IIB

107TH CONGRESS

2D SESSION H. R. 1542

IN THE SENATE OF THE UNITED STATES

FEBRUARY 28, 2002

Received; read twice and referred to the Committee on Commerce, Science,

and Transportation

AN ACT

To deregulate the Internet and high speed data services,

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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Internet Freedom and

3 Broadband Deployment Act of 2001’’.

4 SEC. 2. FINDINGS AND PURPOSE.

5 (a) FINDINGS.—Congress finds the following:

6 (1) Internet access services are inherently inter7 state and international in nature, and should there8 fore not be subject to regulation by the States.

9 (2) The imposition of regulations by the Fed10 eral Communications Commission and the States

11 has impeded the rapid delivery of high speed Inter12 net access services and Internet backbone services to

13 the public, thereby reducing consumer choice and

14 welfare.

15 (3) The Telecommunications Act of 1996 rep16 resented a careful balance between the need to open

17 up local telecommunications markets to competition

18 and the need to increase competition in the provision

19 of interLATA voice telecommunications services.

20 (4) In enacting the prohibition on Bell oper21 ating company provision of interLATA services,

22 Congress recognized that certain telecommunications

23 services have characteristics that render them in24 compatible with the prohibition on Bell operating

25 company provision of interLATA services, and ex-
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1 empted such services from the interLATA prohibi2 tion.

3 (5) High speed data services and Internet back4 bone services constitute unique markets that are

5 likewise incompatible with the prohibition on Bell

6 operating company provision of interLATA services.

7 (6) Since the enactment of the Telecommuni8 cations Act of 1996, the Federal Communications

9 Commission has construed the prohibition on Bell

10 operating company provision of interLATA services

11 in a manner that has impeded the development of

12 advanced telecommunications services, thereby lim13 iting consumer choice and welfare.

14 (7) Internet users should have choice among

15 competing Internet service providers.

16 (8) Internet service providers should have the

17 right to interconnect with high speed data networks

18 in order to provide service to Internet users.

19 (b) PURPOSES.—It is therefore the purpose of this

20 Act to provide market incentives for the rapid delivery of

21 advanced telecommunications services—

22 (1) by deregulating high speed data services,

23 Internet backbone services, and Internet access serv24 ices;
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1 (2) by clarifying that the prohibition on Bell op2 erating company provision of interLATA services

3 does not extend to the provision of high speed data

4 services and Internet backbone services;

5 (3) by ensuring that consumers can choose

6 among competing Internet service providers; and

7 (4) by ensuring that Internet service providers

8 can interconnect with competitive high speed data

9 networks in order to provide Internet access service

10 to the public.

11 SEC. 3. DEFINITIONS

12 (a) AMENDMENTS.—Section 3 of the Communica13 tions Act of 1934 (47 U.S.C. 153) is amended—

14 (1) by redesignating paragraph (20) as para15 graph (21);

16 (2) by redesignating paragraphs (21) through

17 (52) as paragraphs (26) through (57), respectively;

18 (3) by inserting after paragraph (19) the fol19 lowing new paragraph:

20 ‘‘(20) HIGH SPEED DATA SERVICE.—The term

21 ‘high speed data service’ means any service that con22 sists of or includes the offering of a capability to

23 transmit, using a packet-switched or successor tech24 nology, information at a rate that is generally not

25 less than 384 kilobits per second in at least one di-
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1 rection. Such term does not include special access

2 service offered through dedicated transport links be3 tween a customer’s premises and an interexchange

4 carrier’s switch or point of presence.’’;

5 (4) by inserting after paragraph (21) the fol6 lowing new paragraphs:

7 ‘‘(22) INTERNET.—The term ‘Internet’ means

8 collectively the myriad of computer and tele9 communications facilities, including equipment and

10 operating software, which comprise the inter11 connected world-wide network of networks that em12 ploy the Transmission Control Protocol/Internet

13 Protocol, or any predecessor or successor protocols

14 to such protocol, to communicate information of all

15 kinds by wire or radio.

