I

107TH CONGRESS

1ST SESSION H. R. 1542

To deregulate the Internet and high speed data services, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 24, 2001

Mr. TAUZIN (for himself, Mr. DINGELL, Mr. GOODLATTE, Mr. BOUCHER, Mr.

ENGLISH, Mr. FROST, Mr. SMITH of Washington, Mr. LUCAS of Kentucky, Mr. WHITFIELD, Mr. MURTHA, Mr. COLLINS, Mr. BLAGOJEVICH,

Mr. FOSSELLA, Mr. DICKS, Mr. GILLMOR, Mr. BARTON of Texas, Mr.

KIND, Mr. GREENWOOD, Mr. MEEKS of New York, Mr. CAMP, Mr.

BALDACCI, Mr. RAHALL, Mr. HOLDEN, Mrs. MCCARTHY of New York,

Mr. BRADY of Pennsylvania, Mr. SIMPSON, Mr. BOYD, Mrs. NORTHUP,

Mr. ENGEL, Mr. SANDLIN, Mr. EVERETT, Mr. BOEHNER, Mr. REYNOLDS, Mr. WELDON of Pennsylvania, Mr. SESSIONS, Mr. BONIOR, Mr.

MALONEY of Connecticut, Mr. BUYER, Mr. CUNNINGHAM, Mr. MCCRERY,

Mr. BISHOP, Mr. LAMPSON, Mr. VITTER, Mr. BASS, Mr. ACKERMAN, Mr.

BLUNT, Mr. MCHUGH, Mr. RYAN of Wisconsin, Mr. QUINN, Mr. BACA,

Mr. GONZALEZ, Mr. BAKER, Mr. WALSH, Mr. GREEN of Texas, Mr.

WEXLER, Mr. OXLEY, Mr. RADANOVICH, Mr. DIAZ-BALART, Mr.

COOKSEY, Mr. CLEMENT, Mr. LARSEN of Washington, Mr. SCHROCK,

Mr. PETRI, Mr. WATKINS, Ms. ROS-LEHTINEN, Mr. HILLIARD, Mr.

OTTER, Mr. SHADEGG, Mr. BRYANT, Mr. PLATTS, Mr. PUTNAM, Mr.

CUMMINGS, Mr. RODRIGUEZ, Mr. CONDIT, Mr. BURR of North Carolina,

and Mr. WYNN) introduced the following bill; which was referred to the

Committee on Energy and Commerce

A BILL

To deregulate the Internet and high speed data services,

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

3 SECTION 1. SHORT TITLE.

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

5 Broadband Deployment Act of 2001’’.

6 SEC. 2. FINDINGS AND PURPOSE.

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

8 (1) Internet access services are inherently inter9 state and international in nature, and should there10 fore not be subject to regulation by the States.

11 (2) The imposition of regulations by the Fed12 eral Communications Commission and the States

13 has impeded the rapid delivery of high speed Inter14 net access services to the public, thereby reducing

15 consumer choice and welfare.

16 (3) The Telecommunications Act of 1996 rep17 resented a careful balance between the need to open

18 up local telecommunications markets to competition

19 and the need to increase competition in the provision

20 of interLATA voice telecommunications services.

21 (4) In enacting the prohibition on Bell oper22 ating company provision of interLATA services,

23 Congress recognized that certain telecommunications

24 services have characteristics that render them in25 compatible with the prohibition on Bell operating
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1 company provision of interLATA services, and ex2 empted such services from the interLATA prohibi3 tion.

4 (5) High speed data services and Internet ac5 cess services constitute unique markets that are like6 wise incompatible with the prohibition on Bell oper7 ating company provision of interLATA services.

8 (6) Since the enactment of the Telecommuni9 cations Act of 1996, the Federal Communications

10 Commission has construed the prohibition on Bell

11 operating company provision of interLATA services

12 in a manner that has impeded the development of

13 advanced telecommunications services, thereby lim14 iting consumer choice and welfare.

15 (7) Internet users should have choice among

16 competing Internet service providers.

17 (8) Internet service providers should have the

18 right to interconnect with high speed data networks

19 in order to provide service to Internet users.

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

21 Act to provide market incentives for the rapid delivery of

22 advanced telecommunications services—

23 (1) by deregulating high speed data services

24 and Internet access services;
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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 access 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 (24) through (54), 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
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1 less than 384 kilobits per second in at least one di2 rection.’’;

3 (4) by inserting after paragraph (22) the fol4 lowing new paragraphs:

5 ‘‘(23) INTERNET.—The term ‘Internet’ means

6 collectively the myriad of computer and tele7 communications facilities, including equipment and

8 operating software, which comprise the inter9 connected world-wide network of networks that em10 ploy the Transmission Control Protocol/Internet

11 Protocol, or any predecessor or successor protocols

12 to such protocol, to communicate information of all

13 kinds by wire or radio.

14 ‘‘(24) INTERNET ACCESS SERVICE.—The term

15 ‘Internet access service’ means (A) a service that

16 combines computer processing, information storage,

17 protocol conversion, and routing with transmission

18 to enable users to access Internet content and serv19 ices, and (B) the transmission of such service, but

20 does not include the portion of such transmission

21 from the user to the provider of such service.’’.

