Union Calendar No. 105
104TH CONGRESS
1ST SESSION
H. R. 1555
[Report No. 104–204, Part I]
A BILL
To promote competition and reduce regulation in
order to secure lower prices and higher quality
services for American telecommunications con-
sumers and encourage the rapid deployment of
new telecommunications technologies.
JULY 24, 1995
Reported from the Committee on Commerce with an
amendment
Committee on the Judiciary discharged, committed to the
Committee of the Whole House on the State of the
Union, and ordered to be printed
IB
Union Calendar No. 105
104TH CONGRESS
1ST SESSION
H. R. 1555
[Report No. 104–204, Part I]
To promote competition and reduce regulation in order to secure lower prices
and higher quality services for American telecommunications consumers
and encourage the rapid deployment of new telecommunications tech-
nologies.
IN THE HOUSE OF REPRESENTATIVES
MAY 3, 1995
Mr. BLILEY (for himself, Mr. DINGELL, Mr. FIELDS of Texas, Mr. MOOR-
HEAD, Mr. OXLEY, Mr. BILIRAKIS, Mr. SCHAEFER, Mr. BARTON of
Texas, Mr. HASTERT, Mr. STEARNS, Mr. PAXON, Mr. GILLMOR, Mr.
KLUG, Mr. GREENWOOD, Mr. CRAPO, Mr. FRISA, Mr. WHITE, Mr.
COBURN, Mr. TAUZIN, Mr. HALL of Texas, Mr. BOUCHER, Mr. MANTON,
Mr. TOWNS, Ms. ESHOO, and Mrs. LINCOLN) introduced the following
bill; which was referred to the Committee on Commerce, and in addition
to the Committee on the Judiciary, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
JULY 24, 1995
Reported from the Committee on Commerce with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
Referral to the Committee on the Judiciary extended for a period ending not
later than July 24, 1995
Additional sponsors: Mr. DEUTSCH, and Mr. COX of California
Committee on the Judiciary discharged, committed to the Committee of the
Whole House on the State of the Union, and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on May 3, 1995]
A BILL
To promote competition and reduce regulation in order to
secure lower prices and higher quality services for Amer-
ican telecommunications consumers and encourage the
rapid deployment of new telecommunications tech-
nologies.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CON-
TENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Communications Act of 1995’’.
(b) REFERENCES.—References in this Act to ‘‘the Act’’
are references to the Communications Act of 1934.
(c) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS
MARKETS
Sec. 101. Establishment of part II of title II.
‘‘PART II—DEVELOPMENT OF COMPETITIVE MARKETS
‘‘Sec. 241. Interconnection.
‘‘Sec. 242. Equal access and interconnection to the local loop for competing
providers.
‘‘Sec. 243. Preemption.
‘‘Sec. 244. Statements of terms and conditions for access and interconnec-
tion.
‘‘Sec. 245. Bell operating company entry into interLATA services.
‘‘Sec. 246. Competitive safeguards.
‘‘Sec. 247. Universal service.
‘‘Sec. 248. Pricing flexibility and abolition of rate-of-return regulation.
‘‘Sec. 249. Network functionality and accessibility.
‘‘Sec. 250. Market entry barriers.
‘‘Sec. 251. Illegal changes in subscriber carrier selections.
‘‘Sec. 252. Study.
‘‘Sec. 253. Territorial exemption.’’.
Sec. 102. Competition in manufacturing, information services, alarm services,
and pay phone services.
‘‘PART III—SPECIAL AND TEMPORARY PROVISIONS
‘‘Sec. 271. Manufacturing by Bell operating companies.
‘‘Sec. 272. Electronic publishing by Bell operating companies.
‘‘Sec. 273. Alarm monitoring and telemessaging services by Bell operating
companies.
‘‘Sec. 274. Provision of payphone service.’’.
Sec. 103. Forbearance from regulation.
‘‘Sec. 230. Forbearance from regulation.’’.
Sec. 104. Privacy of customer information.
‘‘Sec. 222. Privacy of customer proprietary network information.’’.
Sec. 105. Pole attachments.
Sec. 106. Preemption of franchising authority regulation of telecommunications
services.
Sec. 107. Facilities siting; radio frequency emission standards.
Sec. 108. Mobile service access to long distance carriers.
Sec. 109. Freedom from toll fraud.
Sec. 110. Report on means of restricting access to unwanted material in inter-
active telecommunications systems.
Sec. 111. Authorization of appropriations.
TITLE II—CABLE COMMUNICATIONS COMPETITIVENESS
Sec. 201. Cable service provided by telephone companies.
‘‘PART V—VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE
COMPANIES
‘‘Sec. 651. Definitions.
‘‘Sec. 652. Separate video programming affiliate.
‘‘Sec. 653. Establishment of video platform.
‘‘Sec. 654. Authority to prohibit cross-subsidization.
‘‘Sec. 655. Prohibition on buy outs.
‘‘Sec. 656. Applicability of parts I through IV.
‘‘Sec. 657. Rural area exemption.’’.
Sec. 202. Competition from cable systems.
Sec. 203. Competitive availability of navigation devices.
‘‘Sec. 713. Competitive availability of navigation devices.’’.
Sec. 204. Video programming accessibility.
Sec. 205. Technical amendments.
TITLE III—BROADCAST COMMUNICATIONS COMPETITIVENESS
Sec. 301. Broadcaster spectrum flexibility.
‘‘Sec. 336. Broadcast spectrum flexibility.’’.
Sec. 302. Broadcast ownership.
‘‘Sec. 337. Broadcast ownership.’’.
Sec. 303. Foreign investment and ownership.
Sec. 304. Term of licenses.
Sec. 305. Broadcast license renewal procedures.
Sec. 306. Exclusive Federal jurisdiction over direct broadcast satellite service.
Sec. 307. Automated ship distress and safety systems.
Sec. 308. Restrictions on over-the-air reception devices.
Sec. 309. DBS signal security.
TITLE IV—EFFECT ON OTHER LAWS
Sec. 401. Relationship to other laws.
Sec. 402. Preemption of local taxation with respect to DBS services.
TITLE V—DEFINITIONS
Sec. 501. Definitions.
TITLE VI—SMALL BUSINESS COMPLAINT PROCEDURE
Sec. 601. Complaint procedure.
TITLE 
I—DEVELOPMENT 
OF
COMPETITIVE TELECOMMUN-
ICATIONS MARKETS
SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.
(a) AMENDMENT.—Title II of the Act is amended by
inserting after section 229 (47 U.S.C. 229) the following
new part:
‘‘PART II—DEVELOPMENT OF COMPETITIVE
MARKETS
‘‘SEC. 241. INTERCONNECTION.
‘‘The duty of a common carrier under section 201(a)
includes the duty to interconnect with the facilities and
equipment of other providers of telecommunications services
and information services.
‘‘SEC. 242. EQUAL ACCESS AND INTERCONNECTION TO THE
LOCAL LOOP FOR COMPETING PROVIDERS.
‘‘(a) OPENNESS AND ACCESSIBILITY OBLIGATIONS.—
The duty under section 201(a) of a local exchange carrier
includes the following duties:
‘‘(1) INTERCONNECTION.—The duty to provide,
in accordance with subsection (b), equal access to and
interconnection with the facilities of the carrier’s net-
works to any other carrier or person offering (or seek-
ing to offer) telecommunications services or informa-
tion services reasonably requesting such equal access
and interconnection, so that such networks are fully
interoperable with such telecommunications services
and information services. For purposes of this para-
graph, a request is not reasonable unless it contains
a proposed plan, including a reasonable schedule, for
the implementation of the requested access or inter-
connection.
‘‘(2) UNBUNDLING
OF
NETWORK
ELEMENTS.—
The duty to offer unbundled services, elements, fea-
tures, functions, and capabilities whenever technically
feasible, at just, reasonable, and nondiscriminatory
prices and in accordance with subsection (b)(4).
‘‘(3) RESALE.—The duty to offer services, ele-
ments, features, functions, and capabilities for resale
at economically feasible rates to the reseller, recogniz-
ing pricing structures for telephone exchange service
in the State, and the duty not to prohibit, and not
to impose unreasonable or discriminatory conditions
or limitations on, the resale, on a bundled or
unbundled basis, of services, elements, features, func-
tions, and capabilities in conjunction with the fur-
nishing of a telecommunications service or an infor-
mation service.
‘‘(4) NUMBER PORTABILITY.—The duty to pro-
vide, to the extent technically feasible, number port-
ability in accordance with requirements prescribed by
the Commission.
‘‘(5) DIALING PARITY.—The duty to provide, in
accordance with subsection (c), dialing parity to com-
peting providers of telephone exchange service and
telephone toll service.
‘‘(6) ACCESS TO RIGHTS-OF-WAY.—The duty to
afford access to the poles, ducts, conduits, and rights-
of-way of such carrier to competing providers of tele-
communications services in accordance with section
224(d).
‘‘(7) NETWORK FUNCTIONALITY AND ACCESSIBIL-
ITY.—The duty not to install network features, func-
tions, or capabilities that do not comply with any
standards established pursuant to section 249.
‘‘(8) GOOD FAITH NEGOTIATION.—The duty to
negotiate in good faith, under the supervision of State
commissions, the particular terms and conditions of
agreements to fulfill the duties described in para-
graphs (1) through (7). The other carrier or person
requesting interconnection shall also be obligated to
negotiate in good faith the particular terms and con-
ditions of agreements to fulfill the duties described in
paragraphs (1) through (7).
‘‘(b) INTERCONNECTION, COMPENSATION, AND EQUAL
ACCESS.—
‘‘(1) INTERCONNECTION.—A local exchange car-
rier shall provide access to and interconnection with
the facilities of the carrier’s network at any tech-
nically feasible point within the carrier’s network on
just and reasonable terms and conditions, to any
other carrier or person offering (or seeking to offer)
telecommunications services or information services
requesting such access.
‘‘(2) INTERCARRIER
COMPENSATION
BETWEEN
FACILITIES-BASED CARRIERS.—
‘‘(A) IN
GENERAL.—For the purposes of
paragraph (1), the terms and conditions for
interconnection of the network facilities of a
competing provider of telephone exchange service
shall not be considered to be just and reasonable
unless—
‘‘(i) such terms and conditions provide
for the mutual and reciprocal recovery by
each carrier of costs associated with the ter-
mination on such carrier’s network facili-
ties of calls that originate on the network
facilities of the other carrier;
‘‘(ii) such terms and conditions deter-
mine such costs on the basis of a reasonable
approximation of the additional costs of ter-
minating such calls; and
‘‘(iii) the recovery of costs permitted by
such terms and conditions are reasonable in
relation to the prices for termination of
calls that would prevail in a competitive
market.
‘‘(B) 
RULES
OF
CONSTRUCTION.—This
paragraph shall not be construed—
‘‘(i) to preclude arrangements that af-
ford such mutual recovery of costs through
the offsetting of reciprocal obligations, in-
cluding arrangements that waive mutual re-
covery (such as bill-and-keep arrangements);
or
‘‘(ii) to authorize the Commission or
any State commission to engage in any rate
regulation proceeding to establish with par-
ticularity the additional costs of terminat-
ing calls, or to require carriers to maintain
records with respect to the additional costs
of terminating calls.
‘‘(3) EQUAL ACCESS.—A local exchange carrier
shall afford, to any other carrier or person offering
(or seeking to offer) a telecommunications service or
an information service, reasonable and nondiscrim-
inatory access on an unbundled basis—
‘‘(A) to databases, signaling systems, billing
and collection services, poles, ducts, conduits,
and rights-of-way owned or controlled by a local
exchange carrier, or other facilities, functions, or
information (including subscriber numbers) inte-
gral to the efficient transmission, routing, or
other provision of telephone exchange services or
exchange access;
‘‘(B) that is equal in type and quality to
the access which the carrier affords to itself or to
any other person, and is available at non-
discriminatory prices; and
‘‘(C) that is sufficient to ensure the full
interoperability of the equipment and facilities
of the carrier and of the person seeking such ac-
cess.
‘‘(4) COMMISSION ACTION REQUIRED.—
‘‘(A) IN GENERAL.—Within 15 months after
the date of enactment of this part, the Commis-
sion shall complete all actions necessary (includ-
ing any reconsideration) to establish regulations
to implement the requirements of this section.
The Commission shall establish such regulations
after consultation with the Joint Board estab-
lished pursuant to section 247.
‘‘(B) COLLOCATION.—Such regulations shall
provide for actual collocation of equipment nec-
essary for interconnection for telecommuni-
cations services at the premises of a local ex-
change carrier, except that the regulations shall
provide for virtual collocation where the local ex-
change carrier demonstrates that actual colloca-
tion is not practical for technical reasons or be-
cause of space limitations.
‘‘(C) USER PAYMENT OF COSTS.—Such reg-
ulations shall require that the costs that a car-
rier incurs in offering access, interconnection,
number portability, or unbundled services, ele-
ments, features, functions, and capabilities shall
be borne by the users of such access, interconnec-
tion, number portability, or services, elements,
features, functions, and capabilities.
‘‘(D) IMPUTED
CHARGES
TO
CARRIER.—
Such regulations shall require the carrier, to the
extent it provides a telecommunications service
or an information service that requires access or
interconnection to its network facilities, to im-
pute such access and interconnection charges to
itself.
‘‘(c) NUMBER PORTABILITY AND DIALING PARITY.—
‘‘(1) AVAILABILITY.—A local exchange carrier
shall ensure that—
‘‘(A) number portability shall be available
on request in accordance with subsection (a)(4);
and
‘‘(B) dialing parity shall be available upon
request, except that, in the case of a Bell operat-
ing company, such company shall ensure that
dialing parity for intraLATA telephone toll serv-
ice shall be available not later than the date such
company is authorized to provide interLATA
services.
‘‘(2) NUMBER ADMINISTRATION.—The Commis-
sion shall designate one or more impartial entities to
administer telecommunications numbering and to
make such numbers available on an equitable basis.
The Commission shall have exclusive jurisdiction over
those portions of the North American Numbering Plan
that pertain to the United States. Nothing in this
paragraph shall preclude the Commission from dele-
gating to State commissions or other entities any por-
tion of such jurisdiction.
‘‘(d) JOINT MARKETING OF RESOLD ELEMENTS.—
‘‘(1) RESTRICTION.—Except as provided in
paragraph (2), no service, element, feature, function,
or capability that is made available for resale in any
State by a Bell operating company may be jointly
marketed directly or indirectly with any interLATA
telephone toll service until such Bell operating com-
pany is authorized pursuant to section 245(d) to pro-
vide interLATA services in such State.
‘‘(2) EXISTING PROVIDERS.—Paragraph (1) shall
not prohibit joint marketing of services, elements, fea-
tures, functions, or capabilities acquired from a Bell
operating company by another provider if that pro-
vider jointly markets services, elements, features, func-
tions, and capabilities acquired from a Bell operating
company anywhere in the telephone service territory
of such Bell operating company, or in the telephone
service territory of any affiliate of such Bell operating
company that provides telephone exchange service,
pursuant to any agreement, tariff, or other arrange-
ment entered into or in effect before the date of enact-
ment of this part.
‘‘(e) MODIFICATIONS AND WAIVERS.—The Commission
may modify or waive the requirements of this section for
any local exchange carrier (or class or category of such car-
riers) that has, in the aggregate nationwide, fewer than
500,000 access lines installed, to the extent that the Com-
mission determines that compliance with such requirements
(without such modification) would be unduly economically
burdensome, technologically infeasible, or otherwise not in
the public interest.
‘‘(f) WAIVER FOR RURAL TELEPHONE COMPANIES.—
A State commission may waive the requirements of this sec-
tion with respect to any rural telephone company.
‘‘(g) EXEMPTION FOR CERTAIN RURAL TELEPHONE
COMPANIES.—Subsections (a) through (d) of this section
shall not apply to a carrier that has fewer than 50,000 ac-
cess lines in a local exchange study area, if such carrier
does not provide video programming services over its tele-
phone exchange facilities in such study area, except that
a State commission may terminate the exemption under
this subsection if the State commission determines that the
termination of such exemption is consistent with the public
interest, convenience, and necessity.
‘‘(h) AVOIDANCE
OF REDUNDANT REGULATIONS.—
Nothing in this section shall be construed to prohibit the
Commission or any State commission from enforcing regu-
lations prescribed prior to the date of enactment of this part
in fulfilling the requirements of this section, to the extent
that such regulations are consistent with the provisions of
this section.
‘‘SEC. 243. PREEMPTION.
‘‘(a) REMOVAL OF BARRIERS TO ENTRY.—Except as
provided in subsection (b) of this section, no State or local
statute, regulation, or other legal requirement shall—
‘‘(1) effectively prohibit any carrier or other per-
son from entering the business of providing interstate
or intrastate telecommunications services or informa-
tion services; or
‘‘(2) effectively prohibit any carrier or other per-
son providing (or seeking to provide) interstate or
intrastate telecommunications services or information
services from exercising the access and interconnection
rights provided under this part.
‘‘(b) STATE AND LOCAL AUTHORITY.—Nothing in this
section shall affect the ability of State or local officials to
impose, on a nondiscriminatory basis, requirements nec-
essary to preserve and advance universal service, protect the
public safety and welfare, ensure the continued quality of
telecommunications services, ensure that a provider’s busi-
ness practices are consistent with consumer protection laws
and regulations, and ensure just and reasonable rates, pro-
vided that such requirements do not effectively prohibit any
carrier or person from providing interstate or intrastate
telecommunications services or information services.
‘‘(c) CONSTRUCTION PERMITS.—Subsection (a) shall
not be construed to prohibit a local government from requir-
ing a person or carrier to obtain ordinary and usual con-
struction or similar permits for its operations if—
‘‘(1) such permit is required without regard to
the nature of the business; and
‘‘(2) requiring such permit does not effectively
prohibit any person or carrier from providing any
interstate or intrastate telecommunications service or
information service.
‘‘(d) EXCEPTION.—In the case of commercial mobile
services, the provisions of section 332(c)(3) shall apply in
lieu of the provisions of this section.
‘‘(e) PARITY OF FRANCHISE AND OTHER CHARGES.—
Notwithstanding section 2(b), no local government may im-
pose or collect any franchise, license, permit, or right-of-
way fee or any assessment, rental, or any other charge or
equivalent thereof as a condition for operating in the local-
ity or for obtaining access to, occupying, or crossing public
rights-of-way from any provider of telecommunications
services that distinguishes between or among providers of
telecommunications services, including the local exchange
carrier. For purposes of this subsection, a franchise, license,
permit, or right-of-way fee or an assessment, rental, or any
other charge or equivalent thereof does not include any im-
position of general applicability which does not distinguish
between or among providers of telecommunications services,
or any tax.
‘‘SEC. 244. STATEMENTS OF TERMS AND CONDITIONS FOR
ACCESS AND INTERCONNECTION.
‘‘(a) IN GENERAL.—Within 18 months after the date
of enactment of this part, and from time to time thereafter,
a local exchange carrier shall prepare and file with a State
commission statements of the terms and conditions that
such carrier generally offers within that State with respect
to the services, elements, features, functions, or capabilities
provided to comply with the requirements of section 242
and the regulations thereunder. Any such statement per-
taining to the charges for interstate services, elements, fea-
tures, functions, or capabilities shall be filed with the Com-
mission.
‘‘(b) REVIEW.—
‘‘(1) STATE COMMISSION REVIEW.—A State com-
mission to which a statement is submitted under sub-
section (a) shall review such statement in accordance
with State law. A State commission may not approve
such statement unless such statement complies with
section 242 and the regulations thereunder. Except as
provided in section 243, nothing in this section shall
prohibit a State commission from establishing or en-
forcing other requirements of State law in its review
of such statement, including requiring compliance
with intrastate telecommunications service quality
standards or requirements.
‘‘(2) FCC REVIEW.—The Commission shall re-
view such statements to ensure that—
‘‘(A) the charges for interstate services, ele-
ments, features, functions, or capabilities are
just, reasonable, and nondiscriminatory; and
‘‘(B) the terms and conditions for such
interstate services or elements unbundle any sep-
arable services, elements, features, functions, or
capabilities in accordance with section 242(a)(2)
and any regulations thereunder.