16 ‘‘(23) INTERNET ACCESS SERVICE.—The term

17 ‘Internet access service’ means a service that com18 bines computer processing, information storage, pro19 tocol conversion, and routing with transmission to

20 enable users to access Internet content and services.

21 ‘‘(24) INTERNET BACKBONE.—The term ‘Inter22 net backbone’ means a network that carries Internet

23 traffic over high-capacity long-haul transmission fa24 cilities and that is interconnected with other such

25 networks via private peering relationships.
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1 ‘‘(25) INTERNET BACKBONE SERVICE.—The

2 term ‘Internet backbone service’ means any

3 interLATA service that consists of or includes the

4 transmission by means of an Internet backbone of

5 any packets, and shall include related local

6 connectivity.’’.

7 (b) CONFORMING AMENDMENTS.—

8 (1) Section 230(f) of the Communications Act

9 of 1934 (47 U.S.C. 230(f)) is amended—

10 (A) by striking paragraph (1); and

11 (B) by redesignating paragraphs (2)

12 through (4) as paragraphs (1) through (3), re13 spectively.

14 (2) Section 223(h)(2) of such Act (47 U.S.C.

15 223(h)(2)) is amended by striking ‘‘230(f)(2)’’ and

16 inserting ‘‘230(f)(1)’’.

17 SEC. 4. LIMITATION ON AUTHORITY TO REGULATE HIGH

18 SPEED DATA SERVICES.

19 (a) IN GENERAL.—Part I of title II of the Commu20 nications Act of 1934 (47 U.S.C. 201 et seq.) is amended

21 by adding at the end the following new section:

22 ‘‘SEC. 232. PROVISION OF HIGH SPEED DATA SERVICES.

23 ‘‘(a) FREEDOM FROM REGULATION.—Except to the

24 extent that high speed data service, Internet backbone

25 service, and Internet access service are expressly referred
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1 to in this Act, neither the Commission, nor any State,

2 shall have authority to regulate the rates, charges, terms,

3 or conditions for, or entry into the provision of, any high

4 speed data service, Internet backbone service, or Internet

5 access service; nor shall the Commission impose or require

6 the collection of any fees, taxes, charges, or tariffs upon

7 such service that is not imposed or required on the date

8 of enactment of this section.

9 ‘‘(b) SAVINGS PROVISION.—Nothing in this section

10 shall be construed to limit or affect the authority of any

11 State to regulate circuit-switched telephone exchange serv12 ices, nor affect the rights of cable franchise authorities

13 to establish requirements that are otherwise consistent

14 with this Act.

15 ‘‘(c) CONTINUED ENFORCEMENT OF ESP EXEMP16 TION, UNIVERSAL SERVICE RULES PERMITTED.—Noth17 ing in this section shall affect the ability of the Commis18 sion to retain or modify—

19 ‘‘(1) the exemption from interstate access

20 charges for enhanced service providers under Part

21 69 of the Commission’s regulations, and the require22 ments of the MTS/WATS Market Structure Order

23 (97 FCC 2d 682, 715 (1983)); or

24 ‘‘(2) rules issued pursuant to section 254.
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1 ‘‘(d) ADDITIONAL COMMISSION AUTHORITY PRE2 SERVED.—Notwithstanding subsection (a), such sub3 section shall not restrict or affect in any way the authority

4 of the Commission—

5 ‘‘(1) to adopt regulations to prohibit unsolicited

6 commercial e-mail messages;

7 ‘‘(2) to regulate changes in subscriber carrier

8 selections or the imposition of charges on telephone

9 bills for unauthorized services; or

10 ‘‘(3) with respect to—

11 ‘‘(A) customer proprietary network infor12 mation, as provided in section 222;

13 ‘‘(B) with respect to rules and procedures

14 adopted pursuant to section 223 to restrict the

15 provision of pornography to minors and

16 unconsenting adults; or

17 ‘‘(C) with respect to access by persons with

18 disabilities, as provided in section 255.’’.

