any of the antitrust laws.

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

9 ‘‘(1) The term ‘affiliate’ means any organiza10 tion or entity that, directly or indirectly, owns or

11 controls, is owned or controlled by, or is under com12 mon ownership with a Bell operating company. The

13 terms ‘owns’, ‘owned’, and ‘ownership’ mean an eq14 uity interest of more than 10 percent.

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

16 those companies listed in appendix A of the Modi17 fication of Final Judgment, and includes any succes18 sor or assign of any such company, but does not in19 clude any affiliate of any such company.

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

21 means equipment employed on the premises of a

22 person (other than a carrier) to originate, route, or

23 terminate telecommunications.

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

25 meaning as such term has in the Modification of
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1 Final Judgment, and includes research, design, de2 velopment, and fabrication.

3 ‘‘(5) The term ‘manufacturing affiliate’ means

4 an affiliate of a Bell operating company established

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

6 ‘‘(6) The term ‘Modification of Final Judg7 ment’ means the decree entered August 24, 1982, in

8 United States v. Western Electric Civil Action No.

9 82–0192 (United States District Court, District of

10 Columbia), and includes any judgment or order with

11 respect to such action entered on or after August

12 24, 1982, and before the date of enactment of this

13 section.

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

15 transmission, between or among points specified by

16 the user, of information of the user’s choosing, with17 out change in the form or content of the information

18 as sent and received, by means of an electromagnetic

19 transmission medium, including all instrumentalities,

20 facilities, apparatus, and services (including the col21 lection, storage, forwarding, switching, and delivery

22 of such information) essential to such transmission.

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

24 means equipment, other than customer premises

25 equipment, used by a carrier to provide tele-
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1 communications services, and includes software inte2 gral to such equipment (including upgrades).

3 ‘‘(9) The term ‘telecommunications service’

4 means the offering for hire of telecommunications

5 facilities, or of telecommunications by means of such

6 facilities.’’.

7 SEC. 202. REGULATION OF ENTRY INTO ALARM MONITOR8 ING SERVICES.

9 (a) AMENDMENT.—Title II of the Communications

10 Act is amended by adding at the end the following new

11 section:

12 ‘‘SEC. 230. REGULATION OF ENTRY INTO ALARM MONITOR13 ING SERVICES.

14 ‘‘(a) REGULATIONS REQUIRED.—Not later than 6

15 years after the date of enactment of this section, the Com16 mission shall prescribe regulations—

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

18 or conditions as are (A) necessary and appropriate

19 in the public interest with respect to the provision of

20 alarm monitoring services by Bell operating compa21 nies and their affiliates, and (B) effective at such

22 time as a Bell operating company or any of its affili23 ates is authorized to provide alarm monitoring serv24 ices;
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1 ‘‘(2) to prohibit Bell operating companies and

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

3 date of enactment of this section, from recording in

4 any fashion the occurrence or the contents of calls

5 received by providers of alarm monitoring services

6 for the purposes of marketing such services on be7 half of the Bell operating company, any of its affili8 ates, or any other entity; and

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

10 review of complaints concerning violations by such

11 companies of such regulations, or of any other provi12 sion of this Act or the regulations thereunder, that

13 result in material financial harm to a provider of

14 alarm monitoring services.

15 ‘‘(b) EXPEDITED CONSIDERATION OF COM16 PLAINTS.—The procedures established under subsection

17 (a)(3) shall ensure that the Commission will make a final

18 determination with respect to any complaint described in

19 such subsection within 120 days after receipt of the com20 plaint. If the complaint contains an appropriate showing

21 that the alleged violation occurred, as determined by the

22 Commission in accordance with such regulations, the Com23 mission shall, within 60 days after receipt of the com24 plaint, issue a cease and desist order to prevent the Bell
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1 operating company and its affiliates from continuing to

2 engage in such violation pending such final determination.

3 ‘‘(c) REMEDIES.—The Commission may use any rem4 edy available under title V of this Act to terminate and

5 punish violations described in subsection (a)(2). Such rem6 edies may include, if the Commission determines that such

7 violation was willful or repeated, ordering the Bell operat8 ing company to cease offering alarm monitoring services.