‘‘(c) TIME FOR REVIEW.—
‘‘(1) SCHEDULE FOR REVIEW.—The Commission
and the State commission to which a statement is
submitted shall, not later than 60 days after the date
of such submission—
‘‘(A) complete the review of such statement
under subsection (b) (including any reconsider-
ation thereof), unless the submitting carrier
agrees to an extension of the period for such re-
view; or
‘‘(B) permit such statement to take effect.
‘‘(2) AUTHORITY TO CONTINUE REVIEW.—Para-
graph (1) shall not preclude the Commission or a
State commission from continuing to review a state-
ment that has been permitted to take effect under sub-
paragraph (B) of such paragraph.
‘‘(d) EFFECT OF AGREEMENTS.—Nothing in this sec-
tion shall prohibit a carrier from filing an agreement to
provide services, elements, features, functions, or capabili-
ties affording access and interconnection as a statement of
terms and conditions that the carrier generally offers for
purposes of this section. An agreement affording access and
interconnection shall not be approved under this section un-
less the agreement contains a plan, including a reasonable
schedule, for the implementation of the requested access or
interconnection. The approval of a statement under this sec-
tion shall not operate to prohibit a carrier from entering
into subsequent agreements that contain terms and condi-
tions that differ from those contained in a statement that
has been reviewed and approved under this section, but—
‘‘(1) each such subsequent agreement shall be
filed under this section; and
‘‘(2) such carrier shall be obligated to offer access
to such services, elements, features, functions, or capa-
bilities to other carriers and persons (including car-
riers and persons covered by previously approved
statements) requesting such access on terms and con-
ditions that, in relation to the terms and conditions
in such subsequent agreements, are not discrimina-
tory.
‘‘(e) SUNSET.—The provisions of this section shall
cease to apply in any local exchange market, defined by
geographic area and class or category of service, that the
Commission and the State determines has become subject
to full and open competition.
‘‘SEC. 
245. 
BELL 
OPERATING 
COMPANY 
ENTRY 
INTO
INTERLATA SERVICES.
‘‘(a) VERIFICATION OF ACCESS AND INTERCONNECTION
COMPLIANCE.—At any time after 18 months after the date
of enactment of this part, a Bell operating company may
provide to the Commission verification by such company
with respect to one or more States that such company is
in compliance with the requirements of this part. Such ver-
ification shall contain the following:
‘‘(1) CERTIFICATION.—A certification by each
State commission of such State or States that such
carrier has fully implemented the conditions described
in subsection (b), except as provided in subsection
(d)(2).
‘‘(2) AGREEMENT
OR
STATEMENT.—For each
such State, either of the following:
‘‘(A) PRESENCE
OF
A
FACILITIES-BASED
COMPETITOR.—An agreement that has been ap-
proved under section 244 specifying the terms
and conditions under which the Bell operating
company is providing access and interconnection
to its network facilities in accordance with sec-
tion 242 for an unaffiliated competing provider
of telephone exchange service that is comparable
in price, features, and scope and that is provided
over the competitor’s own network facilities to
residential and business subscribers.
‘‘(B) FAILURE TO REQUEST ACCESS.—If no
such provider has requested such access and
interconnection before the date which is 3 months
before the date the company makes its submis-
sion under this subsection, a statement of the
terms and conditions that the carrier generally
offers to provide such access and interconnection
that has been approved or permitted to take ef-
fect by the State commission under section 243.
For purposes of subparagraph (B), a Bell operating
company shall be considered not to have received any
request for access or interconnection if the State com-
mission of such State or States certifies that the only
provider or providers making such request have (i)
failed to bargain in good faith under the supervision
of such State commission pursuant to section
242(a)(8), or (ii) have violated the terms of their
agreement by failure to comply, within a reasonable
period of time, with the implementation schedule con-
tained in such agreement.
‘‘(b) CERTIFICATION
OF COMPLIANCE WITH PART
II.—For the purposes of subsection (a)(1), a Bell operating
company shall submit to the Commission a certification by
a State commission of compliance with each of the following
conditions in any area where such company provides local
exchange service or exchange access in such State:
‘‘(1) INTERCONNECTION.—The Bell operating
company provides access and interconnection in ac-
cordance with subsections (a)(1) and (b) of section
242 to any other carrier or person offering tele-
communications services requesting such access and
interconnection, and complies with the Commission
regulations pursuant to such section concerning such
access and interconnection.
‘‘(2) UNBUNDLING
OF
NETWORK
ELEMENTS.—
The Bell operating company provides unbundled serv-
ices, elements, features, functions, and capabilities in
accordance with subsection (a)(2) of section 242 and
the regulations prescribed by the Commission pursu-
ant to such section.
‘‘(3) RESALE.—The Bell operating company of-
fers services, elements, features, functions, and capa-
bilities for resale in accordance with section
242(a)(3), and neither the Bell operating company,
nor any unit of State or local government within the
State, imposes any restrictions on resale or sharing of
telephone exchange service (or unbundled services, ele-
ments, features, or functions of telephone exchange
service) in violation of section 242(a)(3).
‘‘(4) NUMBER PORTABILITY.—The Bell operating
company provides number portability in compliance
with the Commission’s regulations pursuant to sub-
sections (a)(4) and (c) of section 242.
‘‘(5) DIALING PARITY.—The Bell operating com-
pany provides dialing parity in accordance with sub-
sections (a)(5) and (c) of section 242, and will, not
later than the effective date of its authority to com-
mence providing interLATA services, take such ac-
tions as are necessary to provide dialing parity for
intraLATA telephone toll service in accordance with
such subsections.
‘‘(6) ACCESS
TO
CONDUITS
AND
RIGHTS
OF
WAY.—The poles, ducts, conduits, and rights of way
of such Bell operating company are available to com-
peting providers of telecommunications services in ac-
cordance with the requirements of sections 242(a)(6)
and 224(d).
‘‘(7) 
ELIMINATION
OF
FRANCHISE
LIMITA-
TIONS.—No unit of the State or local government in
such State or States enforces any prohibition or limi-
tation in violation of section 243.
‘‘(8) NETWORK FUNCTIONALITY AND ACCESSIBIL-
ITY.—The Bell operating company will not install
network features, functions, or capabilities that do not
comply with the standards established pursuant to
section 249.
‘‘(9) NEGOTIATION
OF
TERMS
AND
CONDI-
TIONS.—The Bell operating company has negotiated
in good faith, under the supervision of the State com-
mission, in accordance with the requirements of sec-
tion 242(a)(8) with any other carrier or person re-
questing access or interconnection.
‘‘(c) APPLICATION
FOR INTERIM INTERLATA AU-
THORITY.—
‘‘(1) 
APPLICATION
SUBMISSION
AND
CON-
TENTS.—At any time after the date of enactment of
this part, and prior to the completion by the Commis-
sion of all actions necessary to establish regulations
under section 242, a Bell operating company may
apply to the Commission for interim authority to
provide interLATA services. Such application shall
specify the LATA or LATAs for which the company
is requesting authority to provide interim interLATA
services. Such application shall contain, with respect
to each LATA within a State for which authorization
is requested, the following:
‘‘(A) PRESENCE
OF
A
FACILITIES-BASED
COMPETITOR.—An agreement that the State com-
mission has determined complies with section
242 (without regard to any regulations there-
under) and that specifies the terms and condi-
tions under which the Bell operating company is
providing access and interconnection to its net-
work facilities for an unaffiliated competing pro-
vider of telephone exchange service that is com-
parable in price, features, and scope and that is
provided over the competitor’s own network fa-
cilities to residential and business subscribers.
‘‘(B) CERTIFICATION.—A certification by
the State commission of the State within which
such LATA is located that such company is in
compliance with State laws, rules, and regula-
tions providing for the implementation of the
standards described in subsection (b) as of the
date of certification, including certification that
such company is offering services, elements, fea-
tures, functions, and capabilities for resale at
economically feasible rates to the reseller, rec-
ognizing pricing structures for telephone ex-
change service in such State.
‘‘(2) STATE
TO
PARTICIPATE.—The company
shall serve a copy of the application on the relevant
State commission within 5 days of filing its applica-
tion. The State shall file comments to the Commission
on the company’s application within 40 days of re-
ceiving a copy of the company’s application.
‘‘(3) DEADLINES FOR COMMISSION ACTION.—The
Commission shall make a determination on such ap-
plication not more than 90 days after such applica-
tion is filed.
‘‘(4) EXPIRATION OF INTERIM AUTHORITY.—Any
interim authority granted pursuant to this subsection
shall cease to be effective 180 days after the comple-
tion by the Commission of all actions necessary to es-
tablish regulations under section 242.
‘‘(d) COMMISSION REVIEW.—
‘‘(1) REVIEW OF STATE DECISIONS AND CERTIFI-
CATIONS.—The Commission shall review any verifica-
tion submitted by a Bell operating company pursuant
to subsection (a). The Commission may require such
company to submit such additional information as is
necessary to validate any of the items of such verifica-
tion.
‘‘(2) DE NOVO REVIEW.—If—
‘‘(A) a State commission does not have the
jurisdiction or authority to make the certifi-
cation required by subsection (b);
‘‘(B) the State commission has failed to act
within 90 days after the date a request for such
certification is filed with such State commission;
or
‘‘(C) the State commission has sought to
impose a term or condition in violation of sec-
tion 243;
company has ceased to meet any of the conditions re-
quired to be certified under subsection (b), the Com-
mission may, after notice and opportunity for a hear-
ing—
‘‘(A) issue an order to such company to cor-
rect the deficiency;
‘‘(B) impose a penalty on such company
pursuant to title V; or
‘‘(C) suspend or revoke such approval.
‘‘(2) RECEIPT AND REVIEW OF COMPLAINTS.—
The Commission shall establish procedures for the re-
view of complaints concerning failures by Bell operat-
ing companies to meet conditions required to be cer-
tified under subsection (b). Unless the parties other-
wise agree, the Commission shall act on such com-
plaint within 90 days.
‘‘(3) STATE AUTHORITY.—The authority of the
Commission under this subsection shall not be con-
strued to preempt any State commission from taking
actions to enforce the conditions required to be cer-
tified under subsection (b).
‘‘(f) AUTHORITY TO PROVIDE INTERLATA SERV-
ICES.—
‘‘(1) PROHIBITION.—Except as provided in
paragraph (2) and subsections (g) and (h), a Bell op-
erating company or affiliate thereof may not provide
interLATA services.
‘‘(2) AUTHORITY SUBJECT TO CERTIFICATION.—
A Bell operating company or affiliate thereof may, in
any States to which its verification under subsection
(a) applies, provide interLATA services—
‘‘(A) during any period after the effective
date of the Commission’s approval of such ver-
ification pursuant to subsection (d), and
‘‘(B) until the approval of such verification
is suspended or revoked by the Commission pur-
suant to subsection (d).
‘‘(g) EXCEPTION FOR PREVIOUSLY AUTHORIZED AC-
TIVITIES.—Subsection (f) shall not prohibit a Bell operat-
ing company or affiliate from engaging, at any time after
the date of the enactment of this part, in any activity as
authorized by an order entered by the United States Dis-
trict Court for the District of Columbia pursuant to section
VII or VIII(C) of the Modification of Final Judgment, if—
‘‘(1) such order was entered on or before the date
of the enactment of this part, or
‘‘(2) a request for such authorization was pend-
ing before such court on the date of the enactment of
this part.
‘‘(h) EXCEPTIONS FOR INCIDENTAL SERVICES.—Sub-
section (f) shall not prohibit a Bell operating company or
affiliate thereof, at any time after the date of the enactment
of this part, from providing interLATA services for the pur-
pose of—
‘‘(1)(A) providing audio programming, video
programming, or other programming services to sub-
scribers to such services of such company;
‘‘(B) providing the capability for interaction by
such subscribers to select or respond to such audio
programming, video programming, or other program-
ming services; or
‘‘(C) providing to distributors audio program-
ming or video programming that such company owns
or controls, or is licensed by the copyright owner of
such programming (or by an assignee of such owner)
to distribute;
‘‘(2) providing a telecommunications service,
using the transmission facilities of a cable system
that is an affiliate of such company, between local ac-
cess and transport areas within a cable system fran-
chise area in which such company is not, on the date
of the enactment of this part, a provider of wireline
telephone exchange service;
‘‘(3) providing commercial mobile services in ac-
cordance with section 332(c) of this Act and with the
regulations prescribed by the Commission pursuant to
paragraph (8) of such section;
‘‘(4) providing a service that permits a customer
that is located in one local access and transport area
to retrieve stored information from, or file informa-
tion for storage in, information storage facilities of
such company that are located in another local access
and transport area;
‘‘(5) providing signaling information used in
connection with the provision of telephone exchange
services to a local exchange carrier that, together with
any affiliated local exchange carriers, has aggregate
annual revenues of less than $100,000,000; or
‘‘(6) providing network control signaling infor-
mation to, and receiving such signaling information
from, common carriers offering interLATA services at
any location within the area in which such Bell oper-
ating company provides telephone exchange services
or exchange access.
‘‘(i) INTRALATA TOLL DIALING PARITY.—Neither the
Commission nor any State may order any Bell operating
company to provide dialing parity for intraLATA tele-
phone toll service in any State before the date such company
is authorized to provide interLATA services in such State
pursuant to this section.
‘‘(j) FORBEARANCE.—The Commission may not, pur-
suant to section 230, forbear from applying any provision
of this section or any regulation thereunder until at least
5 years after the date of enactment of this part.
‘‘(k) SUNSET.—The provisions of this section shall
cease to apply in any local exchange market, defined by
geographic area and class or category of service, that the
Commission and the State determines has become subject
to full and open competition.
‘‘(l) DEFINITIONS.—As used in this section—
‘‘(1) AUDIO
PROGRAMMING.—The term ‘audio
programming’ means programming provided by, or
generally considered comparable to programming pro-
vided by, a radio broadcast station.
‘‘(2) VIDEO
PROGRAMMING.—The term ‘video
programming’ has the meaning provided in section
602.
‘‘(3) OTHER
PROGRAMMING
SERVICES.—The
term ‘other programming services’ means information
(other than audio programming or video program-
ming) that the person who offers a video program-
ming service makes available to all subscribers gen-
erally. For purposes of the preceding sentence, the
terms ‘information’ and ‘makes available to all sub-
scribers generally’ have the same meaning such terms
have under section 602(13) of this Act.
‘‘SEC. 246. COMPETITIVE SAFEGUARDS.
‘‘(a) IN GENERAL.—In accordance with the require-
ments of this section and the regulations adopted there-
under, a Bell operating company or any affiliate thereof
providing any interLATA telecommunications or informa-
tion service, shall do so through a subsidiary that is sepa-
rate from the Bell operating company or any affiliate there-
of that provides telephone exchange service.
‘‘(b) TRANSACTION REQUIREMENTS.—Any transaction
between such a subsidiary and a Bell operating company
and any other affiliate of such company shall be conducted
on an arm’s-length basis, in the same manner as the Bell
operating company conducts business with unaffiliated per-
sons, and shall not be based upon any preference or dis-
crimination in favor of the subsidiary arising out of the
subsidiary’s affiliation with such company.
‘‘(c) SEPARATE OPERATION AND PROPERTY.—A sub-
sidiary required by this section shall—
‘‘(1) operate independently from the Bell operat-
ing company or any affiliate thereof,
‘‘(2) have separate officers, directors, and em-
ployees who may not also serve as officers, directors,
or employees of the Bell operating company or any
affiliate thereof,
‘‘(3) not enter into any joint venture activities or
partnership with a Bell operating company or any
affiliate thereof,
‘‘(4) not own any telecommunications trans-
mission or switching facilities in common with the
Bell operating company or any affiliate thereof, and
‘‘(5) not jointly own or share the use of any
other property with the Bell operating company or
any affiliate thereof.
‘‘(d) BOOKS, RECORDS, AND ACCOUNTS.—Any subsidi-
ary required by this section shall maintain books, records,
and accounts in a manner prescribed by the Commission
which shall be separate from the books, records, and ac-
counts maintained by a Bell operating company or any af-
filiate thereof.
‘‘(e) PROVISION OF SERVICES AND INFORMATION.—A
Bell operating company or any affiliate thereof may not
discriminate between a subsidiary required by this section
and any other person in the provision or procurement of
goods, services, facilities, or information, or in the establish-
ment of standards, and shall not provide any goods, serv-
ices, facilities or information to a subsidiary required by
this section unless such goods, services, facilities or informa-
tion are made available to others on reasonable, non-
discriminatory terms and conditions.
‘‘(f) PREVENTION OF CROSS-SUBSIDIES.—A Bell oper-
ating company or any affiliate thereof required to maintain
a subsidiary under this section shall establish and admin-
ister, in accordance with the requirements of this section
and the regulations prescribed thereunder, a cost allocation
system that prohibits any cost of providing interLATA tele-
communications or information services from being sub-
sidized by revenue from telephone exchange services and
telephone exchange access services. The cost allocation sys-
tem shall employ a formula that ensures that—
‘‘(1) the rates for telephone exchange services and
exchange access are no greater than they would have
been in the absence of such investment in interLATA
telecommunications or information services (taking
into account any decline in the real costs of providing
such telephone exchange services and exchange access);
and
‘‘(2) such interLATA telecommunications or in-
formation services bear a reasonable share of the joint
and common costs of facilities used to provide tele-
phone exchange, exchange access, and competitive
services.
‘‘(g) ASSETS.—The Commission shall, by regulation,
ensure that the economic risks associated with the provision
of interLATA telecommunications or information services
by a Bell operating company or any affiliate thereof (in-
cluding any increases in such company’s cost of capital that
occur as a result of the provision of such services) are not
borne by customers of telephone exchange services and ex-
change access in the event of a business loss or failure. In-
vestments or other expenditures assigned to interLATA tele-
communications or information services shall not be reas-
signed to telephone exchange service or exchange access.
‘‘(h) DEBT.—A subsidiary required by this section
shall not obtain credit under any arrangement that
would—
‘‘(1) permit a creditor, upon default, to have re-
source to the assets of a Bell operating company; or
‘‘(2) induce a creditor to rely on the tangible or
intangible assets of a Bell operating company in ex-
tending credit.
‘‘(i) FULFILLMENT OF CERTAIN REQUESTS.—A Bell
operating company or an affiliate thereof shall—
‘‘(1) fulfill any requests from an unaffiliated en-
tity for telephone exchange service and exchange ac-
cess within a period no longer than the period in
which it provides such telephone exchange service and
exchange access to itself or to its affiliates;
‘‘(2) fulfill any such requests with telephone ex-
change service and exchange access of a quality that
meets or exceeds the quality of telephone exchange
services and exchange access provided by the Bell op-
erating company or its affiliates to itself or its affili-
ates; and
‘‘(3) provide telephone exchange service and ex-
change access to all providers of intraLATA or
interLATA telephone toll services and interLATA in-
formation services at cost-based rates that are not un-
reasonably discriminatory.
‘‘(j) CHARGES FOR ACCESS SERVICES.—A Bell operat-
ing company or an affiliate thereof shall charge the subsidi-
ary required by this section an amount for telephone ex-
change services, exchange access, and other necessary associ-
ated inputs no less than the rate charged to any unaffiliated
entity for such access and inputs.
‘‘(k) SUNSET.—The provisions of this section shall
cease to apply in any local exchange market 3 years after
the date of enactment of this part.
‘‘SEC. 247. UNIVERSAL SERVICE.
‘‘(a) JOINT BOARD TO PRESERVE UNIVERSAL SERV-
ICE.—Within 30 days after the date of enactment of this
part, the Commission shall convene a Federal-State Joint
Board under section 410(c) for the purpose of recommend-
ing actions to the Commission and State commissions for
the preservation of universal service in furtherance of the
purposes set forth in section 1 of this Act. In addition to
the members required under section 410(c), one member of
the Joint Board shall be a State-appointed utility consumer
advocate nominated by a national organization of State
utility consumer advocates.
‘‘(b) PRINCIPLES.—The Joint Board shall base policies
for the preservation of universal service on the following
principles:
‘‘(1) JUST
AND
REASONABLE
RATES.—A plan
adopted by the Commission and the States should en-
sure the continued viability of universal service by
maintaining quality services at just and reasonable
rates.