19 (b) CONFORMING AMENDMENT.—Section 251 of the

20 Communications Act of 1934 (47 U.S.C. 251) is amended

21 by adding at the end thereof the following new subsection:

22 ‘‘(j) GUARANTEED ACCESS TO CONSUMERS FOR

23 CLECS.—

24 ‘‘(1) ACCESS RULES.—
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1 ‘‘(A) PRESERVATION OF RULES GUARAN2 TEEING CLEC ACCESS TO INCUMBENT CARRIER

3 FACILITIES.—Except as provided in subpara4 graph (E), the Commission is not required to

5 repeal or modify the regulations in effect on

6 May 24, 2001, that enable a requesting carrier

7 to use the facilities of an incumbent local ex8 change carrier to provide high speed data serv9 ices.

10 ‘‘(B) TRANSPORT SERVICES AVAILABLE TO

11 CLECS.—

12 ‘‘(i) OFFERING REQUIRED.—If an in13 cumbent local exchange carrier provides

14 high-speed data services over a fiber local

15 loop or fiber feeder subloop, that carrier

16 shall offer, over such loop or subloop for

17 delivery at the incumbent local exchange

18 carrier’s serving central office, a high

19 speed data service that is provided by such

20 carrier utilizing an industry-standard pro21 tocol.

22 ‘‘(ii) TRANSMISSION OPTIONS.—Such

23 service shall enable a requesting carrier to

24 transmit information over an incumbent

25 local exchange carrier’s facilities between
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1 that incumbent local exchange carrier’s

2 serving central office and (I) a customer’s

3 premises served by that serving central of4 fice; (II) a remote terminal supplied by the

5 requesting carrier; or (III) a high fre6 quency portion of the copper subloop ob7 tained by such requesting carrier pursuant

8 to the provisions of subsection (c)(3).

9 ‘‘(iii) RATES, TERMS, AND CONDI10 TIONS.—Such high speed data service shall

11 be offered on rates, terms, and conditions

12 that are just and reasonable in accordance

13 with section 201(b). For such purposes,

14 such high speed data service shall be

15 deemed a nondominant service.

16 ‘‘(iv) SERVING CENTRAL OFFICE DEF17 INITION.—For the purpose of this sub18 paragraph, the term ‘serving central office’

19 means the centralized location where the

20 incumbent local exchange carrier has elect21 ed to provide access to the high speed data

22 service required by this subparagraph.

23 ‘‘(C) SPACE ADJACENT TO AN INCUM24 BENT’S REMOTE TERMINAL.—Subparagraph

25 (E)(iii) does not relieve an incumbent carrier of
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1 any obligation under regulations in effect on

2 May 24, 2001, to provide space adjacent to its

3 remote terminal to a requesting carrier so that

4 the requesting carrier may construct its own re5 mote terminal.

6 ‘‘(D) CLEC ACCESS TO INCUMBENT CAR7 RIER RIGHTS-OF-WAY.—Any incumbent local

8 exchange carrier has the duty to afford access

9 to its poles, conduits, and rights-of-way in ac10 cordance with subsection (b)(4) for provision of

11 high speed data service.

12 ‘‘(E) SCOPE.—Notwithstanding any provi13 sion of law, neither the Commission nor any

14 State shall—

15 ‘‘(i) require an incumbent local ex16 change carrier to provide unbundled access

17 in accordance with subsection (c)(3) to any

18 packet switching network element;

19 ‘‘(ii) require an incumbent local ex20 change carrier to provide, for the provision

21 of high speed data service, access on an

22 unbundled basis in accordance with sub23 section (c)(3) to any fiber local loop or

24 fiber feeder subloop; or
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1 ‘‘(iii) require an incumbent local ex2 change carrier to provide for collocation in

3 accordance with subsection (c)(6) in a re4 mote terminal, or to construct or make

5 available space in a remote terminal.

6 ‘‘(F) REINTERPRETATION.—Consistent

7 with subparagraph (E), neither the Commission

8 nor any State shall construe, interpret, or apply

9 this section in such a manner as to expand an

10 incumbent local exchange carrier’s obligation,

11 as in effect on May 24, 2001, to provide access

12 in accordance with subsection (c)(3) to any net13 work element for the provision of high speed

14 data service, or to provide collocation in accord15 ance with subsection (c)(6) for the provision of

16 high speed data service.