9 ‘‘(d) DEFINITIONS.—As used in this section, the

10 terms ‘Bell operating company’, ‘affiliate’, and ‘alarm

11 monitoring services’ have the meanings provided in section

12 106 of the Antitrust Reform Act of 1993.’’.

13 SEC. 203. REGULATION OF ELECTRONIC PUBLISHING.

14 Title II of the Communications Act of 1934 (47

15 U.S.C. 201 et seq.) is amended by adding at the end there16 of the following new section:

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

18 ‘‘(a) IN GENERAL.—(1) A Bell operating company

19 and any affiliate shall not engage in the provision of elec20 tronic publishing that is disseminated by means of such

21 Bell operating company’s or any of its affiliates’ basic tele22 phone service.

23 ‘‘(2) Nothing in this section shall prohibit a separated

24 affiliate or electronic publishing joint venture from engag-
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1 ing in the provision of electronic publishing or any other

2 lawful service in any area.

3 ‘‘(3) Nothing in this section shall prohibit a Bell op4 erating company or affiliate from engaging in the provi5 sion of any lawful service other than electronic publishing

6 in any area or from engaging in the provision of electronic

7 publishing that is not disseminated by means of such Bell

8 operating company’s or any of its affiliates’ basic tele9 phone service.

10 ‘‘(b) SEPARATED AFFILIATE OR ELECTRONIC PUB11 LISHING JOINT VENTURE REQUIREMENTS.—A separated

12 affiliate or electronic publishing joint venture shall—

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

14 are separate from those of the Bell operating com15 pany and from any affiliate and which record in ac16 cordance with generally accepted accounting prin17 ciples all transactions, whether direct or indirect,

18 with the Bell operating company;

19 ‘‘(2) not incur debt in a manner that would per20 mit a creditor upon default to have recourse to the

21 assets of the Bell operating company;

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

23 consolidated with those of the Bell operating com24 pany or an affiliate, provided that consolidated

25 statements may also be prepared;
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1 ‘‘(4) file with the Commission annual reports in

2 a form substantially equivalent to the Form 10–K

3 referenced at 17 C.F.R. 249.310 as that section and

4 form are in effect on the date of enactment;

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

6 section, not hire as corporate officers sales and mar7 keting management personnel whose responsibilities

8 at the separated affiliate or electronic publishing

9 joint venture will include the geographic area where

10 the Bell operating company provides basic telephone

11 service, or network operations personnel whose re12 sponsibilities at the separated affiliate or electronic

13 publishing joint venture would require dealing di14 rectly with the Bell operating company, any person

15 who was employed by the Bell operating company

16 during the year preceding their date of hire, pro17 vided that this requirement shall not apply to per18 sons subject to a collective bargaining agreement

19 that gives such persons rights to be employed by a

20 separated affiliate or electronic publishing joint ven21 ture of the Bell operating company;

22 ‘‘(6) not provide any wireline telephone ex23 change service in any telephone exchange area where

24 a Bell operating company with which it is under
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1 common ownership or control provides basic tele2 phone exchange service except on a resale basis;

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

4 marks of an existing Bell operating company except

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

6 common with the entity that owns or controls the

7 Bell operating company;

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

9 any other date prescribed by the Commission, a

10 compliance review which—

11 ‘‘(A) must be conducted by an independent

12 entity which is subject to professional, legal,

13 and ethical obligations for the purpose of deter14 mining compliance during the preceding cal15 endar year with any provision of this section

16 that imposes a requirement on such separated

17 affiliate or electronic publishing joint venture;

18 and

19 ‘‘(B) must be maintained by the separated

20 affiliate for a period of 5 years subject to re21 view by any lawful authority;

22 ‘‘(9) within 90 days of receiving a review de23 scribed in paragraph (8), file a report of such excep24 tions and any corrective action with the Commission

25 and allow any person to inspect and copy such re-
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1 port subject to reasonable safeguards to protect any

2 proprietary information contained in such report

3 from being used for purposes other than to enforce

4 or pursue remedies under this section.