‘‘(2) DEFINITIONS OF INCLUDED SERVICES; COM-
PARABILITY
IN
URBAN
AND
RURAL
AREAS.—Such
plan should recommend a definition of the nature and
extent of the services encompassed within carriers’
universal service obligations. Such plan should seek to
promote access to advanced telecommunications serv-
ices and capabilities, and to promote reasonably com-
parable services for the general public in urban and
rural areas, while maintaining just and reasonable
rates.
‘‘(3) ADEQUATE
AND
SUSTAINABLE
SUPPORT
MECHANISMS.—Such plan should recommend specific
and predictable mechanisms to provide adequate and
sustainable support for universal service.
‘‘(4) EQUITABLE AND NONDISCRIMINATORY CON-
TRIBUTIONS.—All providers of telecommunications
services should make an equitable and nondiscrim-
inatory contribution to the preservation of universal
service.
‘‘(5) EDUCATIONAL ACCESS TO ADVANCED TELE-
COMMUNICATIONS
SERVICES.—To the extent that a
common carrier establishes advanced telecommuni-
cations services, such plan should include rec-
ommendations to ensure access to advanced tele-
communications services for students in elementary
and secondary schools.
‘‘(6) ADDITIONAL PRINCIPLES.—Such other prin-
ciples as the Board determines are necessary and ap-
propriate for the protection of the public interest, con-
venience, and necessity and consistent with the pur-
poses of this Act.
‘‘(c) DEFINITION OF UNIVERSAL SERVICE.—In rec-
ommending a definition of the nature and extent of the serv-
ices encompassed within carriers’ universal service obliga-
tions under subsection (b)(2), the Joint Board shall consider
the extent to which—
‘‘(1) a telecommunications service has, through
the operation of market choices by customers, been
subscribed to by a substantial majority of residential
customers;
‘‘(2) such service or capability is essential to
public health, public safety, or the public interest;
‘‘(3) such service has been deployed in the public
switched telecommunications network; and
‘‘(4) inclusion of such service within carriers’
universal service obligations is otherwise consistent
with the public interest, convenience, and necessity.
The Joint Board may, from time to time, recommend to
the Commission modifications in the definition proposed
under subsection (b).
‘‘(d) REPORT; COMMISSION RESPONSE.—The Joint
Board convened pursuant to subsection (a) shall report its
recommendations within 270 days after the date of enact-
ment of this part. The Commission shall complete any pro-
ceeding to act upon such recommendations and to comply
with the principles set forth in subsection (b) within one
year after such date of enactment.
‘‘(e) STATE AUTHORITY.—Nothing in this section shall
be construed to restrict the authority of any State to adopt
regulations imposing universal service obligations on the
provision of intrastate telecommunications services.
‘‘(f) SUNSET.—The Joint Board established by this sec-
tion shall cease to exist 5 years after the date of enactment
of this part.
‘‘SEC. 248. PRICING FLEXIBILITY AND ABOLITION OF RATE-
OF-RETURN REGULATION.
‘‘(a) PRICING FLEXIBILITY.—
‘‘(1) COMMISSION CRITERIA.—Within 270 days
after the date of enactment of this part, the Commis-
sion shall complete all actions necessary (including
any reconsideration) to establish—
‘‘(A) criteria for determining whether a tele-
communications service or provider of such serv-
ice has become, or is substantially certain to be-
come, subject to competition, either within a geo-
graphic area or within a class or category of
service; and
‘‘(B) appropriate flexible pricing procedures
that afford a regulated provider of a service de-
scribed in subparagraph (A) the opportunity to
respond fairly to such competition and that are
consistent with the protection of subscribers and
the public interest, convenience, and necessity.
‘‘(2) STATE
SELECTION.—A State commission
may utilize the flexible pricing procedures or proce-
dures (established under paragraph (1)(B)) that are
appropriate in light of the criteria established under
paragraph (1)(A).
‘‘(3) DETERMINATIONS.—The Commission, with
respect to rates for interstate or foreign communica-
tions, and State commissions, with respect to rates for
intrastate communications, shall, upon application—
‘‘(A) render determinations in accordance
with the criteria established under paragraph
(1)(A) concerning the services or providers that
are the subject of such application; and
‘‘(B) upon a proper showing, implement
appropriate flexible pricing procedures consistent
with paragraphs (1)(B) and (2) with respect to
such services or providers.
The Commission and such State commission shall ap-
prove or reject any such application within 180 days
after the date of its submission.
‘‘(b) ABOLITION OF RATE-OF-RETURN REGULATION.—
Notwithstanding any other provision of law, to the extent
that a carrier has complied with sections 242 and 244 of
this part, the Commission, with respect to rates for inter-
state or foreign communications, and State commissions,
with respect to rates for intrastate communications, shall
not require rate-of-return regulation.
‘‘(c) TERMINATION OF PRICE AND OTHER REGULA-
TION.—Notwithstanding any other provision of law, to the
extent that a carrier has complied with sections 242 and
244 of this part, the Commission, with respect to interstate
or foreign communications, and State commissions, with
respect to intrastate communications, shall not, for any
service that is determined, in accordance with the criteria
established under subsection (a)(1)(A), to be subject to com-
petition that effectively prevents prices for such service that
are unjust or unreasonable or unjustly or unreasonably dis-
criminatory—
‘‘(1) regulate the prices for such service;
‘‘(2) require the filing of a schedule of charges for
such service;
‘‘(3) require the filing of any cost or revenue pro-
jections for such service;
‘‘(4) regulate the depreciation charges for facili-
ties used to provide such service; or
‘‘(5) require prior approval for the construction
or extension of lines or other equipment for the provi-
sion of such service.
‘‘(d) ABILITY TO CONTINUE AFFORDABLE VOICE-
GRADE SERVICE.—Notwithstanding subsections (a), (b),
and (c), each State commission shall, for a period of not
more than 3 years, permit residential subscribers to con-
tinue to receive only basic voice-grade local telephone service
equivalent to the service generally available to residential
subscribers on the date of enactment of this part, at just,
reasonable, and affordable rates. Determinations concerning
the affordability of rates for such services shall take into
account the rates generally available to residential subscrib-
ers on such date of enactment and the pricing rules estab-
lished by the States. Any increases in the rates for such
services for residential subscribers that are not attributable
to changes in consumer prices generally shall be permitted
in any proceeding commenced after the date of enactment
of this section upon a showing that such increase is nec-
essary to ensure the continued availability of universal serv-
ice, prevent economic disadvantages for one or more service
providers, and is in the public interest. Such increase in
rates shall be minimized to the greatest extent practical and
shall be implemented over a time period of not more than
3 years after the the date of enactment of this section. The
requirements of this subsection shall not apply to any rural
telephone company if the rates for basic voice-grade local
telephone service of that company are not subject to regula-
tion by a State commission on the date of enactment of
this part.
‘‘(e) INTERSTATE
INTEREXCHANGE
SERVICE.—The
rates charged by providers of interstate interexchange tele-
communications service to customers in rural and high cost
areas shall be maintained at levels no higher than those
charged by each such provider to its customers in urban
areas.
‘‘(f) EXCEPTION.—In the case of commercial mobile
services, the provisions of section 332(c)(1) shall apply in
lieu of the provisions of this section.
‘‘(g) AVOIDANCE
OF REDUNDANT REGULATIONS.—
Nothing in this section shall be construed to prohibit the
Commission or a State commission from enforcing regula-
tions prescribed prior to the date of enactment of this part
in fulfilling the requirements of this section, to the extent
that such regulations are consistent with the provisions of
this section.
‘‘SEC. 249. NETWORK FUNCTIONALITY AND ACCESSIBILITY.
‘‘(a) FUNCTIONALITY AND ACCESSIBILITY.—The duty
of a common carrier under section 201(a) to furnish com-
munications service includes the duty to furnish that service
in accordance with any standards established pursuant to
this section.
‘‘(b) COORDINATION FOR INTERCONNECTIVITY.—The
Commission—
‘‘(1) shall establish procedures for Commission
oversight of coordinated network planning by common
carriers and other providers of telecommunications
services for the effective and efficient interconnection
of public switched networks; and
‘‘(2) may participate, in a manner consistent
with its authority and practice prior to the date of
enactment of this section, in the development by ap-
propriate industry standards-setting organizations of
interconnection standards that promote access to—
‘‘(A) network capabilities and services by
individuals with disabilities; and
‘‘(B) information services by subscribers to
telephone exchange service furnished by a rural
telephone company.
‘‘(c) ACCESSIBILITY FOR INDIVIDUALS WITH DISABIL-
ITIES.—
‘‘(1) ACCESSIBILITY.—Within 1 year after the
date of enactment of this section, the Commission
shall prescribe such regulations as are necessary to
ensure that, if readily achievable, advances in net-
work services deployed by common carriers, and tele-
communications equipment and customer premises
equipment manufactured for use in conjunction with
network services, shall be accessible and usable by in-
dividuals with disabilities, including individuals with
functional limitations of hearing, vision, movement,
manipulation, speech, and interpretation of informa-
tion. Such regulations shall permit the use of both
standard and special equipment, and seek to mini-
mize the need of individuals to acquire additional de-
vices beyond those used by the general public to ob-
tain such access. Throughout the process of developing
such regulations, the Commission shall coordinate
and consult with representatives of individuals with
disabilities and interested equipment and service pro-
viders to ensure their concerns and interests are given
full consideration in such process.
‘‘(2) COMPATIBILITY.—Such regulations shall re-
quire that whenever an undue burden or adverse com-
petitive impact would result from the requirements in
paragraph (1), the local exchange carrier that deploys
the network service shall ensure that the network serv-
ice in question is compatible with existing peripheral
devices or specialized customer premises equipment
commonly used by persons with disabilities to achieve
access, unless doing so would result in an undue bur-
den or adverse competitive impact.
‘‘(3) UNDUE BURDEN.—The term ‘undue burden’
means significant difficulty or expense. In determin-
ing whether the activity necessary to comply with the
requirements of this subsection would result in an
undue burden, the factors to be considered include the
following:
‘‘(A) The nature and cost of the activity.
‘‘(B) The impact on the operation of the fa-
cility involved in the deployment of the network
service.
‘‘(C) The financial resources of the local ex-
change carrier.
‘‘(D) The type of operations of the local ex-
change carrier.
‘‘(4) ADVERSE COMPETITIVE IMPACT.—In deter-
mining whether the activity necessary to comply with
the requirements of this subsection would result in ad-
verse competitive impact, the following factors shall be
considered:
‘‘(A) Whether such activity would raise the
cost of the network service in question beyond the
level at which there would be sufficient consumer
demand by the general population to make the
network service profitable.
‘‘(B) Whether such activity would, with re-
spect to the network service in question, put the
local exchange carrier at a competitive disadvan-
tage. This factor may be considered so long as
competing network service providers are not held
to the same obligation with respect to access by
persons with disabilities.
‘‘(5) EFFECTIVE
DATE.—The regulations re-
quired by this subsection shall become effective 18
months after the date of enactment of this part.
‘‘(d) PRIVATE RIGHTS OF ACTIONS PROHIBITED.—
Nothing in this section shall be construed to authorize any
private right of action to enforce any requirement of this
section or any regulation thereunder. The Commission shall
have exclusive jurisdiction with respect to any complaint
under this section.
‘‘SEC. 250. MARKET ENTRY BARRIERS.
‘‘(a) ELIMINATION OF BARRIERS.—Within 15 months
after the date of enactment of this part, the Commission
shall complete a proceeding for the purpose of identifying
and eliminating, by regulations pursuant to its authority
under this Act (other than this section), market entry bar-
riers for entrepreneurs and other small businesses in the
provision and ownership of telecommunications services
and information services, or in the provision of parts or
services to providers of telecommunications services and in-
formation services.
‘‘(b) NATIONAL POLICY.—In carrying out subsection
(a), the Commission shall seek to promote the policies and
purposes of this Act favoring diversity of points of view,
vigorous economic competition, technological advancement,
and promotion of the public interest, convenience, and ne-
cessity.
‘‘(c) PERIODIC REVIEW.—Every 3 years following the
completion of the proceeding required by subsection (a), the
Commission shall review and report to Congress on—
‘‘(1) any regulations prescribed to eliminate bar-
riers within its jurisdiction that are identified under
subsection (a) and that can be prescribed consistent
with the public interest, convenience, and necessity;
and
‘‘(2) the statutory barriers identified under sub-
section (a) that the Commission recommends be elimi-
nated, consistent with the public interest, convenience,
and necessity.
‘‘SEC. 251. ILLEGAL CHANGES IN SUBSCRIBER CARRIER SE-
LECTIONS.
‘‘No common carrier shall submit or execute a change
in a subscriber’s selection of a provider of telephone ex-
change service or telephone toll service except in accordance
with such verification procedures as the Commission shall
prescribe. Nothing in this section shall preclude any State
commission from enforcing such procedures with respect to
intrastate services.
‘‘SEC. 252. STUDY.
‘‘At least once every three years, the Commission shall
conduct a study that—
‘‘(1) reviews the definition of, and the adequacy
of support for, universal service, and evaluates the ex-
tent to which universal service has been protected and
access to advanced services has been facilitated pursu-
ant to this part and the plans and regulations there-
under;
‘‘(2) evaluates the extent to which access to ad-
vanced telecommunications services for students in el-
ementary and secondary school classrooms has been
attained pursuant to section 247(b)(5); and
‘‘(3) determines whether the regulations estab-
lished under section 249(c) have ensured that ad-
vances in network services by providers of tele-
communications services and information services are
accessible and usable by individuals with disabilities.
‘‘SEC. 253. TERRITORIAL EXEMPTION.
‘‘Until 5 years after the date of enactment of this part,
the provisions of this part shall not apply to any local ex-
change carrier in any territory of the United States if (1)
the local exchange carrier is owned by the government of
such territory, and (2) on the date of enactment of this part,
the number of households in such territory subscribing to
telephone service is less than 85 percent of the total house-
holds located in such territory.’’.
(b) CONSOLIDATED RULEMAKING PROCEEDING.—The
Commission shall conduct a single consolidated rulemaking
proceeding to prescribe or amend regulations necessary to
implement the requirements of—
(1) part II of title II of the Act as added by sub-
section (a) of this section;
(2) section 222 as amended by section 104 of this
Act; and
(3) section 224 as amended by section 105 of this
Act.
(c) DESIGNATION OF PART I.—Title II of the Act is
further amended by inserting before the heading of section
201 the following new heading:
‘‘PART I—REGULATION OF DOMINANT COMMON
CARRIERS’’.
(d) SYLISTIC CONSISTENCY.—The Act is amended so
that—
(1) the designation and heading of each title of
the Act shall be in the form and typeface of the des-
ignation and heading of this title of this Act; and
(2) the designation and heading of each part of
each title of the Act shall be in the form and typeface
of the designation and heading of part I of title II
of the Act, as amended by subsection (c).
(e) CONFORMING AMENDMENTS.—
(1) 
FEDERAL-STATE
JURISDICTION.—Section
2(b) of the Act (47 U.S.C. 152(b)) is amended by in-
serting ‘‘part II of title II,’’ after ‘‘227, inclusive,’’.
(2) 
FORFEITURES.—Sections 
503(b)(1) 
and
504(b) of such Act (47 U.S.C. 503(b)) are each
amended by inserting ‘‘part I of’’ before ‘‘title II’’.
SEC. 102. COMPETITION IN MANUFACTURING, INFORMA-
TION SERVICES, ALARM SERVICES, AND PAY-
PHONE SERVICES.
(a) COMPETITION IN MANUFACTURING, INFORMATION
SERVICES, AND ALARM SERVICES.—Title II of the Act is
amended by adding at the end of part II (as added by sec-
tion 101) the following new part:
‘‘PART III—SPECIAL AND TEMPORARY
PROVISIONS
‘‘SEC. 271. MANUFACTURING BY BELL OPERATING COMPA-
NIES.
‘‘(a) ACCESS AND INTERCONNECTION.—It shall be un-
lawful for a Bell operating company, directly or through
an affiliate, to manufacture telecommunications equipment
or customer premises equipment, until the Commission has
approved under section 245(c) verifications that such Bell
operating company, and each Bell operating company with
which it is affiliated, are in compliance with the access and
interconnection requirements of part II of this title.
‘‘(b) COLLABORATION.—Subsection (a) shall not pro-
hibit a Bell operating company from engaging in close col-
laboration with any manufacturer of customer premises
equipment or telecommunications equipment during the de-
sign and development of hardware, software, or combina-
tions thereof related to such equipment.
‘‘(c) INFORMATION REQUIREMENTS.—
‘‘(1) INFORMATION ON PROTOCOLS AND TECH-
NICAL
REQUIREMENTS.—Each Bell operating com-
pany shall, in accordance with regulations prescribed
by the Commission, maintain and file with the Com-
mission full and complete information with respect to
the protocols and technical requirements for connec-
tion with and use of its telephone exchange service fa-
cilities. Each such company shall report promptly to
the Commission any material changes or planned
changes to such protocols and requirements, and the
schedule for implementation of such changes or
planned changes.
‘‘(2) DISCLOSURE OF INFORMATION.—A Bell op-
erating company shall not disclose any information
required to be filed under paragraph (1) unless that
information has been filed promptly, as required by
regulation by the Commission.
‘‘(3) ACCESS
BY
COMPETITORS
TO
INFORMA-
TION.—The Commission may prescribe such addi-
tional regulations under this subsection as may be
necessary to ensure that manufacturers have access to
the information with respect to the protocols and tech-
nical requirements for connection with and use of
telephone exchange service facilities that a Bell oper-
ating company makes available to any manufactur-
ing affiliate or any unaffiliated manufacturer.
‘‘(4) PLANNING INFORMATION.—Each Bell oper-
ating company shall provide, to contiguous common
carriers providing telephone exchange service, timely
information on the planned deployment of tele-
communications equipment.
‘‘(d) MANUFACTURING LIMITATIONS FOR STANDARD-
SETTING ORGANIZATIONS.—
‘‘(1) BELL
COMMUNICATIONS
RESEARCH.—The
Bell Communications Research Corporation, or any
successor entity, shall not engage in manufacturing
telecommunications equipment or customer premises
equipment so long as—
‘‘(A) such Corporation or entity is owned,
in whole or in part, by one or more Bell operat-
ing companies; or
‘‘(B) such Corporation or entity engages in
establishing standards for telecommunications
equipment, customer premises equipment, or tele-
communications services, or any product certifi-
cation activities with respect to telecommuni-
cations equipment or customer premises equip-
ment.
‘‘(2) PARTICIPATION
IN
STANDARD
SETTING;
PROTECTION
OF
PROPRIETARY
INFORMATION.—Any
entity (including such Corporation) that engages in
establishing standards for—
‘‘(A) telecommunications equipment, cus-
tomer premises equipment, or telecommuni-
cations services, or
‘‘(B) any product certification activities
with respect to telecommunications equipment or
customer premises equipment,
for one or more Bell operating companies shall allow
any other person to participate fully in such activi-
ties on a nondiscriminatory basis. Any such entity
shall protect proprietary information submitted for
review in the standards-setting and certification proc-
esses from release not specifically authorized by the
owner of such information, even after such entity
ceases to be so engaged.
‘‘(e) BELL OPERATING COMPANY EQUIPMENT PRO-
CUREMENT AND SALES.—
‘‘(1) OBJECTIVE
BASIS.—Each Bell operating
company and any entity acting on behalf of a Bell
operating company shall make procurement decisions
and award all supply contracts for equipment, serv-
ices, and software on the basis of an objective assess-
ment of price, quality, delivery, and other commercial
factors.
‘‘(2) SALES
RESTRICTIONS.—A Bell operating
company engaged in manufacturing may not restrict
sales to any local exchange carrier of telecommuni-
cations equipment, including software integral to the
operation of such equipment and related upgrades.
‘‘(3) PROTECTION
OF
PROPRIETARY
INFORMA-
TION.—A Bell operating company and any entity it
owns or otherwise controls shall protect the propri-
etary information submitted for procurement deci-
sions from release not specifically authorized by the
owner of such information.
‘‘(f) ADMINISTRATION AND ENFORCEMENT AUTHOR-
ITY.—For the purposes of administering and enforcing the
provisions of this section and the regulations prescribed
thereunder, the Commission shall have the same authority,
power, and functions with respect to any Bell operating
company or any affiliate thereof as the Commission has in
administering and enforcing the provisions of this title with
respect to any common carrier subject to this Act.