17 ‘‘(G) AUTHORITY TO REDUCE ELEMENTS

18 SUBJECT TO REQUIREMENT.—This paragraph

19 shall not prohibit the Commission from modi20 fying the regulation referred to in subparagraph

21 (B) to reduce the number of network elements

22 subject to the unbundling requirement, or to

23 forbear from enforcing any portion of that reg24 ulation in accordance with the Commission’s

25 authority under section 706 of the Tele-
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1 communications Act of 1996, notwithstanding

2 any limitation on that authority in section 10 of

3 this Act.

4 ‘‘(H) PROHIBITION ON DISCRIMINATORY

5 SUBSIDIES.—Any network element used in the

6 provision of high speed data service that is not

7 subject to the requirements of subsection (c)

8 shall not be entitled to any subsidy, including

9 any subsidy pursuant to section 254, that is not

10 provided on a nondiscriminatory basis to all

11 providers of high speed data service and Inter12 net access service. This prohibition on discrimi13 natory subsidies shall not be interpreted to au14 thorize or require the extension of any subsidy

15 to any provider of high speed data service or

16 Internet access service.

17 ‘‘(2) RESALE.—For a period of three years

18 after the enactment of this subsection, an incumbent

19 local exchange carrier that provides high speed data

20 service shall have a duty to offer for resale any such

21 service at wholesale rates in accordance with sub22 section (c)(4). After such three-year period, such

23 carrier shall offer such services for resale pursuant

24 to subsection (b)(1).
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1 ‘‘(3) DEFINITIONS.—For purposes of this

2 subsection—

3 ‘‘(A) the term ‘fiber feeder subloop’ means

4 the entirely fiber optic cable portion of the local

5 loop between the feeder/distribution interface

6 (or its equivalent) and a distribution frame (or

7 its equivalent) in an incumbent local exchange

8 carrier central office, including all features,

9 functions, and capabilities of such portion of

10 the local loop;

11 ‘‘(B) the term ‘fiber local loop’ means an

12 entirely fiber optic cable transmission facility,

13 including all features, functions, and capabili14 ties of such transmission facility, between a dis15 tribution frame (or its equivalent) in an incum16 bent local exchange carrier central office and

17 the loop demarcation point at an end-user cus18 tomer premise;

19 ‘‘(C) the term ‘packet switching network

20 element’—

21 ‘‘(i) means a network element that

22 performs, or offers the capability to

23 perform—

24 ‘‘(I) the basic packet switching

25 function of routing or forwarding
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1 packets, frames, cells, or other data

2 units based on address or other rout3 ing information contained in the pack4 ets, frames, cells, or other data units,

5 including the functions that are per6 formed by digital subscriber line ac7 cess multiplexers; or

8 ‘‘(II) any successor to the func9 tions described in clause (i);

10 ‘‘(ii) includes such element on a

11 stand-alone basis, or as a part of a com12 bination with one or more other network

13 elements; and

14 ‘‘(iii) does not include elements of the

15 signaling system 7 network transmitting

16 signaling information between switching

17 points;

18 ‘‘(D) the term ‘remote terminal’ means a

19 controlled environment hut, controlled environ20 ment vault, cabinet, or other structure at a re21 mote location between the central office and a

22 customer’s premises; and

23 ‘‘(E) the term ‘signaling system 7 network’

24 means the network that uses signaling links to

25 transmit routing messages between switches
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1 and between switches and call related data

2 bases.’’.

3 (c) PRESERVATION OF EXISTING INTERCONNECTION

4 AGREEMENTS.—Nothing in the amendments made by this

5 section—

6 (1) shall be construed to permit or require the

7 abrogation or modification of any interconnection

8 agreement in effect on the date of enactment of this

9 section during the term of such agreement, except

10 that this paragraph shall not apply to any inter11 connection agreement beyond the expiration date of

12 the existing current term contained in such agree13 ment on the date of enactment of this section, with14 out regard to any extension or renewal of such

15 agreement; or

16 (2) affects the implementation of any change of

17 law provision in any such agreement.

18 SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE.

19 Part I of title II of the Communications Act of 1934,

20 as amended by section 4, is amended by adding at the

21 end the following new section:

22 ‘‘SEC. 233. INTERNET CONSUMERS FREEDOM OF CHOICE.