5 ‘‘(c) BELL OPERATING COMPANY REQUIREMENTS.—

6 A Bell operating company under common ownership or

7 control with a separated affiliate or electronic publishing

8 joint venture shall—

9 ‘‘(1) not provide a separated affiliate any facili10 ties, services, or basic telephone service information

11 unless it makes such facilities, services, or informa12 tion available to unaffiliated entities upon request

13 and on the same terms and conditions;

14 ‘‘(2) carry out transactions with a separated af15 filiate in a manner equivalent to the manner that

16 unrelated parties would carry out independent trans17 actions and not based upon the affiliation;

18 ‘‘(3) carry out transactions with a separated af19 filiate, which involve the transfer of personnel, as20 sets, or anything of value, pursuant to written con21 tracts or tariffs that are filed with the Commission

22 and made publicly available;

23 ‘‘(4) carry out transactions with a separated af24 filiate in a manner that is auditable in accordance

25 with generally accepted accounting principles;
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1 ‘‘(5) value any assets that are transferred to a

2 separated affiliate at the greater of net book cost or

3 fair market value;

4 ‘‘(6) value any assets that are transferred to it

5 by its separated affiliate at the lesser of net book

6 cost or fair market value;

7 ‘‘(7) except for—

8 ‘‘(A) instances where Commission or State

9 regulations permit in-arrears payment for

10 tariffed telecommunications services; or

11 ‘‘(B) the investment by an affiliate of divi12 dends or profits derived from a Bell operating

13 company,

14 not provide debt or equity financing directly or indi15 rectly to a separated affiliate;

16 ‘‘(8) comply fully with all applicable Commis17 sion and State cost allocation and other accounting

18 rules;

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

20 any other date prescribed by the Commission, a

21 compliance review which—

22 ‘‘(A) must be conducted by an independent

23 entity which is subject to professional, legal,

24 and ethical obligations for the purpose of deter25 mining compliance during the preceding cal-
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1 endar year with any provision of this section

2 that imposes a requirement on such Bell oper3 ating company; and

4 ‘‘(B) must be maintained by the Bell oper5 ating company for a period of 5 years subject

6 to review by any lawful authority;

7 ‘‘(10) within 90 days of receiving a review de8 scribed in paragraph (9), file a report of such excep9 tions and any corrective action with the Commission

10 and allow any person to inspect and copy such re11 port subject to reasonable safeguards to protect any

12 proprietary information contained in such report

13 from being used for purposes other than to enforce

14 or pursue remedies under this section;

15 ‘‘(11) if it provides facilities or services for tele16 communication, transmission, billing and collection,

17 or physical collocation to any electronic publisher,

18 including a separated affiliate, for use with or in

19 connection with the provision of electronic publishing

20 that is disseminated by means of such Bell operating

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

22 service, provide to all other electronic publishers the

23 same type of facilities and services on request, on

24 the same terms and conditions or as required by the

25 Commission or a State, and unbundled and individ-
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1 ually tariffed to the same extent as provided to such

2 publisher;

3 ‘‘(12) provide network access and interconnec4 tions for basic telephone service to electronic pub5 lishers at prices that are regulated so long as the

6 prices for these services are subject to regulation;

7 ‘‘(13) if prices for network access and inter8 connection for basic telephone service are no longer

9 subject to regulation, provide electronic publishers

10 such services on the same terms and conditions as

11 a separated affiliate receives such services;

12 ‘‘(14) if any basic telephone service used by

13 electronic publishers ceases to require a tariff, pro14 vide electronic publishers with such service on the

15 same terms and conditions as a separated affiliate

16 receives such service;

17 ‘‘(15) provide reasonable advance notification at

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

19 electronic publishers of information relating to

20 changes in basic telephone service network design

21 and technical standards which would affect the pro22 vision of electronic publishing;