‘‘(g) EXCEPTION FOR PREVIOUSLY AUTHORIZED AC-
TIVITIES.—Nothing in this section shall prohibit a Bell op-
erating company or affiliate from engaging, at any time
after the date of the enactment of this part, in any activity
as authorized by an order entered by the United States Dis-
trict Court for the District of Columbia pursuant to section
VII or VIII(C) of the Modification of Final Judgment, if—
‘‘(1) such order was entered on or before the date
of the enactment of this part, or
‘‘(2) a request for such authorization was pend-
ing before such court on the date of the enactment of
this part.
‘‘(h) ANTITRUST LAWS.—Nothing in this section shall
be construed to modify, impair, or supersede the applicabil-
ity of any of the antitrust laws.
‘‘(i) DEFINITION.—As used in this section, the term
‘manufacturing’ has the same meaning as such term has
under the Modification of Final Judgment.
‘‘SEC. 272. ELECTRONIC PUBLISHING BY BELL OPERATING
COMPANIES.
‘‘(a) LIMITATIONS.—No Bell operating company or
any affiliate may engage in the provision of electronic pub-
lishing that is disseminated by means of such Bell operating
company’s or any of its affiliates’ basic telephone service,
except that nothing in this section shall prohibit a separated
affiliate or electronic publishing joint venture operated in
accordance with this section from engaging in the provision
of electronic publishing.
‘‘(b) SEPARATED AFFILIATE OR ELECTRONIC PUB-
LISHING JOINT VENTURE REQUIREMENTS.—A separated
affiliate or electronic publishing joint venture shall be oper-
ated independently from the Bell operating company. Such
separated affiliate or joint venture and the Bell operating
company with which it is affiliated shall—
‘‘(1) maintain separate books, records, and ac-
counts and prepare separate financial statements;
‘‘(2) not incur debt in a manner that would per-
mit a creditor of the separated affiliate or joint ven-
ture upon default to have recourse to the assets of the
Bell operating company;
‘‘(3) carry out transactions (A) in a manner
consistent with such independence, (B) pursuant to
written contracts or tariffs that are filed with the
Commission and made publicly available, and (C) in
a manner that is auditable in accordance with gen-
erally accepted auditing standards;
‘‘(4) value any assets that are transferred di-
rectly or indirectly from the Bell operating company
to a separated affiliate or joint venture, and record
any transactions by which such assets are transferred,
in accordance with such regulations as may be pre-
scribed by the Commission or a State commission to
prevent improper cross subsidies;
‘‘(5) between a separated affiliate and a Bell op-
erating company—
‘‘(A) have no officers, directors, and employ-
ees in common after the effective date of this sec-
tion; and
‘‘(B) own no property in common;
‘‘(6) not use for the marketing of any product or
service of the separated affiliate or joint venture, the
name, trademarks, or service marks of an existing
Bell operating company except for names, trade-
marks, or service marks that are or were used in com-
mon with the entity that owns or controls the Bell op-
erating company;
‘‘(7) not permit the Bell operating company—
‘‘(A) to perform hiring or training of per-
sonnel on behalf of a separated affiliate;
‘‘(B) to perform the purchasing, installa-
tion, or maintenance of equipment on behalf of
a separated affiliate, except for telephone service
that it provides under tariff or contract subject
to the provisions of this section; or
‘‘(C) to perform research and development
on behalf of a separated affiliate;
‘‘(8) each have performed annually a compliance
review—
‘‘(A) that is conducted by an independent
entity for the purpose of determining compliance
during the preceding calendar year with any
provision of this section; and
‘‘(B) the results of which are maintained by
the separated affiliate or joint venture and the
Bell operating company for a period of 5 years
subject to review by any lawful authority;
‘‘(9) within 90 days of receiving a review de-
scribed in paragraph (8), file a report of any excep-
tions and corrective action with the Commission and
allow any person to inspect and copy such report sub-
ject to reasonable safeguards to protect any propri-
etary information contained in such report from
being used for purposes other than to enforce or pur-
sue remedies under this section.
‘‘(c) JOINT MARKETING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2)—
‘‘(A) a Bell operating company shall not
carry out any promotion, marketing, sales, or
advertising for or in conjunction with a sepa-
rated affiliate; and
‘‘(B) a Bell operating company shall not
carry out any promotion, marketing, sales, or
advertising for or in conjunction with an affili-
ate that is related to the provision of electronic
publishing.
‘‘(2) PERMISSIBLE JOINT ACTIVITIES.—
‘‘(A) JOINT TELEMARKETING.—A Bell oper-
ating 
company 
may 
provide 
inbound
telemarketing or referral services related to the
provision of electronic publishing for a separated
affiliate, electronic publishing joint venture, af-
filiate, or unaffiliated electronic publisher, pro-
vided that if such services are provided to a sep-
arated affiliate, electronic publishing joint ven-
ture, or affiliate, such services shall be made
available to all electronic publishers on request,
on nondiscriminatory terms.
‘‘(B) TEAMING ARRANGEMENTS.—A Bell op-
erating company may engage in nondiscrim-
inatory teaming or business arrangements to en-
gage in electronic publishing with any separated
affiliate or with any other electronic publisher if
(i) the Bell operating company only provides fa-
cilities, services, and basic telephone service in-
formation as authorized by this section, and (ii)
the Bell operating company does not own such
teaming or business arrangement.
‘‘(C) ELECTRONIC PUBLISHING JOINT VEN-
TURES.—A Bell operating company or affiliate
may participate on a nonexclusive basis in elec-
tronic publishing joint ventures with entities
that are not any Bell operating company, affili-
ate, or separated affiliate to provide electronic
publishing services, if the Bell operating com-
pany or affiliate has not more than a 50 percent
direct or indirect equity interest (or the equiva-
lent thereof) or the right to more than 50 percent
of the gross revenues under a revenue sharing or
royalty agreement in any electronic publishing
joint venture. Officers and employees of a Bell
operating company or affiliate participating in
an electronic publishing joint venture may not
have more than 50 percent of the voting control
over the electronic publishing joint venture. In
the case of joint ventures with small, local elec-
tronic publishers, the Commission for good cause
shown may authorize the Bell operating com-
pany or affiliate to have a larger equity interest,
revenue share, or voting control but not to exceed
80 percent. A Bell operating company partici-
pating in an electronic publishing joint venture
may provide promotion, marketing, sales, or ad-
vertising personnel and services to such joint
venture.
‘‘(d) PRIVATE RIGHT OF ACTION.—
‘‘(1) DAMAGES.—Any person claiming that any
act or practice of any Bell operating company, affili-
ate, or separated affiliate constitutes a violation of
this section may file a complaint with the Commis-
sion or bring suit as provided in section 207 of this
Act, and such Bell operating company, affiliate, or
separated affiliate shall be liable as provided in sec-
tion 206 of this Act; except that damages may not
be awarded for a violation that is discovered by a
compliance review as required by subsection (b)(7) of
this section and corrected within 90 days.
‘‘(2) CEASE AND DESIST ORDERS.—In addition
to the provisions of paragraph (1), any person claim-
ing that any act or practice of any Bell operating
company, affiliate, or separated affiliate constitutes a
violation of this section may make application to the
Commission for an order to cease and desist such vio-
lation or may make application in any district court
of the United States of competent jurisdiction for an
order enjoining such acts or practices or for an order
compelling compliance with such requirement.
‘‘(e) SEPARATED AFFILIATE REPORTING REQUIRE-
MENT.—Any separated affiliate under this section shall file
with the Commission annual reports in a form substan-
tially equivalent to the Form 10–K required by regulations
of the Securities and Exchange Commission.
‘‘(f) EFFECTIVE DATES.—
‘‘(1) TRANSITION.—Any electronic publishing
service being offered to the public by a Bell operating
company or affiliate on the date of enactment of this
section shall have one year from such date of enact-
ment to comply with the requirements of this section.
‘‘(2) SUNSET.—The provisions of this section
shall not apply to conduct occurring after June 30,
2000.
‘‘(g) DEFINITION OF ELECTRONIC PUBLISHING.—
‘‘(1) IN GENERAL.—The term ‘electronic publish-
ing’ means the dissemination, provision, publication,
or sale to an unaffiliated entity or person, of any one
or more of the following: news (including sports); en-
tertainment (other than interactive games); business,
financial, legal, consumer, or credit materials; edi-
torials, columns, or features; advertising; photos or
images; archival or research material; legal notices or
public records; scientific, educational, instructional,
technical, professional, trade, or other literary mate-
rials; or other like or similar information.
‘‘(2) EXCEPTIONS.—The term ‘electronic publish-
ing’ shall not include the following services:
‘‘(A) Information access, as that term is de-
fined by the Modification of Final Judgment.
‘‘(B) The transmission of information as a
common carrier.
‘‘(C) The transmission of information as
part of a gateway to an information service that
does not involve the generation or alteration of
the content of information, including data trans-
mission, address translation, protocol conversion,
billing management, introductory information
content, and navigational systems that enable
users to access electronic publishing services,
which do not affect the presentation of such elec-
tronic publishing services to users.
‘‘(D) Voice storage and retrieval services,
including voice messaging and electronic mail
services.
‘‘(E) Data processing or transaction proc-
essing services that do not involve the generation
or alteration of the content of information.
‘‘(F) Electronic billing or advertising of a
Bell operating company’s regulated telecommuni-
cations services.
‘‘(G) Language translation or data format
conversion.
‘‘(H) The provision of information nec-
essary for the management, control, or operation
of a telephone company telecommunications sys-
tem.
‘‘(I) The provision of directory assistance
that provides names, addresses, and telephone
numbers and does not include advertising.
‘‘(J) Caller identification services.
‘‘(K) Repair and provisioning databases
and credit card and billing validation for tele-
phone company operations.
‘‘(L) 911–E and other emergency assistance
databases.
‘‘(M) Any other network service of a type
that is like or similar to these network services
and that does not involve the generation or alter-
ation of the content of information.
‘‘(N) Any upgrades to these network services
that do not involve the generation or alteration
of the content of information.
‘‘(O) Video programming or full motion
video entertainment on demand.
‘‘(h) ADDITIONAL DEFINITIONS.—As used in this sec-
tion—
‘‘(1) The term ‘affiliate’ means any entity that,
directly or indirectly, owns or controls, is owned or
controlled by, or is under common ownership or con-
trol with, a Bell operating company. Such term shall
not include a separated affiliate.
‘‘(2) The term ‘basic telephone service’ means
wireline telephone exchange service provided by a Bell
operating company in a telephone exchange area, ex-
cept that such term does not include—
‘‘(A) a competitive wireline telephone ex-
change service provided in a telephone exchange
area where another entity provides a wireline
telephone exchange service that was provided on
January 1, 1984, and
‘‘(B) a commercial mobile service.
‘‘(3) The term ‘basic telephone service informa-
tion’ means network and customer information of a
Bell operating company and other information ac-
quired by a Bell operating company as a result of its
engaging in the provision of basic telephone service.
‘‘(4) The term ‘control’ has the meaning that it
has in 17 C.F.R. 240.12b–2, the regulations promul-
gated by the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) or any successor provision to such
section.
‘‘(5) The term ‘electronic publishing joint ven-
ture’ means a joint venture owned by a Bell operating
company or affiliate that engages in the provision of
electronic publishing which is disseminated by means
of such Bell operating company’s or any of its affili-
ates’ basic telephone service.
‘‘(6) The term ‘entity’ means any organization,
and includes corporations, partnerships, sole propri-
etorships, associations, and joint ventures.
‘‘(7) The term ‘inbound telemarketing’ means the
marketing of property, goods, or services by telephone
to a customer or potential customer who initiated the
call.
‘‘(8) The term ‘own’ with respect to an entity
means to have a direct or indirect equity interest (or
the equivalent thereof) of more than 10 percent of an
entity, or the right to more than 10 percent of the
gross revenues of an entity under a revenue sharing
or royalty agreement.
‘‘(9) The term ‘separated affiliate’ means a cor-
poration under common ownership or control with a
Bell operating company that does not own or control
a Bell operating company and is not owned or con-
trolled by a Bell operating company and that engages
in the provision of electronic publishing which is dis-
seminated by means of such Bell operating company’s
or any of its affiliates’ basic telephone service.
‘‘(10) The term ‘Bell operating company’ has the
meaning provided in section 3, except that such term
includes any entity or corporation that is owned or
controlled by such a company (as so defined) but does
not include an electronic publishing joint venture
owned by such an entity or corporation.
‘‘SEC. 273. ALARM MONITORING AND TELEMESSAGING
SERVICES BY BELL OPERATING COMPANIES.
‘‘(a) DELAYED ENTRY INTO ALARM MONITORING.—
‘‘(1) PROHIBITION.—No Bell operating company
or affiliate thereof shall engage in the provision of
alarm monitoring services before the date which is 6
years after the date of enactment of this part.
‘‘(2) EXISTING ACTIVITIES.—Paragraph (1) shall
not apply to any provision of alarm monitoring serv-
ices in which a Bell operating company or affiliate
is lawfully engaged as of January 1, 1995, except that
such Bell operating company or any affiliate may not
acquire or otherwise obtain control of additional enti-
ties providing alarm monitoring services after such
date.
‘‘(b) NONDISCRIMINATION.—A common carrier en-
gaged in the provision of alarm monitoring services or
telemessaging services shall—
‘‘(1) provide nonaffiliated entities, upon reason-
able request, with the network services it provides to
its own alarm monitoring or telemessaging oper-
ations, on nondiscriminatory terms and conditions;
and
‘‘(2) not subsidize its alarm monitoring services
or its telemessaging services either directly or indi-
rectly from telephone exchange service operations.
‘‘(c) EXPEDITED CONSIDERATION OF COMPLAINTS.—
The Commission shall establish procedures for the receipt
and review of complaints concerning violations of sub-
section (b) or the regulations thereunder that result in mate-
rial financial harm to a provider of alarm monitoring serv-
ice or telemessaging service. Such procedures shall ensure
that the Commission will make a final determination with
respect to any such complaint within 120 days after receipt
of the complaint. If the complaint contains an appropriate
showing that the alleged violation occurred, as determined
by the Commission in accordance with such regulations, the
Commission shall, within 60 days after receipt of the com-
plaint, order the common carrier and its affiliates to cease
engaging in such violation pending such final determina-
tion.
‘‘(d) DEFINITIONS.—As used in this section:
‘‘(1) ALARM
MONITORING
SERVICE.—The term
‘alarm monitoring service’ means a service that uses
a device located at a residence, place of business, or
other fixed premises—
‘‘(A) to receive signals from other devices lo-
cated at or about such premises regarding a pos-
sible threat at such premises to life, safety, or
property, from burglary, fire, vandalism, bodily
injury, or other emergency, and
‘‘(B) to transmit a signal regarding such
threat by means of transmission facilities of a
Bell operating company or one of its affiliates to
a remote monitoring center to alert a person at
such center of the need to inform the customer or
another person or police, fire, rescue, security, or
public safety personnel of such threat,
but does not include a service that uses a medical
monitoring device attached to an individual for the
automatic surveillance of an ongoing medical condi-
tion.
‘‘(2) 
TELEMESSAGING
SERVICES.—The 
term
‘telemessaging services’ means voice mail and voice
storage and retrieval services provided over telephone
lines for telemessaging customers and any live opera-
tor services used to answer, record, transcribe, and
relay messages (other than telecommunications relay
services) from incoming telephone calls on behalf of
the telemessaging customers (other than any service
incidental to directory assistance).
‘‘SEC. 274. PROVISION OF PAYPHONE SERVICE.
‘‘(a) NONDISCRIMINATION SAFEGUARDS.—After the ef-
fective date of the rules prescribed pursuant to subsection
(b), any Bell operating company that provides payphone
service—
‘‘(1) shall not subsidize its payphone service di-
rectly or indirectly with revenue from its telephone
exchange service or its exchange access service; and
‘‘(2) shall not prefer or discriminate in favor of
it payphone service.
‘‘(b) REGULATIONS.—
‘‘(1) CONTENTS OF REGULATIONS.—In order to
promote competition among payphone service provid-
ers and promote the widespread deployment of
payphone services to the benefit of the general public,
within 9 months after the date of enactment of this
section, the Commission shall take all actions nec-
essary (including any reconsideration) to prescribe
regulations that—
‘‘(A) establish a per call compensation plan
to ensure that all payphone services providers
are fairly compensated for each and every com-
pleted intrastate and interstate call using their
payphone, except that emergency calls and tele-
communications relay service calls for hearing
disabled individuals shall not be subject to such
compensation;
‘‘(B) discontinue the intrastate and inter-
state carrier access charge payphone service ele-
ments and payments in effect on the date of en-
actment of this section, and all intrastate and
interstate payphone subsidies from basic ex-
change and exchange access revenues, in favor of
a compensation plan as specified in subpara-
graph (A);
‘‘(C) prescribe a set of nonstructural safe-
guards for Bell operating company payphone
service to implement the provisions of para-
graphs (1) and (2) of subsection (a), which safe-
guards shall, at a minimum, include the non-
structural safeguards equal to those adopted in
the Computer Inquiry-III CC Docket No. 90–623
proceeding; and
‘‘(D) provide for Bell operating company
payphone service providers to have the same
right that independent payphone providers have
to negotiate with the location provider on select-
ing and contracting with, and, subject to the
terms of any agreement with the location pro-
vider, to select and contract with the carriers
that 
carry 
interLATA 
calls 
from 
their
payphones, and provide for all payphone service
providers to have the right to negotiate with the
location provider on selecting and contracting
with, and, subject to the terms of any agreement
with the location provider, to select and contract
with the carriers that carry intraLATA calls
from their payphones.
‘‘(2) PUBLIC
INTEREST
TELEPHONES.—In the
rulemaking conducted pursuant to paragraph (1), the
Commission shall determine whether public interest
payphones, which are provided in the interest of pub-
lic health, safety, and welfare, in locations where
there would otherwise not be a payphone, should be
maintained, and if so, ensure that such public inter-
est payphones are supported fairly and equitably.
‘‘(3) EXISTING CONTRACTS.—Nothing in this sec-
tion shall affect any existing contracts between loca-
tion providers and payphone service providers or
interLATA or intraLATA carriers that are in force
and effect as of the date of the enactment of this Act.
‘‘(c) STATE PREEMPTION.—To the extent that any
State requirements are inconsistent with the Commission’s
regulations, the Commission’s regulations on such matters
shall preempt State requirements.
‘‘(d) DEFINITION.—As used in this section, the term
‘payphone service’ means the provision of public or semi-
public pay telephones, the provision of inmate telephone
service in correctional institutions, and any ancillary serv-
ices.’’.
SEC. 103. FORBEARANCE FROM REGULATION.
Part I of title II of the Act (as redesignated by section
101(c) of this Act) is amended by inserting after section
229 (47 U.S.C. 229) the following new section:
‘‘SEC. 230. FORBEARANCE FROM REGULATION.
‘‘(a) AUTHORITY
TO FORBEAR.—The Commission
shall forbear from applying any provision of this part or
part II (other than sections 201, 202, 208, 243, and 248),
or any regulation thereunder, to a common carrier or serv-
ice, or class of carriers or services, in any or some of its
or their geographic markets, if the Commission determines
that—
‘‘(1) enforcement of such provision or regulation
is not necessary to ensure that the charges, practices,
classifications, or regulations by, for, or in connection
with that carrier or service are just and reasonable
and are not unjustly or unreasonably discriminatory;
‘‘(2) enforcement of such regulation or provision
is not necessary for the protection of consumers; and
‘‘(3) forbearance from applying such provision or
regulation is consistent with the public interest.
‘‘(b) COMPETITIVE EFFECT TO BE WEIGHED.—In
making the determination under subsection (a)(3), the Com-
mission shall consider whether forbearance from enforcing
the provision or regulation will promote competitive market
conditions, including the extent to which such forbearance
will enhance competition among providers of telecommuni-
cations services. If the Commission determines that such
forbearance will promote competition among providers of
telecommunications services, that determination may be the
basis for a Commission finding that forbearance is in the
public interest.’’.
SEC. 104. PRIVACY OF CUSTOMER INFORMATION.