22 (b) CONFORMING AMENDMENTS.—

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

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

25 (A) by striking paragraph (1); and
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1 (B) by redesignating paragraphs (2)

2 through (4) as paragraphs (1) through (3), re3 spectively.

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

5 223(h)(2)) is amended by striking ‘‘230(f)(2)’’ and

6 inserting ‘‘230(f)(1)’’.

7 SEC. 4. LIMITATION ON AUTHORITY TO REGULATE HIGH

8 SPEED DATA SERVICES.

9 (a) IN GENERAL.—Part I of title II of the Commu10 nications Act of 1934 (47 U.S.C. 201 et seq.) is amended

11 by adding at the end the following new section:

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

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

14 extent that high speed data service and Internet access

15 service are expressly referred to in this Act, neither the

16 Commission, nor any State, shall have authority to regu17 late the rates, charges, terms, or conditions for, or entry

18 into the provision of, any high speed data service or Inter19 net access service, or to regulate the facilities used in the

20 provision of either such service.

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

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

23 State to regulate voice telephone exchange services, nor

24 affect the rights of cable franchise authorities to establish

25 requirements that are otherwise consistent with this Act.
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1 ‘‘(c) CONTINUED ENFORCEMENT OF ESP EXEMP2 TION, UNIVERSAL SERVICE RULES PERMITTED.—Noth3 ing in this section shall affect the ability of the Commis4 sion to retain or modify—

5 ‘‘(1) the exemption from interstate access

6 charges for enhanced service providers under Part

7 69 of the Commission’s Rules; or

8 ‘‘(2) rules issued pursuant to section 254.’’.

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

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

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

12 ‘‘(j) EXEMPTION.—

13 ‘‘(1) IN GENERAL.—Notwithstanding the provi14 sions of subsections (c) and (d), the Commission

15 shall not require an incumbent local exchange car16 rier to—

17 ‘‘(A) provide unbundled access to any net18 work elements used in the provision of any high

19 speed data service, other than those network

20 elements described in section 51.319 of the

21 Commission’s regulations (47 C.F.R. 51.319),

22 as in effect on January 1, 1999; or

23 ‘‘(B) offer for resale at wholesale rates any

24 high speed data service.
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1 ‘‘(2) AUTHORITY TO REDUCE ELEMENTS SUB2 JECT TO REQUIREMENT.—Paragraph (1)(A) shall

3 not prohibit the Commission from modifying the reg4 ulation referred to in that paragraph to reduce the

5 number of network elements subject to the

6 unbundling requirement, or to forbear from enforc7 ing any portion of that regulation in accordance with

8 the Commission’s authority under section 706 of the

9 Telecommunications Act of 1996, notwithstanding

10 any limitation on that authority in section 10 of this

11 Act.’’.

12 SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE.

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

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

15 end the following new section:

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

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

18 ensure that Internet users have freedom of choice of Inter19 net service provider.

20 ‘‘(b) OBLIGATIONS OF INCUMBENT LOCAL EX21 CHANGE CARRIERS.—Each incumbent local exchange car22 rier has the duty to provide—

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

24 to and have access to any Internet service provider
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1 that interconnects with such carrier’s high speed

2 data service;

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

4 right to acquire the facilities and services necessary

5 to interconnect with such carrier’s high speed data

6 service for the provision of Internet access service;

7 and

8 ‘‘(3) any Internet service provider with the abil9 ity to collocate equipment in accordance with the

10 provisions of section 251, to the extent necessary to

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

12 this subsection.

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

14 ‘‘(1) INTERNET SERVICE PROVIDER.—The term

15 ‘Internet service provider’ means any provider of

16 Internet access service.

17 ‘‘(2) INCUMBENT LOCAL EXCHANGE CAR18 RIER.—The term ‘incumbent local exchange carrier’

19 has the same meaning as provided in section

20 251(h).’’.
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1 SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH

2 SPEED DATA AND INTERNET ACCESS SERV3 ICES.

4 (a) INCIDENTAL INTERLATA SERVICE

5 PREMITTED.—Section 271(g) of the Communications Act

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

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

8 (5);

9 (2) by striking the period at the end of para10 graph (6) and inserting ‘‘; or’’; and

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

12 new paragraph:

13 ‘‘(7) of high speed data service or Internet ac14 cess service.’’.

15 (b) PROHIBITION ON MARKETING VOICE SERV16 ICES.—Section 271 of such Act is amended by adding at

17 the end thereof the following new subsection:

18 ‘‘(k) PROHIBITION ON MARKETING VOICE TELE19 PHONE SERVICES.—Until the date on which a Bell oper20 ating company is authorized to offer interLATA services

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

22 provisions of this section, such Bell operating company of23 fering any high speed data service or Internet access serv24 ice pursuant to the provisions of paragraph (7) of sub25 section (g) may not, in such in-region State market, bill,

26 or collect for interLATA voice telecommunications service
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1 obtained by means of the high speed data service or Inter2 net access service provided by such company.’’.

3 (c) CONFORMING AMENDMENTS.—

4 (1) Section 272(a)(2)(B)(i) of such Act is

5 amended to read as follows:

6 ‘‘(i) incidental interLATA services de7 scribed in paragraphs (1), (2), (3), (5),

8 (6), and (7) of section 271(g).’’.

9 (2) Section 272(a)(2)(C) of such Act is re10 pealed.

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