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

24 of monetary value to a separated affiliate unless in

25 exchange for consideration at least equal to the
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1 greater of its net book cost or fair market value, ex2 cept the investment by an affiliate of dividends or

3 profits derived from a Bell operating company;

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

5 provision of any gateway for electronic publishing

6 services or any electronic directory of information

7 services, which is provided over such Bell operating

8 company’s basic telephone service;

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

10 common with a separated affiliate;

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

12 separated affiliate;

13 ‘‘(20) not perform hiring or training of person14 nel performed on behalf of a separated affiliate;

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

16 or maintenance of equipment on its behalf of a sepa17 rated affiliate, except for telephone service that it

18 provides under tariff or contract subject to the pro19 visions of this section; and

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

21 behalf of a separated affiliate.

22 ‘‘(d) CUSTOMER PROPRIETARY NETWORK INFORMA23 TION.—A Bell operating company or any affiliate shall not

24 provide to any electronic publisher, including a separated

25 affiliate or electronic publishing joint venture, customer
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1 proprietary network information for use with or in connec2 tion with the provision of electronic publishing that is dis3 seminated by means of such Bell operating company’s or

4 any of its affiliates’ basic telephone service that is not

5 made available by the Bell operating company or affiliate

6 to all electronic publishers on the same terms and condi7 tions.

8 ‘‘(e) COMPLIANCE WITH SAFEGUARDS.—A Bell oper9 ating company, affiliate or its separated affiliate is prohib10 ited from acting in concert with another Bell operating

11 company or any entity in order to knowingly and willfully

12 violate or evade the requirements of this section.

13 ‘‘(f) TELEPHONE OPERATING COMPANY DIVI14 DENDS.—Nothing in this section shall prohibit an affiliate

15 from investing dividends derived from a Bell operating

16 company in its separated affiliate and subsections (i) and

17 (j) of this section shall not apply to any such investment.

18 ‘‘(g) JOINT MARKETING, ETC.—Except as provided

19 in subsection (h)—

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

21 out any promotion, marketing, sales, or advertising

22 for or in conjunction with a separated affiliate.

23 ‘‘(2) A Bell operating company shall not carry

24 out any promotion, marketing, sales, or advertising
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1 for or in conjunction with an affiliate that is related

2 to the provision of electronic publishing.

3 ‘‘(h) PERMISSIBLE JOINT ACTIVITIES.—

4 ‘‘(1) JOINT TELEMARKETING.—A Bell operat5 ing company may provide inbound telemarketing or

6 referral services related to the provision of electronic

7 publishing for a separated affiliate, electronic pub8 lishing joint venture, affiliate, or unaffiliated elec9 tronic publisher, provided that if such services are

10 provided to a separated affiliate, electronic publish11 ing joint venture, or affiliate, such services shall be

12 made available to all electronic publishers on re13 quest, on nondiscriminatory terms, at compensatory

14 prices, and subject to regulations of the Commission

15 to ensure that the Bell operating company’s method

16 of providing telemarketing or referral and its price

17 structure do not competitively disadvantage any elec18 tronic publishers regardless of size, including those

19 which do not use the Bell operating company’s

20 telemarketing services.

21 ‘‘(2) TEAMING ARRANGEMENTS.—A Bell oper22 ating company may engage in nondiscriminatory

23 teaming or business arrangements to engage in elec24 tronic publishing with any separated affiliate or with

25 any other electronic publisher provided that the Bell
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1 operating company only provides facilities, services,

2 and basic telephone service information as author3 ized by this section and provided that the Bell oper4 ating company does not own such teaming or busi5 ness arrangement.