(a) PRIVACY OF CUSTOMER PROPRIETARY NETWORK
INFORMATION.—Title II of the Act is amended by inserting
after section 221 (47 U.S.C. 221) the following new section:
‘‘SEC. 222. PRIVACY OF CUSTOMER PROPRIETARY NETWORK
INFORMATION.
‘‘(a) SUBSCRIBER
LIST
INFORMATION.—Notwith-
standing subsections (b), (c), and (d), a carrier that pro-
vides local exchange service shall provide subscriber list in-
formation gathered in its capacity as a provider of such
service on a timely and unbundled basis, under nondiscrim-
inatory and reasonable rates, terms, and conditions, to any
person upon request for the purpose of publishing direc-
tories in any format.
‘‘(b) PRIVACY REQUIREMENTS
FOR COMMON CAR-
RIERS.—A carrier—
‘‘(1) shall not, except as required by law or with
the approval of the customer to which the information
relates—
‘‘(A) use customer proprietary network in-
formation in the provision of any service except
to the extent necessary (i) in the provision of
common carrier services, (ii) in the provision of
a service necessary to or used in the provision of
common carrier services, including the publish-
ing of directories, or (iii) to continue to provide
a particular information service that the carrier
provided as of May 1, 1995, to persons who were
customers of such service on that date;
‘‘(B) use customer proprietary network in-
formation in the identification or solicitation of
potential customers for any service other than
the telephone exchange service or telephone toll
service from which such information is derived;
‘‘(C) use customer proprietary network in-
formation in the provision of customer premises
equipment; or
‘‘(D) disclose customer proprietary network
information to any person except to the extent
necessary to permit such person to provide serv-
ices or products that are used in and necessary
to the provision by such carrier of the services
described in subparagraph (A);
‘‘(2) shall disclose customer proprietary network
information, upon affirmative written request by the
customer, to any person designated by the customer;
‘‘(3) shall, whenever such carrier provides any
aggregate information, notify the Commission of the
availability of such aggregate information and shall
provide such aggregate information on reasonable
terms and conditions to any other service or equip-
ment provider upon reasonable request therefor; and
‘‘(4) except for disclosures permitted by para-
graph (1)(D), shall not unreasonably discriminate be-
tween affiliated and unaffiliated service or equipment
providers in providing access to, or in the use and
disclosure of, individual and aggregate information
made available consistent with this subsection.
‘‘(c) RULE OF CONSTRUCTION.—This section shall not
be construed to prohibit the use or disclosure of customer
proprietary network information as necessary—
‘‘(1) to render, bill, and collect for the services
identified in subsection (b)(1)(A);
‘‘(2) to render, bill, and collect for any other
service that the customer has requested;
‘‘(3) to protect the rights or property of the car-
rier;
‘‘(4) to protect users of any of those services and
other carriers from fraudulent, abusive, or unlawful
use of or subscription to such service; or
‘‘(5) to provide any inbound telemarketing, refer-
ral, or administrative services to the customer for the
duration of the call if such call was initiated by the
customer and the customer approves of the use of such
information to provide such service.
‘‘(d) EXEMPTION PERMITTED.—The Commission may,
by rule, exempt from the requirements of subsection (b) car-
riers that have, together with any affiliated carriers, in the
aggregate nationwide, fewer than 500,000 access lines in-
stalled if the Commission determines that such exemption
is in the public interest or if compliance with the require-
ments would impose an undue economic burden on the car-
rier.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) CUSTOMER PROPRIETARY NETWORK INFOR-
MATION.—The term ‘customer proprietary network
information’ means—
‘‘(A) information which relates to the quan-
tity, technical configuration, type, destination,
and amount of use of telephone exchange service
or telephone toll service subscribed to by any cus-
tomer of a carrier, and is made available to the
carrier by the customer solely by virtue of the
carrier-customer relationship;
‘‘(B) information contained in the bills per-
taining to telephone exchange service or telephone
toll service received by a customer of a carrier;
and
‘‘(C) such other information concerning the
customer as is available to the local exchange
carrier by virtue of the customer’s use of the car-
rier’s telephone exchange service or telephone toll
services, and specified as within the definition of
such term by such rules as the Commission shall
prescribe consistent with the public interest;
except that such term does not include subscriber list
information.
‘‘(2) SUBSCRIBER LIST INFORMATION.—The term
‘subscriber list information’ means any informa-
tion—
‘‘(A) identifying the listed names of sub-
scribers of a carrier and such subscribers’ tele-
phone numbers, addresses, or primary advertis-
ing classifications (as such classifications are as-
signed at the time of the establishment of such
service), or any combination of such listed
names, numbers, addresses, or classifications;
and
‘‘(B) that the carrier or an affiliate has
published, caused to be published, or accepted for
publication in any directory format.
‘‘(3) AGGREGATE INFORMATION.—The term ‘ag-
gregate information’ means collective data that relates
to a group or category of services or customers, from
which individual customer identities and characteris-
tics have been removed.’’.
(b) CONVERGING COMMUNICATIONS TECHNOLOGIES
AND CONSUMER PRIVACY.—
(1) COMMISSION
EXAMINATION.—Within one
year after the date of enactment of this Act, the Com-
mission shall commence a proceeding—
(A) to examine the impact of the integra-
tion into interconnected communications net-
works of wireless telephone, cable, satellite, and
other technologies on the privacy rights and rem-
edies of the consumers of those technologies;
(B) to examine the impact that the
globalization of such integrated communications
networks has on the international dissemination
of consumer information and the privacy rights
and remedies to protect consumers;
(C) to propose changes in the Commission’s
regulations to ensure that the effect on consumer
privacy rights is considered in the introduction
of new telecommunications services and that the
protection of such privacy rights is incorporated
as necessary in the design of such services or the
rules regulating such services;
(D) to propose changes in the Commission’s
regulations as necessary to correct any defects
identified pursuant to subparagraph (A) in such
rights and remedies; and
(E) to prepare recommendations to the Con-
gress for any legislative changes required to cor-
rect such defects.
(2) SUBJECTS FOR EXAMINATION.—In conduct-
ing the examination required by paragraph (1), the
Commission shall determine whether consumers are
able, and, if not, the methods by which consumers
may be enabled—
(A) to have knowledge that consumer infor-
mation is being collected about them through
their utilization of various communications tech-
nologies;
(B) to have notice that such information
could be used, or is intended to be used, by the
entity collecting the data for reasons unrelated to
the original communications, or that such infor-
mation could be sold (or is intended to be sold)
to other companies or entities; and
(C) to stop the reuse or sale of that informa-
tion.
(3) SCHEDULE FOR COMMISSION RESPONSES.—
The Commission shall, within 18 months after the
date of enactment of this Act—
(A) complete any rulemaking required to re-
vise Commission regulations to correct defects in
such regulations identified pursuant to para-
graph (1); and
(B) submit to the Congress a report con-
taining the recommendations required by para-
graph (1)(C).
SEC. 105. POLE ATTACHMENTS.
Section 224 of the Act (47 U.S.C. 224) is amended—
(1) in subsection (a)(4)—
(A) by inserting after ‘‘system’’ the follow-
ing: ‘‘or a provider of telecommunications serv-
ice’’; and
(B) by inserting after ‘‘utility’’ the follow-
ing: ‘‘, which attachment may be used by such
entities to provide cable service or any tele-
communications service’’;
(2) in subsection (c)(2)(B), by striking ‘‘cable tel-
evision services’’ and inserting ‘‘the services offered
via such attachments’’;
(3) by redesignating subsection (d)(2) as sub-
section (d)(4); and
(4) by striking subsection (d)(1) and inserting
the following:
‘‘(d)(1) For purposes of subsection (b) of this section,
the Commission shall, no later than 1 year after the date
of enactment of the Communications Act of 1995, prescribe
regulations for ensuring that utilities charge just and rea-
sonable and nondiscriminatory rates for pole attachments
provided to all providers of telecommunications services, in-
cluding such attachments used by cable television systems
to provide telecommunications services (as defined in sec-
tion 3 of this Act). Such regulations shall—
‘‘(A) recognize that the entire pole, duct, conduit,
or right-of-way other than the usable space is of equal
benefit all entities attaching to the pole and therefore
apportion the cost of the space other than the usable
space equally among all such attachments;
‘‘(B) recognize that the usable space is of propor-
tional benefit to all entities attaching to the pole,
duct, conduit or right-of-way and therefore apportion
the cost of the usable space according to the percent-
age of usable space required for each entity; and
‘‘(C) allow for reasonable terms and conditions
relating to health, safety, and the provision of reliable
utility service.
‘‘(2) The final regulations prescribed by the Commis-
sion pursuant to paragraph (1) shall not apply to a cable
television system that solely provides cable service as defined
in section 602(6) of this Act; instead, the pole attachment
rate for such systems shall assure a utility the recovery of
not less than the additional costs of providing pole attach-
ments, nor more than an amount determined by multiply-
ing the percentage of the total usable space, or the percent-
age of the total duct or conduit capacity, which is occupied
by the pole attachment by the sum of the operating expenses
and actual capital costs of the utility attributable to the
entire pole, duct, conduit, or right-of-way.
‘‘(3) Whenever the owner of a conduit or right-of-way
intends to modify or alter such conduit or right-of-way, the
owner shall provide written notification of such action to
any entity that has obtained an attachment to such conduit
or right-of-way so that such entity may have a reasonable
opportunity to add to or modify its existing attachment.
Any entity that adds to or modifies its existing attachment
after receiving such notification shall bear a proportionate
share of the costs incurred by the owner in making such
conduit or right-of-way accessible.’’.
SEC. 106. PREEMPTION OF FRANCHISING AUTHORITY REG-
ULATION OF TELECOMMUNICATIONS SERV-
ICES.
(a) TELECOMMUNICATIONS SERVICES.—Section 621(b)
of the Act (47 U.S.C. 541(c)) is amended by adding at the
end thereof the following new paragraph:
‘‘(3)(A) To the extent that a cable operator or affiliate
thereof is engaged in the provision of telecommunications
services—
‘‘(i) such cable operator or affiliate shall not be
required to obtain a franchise under this title; and
‘‘(ii) the provisions of this title shall not apply
to such cable operator or affiliate.
‘‘(B) A franchising authority may not impose any re-
quirement that has the purpose or effect of prohibiting, lim-
iting, restricting, or conditioning the provision of a tele-
communications service by a cable operator or an affiliate
thereof.
‘‘(C) A franchising authority may not order a cable
operator or affiliate thereof—
‘‘(i) to discontinue the provision of a tele-
communications service, or
‘‘(ii) to discontinue the operation of a cable sys-
tem, to the extent such cable system is used for the
provision of a telecommunications service, by reason
of the failure of such cable operator or affiliate thereof
to obtain a franchise or franchise renewal under this
title with respect to the provision of such tele-
communications service.
‘‘(D) A franchising authority may not require a cable
operator to provide any telecommunications service or fa-
cilities as a condition of the initial grant of a franchise
or a franchise renewal.’’.
(b) FRANCHISE FEES.—Section 622(b) of the Act (47
U.S.C. 542(b)) is amended by inserting ‘‘to provide cable
services’’ immediately before the period at the end of the
first sentence thereof.
SEC. 107. FACILITIES SITING; RADIO FREQUENCY EMISSION
STANDARDS.
(a) 
NATIONAL
WIRELESS
TELECOMMUNICATIONS
SITING POLICY.—Section 332(c) of the Act (47 U.S.C.
332(c)) is amended by adding at the end the following new
paragraph:
‘‘(7) FACILITIES SITING POLICIES.—(A) Within
180 days after enactment of this paragraph, the Com-
mission shall prescribe and make effective a policy re-
garding State and local regulation of the placement,
construction, modification, or operation of facilities
for the provision of commercial mobile services.
‘‘(B) Pursuant to subchapter III of chapter 5,
title 5, United States Code, the Commission shall es-
tablish a negotiated rulemaking committee to nego-
tiate and develop a proposed policy to comply with
the requirements of this paragraph. Such committee
shall include representatives from State and local gov-
ernments, affected industries, and public safety agen-
cies. In negotiating and developing such a policy, the
committee shall take into account—
‘‘(i) the desirability of enhancing the cov-
erage and quality of commercial mobile services
and fostering competition in the provision of
such services;
‘‘(ii) the legitimate interests of State and
local governments in matters of exclusively local
concern;
‘‘(iii) the effect of State and local regulation
of facilities siting on interstate commerce; and
‘‘(iv) the administrative costs to State and
local governments of reviewing requests for au-
thorization to locate facilities for the provision of
commercial mobile services.
‘‘(C) The policy prescribed pursuant to this
paragraph shall ensure that—
‘‘(i) regulation of the placement, construc-
tion, and modification of facilities for the provi-
sion of commercial mobile services by any State
or local government or instrumentality thereof—
‘‘(I) is reasonable, nondiscriminatory,
and limited to the minimum necessary to
accomplish the State or local government’s
legitimate purposes; and
‘‘(II) does not prohibit or have the ef-
fect of precluding any commercial mobile
service; and
‘‘(ii) a State or local government or instru-
mentality thereof shall act on any request for au-
thorization to locate, construct, modify, or oper-
ate facilities for the provision of commercial mo-
bile services within a reasonable period of time
after the request is fully filed with such govern-
ment or instrumentality; and
‘‘(iii) any decision by a State or local gov-
ernment or instrumentality thereof to deny a re-
quest for authorization to locate, construct, mod-
ify, or operate facilities for the provision of com-
mercial mobile services shall be in writing and
shall be supported by substantial evidence con-
tained in a written record.
‘‘(D) The policy prescribed pursuant to this
paragraph shall provide that no State or local govern-
ment or any instrumentality thereof may regulate the
placement, construction, modification, or operation of
such facilities on the basis of the environmental effects
of radio frequency emissions, to the extent that such
facilities comply with the Commission’s regulations
concerning such emissions.
‘‘(E) In accordance with subchapter III of chap-
ter 5, title 5, United States Code, the Commission
shall periodically establish a negotiated rulemaking
committee to review the policy prescribed by the Com-
mission under this paragraph and to recommend re-
visions to such policy.’’.
(b) RADIO FREQUENCY EMISSIONS.—Within 180 days
after the enactment of this Act, the Commission shall com-
plete action in ET Docket 93–62 to prescribe and make ef-
fective rules regarding the environmental effects of radio fre-
quency emissions.
(c) AVAILABILITY OF PROPERTY.—Within 180 days of
the enactment of this Act, the Commission shall prescribe
procedures by which Federal departments and agencies may
make available on a fair, reasonable, and nondiscrim-
inatory basis, property, rights-of-way, and easements under
their control for the placement of new telecommunications
facilities by duly licensed providers of telecommunications
services that are dependent, in whole or in part, upon the
utilization of Federal spectrum rights for the transmission
or reception of such services. These procedures may establish
a presumption that requests for the use of property, rights-
of-way, and easements by duly authorized providers should
be granted absent unavoidable direct conflict with the de-
partment or agency’s mission, or the current or planned
use of the property, rights-of-way, and easements in ques-
tion. Reasonable cost-based fees may be charged to providers
of such telecommunications services for use of property,
rights-of-way, and easements. The Commission shall pro-
vide technical support to States to encourage them to make
property, rights-of-way, and easements under their jurisdic-
tion available for such purposes.
SEC. 108. MOBILE SERVICE ACCESS TO LONG DISTANCE
CARRIERS.
(a) AMENDMENT.—Section 332(c) of the Act (47
U.S.C. 332(c)) is amended by adding at the end the follow-
ing new paragraph:
‘‘(8) MOBILE SERVICES ACCESS.—(A) The Com-
mission shall prescribe regulations to afford subscrib-
ers of two-way switched voice commercial mobile
radio services access to a provider of telephone toll
service of the subscriber’s choice, except to the extent
that the commercial mobile radio service is provided
by satellite. The Commission may exempt carriers or
classes of carriers from the requirements of such regu-
lations to the extent the Commission determines such
exemption is consistent with the public interest, con-
venience, and necessity. For purposes of this para-
graph, ‘access’ shall mean access to a provider of tele-
phone toll service through the use of carrier identifica-
tion codes assigned to each such provider.
‘‘(B) The regulations prescribed by the Commis-
sion pursuant to subparagraph (A) shall supersede
any inconsistent requirements imposed by the Modi-
fication of Final Judgment or any order in United
States v. AT&T Corp. and McCaw Cellular Commu-
nications, Inc., Civil Action No. 94–01555 (United
States District Court, District of Columbia).’’.
(b) EFFECTIVE DATE CONFORMING AMENDMENT.—
Section 6002(c)(2)(B) of the Omnibus Budget Reconcili-
ation Act of 1993 is amended by striking ‘‘section
332(c)(6)’’ and inserting ‘‘paragraphs (6) and (8) of section
332(c)’’.
SEC. 109. FREEDOM FROM TOLL FRAUD.
(a) AMENDMENT.—Section 228(c) of the Act (47
U.S.C. 228(c)) is amended—
(1) by striking subparagraph (C) of paragraph
(7) and inserting the following:
‘‘(C) the calling party being charged for in-
formation conveyed during the call unless—
‘‘(i) the calling party has a written
subscription agreement with the informa-
tion provider that meets the requirements of
paragraph (8); or
‘‘(ii) the calling party is charged in
accordance with paragraph (9); or’’; and
(2) by adding at the end the following new para-
graphs:
‘‘(8) SUBSCRIPTION AGREEMENTS FOR BILLING
FOR
INFORMATION
PROVIDED
VIA
TOLL-FREE
CALLS.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (7)(C)(i), a written subscription agree-
ment shall specify the terms and conditions
under which the information is offered and in-
clude—
‘‘(i) the rate at which charges are as-
sessed for the information;
‘‘(ii) the information provider’s name;
‘‘(iii) the information provider’s busi-
ness address;
‘‘(iv) the information provider’s regu-
lar business telephone number;
‘‘(v) the information provider’s agree-
ment to notify the subscriber at least 30
days in advance of all future changes in the
rates charged for the information;
‘‘(vi) the signature of a legally com-
petent subscriber agreeing to the terms of
the agreement; and
‘‘(vii) the subscriber’s choice of pay-
ment method, which may be by phone bill
or credit, prepaid, or calling card.
‘‘(B) BILLING ARRANGEMENTS.—If a sub-
scriber elects, pursuant to subparagraph (A)(vii),
to pay by means of a phone bill—
‘‘(i) the agreement shall clearly explain
that the subscriber will be assessed for calls
made to the information service from the
subscriber’s phone line;
‘‘(ii) the phone bill shall include, in
prominent type, the following disclaimer:
‘Common carriers may not dis-
connect local or long distance telephone
service for failure to pay disputed
charges for information services.’; and
‘‘(iii) the phone bill shall clearly list
the 800 number dialed.
‘‘(C) USE OF PIN’S TO PREVENT UNAUTHOR-
IZED USE.—A written agreement does not meet
the requirements of this paragraph unless it pro-
vides the subscriber a personal identification
number to obtain access to the information pro-
vided, and includes instructions on its use.
‘‘(D) EXCEPTIONS.—Notwithstanding para-
graph (7)(C), a written agreement that meets the
requirements of this paragraph is not required—
‘‘(i) for services provided pursuant to a
tariff that has been approved or permitted
to take effect by the Commission or a State
commission; or
‘‘(ii) for any purchase of goods or of
services that are not information services.
‘‘(E) TERMINATION OF SERVICE.—On com-
plaint by any person, a carrier may terminate
the provision of service to an information pro-
vider unless the provider supplies evidence of a
written agreement that meets the requirements of
this section. The remedies provided in this para-
graph are in addition to any other remedies that
are available under title V of this Act.
‘‘(9) CHARGES BY CREDIT, PREPAID, OR CALLING
CARD IN ABSENCE OF AGREEMENT.—For purposes of
paragraph (7)(C)(ii), a calling party is not charged
in accordance with this paragraph unless the calling
party is charged by means of a credit, prepaid, or
calling card and the information service provider in-
100
(b) REGULATIONS.—The Federal Communications
Commission shall revise its regulations to comply with the
amendment made by subsection (a) of this section within
180 days after the date of enactment of this Act.
SEC. 110. REPORT ON MEANS OF RESTRICTING ACCESS TO
UNWANTED MATERIAL IN INTERACTIVE TELE-
COMMUNICATIONS SYSTEMS.