23 ‘‘(a) PURPOSE.—It is the purpose of this section to

24 ensure that Internet users have freedom of choice of Inter25 net service provider.
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1 ‘‘(b) OBLIGATIONS OF INCUMBENT LOCAL EX2 CHANGE CARRIERS.—Each incumbent local exchange car3 rier has the duty to provide—

4 ‘‘(1) Internet users with the ability to subscribe

5 to and have access to any Internet service provider

6 that interconnects with such carrier’s high speed

7 data service;

8 ‘‘(2) any Internet service provider with the

9 right to acquire the facilities and services necessary

10 to interconnect with such carrier’s high speed data

11 service for the provision of Internet access service;

12 ‘‘(3) any Internet service provider with the abil13 ity to collocate equipment in accordance with the

14 provisions of section 251, to the extent necessary to

15 achieve the objectives of paragraphs (1) and (2) of

16 this subsection; and

17 ‘‘(4) any provider of high speed data services,

18 Internet backbone service, or Internet access service

19 with special access for the provision of Internet ac20 cess service within a period no longer than the pe21 riod in which such incumbent local exchange carrier

22 provides special access to itself or any affiliate for

23 the provision of such service.

24 ‘‘(c) DEFINITIONS.—As used in this section—
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1 ‘‘(1) INTERNET SERVICE PROVIDER.—The term

2 ‘Internet service provider’ means any provider of

3 Internet access service.

4 ‘‘(2) INCUMBENT LOCAL EXCHANGE CAR5 RIER.—The term ‘incumbent local exchange carrier’

6 has the same meaning as provided in section 251(h).

7 ‘‘(3) SPECIAL ACCESS SERVICE.—The term

8 ‘special access service’ means the provision of dedi9 cated transport links between a customer’s premises

10 and the switch or point of presence of a high speed

11 data service provider, Internet backbone service pro12 vider, or Internet service provider.’’.

13 SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH

14 SPEED DATA AND INTERNET BACKBONE

15 SERVICES.

16 (a) INCIDENTAL INTERLATA SERVICE PER17 MITTED.—Section 271(g) of the Communications Act of

18 1934 (47 U.S.C. 271(g)) is amended—

19 (1) by striking ‘‘or’’ at the end of paragraph

20 (5);

21 (2) by striking the period at the end of para22 graph (6) and inserting ‘‘; or’’; and

23 (3) by adding at the end thereof the following

24 new paragraph:
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1 ‘‘(7) of high speed data service or Internet

2 backbone service.’’.

3 (b) PROHIBITION ON PROVISION OF VOICE TELE4 PHONE SERVICES.—Section 271 of such Act is amended

5 by adding at the end thereof the following new subsection:

6 ‘‘(k) PROHIBITION ON PROVISION OF VOICE TELE7 PHONE SERVICES.—Until the date on which a Bell oper8 ating company is authorized to offer interLATA services

9 originating in an in-region State in accordance with the

10 provisions of this section, such Bell operating company of11 fering any high speed data service or Internet backbone

12 service pursuant to the provisions of paragraph (7) of sub13 section (g) may not, in such in-region State provide

14 interLATA voice telecommunications service, regardless of

15 whether there is a charge for such service, by means of

16 the high speed data service or Internet backbone service

17 provided by such company.’’.

18 (c) NOTICE TO ATTORNEY GENERAL.—Section 271

19 of such Act is further amended by adding at the end the

20 following new subsection:

21 ‘‘(l) NOTICE TO ATTORNEY GENERAL.—

22 ‘‘(1) STATEMENT REQUIRED.—Not less than 30

23 days before commencing to offer any interLATA

24 high speed data service or Internet backbone service

25 originating in an in-region State pursuant to para-
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1 graph (7) of subsection (g), a Bell operating com2 pany shall submit to the Attorney General a state3 ment that—

4 ‘‘(A) expresses the intention to commence

5 providing such service in such State;

6 ‘‘(B) provides a description of the service

7 to be offered; and

8 ‘‘(C) identifies the geographic region with9 in the State in which the service will be offered,

10 if the service is not going to be offered State11 wide.