6 ‘‘(3) ELECTRONIC PUBLISHING JOINT VEN7 TURES.—A Bell operating company or affiliate may

8 participate on a nonexclusive basis in electronic pub9 lishing joint ventures with entities that are not any

10 Bell operating company, affiliate, or separated affili11 ate to provide electronic publishing services, provided

12 that the Bell operating company or affiliate has not

13 more than a 50 percent direct or indirect equity in14 terest (or the equivalent thereof) or the right to

15 more than 50 percent of the gross revenues under

16 a revenue sharing or royalty agreement in any elec17 tronic publishing joint venture. Officers and employ18 ees of a Bell operating company or affiliate partici19 pating in an electronic publishing joint venture may

20 not have more than 50 percent of the voting control

21 over the electronic publishing joint venture. In the

22 case of joint ventures with small, local electronic

23 publishers, the Commission for good cause shown

24 may authorize the Bell operating company or affili25 ate to have a larger equity interest, revenue share,
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1 or voting control but not to exceed 80 percent. A

2 Bell operating company participating in an elec3 tronic publishing joint venture may provide pro4 motion, marketing, sales, or advertising personnel

5 and services to such joint venture.

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

7 ELECTRONIC PUBLISHING BETWEEN A TELEPHONE OP8 ERATING COMPANY AND ANY AFFILIATE.—

9 ‘‘(1) Any provision of facilities, services or basic

10 telephone service information or any transfer of as11 sets, personnel, or anything of commercial or com12 petitive value from a Bell operating company to any

13 affiliate related to the provision of electronic publish14 ing shall be—

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

16 each entity;

17 ‘‘(B) auditable in accordance with gen18 erally accepted accounting principles; and

19 ‘‘(C) pursuant to written contracts or tar20 iffs filed with the Commission or a State and

21 made publicly available.

22 ‘‘(2) Any transfer of assets directly related to

23 the provision of electronic publishing from a Bell op24 erating company to an affiliate shall be valued at the

25 greater of net book cost or fair market value. Any
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1 transfer of assets related to the provision of elec2 tronic publishing from an affiliate to the Bell operat3 ing company shall be valued at the lesser of net book

4 cost or fair market value.

5 ‘‘(3) A Bell operating company shall not pro6 vide an affiliate any facilities, services, or basic tele7 phone service information related to the provision of

8 electronic publishing, which such affiliate then di9 rectly or indirectly provides to a separated affiliate,

10 and which is not made available to unaffiliated com11 panies on the same terms and conditions.

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

13 ELECTRONIC PUBLISHING BETWEEN AN AFFILIATE AND

14 A SEPARATED AFFILIATE.—

15 ‘‘(1) Any facilities, services, or basic telephone

16 service information provided or any assets, person17 nel, or anything of commercial or competitive value

18 transferred, from a Bell operating company to any

19 affiliate as described in subsection (i) and then pro20 vided or transferred to a separated affiliate shall

21 be—

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

23 each entity;

24 ‘‘(B) auditable in accordance with gen25 erally accepted accounting principles; and
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1 ‘‘(C) pursuant to written contracts or tar2 iffs filed with the Commission or a State and

3 made publicly available.

4 ‘‘(2) Any transfer of assets directly related to

5 the provision of electronic publishing from a Bell op6 erating company to any affiliate as described in sub7 section (i) and then transferred to a separated affili8 ate shall be valued at the greater of net book cost

9 or fair market value. Any transfer of assets related

10 to the provision of electronic publishing from a sepa11 rated affiliate to any affiliate and then transferred

12 to the Bell operating company as described in sub13 section (i) shall be valued at the lesser of net book

14 cost or fair market value.

15 ‘‘(3) An affiliate shall not provide a separated

16 affiliate any facilities, services, or basic telephone

17 service information related to the provision of elec18 tronic publishing, which were provided to such affili19 ate directly or indirectly by a Bell operating com20 pany, and which is not made available to unaffiliated

21 companies on the same terms and conditions.

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

23 provided in subsection (h)(3)—

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

25 any officers, employees, property, or facilities in
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1 common with any entity whose principal business is

2 publishing of which a part is electronic publishing.

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

4 company shall serve as a director of any entity

5 whose principal business is publishing of which a

6 part is electronic publishing.

7 ‘‘(3) For the purposes of paragraphs (1) and

8 (2), a Bell operating company or an affiliate that

9 owns an electronic publishing joint venture shall not

10 be deemed to be engaged in the electronic publishing

11 business solely because of such ownership.