(a) REPORT.—Not later than 150 days after the date
of the enactment of this Act, the Attorney General shall sub-
mit to the Committees on the Judiciary and Commerce,
Science, and Transportation of the Senate and the Commit-
tees on the Judiciary and Commerce of the House of Rep-
resentatives a report containing—
(1) an evaluation of the enforceability with re-
spect to interactive media of current criminal laws
governing the distribution of obscenity over computer
networks and the creation and distribution of child
pornography by means of computers;
(2) an assessment of the Federal, State, and local
law enforcement resources that are currently available
to enforce such laws;
(3) an evaluation of the technical means avail-
able—
(A) to enable parents to exercise control over
the information that their children receive by
101
interactive telecommunications systems so that
children may avoid violent, sexually explicit,
harassing, offensive, and other unwanted mate-
rial on such systems;
(B) to enable other users of such systems to
exercise control over the commercial and non-
commercial information that they receive by such
systems so that such users may avoid violent,
sexually explicit, harassing, offensive, and other
unwanted material on such systems; and
(C) to promote the free flow of information,
consistent with the values expressed in the Con-
stitution, in interactive media; and
(4) recommendations on means of encouraging
the development and deployment of technology, in-
cluding computer hardware and software, to enable
parents and other users of interactive telecommuni-
cations systems to exercise the control described in
subparagraphs (A) and (B) of paragraph (3).
(b) CONSULTATION.—In preparing the report under
subsection (a), the Attorney General shall consult with the
Assistant Secretary of Commerce for Communications and
Information.
102
SEC. 111. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—In addition to any other sums au-
thorized by law, there are authorized to be appropriated to
the Federal Communications Commission such sums as
may be necessary to carry out this Act and the amendments
made by this Act.
(b) EFFECT ON FEES.—For the purposes of section
9(b)(2) of the Act (47 U.S.C. 159(b)(2)), additional
amounts appropriated pursuant to subsection (a) shall be
construed to be changes in the amounts appropriated for
the performance of activities described in section 9(a) of
such Act.
TITLE 
II—CABLE 
COMMUNICA-
TIONS COMPETITIVENESS
SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COM-
PANIES.
(a) GENERAL REQUIREMENT.—
(1) AMENDMENT.—Section 613(b) of the Act (47
U.S.C. 533(b)) is amended to read as follows:
‘‘(b)(1) Subject to the requirements of part V and the
other provisions of this title, any common carrier subject
in whole or in part to title II of this Act may, either
through its own facilities or through an affiliate, provide
video programming directly to subscribers in its telephone
service area.
103
‘‘(2) Subject to the requirements of part V and the
other provisions of this title, any common carrier subject
in whole or in part to title II of this Act may provide chan-
nels of communications or pole, line, or conduit space, or
other rental arrangements, to any entity which is directly
or indirectly owned, operated, or controlled by, or under
common control with, such common carrier, if such facili-
ties or arrangements are to be used for, or in connection
with, the provision of video programming directly to sub-
scribers in its telephone service area.
‘‘(3)(A) Notwithstanding paragraphs (1) and (2), an
affiliate described in subparagraph (B) shall not be subject
to the requirements of part V, but—
‘‘(i) if providing video programming as a cable
service using a cable system, shall be subject to the re-
quirements of this part and parts III and IV; and
‘‘(ii) if providing such video programming by
means of radio communication, shall be subject to the
requirements of title III.
‘‘(B) For purposes of subparagraph (A), an affiliate
is described in this subparagraph if such affiliate—
‘‘(i) is, consistently with section 655, owned, op-
erated, or controlled by, or under common control
with, a common carrier subject in whole or in part
to title II of this Act;
104
‘‘(ii) provides video programming to subscribers
in the telephone service area of such carrier; and
‘‘(iii) does not utilize the local exchange facilities
or services of any affiliated common carrier in dis-
tributing such programming.’’.
(2) CONFORMING AMENDMENT.—Section 602 of
the Act (47 U.S.C. 531) is amended—
(A) by redesignating paragraphs (18) and
(19) as paragraphs (19) and (20) respectively;
and
(B) by inserting after paragraph (17) the
following new paragraph:
‘‘(18) the term ‘telephone service area’ when used
in connection with a common carrier subject in whole
or in part to title II of this Act means the area with-
in which such carrier provides telephone exchange
service as of January 1, 1993, but if any common
carrier after such date transfers its exchange service
facilities to another common carrier, the area to
which such facilities provide telephone exchange serv-
ice shall be treated as part of the telephone service
area of the acquiring common carrier and not of the
selling common carrier;’’.
(b) PROVISIONS FOR REGULATION OF CABLE SERVICE
PROVIDED BY TELEPHONE COMPANIES.—Title VI of the
105
Act (47 U.S.C. 521 et seq.) is amended by adding at the
end the following new part:
‘‘PART V—VIDEO PROGRAMMING SERVICES
PROVIDED BY TELEPHONE COMPANIES
‘‘SEC. 651. DEFINITIONS.
‘‘For purposes of this part—
‘‘(1) the term ‘control’ means—
‘‘(A) an ownership interest in which an en-
tity has the right to vote more than 50 percent
of the outstanding common stock or other owner-
ship interest; or
‘‘(B) if no single entity directly or indi-
rectly has the right to vote more than 50 percent
of the outstanding common stock or other owner-
ship interest, actual working control, in whatever
manner exercised, as defined by the Commission
by regulation on the basis of relevant factors and
circumstances, which shall include partnership
and direct ownership interests, voting stock in-
terests, the interests of officers and directors, and
the aggregation of voting interests; and
‘‘(2) the term ‘rural area’ means a geographic
area that does not include either—
106
‘‘(A) any incorporated or unincorporated
place of 10,000 inhabitants or more, or any part
thereof; or
‘‘(B) any territory, incorporated or unin-
corporated, included in an urbanized area, as
defined by the Bureau of the Census.
‘‘SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.
‘‘(a) IN GENERAL.—Except as provided in subsection
(d) of this section and section 613(b)(3), a common carrier
subject to title II of this Act shall not provide video pro-
gramming directly to subscribers in its telephone service
area unless such video programming is provided through
a video programming affiliate that is separate from such
carrier.
‘‘(b) BOOKS AND MARKETING.—
‘‘(1) IN GENERAL.—A video programming affili-
ate of a common carrier shall—
‘‘(A) maintain books, records, and accounts
separate from such carrier which identify all
transactions with such carrier;
‘‘(B) carry out directly (or through any
nonaffiliated person) its own promotion, except
that institutional advertising carried out by such
carrier shall be permitted so long as each party
bears its pro rata share of the costs; and
107
‘‘(C) not own real or personal property in
common with such carrier.
‘‘(2) INBOUND
TELEMARKETING
AND
REFER-
RAL.—Notwithstanding paragraph (1)(B), a common
carrier may provide telemarketing or referral services
in response to the call of a customer or potential cus-
tomer related to the provision of video programming
by a video programming affiliate of such carrier. If
such services are provided to a video programming af-
filiate, such services shall be made available to any
video programmer or cable operator on request, on
nondiscriminatory terms, at just and reasonable
prices.
‘‘(3) JOINT MARKETING.—Notwithstanding para-
graph (1)(B) or section 613(b)(3), a common carrier
may market video programming directly upon a
showing to the Commission that a cable operator or
other entity directly or indirectly provides tele-
communications services within the telephone service
area of the common carrier, and markets such tele-
communications services jointly with video program-
ming services. The common carrier shall specify the
geographic region covered by the showing. The Com-
mission shall approve or disapprove such showing
within 60 days after the date of its submission.
108
‘‘(c) BUSINESS TRANSACTIONS WITH CARRIER.—Any
contract, agreement, arrangement, or other manner of con-
ducting business, between a common carrier and its video
programming affiliate, providing for—
‘‘(1) the sale, exchange, or leasing of property be-
tween such affiliate and such carrier,
‘‘(2) the furnishing of goods or services between
such affiliate and such carrier, or
‘‘(3) the transfer to or use by such affiliate for
its benefit of any asset or resource of such carrier,
shall be on a fully compensatory and auditable basis, shall
be without cost to the telephone service ratepayers of the
carrier, and shall be in compliance with regulations estab-
lished by the Commission that will enable the Commission
to assess the compliance of any transaction.
‘‘(d) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive any of the requirements of this section for
small telephone companies or telephone companies
serving rural areas, if the Commission determines,
after notice and comment, that—
‘‘(A) such waiver will not affect the ability
of the Commission to ensure that all video pro-
gramming activity is carried out without any
support from telephone ratepayers;
109
‘‘(B) the interests of telephone ratepayers
and cable subscribers will not be harmed if such
waiver is granted;
‘‘(C) such waiver will not adversely affect
the ability of persons to obtain access to the
video platform of such carrier; and
‘‘(D) such waiver otherwise is in the public
interest.
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘(3) CONTINUED
APPLICABILITY
OF
SECTION
656.—In the case of a common carrier that obtains
a waiver under this subsection, any requirement that
section 656 applies to a video programming affiliate
shall instead apply to such carrier.
‘‘(e) SUNSET OF REQUIREMENTS.—The provisions of
this section shall cease to be effective on July 1, 2000.
‘‘SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.
‘‘(a) VIDEO PLATFORM.—
‘‘(1) IN GENERAL.—Except as provided in sec-
tion 613(b)(3), any common carrier subject to title II
of this Act, and that provides video programming di-
rectly to subscribers in its telephone service area, shall
establish a video platform. This paragraph shall not
110
apply to any carrier to the extent that it provides
video programming directly to subscribers in its tele-
phone service area solely through a cable system ac-
quired in accordance with section 655(b).
‘‘(2) IDENTIFICATION
OF
DEMAND
FOR
CAR-
RIAGE.—Any common carrier subject to the require-
ments of paragraph (1) shall, prior to establishing a
video platform, submit a notice to the Commission of
its intention to establish channel capacity for the pro-
vision of video programming to meet the bona fide de-
mand for such capacity. Such notice shall—
‘‘(A) be in such form and contain informa-
tion concerning the geographic area intended to
be served and such information as the Commis-
sion may require by regulations pursuant to sub-
section (b);
‘‘(B) specify the methods by which any en-
tity seeking to use such channel capacity should
submit to such carrier a specification of its
channel capacity requirements; and
‘‘(C) specify the procedures by which such
carrier will determine (in accordance with the
Commission’s 
regulations 
under 
subsection
(b)(1)(B)) whether such requests for capacity are
bona fide.
111
The Commission shall submit any such notice for
publication in the Federal Register within 5 working
days.
‘‘(3) RESPONSE TO REQUEST FOR CARRIAGE.—
After receiving and reviewing the requests for capac-
ity submitted pursuant to such notice, such common
carrier shall establish channel capacity that is suffi-
cient to provide carriage for—
‘‘(A) all bona fide requests submitted pursu-
ant to such notice,
‘‘(B) any additional channels required pur-
suant to section 656, and
‘‘(C) any additional channels required by
the Commission’s regulations under subsection
(b)(1)(C).
‘‘(4) RESPONSES TO CHANGES IN DEMAND FOR
CAPACITY.—Any common carrier that establishes a
video platform under this section shall—
‘‘(A) immediately notify the Commission
and each video programming provider of any
delay in or denial of channel capacity or service,
and the reasons therefor;
‘‘(B) continue to receive and grant, to the
extent of available capacity, carriage in response
112
to bona fide requests for carriage from existing
or additional video programming providers;
‘‘(C) if at any time the number of channels
required for bona fide requests for carriage may
reasonably be expected soon to exceed the existing
capacity of such video platform, immediately no-
tify the Commission of such expectation and of
the manner and date by which such carrier will
provide sufficient capacity to meet such excess
demand; and
‘‘(D) construct such additional capacity as
may be necessary to meet such excess demand.
‘‘(5) DISPUTE
RESOLUTION.—The Commission
shall have the authority to resolve disputes under this
section and the regulations prescribed thereunder.
Any such dispute shall be resolved within 180 days
after notice of such dispute is submitted to the Com-
mission. At that time or subsequently in a separate
damages proceeding, the Commission may award
damages sustained in consequence of any violation of
this section to any person denied carriage, or require
carriage, or both. Any aggrieved party may seek any
other remedy available under this Act.
‘‘(b) COMMISSION ACTIONS.—
113
‘‘(1) IN GENERAL.—Within 15 months after the
date of the enactment of this section, the Commission
shall complete all actions necessary (including any
reconsideration) to prescribe regulations that—
‘‘(A) consistent with the requirements of sec-
tion 656, prohibit a common carrier from dis-
criminating among video programming provid-
ers with regard to carriage on its video platform,
and ensure that the rates, terms, and conditions
for such carriage are just, reasonable, and non-
discriminatory;
‘‘(B) prescribe definitions and criteria for
the purposes of determining whether a request
shall be considered a bona fide request for pur-
poses of this section;
‘‘(C) permit a common carrier to carry on
only one channel any video programming service
that is offered by more than one video program-
ming provider (including the common carrier’s
video programming affiliate), provided that sub-
scribers have ready and immediate access to any
such video programming service;
‘‘(D) extend to the distribution of video pro-
gramming over video platforms the Commission’s
regulations concerning network nonduplication
114
(47 C.F.R. 76.92 et seq.) and syndicated exclu-
sivity (47 C.F.R. 76.151 et seq.);
‘‘(E) require the video platform to provide
service, transmission, and interconnection for
unaffiliated or independent video programming
providers that is equivalent to that provided to
the common carrier’s video programming affili-
ate, except that the video platform shall not dis-
criminate between analog and digital video pro-
gramming offered by such unaffiliated or inde-
pendent video programming providers;
‘‘(F)(i) prohibit a common carrier from un-
reasonably discriminating in favor of its video
programming affiliate with regard to material
or information provided by the common carrier
to subscribers for the purposes of selecting pro-
gramming on the video platform, or in the way
such material or information is presented to sub-
scribers;
‘‘(ii) require a common carrier to ensure
that video programming providers or copyright
holders (or both) are able suitably and uniquely
to identify their programming services to sub-
scribers; and
115
‘‘(iii) if such identification is transmitted
as part of the programming signal, require the
carrier to transmit such identification without
change or alteration; and
‘‘(G) prohibit a common carrier from ex-
cluding areas from its video platform service
area on the basis of the ethnicity, race, or income
of the residents of that area, and provide for
public comments on the adequacy of the proposed
service area on the basis of the standards set
forth under this subparagraph.
Nothing in this section prohibits a common carrier or
its affiliate from negotiating mutually agreeable
terms and conditions with over-the-air broadcast sta-
tions and other unaffiliated video programming pro-
viders to allow consumer access to their signals on
any level or screen of any gateway, menu, or other
program guide, whether provided by the carrier or its
affiliate.
‘‘(2) APPLICABILITY TO OTHER HIGH CAPACITY
SYSTEMS.—The Commission shall apply the require-
ments of this section, in lieu of the requirements of
section 612, to any cable operator of a cable system
that has installed a switched, broadband video pro-
gramming delivery system, except that the Commis-
116
sion shall not apply the requirements of the regula-
tions prescribed pursuant to subsection (b)(1)(D) or
any other requirement that the Commission deter-
mines is inappropriate.
‘‘(c) REGULATORY STREAMLINING.—With respect to
the establishment and operation of a video platform, the re-
quirements of this section shall apply in lieu of, and not
in addition to, the requirements of title II.
‘‘(d) COMMISSION INQUIRY.—The Commission shall
conduct a study of whether it is in the public interest to
extend the requirements of subsection (a) to any other cable
operators in lieu of the requirements of section 612. The
Commission shall submit to the Congress a report on the
results of such study not later than 2 years after the date
of enactment of this section.
‘‘SEC. 654. AUTHORITY TO PROHIBIT CROSS-SUBSIDIZA-
TION.
‘‘Nothing in this part shall prohibit a State commis-
sion that regulates the rates for telephone exchange service
or exchange access based on the cost of providing such serv-
ice or access from—
‘‘(1) prescribing regulations to prohibit a com-
mon carrier from engaging in any practice that re-
sults in the inclusion in rates for telephone exchange
service or exchange access of any operating expenses,
117
costs, depreciation charges, capital investments, or
other expenses directly associated with the provision
of competing video programming services by the com-
mon carrier or affiliate; or
‘‘(2) ensuring such competing video program-
ming services bear a reasonable share of the joint and
common costs of facilities used to provide telephone
exchange service or exchange access and competing
video programming services.
‘‘SEC. 655. PROHIBITION ON BUY OUTS.
‘‘(a) GENERAL PROHIBITION.—No common carrier
that provides telephone exchange service, and no entity
owned by or under common ownership or control with such
carrier, may purchase or otherwise obtain control over any
cable system that is located within its telephone service area
and is owned by an unaffiliated person.
‘‘(b) EXCEPTIONS.—Notwithstanding subsection (a), a
common carrier may—
‘‘(1) obtain a controlling interest in, or form a
joint venture or other partnership with, a cable sys-
tem that serves a rural area;
‘‘(2) obtain, in addition to any interest, joint
venture, or partnership obtained or formed pursuant
to paragraph (1), a controlling interest in, or form a
118
joint venture or other partnership with, any cable
system or systems if—
‘‘(A) such systems in the aggregate serve less
than 10 percent of the households in the tele-
phone service area of such carrier; and
‘‘(B) no such system serves a franchise area
with more than 35,000 inhabitants, except that
a common carrier may obtain such interest or
form such joint venture or other partnership
with a cable system that serves a franchise area
with more than 35,000 but not more than 50,000
inhabitants if such system is not affiliated with
any other system whose franchise area is contig-
uous to the franchise area of the acquired system;
‘‘(3) obtain, with the concurrence of the cable op-
erator on the rates, terms, and conditions, the use of
that part of the transmission facilities of such a cable
system extending from the last multi-user terminal to
the premises of the end user, if such use is reasonably
limited in scope and duration, as determined by the
Commission; or
‘‘(4) obtain a controlling interest in, or form a
joint venture or other partnership with, or provide fi-
nancing to, a cable system (hereinafter in this para-
graph referred to as ‘the subject cable system’), if—
119
‘‘(A) the subject cable system operates in a
television market that is not in the top 25 mar-
kets, and that has more than 1 cable system op-
erator, and the subject cable system is not the
largest cable system in such television market;
‘‘(B) the subject cable system and the largest
cable system in such television market held on
May 1, 1995, cable television franchises from the
largest municipality in the television market and
the boundaries of such franchises were identical
on such date;
‘‘(C) the subject cable system is not owned
by or under common ownership or control of any
one of the 50 largest cable system operators as
existed on May 1, 1995; and
‘‘(D) the largest system in the television
market is owned by or under common ownership
or control of any one of the 10 largest cable sys-
tem operators as existed on May 1, 1995.
‘‘(c) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive the restrictions in subsection (a) of this
section only upon a showing by the applicant that—
‘‘(A) because of the nature of the market
served by the cable system concerned—
120
‘‘(i) the incumbent cable operator
would be subjected to undue economic dis-
tress by the enforcement of such subsection;
or
‘‘(ii) the cable system would not be eco-
nomically viable if such subsection were en-
forced; and
‘‘(B) the local franchising authority ap-
proves of such waiver.
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘SEC. 656. APPLICABILITY OF PARTS I THROUGH IV.
‘‘(a) IN GENERAL.—Any provision that applies to a
cable operator under—
‘‘(1) sections 613 (other than subsection (a)(2)
thereof), 616, 617, 628, 631, 632, and 634 of this title,
shall apply,
‘‘(2) sections 611, 612, 614, and 615 of this title,
and section 325 of title III, shall apply in accordance
with the regulations prescribed under subsection (b),
and
‘‘(3) parts III and IV (other than sections 628,
631, 632, and 634) of this title shall not apply,
121
to any video programming affiliate established by a com-
mon carrier in accordance with the requirements of this
part.
‘‘(b) IMPLEMENTATION.—
‘‘(1) COMMISSION
ACTION.—The Commission
shall prescribe regulations to ensure that a common
carrier in the operation of its video platform shall
provide (A) capacity, services, facilities, and equip-
ment for public, educational, and governmental use,
(B) capacity for commercial use, (C) carriage of com-
mercial and non-commercial broadcast television sta-
tions, and (D) an opportunity for commercial broad-
cast stations to choose between mandatory carriage
and reimbursement for retransmission of the signal of
such station. In prescribing such regulations, the
Commission shall, to the extent possible, impose obli-
gations that are no greater or lesser than the obliga-
tions contained in the provisions described in sub-
section (a)(2) of this section.