12 ‘‘(2) ADDITIONAL CONTENTS PROHIBITED.—

13 The Attorney General may not require a statement

14 under this subsection to contain any additional in15 formation other than that specified in subparagraph

16 (A), (B), and (C) of paragraph (1).

17 ‘‘(3) CONFIDENTIAL TREATMENT OF STATE18 MENTS.—A statement submitted to the Attorney

19 General under this subsection shall be exempt from

20 disclosure under section 552 of title 5, United States

21 Code, and no such statement may be made public,

22 except as may be relevant to any administrative or

23 judicial action or proceeding.’’.

24 (d) CONFORMING AMENDMENTS.—
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1 (1) Section 272(a)(2)(B)(i) of such Act is

2 amended to read as follows:

3 ‘‘(i) incidental interLATA services de4 scribed in paragraphs (1), (2), (3), (5),

5 (6), and (7) of section 271(g);’’.

6 (2) Section 272(a)(2)(C) of such Act is re7 pealed.

8 SEC. 7. DEPLOYMENT OF BROADBAND SERVICES.

9 Part III of title II of the Communications Act of

10 1934 is amended by inserting after section 276 (47 U.S.C.

11 276) the following new section:

12 ‘‘SEC. 277. DEPLOYMENT OF BROADBAND SERVICES.

13 ‘‘(a) DEPLOYMENT REQUIRED.—Each Bell operating

14 company and its affiliates shall deploy high speed data

15 services in each State in which such company or affiliate

16 is an incumbent local exchange carrier (as such term is

17 defined in section 251(h)) in accordance with the require18 ments of this section.

19 ‘‘(b) DEPLOYMENT REQUIREMENTS.—

20 ‘‘(1) MILEPOSTS FOR DEPLOYMENT.—A Bell

21 operating company or its affiliate shall deploy high

22 speed data services by attaining high speed data ca23 pability in its central offices in each State to which

24 subsection (a) applies. Such company or affiliate
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1 shall attain such capability in accordance with the

2 following schedule:

3 ‘‘(A) Within one year after the date of en4 actment of this section, such company or affil5 iate shall attain high speed data capability in

6 not less than 20 percent of such central offices

7 in such State.

8 ‘‘(B) Within 2 years after the date of en9 actment of this section, such company or affil10 iate shall attain high speed data capability in

11 not less than 40 percent of such central offices

12 in such State.

13 ‘‘(C) Within 3 years after the date of en14 actment of this section, such company or affil15 iate shall attain high speed data capability in

16 not less than 70 percent of such central offices

17 in such State.

18 ‘‘(D) Within 5 years after the date of en19 actment of this section, such company or affil20 iate shall attain high speed data capability in

21 not less than 100 percent of such central offices

22 in such State.

23 ‘‘(2) HIGH SPEED DATA CAPABILITY.—For pur24 poses of paragraph (1), a central office shall be con25 sidered to have attained high speed capability if—
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1 ‘‘(A)(i) such central office is equipped with

2 high speed data multiplexing capability; and

3 ‘‘(ii) each upgradeable customer loop that

4 originates or terminates in such central office is

5 upgraded promptly upon receipt of a customer

6 request for such upgrading, as necessary to per7 mit transmission of high speed data service (in8 cluding any conditioning of the loop);

9 ‘‘(B) each customer served by such central

10 office (without regard to the upgradeability or

11 length of the customer’s loop) is able to obtain

12 the provision of high speed data service from

13 such Bell operating company or its affiliate by

14 means of an alternative technology that does

15 not involve the use of the customer’s loop; or

16 ‘‘(C) each such customer is able to obtain

17 the provision of high speed data service by one

18 or the other of the means described in subpara19 graphs (A) and (B).

20 ‘‘(3) UPGRADEABLE LOOPS.—For purposes of

21 paragraph (2), a customer loop is upgradeable if—

22 ‘‘(A) such loop is less than 15,000 feet in

23 length (from the central office to the customer’s

24 premises along the line); and
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1 ‘‘(B) such loop can, with or without condi2 tioning, transmit high speed data services with3 out such transmission on such loop causing sig4 nificant degradation of voice service.