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

13 out—

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

15 that engages in electronic publishing; or

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

17 or production,

18 for any entity that engages in electronic publishing.

19 ‘‘(5) The Bell operating company shall not pro20 vide any facilities, services, or basic telephone service

21 information to any entity that engages in electronic

22 publishing, for use with or in connection with the

23 provision of electronic publishing that is dissemi24 nated by means of such Bell operating company’s or

25 any of its affiliates’ basic telephone service, unless
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1 equivalent facilities, services, or information are

2 made available on equivalent terms and conditions to

3 all.

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

5 being offered to the public by a Bell operating company

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

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

8 the requirements of this section.

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

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

11 or separated affiliate in any telephone exchange area on

12 June 30, 2000.

13 ‘‘(n) PRIVATE RIGHT OF ACTION.—

14 ‘‘(1) Any person claiming that any act or prac15 tice of any Bell operating company, affiliate, or sep16 arated affiliate constitutes a violation of this section

17 may file a complaint with the Commission or bring

18 suit as provided in section 207 of the Communica19 tions Act of 1934 (47 U.S.C. 207), and such Bell

20 operating company, affiliate, or separated affiliate

21 shall be liable as provided in section 206 of the

22 Communications Act of 1934, (47 U.S.C. 207): Pro23 vided, however, That damages may not be awarded

24 for a violation that is discovered by a compliance re-
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1 view as required by subsection (b)(8) or (c)(9) of

2 this section and corrected within 90 days.

3 ‘‘(2) In addition to the provisions of paragraph

4 (1), any person claiming that any act or practice of

5 any Bell operating company, affiliate, or separated

6 affiliate constitutes a violation of this section may

7 make application to the Commission for an order to

8 cease and desist such violation or may make applica9 tion in any district court of the United States of

10 competent jurisdiction for an order enjoining such

11 acts or practices or for an order compelling compli12 ance with such requirement.

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

14 shall be construed to modify, impair, or supersede the ap15 plicability of any of the antitrust laws.

16 ‘‘(p) DEFINITIONS.—As used in this section—

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

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

19 controlled by, or is under common ownership or con20 trol with, a Bell operating company. Such term shall

21 not include a separated affiliate.

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

23 wireline telephone exchange service provided by a

24 Bell operating company in a telephone exchange

25 area, except
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1 ‘‘(A) a competitive wireline telephone ex2 change service provided in a telephone exchange

3 area where another entity provides a wireline

4 telephone exchange service that was provided on

5 January 1, 1984, and

6 ‘‘(B) wireless telephone exchange service

7 provided by an affiliate that is required by the

8 Commission to be a corporate entity separate

9 from the Bell operating company.

10 ‘‘(3) The term ‘basic telephone service informa11 tion’ means network and customer information of a

12 Bell operating company and other information ac13 quired by a Bell operating company as a result of

14 its engaging in the provision of basic telephone

15 service.

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

17 has in 17 C.F.R. 240.12b–2, the regulations promul18 gated by the Securities and Exchange Commission

19 pursuant to the Securities Exchange Act of 1934

20 (15 U.S.C. 78a et seq.) or any successor provision

21 to such section.

22 ‘‘(5) The term ‘customer proprietary network

23 information’ means—

24 ‘‘(A) information which—
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1 ‘‘(i) relates to the quantity, technical

2 configuration, type, destination, and

3 amount of use of telephone exchange serv4 ice or interexchange telephone service sub5 scribed to by any customer of a Bell oper6 ating company, and

7 ‘‘(ii) is available to the Bell operating

8 company by virtue of the telephone com9 pany-customer relationship; and

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

11 telephone exchange service or interexchange

12 telephone service received by a customer of a

13 Bell operating company.

14 ‘‘(6)(A) The term ‘electronic publishing’ means

15 the dissemination, provision, publication, or sale to

16 an unaffiliated entity or person, using a Bell operat17 ing company’s basic telephone service, of—

18 ‘‘(i) news;

19 ‘‘(ii) business and financial reports;

20 ‘‘(iii) editorials;

21 ‘‘(iv) columns;

22 ‘‘(v) sports reporting;

23 ‘‘(vi) features;

24 ‘‘(vii) advertising;
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1 ‘‘(viii) photos and images used in publish2 ing;

3 ‘‘(ix) archival material used in publishing;

4 ‘‘(x) legal notices; or

5 ‘‘(xi) other like or similar information.