‘‘(2) FEES.—A video programming affiliate of
any common carrier that establishes a video platform
under this part, and any multichannel video pro-
gramming distributor offering a competing service
using such video platform (as determined in accord-
ance with regulations of the Commission), shall be
122
subject to the payment of fees imposed by a local fran-
chising authority, in lieu of the fees required under
section 622. The rate at which such fees are imposed
shall not exceed the rate at which franchise fees are
imposed on any cable operator transmitting video
programming in the same service area.
‘‘SEC. 657. RURAL AREA EXEMPTION.
‘‘The provisions of sections 652, 653, and 655 shall not
apply to video programming provided in a rural area by
a common carrier that provides telephone exchange service
in the same area.’’.
SEC. 202. COMPETITION FROM CABLE SYSTEMS.
(a) 
DEFINITION
OF
CABLE
SERVICE.—Section
602(6)(B) of the Act (47 U.S.C. 522(6)(B)) is amended by
inserting ‘‘or use’’ after ‘‘the selection’’.
(b) CLUSTERING.—Section 613 of the Act (47 U.S.C.
533) is amended by adding at the end the following new
subsection:
‘‘(i) ACQUISITION OF CABLE SYSTEMS.—Except as
provided in section 655, the Commission may not require
divestiture of, or restrict or prevent the acquisition of, an
ownership interest in a cable system by any person based
in whole or in part on the geographic location of such cable
system.’’.
123
(c) EQUIPMENT.—Section 623(a) of the Act (47 U.S.C.
543(a)) is amended—
(1) in paragraph (6)—
(A) by striking ‘‘paragraph (4)’’ and insert-
ing ‘‘paragraph (5)’’;
(B) by striking ‘‘paragraph (5)’’ and insert-
ing ‘‘paragraph (6)’’; and
(C) by striking ‘‘paragraph (3)’’ and insert-
ing ‘‘paragraph (4)’’;
(2) by redesignating paragraphs (3) through (6)
as paragraphs (4) through (7), respectively; and
(3) by inserting after paragraph (2) the follow-
ing new paragraph:
‘‘(3) EQUIPMENT.—If the Commission finds that
a cable system is subject to effective competition under
subparagraph (D) of subsection (l)(1), the rates for
equipment, installations, and connections for addi-
tional television receivers (other than equipment, in-
stallations, and connections furnished by such system
to subscribers who receive only a rate regulated basic
service tier) shall not be subject to regulation by the
Commission or by a State or franchising authority.
If the Commission finds that a cable system is subject
to effective competition under subparagraph (A), (B),
or (C) of subsection (l)(1), the rates for any equip-
124
ment, installations, and connections furnished by
such system to any subscriber shall not be subject to
regulation by the Commission, or by a State or fran-
chising authority. No Federal agency, State, or fran-
chising authority may establish the price or rate for
the installation, sale, or lease of any equipment fur-
nished to any subscriber by a cable system solely in
connection with video programming offered on a per
channel or per program basis.’’.
(d) LIMITATION ON BASIC TIER RATE INCREASES;
SCOPE OF REVIEW.—Section 623(a) of the Act (47 U.S.C.
543(a)) is further amended by adding at the end the follow-
ing new paragraph:
‘‘(8) LIMITATION
ON
BASIC
TIER
RATE
IN-
CREASES; SCOPE OF REVIEW.—A cable operator may
not increase its basic service tier rate more than once
every 6 months. Such increase may be implemented,
using any reasonable billing or proration method, 30
days after providing notice to subscribers and the ap-
propriate regulatory authority. The rate resulting
from such increase shall be deemed reasonable and
shall not be subject to reduction or refund if the fran-
chising authority or the Commission, as appropriate,
does not complete its review and issue a final order
within 90 days after implementation of such increase.
125
The review by the franchising authority or the Com-
mission of any future increase in such rate shall be
limited to the incremental change in such rate effected
by such increase.’’.
(e) NATIONAL INFORMATION INFRASTRUCTURE DE-
VELOPMENT.—Section 623(a) of the Act (47 U.S.C. 543) is
further amended by adding at the end the following new
paragraph:
‘‘(9) 
NATIONAL
INFORMATION
INFRASTRUC-
TURE.—
‘‘(A) PURPOSE.—It is the purpose of this
paragraph to—
‘‘(i) promote the development of the
National Information Infrastructure;
‘‘(ii) enhance the competitiveness of the
National Information Infrastructure by en-
suring that cable operators have incentives
comparable to other industries to develop
such infrastructure; and
‘‘(iii) encourage the rapid deployment
of digital technology necessary to the devel-
opment of the National Information Infra-
structure.
‘‘(B) 
AGGREGATION
OF
EQUIPMENT
COSTS.—The Commission shall allow cable oper-
126
ators, pursuant to any rules promulgated under
subsection (b)(3), to aggregate, on a franchise,
system, regional, or company level, their equip-
ment costs into broad categories, such as con-
verter boxes, regardless of the varying levels of
functionality of the equipment within each such
broad category. Such aggregation shall not be
permitted with respect to equipment used by sub-
scribers who receive only a rate regulated basic
service tier.
‘‘(C) REVISION
TO
COMMISSION
RULES;
FORMS.—Within 120 days of the date of enact-
ment of this paragraph, the Commission shall
issue revisions to the appropriate rules and
forms necessary to implement subparagraph
(B).’’.
(f) COMPLAINT THRESHOLD; SCOPE OF COMMISSION
REVIEW.—Section 623(c) of the Act (47 U.S.C. 543(c)) is
amended—
(1) by striking paragraph (3) and inserting the
following:
‘‘(3) REVIEW OF COMPLAINTS.—
‘‘(A) COMPLAINT THRESHOLD.—The Com-
mission shall have the authority to review any
increase in the rates for cable programming serv-
127
ices implemented after the date of enactment of
the Communications Act of 1995 only if, within
90 days after such increase becomes effective, at
least 10 subscribers to such services or 5 percent
of the subscribers to such services, whichever is
greater, file separate, individual complaints
against such increase with the Commission in
accordance with the requirements established
under paragraph (1)(B).
‘‘(B) TIME PERIOD FOR COMMISSION RE-
VIEW.—The Commission shall complete its re-
view of any such increase and issue a final order
within 90 days after it receives the number of
complaints required by subparagraph (A).
‘‘(4) TREATMENT OF PENDING CABLE PROGRAM-
MING SERVICES COMPLAINTS.—Upon enactment of the
Communications Act of 1995, the Commission shall
suspend the processing of all pending cable program-
ming services rate complaints. These pending com-
plaints shall be counted by the Commission toward
the complaint threshold specified in paragraph
(3)(A). Parties shall have an additional 90 days from
the date of enactment of such Act to file complaints
about prior increases in cable programming services
rates if such rate increases were already subject to a
128
valid, pending complaint on such date of enactment.
At the expiration of such 90-day period, the Commis-
sion shall dismiss all pending cable programming
services rate cases for which the complaint threshold
has not been met, and may resume its review of those
pending cable programming services rate cases for
which the complaint threshold has been met, which
review shall be completed within 180 days after the
date of enactment of the Communications Act of 1995.
‘‘(5) SCOPE OF COMMISSION REVIEW.—A cable
programming services rate shall be deemed not unrea-
sonable and shall not be subject to reduction or refund
if—
‘‘(A) such rate was not the subject of a
pending complaint at the time of enactment of
the Communications Act of 1995;
‘‘(B) such rate was the subject of a com-
plaint that was dismissed pursuant to para-
graph (4);
‘‘(C) such rate resulted from an increase for
which the complaint threshold specified in para-
graph (3)(A) has not been met;
‘‘(D) the Commission does not complete its
review and issue a final order in the time period
specified in paragraph (3)(B) or (4); or
129
‘‘(E) the Commission issues an order find-
ing such rate to be not unreasonable.
The review by the Commission of any future increase
in such rate shall be limited to the incremental
change in such rate effected by such increase.’’;
(2) in paragraph (1)(B) by striking ‘‘obtain
Commission consideration and resolution of whether
the rate in question is unreasonable’’ and inserting
‘‘be counted toward the complaint threshold specified
in paragraph (3)(A)’’; and
(3) in paragraph (1)(C) by striking ‘‘such com-
plaint’’ and inserting in lieu thereof ‘‘the first com-
plaint’’.
(g) UNIFORM RATE STRUCTURE.—Section 623(d) of
the Act (47 U.S.C. 543(d)) is amended to read as follows:
‘‘(d) UNIFORM RATE STRUCTURE.—A cable operator
shall have a uniform rate structure throughout its franchise
area for the provision of cable services that are regulated
by the Commission or the franchising authority. Bulk dis-
counts to multiple dwelling units shall not be subject to this
requirement.’’.
(h) EFFECTIVE COMPETITION.—Section 623(l)(1) of
the Act (47 U.S.C. 543(l)(1)) is amended—
(1) in subparagraph (B)(ii)—
130
(A) by inserting ‘‘all’’ before ‘‘multichannel
video programming distributors’’; and
(B) by striking ‘‘or’’ at the end thereof;
(2) by striking the period at the end of subpara-
graph (C) and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(D) with respect to cable programming
services and subscriber equipment, installations,
and connections for additional television receiv-
ers (other than equipment, installations, and
connections furnished to subscribers who receive
only a rate regulated basic service tier)—
‘‘(i) a common carrier has been au-
thorized by the Commission to construct fa-
cilities to provide video dialtone service in
the cable operator’s franchise area;
‘‘(ii) a common carrier has been au-
thorized by the Commission or pursuant to
a franchise to provide video programming
directly to subscribers in the franchise area;
or
‘‘(iii) the Commission has completed
all actions necessary (including any recon-
sideration) to prescribe regulations pursu-
131
ant to section 653(b)(1) relating to video
platforms.’’.
(i) RELIEF FOR SMALL CABLE OPERATORS.—Section
623 of the Act (47 U.S.C. 543) is amended by adding at
the end the following new subsection:
‘‘(m) SMALL CABLE OPERATORS.—
‘‘(1) SMALL CABLE OPERATOR RELIEF.—A small
cable operator shall not be subject to subsections (a),
(b), (c), or (d) in any franchise area with respect to
the provision of cable programming services, or a
basic service tier where such tier was the only tier of-
fered in such area on December 31, 1994.
‘‘(2) DEFINITION OF SMALL CABLE OPERATOR.—
For purposes of this subsection, ‘small cable operator’
means a cable operator that—
‘‘(A) directly or through an affiliate, serves
in the aggregate fewer than 1 percent of all cable
subscribers in the United States; and
‘‘(B) is not affiliated with any entity or en-
tities whose gross annual revenues in the aggre-
gate exceed $250,000,000.’’.
(j) TECHNICAL STANDARDS.—Section 624(e) of the Act
(47 U.S.C. 544(e)) is amended by striking the last two sen-
tences and inserting the following: ‘‘No State or franchising
authority may prohibit, condition, or restrict a cable sys-
132
tem’s use of any type of subscriber equipment or any trans-
mission technology.’’.
(k) CABLE SECURITY SYSTEMS.—Section 624A(b)(2)
of the Act (47 U.S.C. 544a(b)(2)) is amended to read as
follows:
‘‘(2) CABLE
SECURITY
SYSTEMS.—No Federal
agency, State, or franchising authority may prohibit
a cable operator’s use of any security system (includ-
ing scrambling, encryption, traps, and interdiction),
except that the Commission may prohibit the use of
any such system solely with respect to the delivery of
a basic service tier that, as of January 1, 1995, con-
tained only the signals and programming specified in
section 623(b)(7)(A), unless the use of such system is
necessary to prevent the unauthorized reception of
such tier.’’.
(l) 
CABLE
EQUIPMENT
COMPATIBILITY.—Section
624A of the Act (47 U.S.C. 544A), is amended—
(1) in subsection (a) by striking ‘‘and’’ at the
end of paragraph (2), by striking the period at the
end of paragraph (3) and inserting ‘‘; and’’; and by
adding at the end the following new paragraph:
‘‘(4) compatibility among televisions, video cas-
sette recorders, and cable systems can be assured with
narrow technical standards that mandate a minimum
133
degree of common design and operation, leaving all
features, functions, protocols, and other product and
service options for selection through open competition
in the market.’’;
(2) in subsection (c)(1)—
(A) by redesignating subparagraphs (A)
and (B) as subparagraphs (B) and (C), respec-
tively; and
(B) by inserting before such redesignated
subparagraph (B) the following new subpara-
graph:
‘‘(A) the need to maximize open competition
in the market for all features, functions, proto-
cols, and other product and service options of
converter boxes and other cable converters unre-
lated to the descrambling or decryption of cable
television signals;’’; and
(3) in subsection (c)(2)—
(A) by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respec-
tively; and
(B) by inserting after subparagraph (C) the
following new subparagraph:
‘‘(D) to ensure that any standards or regu-
lations developed under the authority of this sec-
134
tion to ensure compatibility between televisions,
video casette recorders, and cable systems do not
affect features, functions, protocols, and other
product and service options other than those
specified in paragraph (1)(B), including tele-
communications interface equipment, home auto-
mation communications, and computer network
services;’’.
(m) RETIERING OF BASIC TIER SERVICES.—Section
625(d) of the Act (47 U.S.C. 543(d)) is amended by adding
at the end the following new sentence: ‘‘Any signals or serv-
ices carried on the basic service tier but not required under
section 623(b)(7)(A) may be moved from the basic service
tier at the operator’s sole discretion, provided that the re-
moval of such a signal or service from the basic service tier
is permitted by contract. The movement of such signals or
services to an unregulated package of services shall not sub-
ject such package to regulation.’’.
(n) SUBSCRIBER NOTICE.—Section 632 of the Act (47
U.S.C. 552) is amended—
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the following
new subsection:
135
‘‘(c) SUBSCRIBER NOTICE.—A cable operator may pro-
vide notice of service and rate changes to subscribers using
any reasonable written means at its sole discretion. Not-
withstanding section 623(b)(6) or any other provision of
this Act, a cable operator shall not be required to provide
prior notice of any rate change that is the result of a regu-
latory fee, franchise fee, or any other fee, tax, assessment,
or charge of any kind imposed by any Federal agency,
State, or franchising authority on the transaction between
the operator and the subscriber.’’.
(o) TREATMENT OF PRIOR YEAR LOSSES.—
(1) AMENDMENT.—Section 623 (48 U.S.C. 543)
is amended by adding at the end thereof the following:
‘‘(n) TREATMENT OF PRIOR YEAR LOSSES.—Notwith-
standing any other provision of this section or of section
612, losses (including losses associated with the acquisitions
of such franchise) that were incurred prior to September
4, 1992, with respect to a cable system that is owned and
operated by the original franchisee of such system shall not
be disallowed, in whole or in part, in the determination
of whether the rates for any tier of service or any type of
equipment that is subject to regulation under this section
are lawful.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect on the date of enact-
136
ment of this Act and shall be applicable to any rate
proposal filed on or after September 4, 1993.
SEC. 203. COMPETITIVE AVAILABILITY OF NAVIGATION DE-
VICES.
Title VII of the Act is amended by adding at the end
the following new section:
‘‘SEC. 713. COMPETITIVE AVAILABILITY OF NAVIGATION DE-
VICES.
‘‘(a) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘telecommunications subscription
service’ means the provision directly to subscribers of
video, voice, or data services for which a subscriber
charge is made.
‘‘(2) The term ‘telecommunications system’ or a
‘telecommunications system operator’ means a pro-
vider of telecommunications subscription service.
‘‘(b) COMPETITIVE CONSUMER AVAILABILITY OF CUS-
TOMER PREMISES EQUIPMENT.—The Commission shall
adopt regulations to assure competitive availability, to con-
sumers of telecommunications subscription services, of con-
verter boxes, interactive communications devices, and other
customer premises equipment from manufacturers, retail-
ers, and other vendors not affiliated with any telecommuni-
cations system operator. Such regulations shall take into
account the needs of owners and distributors of video pro-
137
gramming and information services to ensure system and
signal security and prevent theft of service. Such regula-
tions shall not prohibit any telecommunications system op-
erator from also offering devices and customer premises
equipment to consumers, provided that the system opera-
tor’s charges to consumers for such devices and equipment
are separately stated and not bundled with or subsidized
by charges for any telecommunications subscription service.
‘‘(c) WAIVER FOR NEW NETWORK SERVICES.—The
Commission may waive a regulation adopted pursuant to
subsection (b) for a limited time upon an appropriate show-
ing by a telecommunications system operator that such
waiver is necessary to the introduction of a new tele-
communications subscription service.
‘‘(d) SUNSET.—The regulations adopted pursuant to
this section shall cease to apply to any market for the acqui-
sition of converter boxes, interactive communications de-
vices, or other customer premises equipment when the Com-
mission determines that such market is competitive.’’.
SEC. 204. VIDEO PROGRAMMING ACCESSIBILITY.
(a) COMMISSION INQUIRY.—Within 180 days after the
date of enactment of this section, the Federal Communica-
tions Commission shall complete an inquiry to ascertain
the level at which video programming is closed captioned.
Such inquiry shall examine the extent to which existing or
138
previously published programming is closed captioned, the
size of the video programming provider or programming
owner providing closed captioning, the size of the market
served, the relative audience shares achieved, or any other
related factors. The Commission shall submit to the Con-
gress a report on the results of such inquiry.
(b) ACCOUNTABILITY CRITERIA.—Within 18 months
after the date of enactment, the Commission shall prescribe
such regulations as are necessary to implement this section.
Such regulations shall ensure that—
(1) video programming first published or exhib-
ited after the effective date of such regulations is fully
accessible through the provision of closed captions, ex-
cept as provided in subsection (d); and
(2) video programming providers or owners
maximize the accessibility of video programming first
published or exhibited prior to the effective date of
such regulations through the provision of closed cap-
tions, except as provided in subsection (d).
(c) DEADLINES FOR CAPTIONING.—Such regulations
shall include an appropriate schedule of deadlines for the
provision of closed captioning of video programming.
(d) EXEMPTIONS.—Notwithstanding subsection (b)—
(1) the Commission may exempt by regulation
programs, classes of programs, or services for which
139
the Commission has determined that the provision of
closed captioning would be economically burdensome
to the provider or owner of such programming;
(2) a provider of video programming or the
owner of any program carried by the provider shall
not be obligated to supply closed captions if such ac-
tion would be inconsistent with contracts in effect on
the date of enactment of this Act, except that nothing
in this section shall be construed to relieve a video
programming provider of its obligations to provide
services required by Federal law; and
(3) a provider of video programming or program
owner may petition the Commission for an exemption
from the requirements of this section, and the Com-
mission may grant such petition upon a showing that
the requirements contained in this section would re-
sult in an undue burden.
(e) UNDUE BURDEN.—The term ‘‘undue burden’’
means significant difficulty or expense. In determining
whether the closed captions necessary to comply with the
requirements of this paragraph would result in an undue
economic burden, the factors to be considered include—
(1) the nature and cost of the closed captions for
the programming;
140
(2) the impact on the operation of the provider
or program owner;
(3) the financial resources of the provider or pro-
gram owner; and
(4) the type of operations of the provider or pro-
gram owner.
(f) VIDEO DESCRIPTIONS INQUIRY.—Within 6 months
after the date of enactment of this Act, the Commission shall
commence an inquiry to examine the use of video descrip-
tions on video programming in order to ensure the acces-
sibility of video programming to persons with visual im-
pairments, and report to Congress on its findings. The
Commission’s report shall assess appropriate methods and
schedules for phasing video descriptions into the market-
place, technical and quality standards for video descrip-
tions, a definition of programming for which video descrip-
tions would apply, and other technical and legal issues that
the Commission deems appropriate. Following the comple-
tion of such inquiry, the Commission may adopt regulation
it deems necessary to promote the accessibility of video pro-
gramming to persons with visual impairments.
(g) VIDEO DESCRIPTION.—For purposes of this sec-
tion, ‘‘video description’’ means the insertion of audio nar-
rated descriptions of a television program’s key visual ele-
ments into natural pauses between the program’s dialogue.