5 ‘‘(c) AVAILABILITY OF REMEDIES.—

6 ‘‘(1) FORFEITURE PENALTIES.—A Bell oper7 ating company or its affiliate that fails to comply

8 with this section shall be subject to the penalties

9 provided in section 503(b)(2). In determining wheth10 er to impose a forfeiture penalty, and in determining

11 the amount of any forfeiture penalty under section

12 503(b)(2)(D), the Commission shall take into con13 sideration the extent to which the requirements of

14 this section are technically infeasible.

15 ‘‘(2) JURISDICTION.—The Commission shall

16 have exclusive jurisdiction to enforce the require17 ments of this section, except that any State commis18 sion may file a complaint with the Commission seek19 ing the imposition of penalties as provided in para20 graph (1).

21 ‘‘(d) ANNUAL REPORT ON DEPLOYMENT.—

22 ‘‘(1) ANALYSIS REQUIRED.—The Commission

23 shall include in each of its annual reports submitted

24 no more than 18 months after the date of enactment

25 of this section an analysis of the deployment of high
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1 speed data service to underserved areas. Such report

2 shall include—

3 ‘‘(A) a statistical analysis of the extent to

4 which high speed data service has been de5 ployed to central offices and customer loops, or

6 is available using different technologies, as com7 pared with the extent of such deployment and

8 availability prior to such date and in prior re9 ports under this subsection;

10 ‘‘(B) a breakdown of the delivery of high

11 speed data service by type of technology and

12 class or category of provider;

13 ‘‘(C) an identification of impediments to

14 such deployment and availability, and develop15 ments in overcoming such impediments during

16 the intervening period between such reports;

17 and

18 ‘‘(D) recommendations of the Commission,

19 after consultation with the National Tele20 communications and Information Administra21 tion, for further extending such deployment and

22 availability and overcoming such impediments.

23 ‘‘(2) DEFINITION OF UNDERSERVED AREA.—

24 For purposes of paragraph (1), the term ‘under25 served areas’ means areas that—
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1 ‘‘(A) are high cost areas that are eligible

2 for services under subpart D of part 54 of the

3 Commission’s regulations (47 C.F.R. 54.301 et

4 seq.); or

5 ‘‘(B) are within or comprised of any census

6 tract—

7 ‘‘(i) the poverty level of which is at

8 least 30 percent (based on the most recent

9 census data); or

10 ‘‘(ii) the median family income of

11 which does not exceed—

12 ‘‘(I) in the case of a census tract

13 located in a metropolitan statistical

14 area, 70 percent of the greater of the

15 metropolitan area median family in16 come or the statewide median family

17 income; and

18 ‘‘(II) in the case of a census tract

19 located in a nonmetropolitan statis20 tical area, 70 percent of the non21 metropolitan statewide median family

22 income.

23 ‘‘(3) DESIGNATION OF CENSUS TRACTS.—The

24 Commission shall, not later than 90 days after the

25 date of the enactment of this section, designate and
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1 publish those census tracts meeting the criteria de2 scribed in paragraph (2)(B).’’.

3 SEC. 8. COMMISSION AUTHORIZED TO PRESCRIBE JUST

4 AND REASONABLE CHARGES.

5 The Federal Communications Commission may im6 pose penalties under section 503 of the Communications

7 Act of 1934 not to exceed $1,000,000 for any violation

8 of provisions contained in, or amended by, section 5, 6,

9 or 7 (or any combination thereof) of this Act. Each dis10 tinct violation shall be a separate offense, and in the case

11 of a continuing violation, each day shall be deemed a sepa12 rate offense, except that the amount assessed for any con13 tinuing violation shall not exceed a total of $10,000,000

14 for any single act or failure to act described in section

15 5, 6, or 7 (or any combination thereof) of this Act.