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

7 include the following network services:

8 ‘‘(i) Information access as that term is de9 fined by the Modification of Final Judgment.

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

11 common carrier.

12 ‘‘(iii) The transmission of information as

13 part of a gateway to an information service that

14 does not involve the generation or alteration of

15 the content of information, including data

16 transmission, address translation, protocol con17 version, billing management, introductory infor18 mation content, and navigational systems that

19 enable users to access electronic publishing

20 services, which do not affect the presentation of

21 such electronic publishing services to users.

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

23 including voice messaging and electronic mail

24 services.
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1 ‘‘(v) Level 2 gateway services as those

2 services are defined by the Commission’s Sec3 ond Report and Order, Recommendation to

4 Congress and Second Further Notice of Pro5 posed Rulemaking in CC Docket No. 87–266

6 dated August 14, 1992.

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

8 involve the generation or alteration of the con9 tent of information.

10 ‘‘(vii) Transaction processing systems that

11 do not involve the generation or alteration of

12 the content of information.

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

14 Bell operating company’s regulated tele15 communications services.

16 ‘‘(ix) Language translation.

17 ‘‘(x) Conversion of data from one format

18 to another.

19 ‘‘(xi) The provision of information nec20 essary for the management, control, or oper21 ation of a telephone company telecommuni22 cations system.

23 ‘‘(xii) The provision of directory assistance

24 that provides names, addresses, and telephone

25 numbers and does not include advertising.
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1 ‘‘(xiii) Caller identification services.

2 ‘‘(xiv) Repair and provisioning databases

3 for telephone company operations.

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

5 telephone company operations.

6 ‘‘(xvi) 911–E and other emergency assist7 ance databases.

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

9 that is like or similar to these network services

10 and that does not involve the generation or al11 teration of the content of information.

12 ‘‘(xviii) Any upgrades to these network

13 services that do not involve the generation or

14 alteration of the content of information.

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

16 not include—

17 ‘‘(i) full motion video entertainment on de18 mand; and

19 ‘‘(ii) video programming as defined in sec20 tion 602 of the Communications Act of 1934.

21 ‘‘(7) The term ‘electronic publishing joint ven22 ture’ means a joint venture owned by a Bell operat23 ing company or affiliate that engages in the provi24 sion of electronic publishing which is disseminated
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1 by means of such Bell operating company’s or any

2 of its affiliates’ basic telephone service.

3 ‘‘(8) The term ‘entity’ means any organization,

4 and includes corporations, partnerships, sole propri5 etorships, associations, and joint ventures.

6 ‘‘(9) The term ‘inbound telemarketing’ means

7 the marketing of property, goods, or services by tele8 phone to a customer or potential customer who initi9 ated the call.

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

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

12 the equivalent thereof) of more than 10 percent of

13 an entity, or the right to more than 10 percent of

14 the gross revenues of an entity under a revenue

15 sharing or royalty agreement.

16 ‘‘(11) The term ‘separated affiliate’ means a

17 corporation under common ownership or control with

18 a Bell operating company that does not own or con19 trol a Bell operating company and is not owned or

20 controlled by a Bell operating company and that en21 gages in the provision of electronic publishing which

22 is disseminated by means of such Bell operating

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

24 service.
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1 ‘‘(12) The term ‘Bell operating company’ means

2 the corporations subject to the Modification of Final

3 Judgment and listed in Appendix A thereof, or any

4 entity owned or controlled by such corporation, or

5 any successor or assign of such corporation, but

6 does not include an electronic publishing joint ven7 ture owned by such corporation or entity.’’.

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