16 SEC. 9. CLARIFICATION OF CONTINUING OPERATION OF

17 ANTITRUST LAWS.

18 Section 601(b) of the Telecommunications Act of

19 1996 (Public Law 104-104; 110 Stat. 143) is amended

20 by adding at the end the following new paragraph:

21 ‘‘(4) CONTINUING OPERATION OF THE ANTI22 TRUST LAWS.—Paragraph (1) shall be interpreted to

23 mean that the antitrust laws are—

24 ‘‘(A) not repealed by,

25 ‘‘(B) not precluded by,
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1 ‘‘(C) not diminished by, and

2 ‘‘(D) not incompatible with,

3 the Communications Act of 1934, this Act, or any

4 law amended by either such Act.’’.

5 SEC. 10. COMMON CARRIER ENFORCEMENT.

6 (a) CEASE AND DESIST AUTHORITY.—Section 501 of

7 the Communications Act of 1934 (47 U.S.C. 501) is

8 amended—

9 (1) by striking ‘‘Any person’’ and inserting ‘‘(a)

10 FINES AND IMPRISONMENT.—Any person’’;

11 (2) by adding at the end the following new sub12 section:

13 ‘‘(b) CEASE AND DESIST ORDERS.— If, after a hear14 ing, the Commission determines that any common carrier

15 is engaged in an act, matter, or thing prohibited by this

16 Act, or is failing to perform any act, matter, or thing re17 quired by this Act, the Commission may order such com18 mon carrier to cease or desist from such action or inac19 tion.’’.

20 (b) FORFEITURE PENALTIES.—Section 503(b) of the

21 Communications Act of 1934 (47 U.S.C. 503(b)) is

22 amended—

23 (1) in paragraph (2)(B)—

24 (A) by striking ‘‘exceed $100,000’’ and in25 serting ‘‘exceed $1,000,000’’; and
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1 (B) by striking ‘‘of $1,000,000’’ and in2 serting ‘‘of $10,000,000’’;

3 (2) in paragraph (2)(C), by striking ‘‘subpara4 graph (A) or (B)’’ and inserting ‘‘subparagraph (A),

5 (B), or (C)’’;

6 (3) by redesignating subparagraphs (C) and

7 (D) of paragraph (2) as subparagraphs (D) and (E),

8 respectively;

9 (4) by inserting after subparagraph (B) of

10 paragraph (2) the following new subparagraph:

11 ‘‘(C) If a common carrier has violated a cease and

12 desist order or has previously been assessed a forfeiture

13 penalty for a violation of a provision of this Act or of any

14 rule, regulation, or order issued by the Commission, and

15 if the Commission or an administrative law judge deter16 mines that such common carrier has willfully violated the

17 same provision, rule, regulation, that this repeated viola18 tion has caused harm to competition, and that such com19 mon carrier has been assessed a forfeiture penalty under

20 this subsection for such previous violation, the Commis21 sion may assess a forfeiture penalty not to exceed

22 $2,000,000 for each violation or each day of continuing

23 violation; except that the amount of such forfeiture pen24 alty shall not exceed $20,000,000.’’; and
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1 (5) in paragraph (6)(B), by striking ‘‘1 year’’

2 and inserting ‘‘2 years’’.

3 (c) EVALUATION OF IMPACT.—

4 (1) EVALUATION REQUIRED.—Within one year

5 after the date of enactment of this Act, the Federal

6 Communications Commission shall conduct an eval7 uation of the impact of the increased remedies avail8 able under the amendments made by this section on

9 improving compliance with the requirements of the

10 Communications Act of 1934, and with the rules,

11 regulations, and orders of the Commission there12 under. Such evaluation shall include—

13 (A) an assessment of the number of en14 forcement proceedings commenced before and

15 after such date of enactment;

16 (B) an analysis of any changes in the num17 ber, type, seriousness, or repetition of viola18 tions; and

19 (C) an analysis of such other factors as the

20 Commission considers appropriate to evaluate

21 such impact.

22 (2) REPORT.—Within one year after such date

23 of enactment, the Commission shall submit a report

24 on the evaluation to the Committee on Energy and

25 Commerce of the House of Representatives and the
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1 Committee on Commerce, Science, and Transpor2 tation of the Senate.

Passed the House of Representatives February 27,

2002.

Attest: JEFF TRANDAHL,

Clerk.