141
(h) PRIVATE RIGHTS
OF ACTIONS PROHIBITED.—
Nothing in this section shall be construed to authorize any
private right of action to enforce any requirement of this
section or any regulation thereunder. The Commission shall
have exclusive jurisdiction with respect to any complaint
under this section.
SEC. 205. TECHNICAL AMENDMENTS.
(a) RETRANSMISSION.—Section 325(b)(2)(D) of the
Act (47 U.S.C. 325(b)(2)(D)) is amended to read as follows:
‘‘(D) retransmission by a cable operator or other
multichannel video programming distributor of the
signal of a superstation if (i) the customers served by
the cable operator or other multichannel video pro-
gramming distributor reside outside the originating
station’s television market, as defined by the Commis-
sion for purposes of section 614(h)(1)(C); (ii) such
signal was obtained from a satellite carrier or terres-
trial microwave common carrier; and (iii) and the
origination station was a superstation on May 1,
1991.’’.
(b) 
MARKET
DETERMINATIONS.—Section
614(h)(1)(C)(i) of the Act (47 U.S.C. 534(h)(1)(C)(i)) is
amended by striking out ‘‘in the manner provided in section
73.3555(d)(3)(i) of title 47, Code of Federal Regulations,
as in effect on May 1, 1991,’’ and inserting ‘‘by the Com-
142
mission by regulation or order using, where available, com-
mercial publications which delineate television markets
based on viewing patterns,’’.
(c) TIME FOR DECISION.—Section 614(h)(1)(C)(iv) of
such Act is amended to read as follows:
‘‘(iv) Within 120 days after the date a re-
quest is filed under this subparagraph, the Com-
mission shall grant or deny the request.’’.
(d) PROCESSING
OF
PENDING
COMPLAINTS.—The
Commission shall, unless otherwise informed by the person
making the request, assume that any person making a re-
quest to include or exclude additional communities under
section 614(h)(1)(C) of such Act (as in effect prior to the
date of enactment of this Act) continues to request such in-
clusion or exclusion under such section as amended under
subsection (b).
TITLE III—BROADCAST COMMU-
NICATIONS 
COMPETITIVE-
NESS
SEC. 301. BROADCASTER SPECTRUM FLEXIBILITY.
Title III of the Act is amended by inserting after sec-
tion 335 (47 U.S.C. 335) the following new section:
143
‘‘SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.
‘‘(a) COMMISSION ACTION.—If the Commission deter-
mines to issue additional licenses for advanced television
services, the Commission shall—
‘‘(1) limit the initial eligibility for such licenses
to persons that, as of the date of such issuance, are
licensed to operate a television broadcast station or
hold a permit to construct such a station (or both);
and
‘‘(2) adopt regulations that allow such licensees
or permittees to offer such ancillary or supplementary
services on designated frequencies as may be consist-
ent with the public interest, convenience, and neces-
sity.
‘‘(b) CONTENTS OF REGULATIONS.—In prescribing the
regulations required by subsection (a), the Commission
shall—
‘‘(1) only permit such licensee or permittee to
offer ancillary or supplementary services if the use of
a designated frequency for such services is consistent
with the technology or method designated by the Com-
mission for the provision of advanced television serv-
ices;
‘‘(2) limit the broadcasting of ancillary or sup-
plementary services on designated frequencies so as to
avoid derogation of any advanced television services,
144
including high definition television broadcasts, that
the Commission may require using such frequencies;
‘‘(3) apply to any other ancillary or supple-
mentary service such of the Commission’s regulations
as are applicable to the offering of analogous services
by any other person, except that no ancillary or sup-
plementary service shall have any rights to carriage
under section 614 or 615 or be deemed a multichannel
video programming distributor for purposes of section
628;
‘‘(4) adopt such technical and other requirements
as may be necessary or appropriate to assure the
quality of the signal used to provide advanced tele-
vision services, and may adopt regulations that stipu-
late the minimum number of hours per day that such
signal must be transmitted; and
‘‘(5) prescribe such other regulations as may be
necessary for the protection of the public interest, con-
venience, and necessity.
‘‘(c) RECOVERY OF LICENSE.—
‘‘(1) CONDITIONS
REQUIRED.—If the Commis-
sion grants a license for advanced television services
to a person that, as of the date of such issuance, is
licensed to operate a television broadcast station or
holds a permit to construct such a station (or both),
145
the Commission shall, as a condition of such license,
require that, upon a determination by the Commis-
sion pursuant to the regulations prescribed under
paragraph (2), either the additional license or the
original license held by the licensee be surrendered to
the Commission in accordance with such regulations
for reallocation or reassignment (or both) pursuant
to Commission regulation.
‘‘(2) CRITERIA.—The Commission shall prescribe
criteria for rendering determinations concerning li-
cense surrender pursuant to license conditions re-
quired by paragraph (1). Such criteria shall—
‘‘(A) require such determinations to be
based, on a market-by-market basis, on whether
the substantial majority of the public have ob-
tained television receivers that are capable of re-
ceiving advanced television services; and
‘‘(B) not require the cessation of the broad-
casting under either the original or additional
license if such cessation would render the tele-
vision receivers of a substantial portion of the
public useless, or otherwise cause undue burdens
on the owners of such television receivers.
‘‘(3) AUCTION OF RETURNED SPECTRUM.—Any
license surrendered under the requirements of this
146
subsection shall be subject to assignment by use of
competitive bidding pursuant to section 309(j), not-
withstanding any limitations contained in paragraph
(2) of such section.
‘‘(d) FEES.—
‘‘(1) SERVICES TO WHICH FEES APPLY.—If the
regulations prescribed pursuant to subsection (a) per-
mit a licensee to offer ancillary or supplementary
services on a designated frequency—
‘‘(A) for which the payment of a subscrip-
tion fee is required in order to receive such serv-
ices, or
‘‘(B) for which the licensee directly or indi-
rectly receives compensation from a third party
in return for transmitting material furnished by
such third party (other than commercial adver-
tisements used to support broadcasting for which
a subscription fee is not required),
the Commission shall establish a program to assess
and collect from the licensee for such designated fre-
quency an annual fee or other schedule or method of
payment that promotes the objectives described in sub-
paragraphs (A) and (B) of paragraph (2).
‘‘(2) COLLECTION OF FEES.—The program re-
quired by paragraph (1) shall—
147
‘‘(A) be designed (i) to recover for the public
a portion of the value of the public spectrum re-
source made available for such commercial use,
and (ii) to avoid unjust enrichment through the
method employed to permit such uses of that re-
source;
‘‘(B) recover for the public an amount that,
to the extent feasible, equals but does not exceed
(over the term of the license) the amount that
would have been recovered had such services been
licensed pursuant to the provisions of section
309(j) of this Act and the Commission’s regula-
tions thereunder; and
‘‘(C) be adjusted by the Commission from
time to time in order to continue to comply with
the requirements of this paragraph.
‘‘(3) TREATMENT OF REVENUES.—
‘‘(A) GENERAL RULE.—Except as provided
in subparagraph (B), all proceeds obtained pur-
suant to the regulations required by this sub-
section shall be deposited in the Treasury in ac-
cordance with chapter 33 of title 31, United
States Code.
‘‘(B) RETENTION OF REVENUES.—Notwith-
standing subparagraph (A), the salaries and ex-
148
penses account of the Commission shall retain as
an offsetting collection such sums as may be nec-
essary from such proceeds for the costs of devel-
oping and implementing the program required
by this section and regulating and supervising
advanced television services. Such offsetting col-
lections shall be available for obligation subject
to the terms and conditions of the receiving ap-
propriations account, and shall be deposited in
such accounts on a quarterly basis.
‘‘(4) REPORT.—Within 5 years after the date of
the enactment of this section, the Commission shall
report to the Congress on the implementation of the
program required by this subsection, and shall annu-
ally thereafter advise the Congress on the amounts
collected pursuant to such program.
‘‘(e) EVALUATION.—Within 10 years after the date the
Commission first issues additional licenses for advanced tel-
evision services, the Commission shall conduct an evalua-
tion of the advanced television services program. Such eval-
uation shall include—
‘‘(1) an assessment of the willingness of consum-
ers to purchase the television receivers necessary to re-
ceive broadcasts of advanced television services;
149
‘‘(2) an assessment of alternative uses, including
public safety use, of the frequencies used for such
broadcasts; and
‘‘(3) the extent to which the Commission has been
or will be able to reduce the amount of spectrum as-
signed to licensees.
‘‘(f) DEFINITIONS.—As used in this section:
‘‘(1) ADVANCED
TELEVISION
SERVICES.—The
term ‘advanced television services’ means television
services provided using digital or other advanced tech-
nology as further defined in the opinion, report, and
order of the Commission entitled ‘Advanced Television
Systems and Their Impact Upon the Existing Tele-
vision Broadcast Service’, MM Docket 87–268, adopt-
ed September 17, 1992, and successor proceedings.
‘‘(2) DESIGNATED
FREQUENCIES.—The term
‘designated frequency’ means each of the frequencies
designated by the Commission for licenses for ad-
vanced television services.
‘‘(3) HIGH DEFINITION TELEVISION.—The term
‘high definition television’ refers to systems that offer
approximately twice the vertical and horizontal reso-
lution of receivers generally available on the date of
enactment of this section, as further defined in the
150
proceedings described in paragraph (1) of this sub-
section.’’.
SEC. 302. BROADCAST OWNERSHIP.
(a) AMENDMENT.—Title III of the Act is amended by
inserting after section 336 (as added by section 301) the
following new section:
‘‘SEC. 337. BROADCAST OWNERSHIP.
‘‘(a) LIMITATIONS ON COMMISSION RULEMAKING AU-
THORITY.—Except as expressly permitted in this section,
the Commission shall not prescribe or enforce any regula-
tion—
‘‘(1) prohibiting or limiting, either nationally or
within any particular area, a person or entity from
holding any form of ownership or other interest in
two or more broadcasting stations or in a broadcast-
ing station and any other medium of mass commu-
nication; or
‘‘(2) prohibiting a person or entity from owning,
operating, or controlling two or more networks of
broadcasting stations or from owning, operating, or
controlling a network of broadcasting stations and
any other medium of mass communications.
‘‘(b) TELEVISION OWNERSHIP LIMITATIONS.—
‘‘(1) 
NATIONAL
AUDIENCE
REACH
LIMITA-
TIONS.—The Commission shall prohibit a person or
151
entity from obtaining any license if such license
would result in such person or entity directly or indi-
rectly owning, operating, or controlling, or having a
cognizable interest in, television stations which have
an aggregate national audience reach exceeding—
‘‘(A) 35 percent, for any determination
made under this paragraph before one year after
the date of enactment of this section; or
‘‘(B) 50 percent, for any determination
made under this paragraph on or after one year
after such date of enactment.
Within 3 years after such date of enactment, the Com-
mission shall conduct a study on the operation of this
paragraph and submit a report to the Congress on the
development of competition in the television market-
place and the need for any revisions to or elimination
of this paragraph.
‘‘(2) MULTIPLE LICENSES IN A MARKET.—
‘‘(A) IN GENERAL.—The Commission shall
prohibit a person or entity from obtaining any
license if such license would result in such person
or entity directly or indirectly owning, operat-
ing, or controlling, or having a cognizable inter-
est in, two or more television stations within the
same television market.
152
‘‘(B) EXCEPTION FOR MULTIPLE UHF STA-
TIONS AND FOR UHF-VHF COMBINATIONS.—Not-
withstanding subparagraph (A), the Commission
shall not prohibit a person or entity from di-
rectly or indirectly owning, operating, or con-
trolling, or having a cognizable interest in, two
television stations within the same television
market if at least one of such stations is a UHF
television, unless the Commission determines that
permitting such ownership, operation, or control
will harm competition or will harm the preser-
vation of a diversity of media voices in the local
television market.
‘‘(C) EXCEPTION
FOR
VHF-VHF
COMBINA-
TIONS.—Notwithstanding subparagraph (A), the
Commission may permit a person or entity to
directly or indirectly own, operate, or control, or
have a cognizable interest in, two VHF television
stations within the same television market, if the
Commission determines that permitting such
ownership, operation, or control will not harm
competition and will not harm the preservation
of a diversity of media voices in the local tele-
vision market.
153
‘‘(c) LOCAL CROSS-MEDIA OWNERSHIP LIMITS.—In a
proceeding to grant, renew, or authorize the assignment of
any station license under this title, the Commission may
deny the application if the Commission determines that the
combination of such station and more than one other
nonbroadcast media of mass communication would result
in an undue concentration of media voices in the respective
local market. In considering any such combination, the
Commission shall not grant the application if all the media
of mass communication in such local market would be
owned, operated, or controlled by two or fewer persons or
entities. This subsection shall not constitute authority for
the Commission to prescribe regulations containing local
cross-media ownership limitations. The Commission may
not, under the authority of this subsection, require any per-
son or entity to divest itself of any portion of any combina-
tion of stations and other media of mass communications
that such person or entity owns, operates, or controls on
the date of enactment of this section unless such person or
entity acquires another station or other media of mass com-
munications after such date in such local market.
‘‘(d) TRANSITION PROVISIONS.—Any provision of any
regulation prescribed before the date of enactment of this
section that is inconsistent with the requirements of this
section shall cease to be effective on such date of enactment.
154
The Commission shall complete all actions (including any
reconsideration) necessary to amend its regulations to con-
form to the requirements of this section not later than 6
months after such date of enactment. Nothing in this section
shall be construed to prohibit the continuation or renewal
of any television local marketing agreement that is in effect
on such date of enactment and that is in compliance with
Commission regulations on such date.’’.
(b) CONFORMING AMENDMENT.—Section 613(a) of the
Act (47 U.S.C. 533(a)) is repealed.
SEC. 303. FOREIGN INVESTMENT AND OWNERSHIP.
(a) STATION LICENSES.—Section 310(a) (47 U.S.C.
310(a)) is amended to read as follows:
‘‘(a) GRANT TO OR HOLDING BY FOREIGN GOVERN-
MENT OR REPRESENTATIVE.—No station license required
under title III of this Act shall be granted to or held by
any foreign government or any representative thereof. This
subsection shall not apply to licenses issued under such
terms and conditions as the Commission may prescribe to
mobile earth stations engaged in occasional or short-term
transmissions via satellite of audio or television program
material and auxilliary signals if such transmissions are
not intended for direct reception by the general public in
the United States.’’.
155
(b) TERMINATION OF FOREIGN OWNERSHIP RESTRIC-
TIONS.—Section 310 (47 U.S.C. 310) is amended by adding
at the end thereof the following new subsection:
‘‘(f) TERMINATION OF FOREIGN OWNERSHIP RESTRIC-
TIONS.—
‘‘(1) RESTRICTION NOT TO APPLY.—Subsection
(b) shall not apply to any common carrier license
granted, or for which application is made, after the
date of enactment of this subsection with respect to
any alien (or representative thereof), corporation, or
foreign government (or representative thereof) if—
‘‘(A) the President determines that the for-
eign country of which such alien is a citizen, in
which such corporation is organized, or in which
the foreign government is in control is party to
an international agreement which requires the
United States to provide national or most-fa-
vored-nation treatment in the grant of common
carrier licenses; or
‘‘(B) the Commission determines that not
applying subsection (b) would serve the public
interest.
‘‘(2) COMMISSION CONSIDERATIONS.—In making
its determination, under paragraph (1)(B), the Com-
mission may consider, among other public interest
156
factors, whether effective competitive opportunities are
available to United States nationals or corporations
in the applicant’s home market. In evaluating the
public interest, the Commission shall exercise great
deference to the President with respect to United
States national security, law enforcement require-
ments, foreign policy, the interpretation of inter-
national agreements, and trade policy (as well as di-
rect investment as it relates to international trade
policy). Upon receipt of an application that requires
a finding under this paragraph, the Commission shall
cause notice thereof to be given to the President or
any agencies designated by the President to receive
such notification.
‘‘(3) FURTHER COMMISSION REVIEW.—Except as
otherwise provided in this paragraph, the Commis-
sion may determine that any foreign country with re-
spect to which it has made a determination under
paragraph (1) has ceased to meet the requirements for
that determination. In making this determination,
the Commission shall exercise great deference to the
President with respect to United States national secu-
rity, law enforcement requirements, foreign policy, the
interpretation of international agreements, and trade
policy (as well as direct investment as it relates to
157
international trade policy). If a determination under
this paragraph is made then—
‘‘(A) subsection (b) shall apply with respect
to such aliens, corporation, and government (or
their representatives) on the date that the Com-
mission publishes notice of its determination
under this paragraph; and
‘‘(B) any license held, or application filed,
which could not be held or granted under sub-
section (b) shall be reviewed by the Commission
under the provisions of paragraphs (1)(B) and
(2).
‘‘(4) OBSERVANCE OF INTERNATIONAL OBLIGA-
TIONS.—Paragraph (3) shall not apply to the extent
the President determines that it is inconsistent with
any international agreement to which the United
States is a party.
‘‘(5) NOTIFICATIONS TO CONGRESS.—The Presi-
dent and the Commission shall notify the appropriate
committees of the Congress of any determinations
made under paragraph (1), (2), or (3).’’.
SEC. 304. TERM OF LICENSES.
Section 307(c) of the Act (47 U.S.C. 307(c)) is amend-
ed to read as follows:
‘‘(c) TERMS OF LICENSES.—
158
‘‘(1) INITIAL AND RENEWAL LICENSES.—Each li-
cense granted for the operation of a broadcasting sta-
tion shall be for a term of not to exceed seven years.
Upon application therefor, a renewal of such license
may be granted from time to time for a term of not
to exceed seven years from the date of expiration of
the preceding license, if the Commission finds that
public interest, convenience, and necessity would be
served thereby. Consistent with the foregoing provi-
sions of this subsection, the Commission may by rule
prescribe the period or periods for which licenses shall
be granted and renewed for particular classes of sta-
tions, but the Commission may not adopt or follow
any rule which would preclude it, in any case involv-
ing a station of a particular class, from granting or
renewing a license for a shorter period than that pre-
scribed for stations of such class if, in its judgment,
public interest, convenience, or necessity would be
served by such action.
‘‘(2) MATERIALS IN APPLICATION.—In order to
expedite action on applications for renewal of broad-
casting station licenses and in order to avoid needless
expense to applicants for such renewals, the Commis-
sion shall not require any such applicant to file any
information which previously has been furnished to
159
the Commission or which is not directly material to
the considerations that affect the granting or denial
of such application, but the Commission may require
any new or additional facts it deems necessary to
make its findings.
‘‘(3) CONTINUATION PENDING DECISION.—Pend-
ing any hearing and final decision on such an appli-
cation and the disposition of any petition for rehear-
ing pursuant to section 405, the Commission shall
continue such license in effect.’’.
SEC. 305. BROADCAST LICENSE RENEWAL PROCEDURES.
(a) AMENDMENT.—Section 309 of the Act (47 U.S.C.
309) is amended by adding at the end thereof the following
new subsection:
‘‘(k) BROADCAST STATION RENEWAL PROCEDURES.—
‘‘(1) STANDARDS FOR RENEWAL.—If the licensee
of a broadcast station submits an application to the
Commission for renewal of such license, the Commis-
sion shall grant the application if it finds, with re-
spect to that station, during the preceding term of its
license—
‘‘(A) the station has served the public inter-
est, convenience, and necessity;
160
‘‘(B) there have been no serious violations
by the licensee of this Act or the rules and regu-
lations of the Commission; and
‘‘(C) there have been no other violations by
the licensee of this Act or the rules and regula-
tions of the Commission which, taken together,
would constitute a pattern of abuse.
‘‘(2) CONSEQUENCE
OF
FAILURE
TO
MEET
STANDARD.—If any licensee of a broadcast station
fails to meet the requirements of this subsection, the
Commission may deny the application for renewal in
accordance with paragraph (3), or grant such appli-
cation on terms and conditions as are appropriate,
including renewal for a term less than the maximum
otherwise permitted.
‘‘(3) STANDARDS FOR DENIAL.—If the Commis-
sion determines, after notice and opportunity for a
hearing as provided in subsection (e), that a licensee
has failed to meet the requirements specified in para-
graph (1) and that no mitigating factors justify the
imposition of lesser sanctions, the Commission shall—
‘‘(A) issue an order denying the renewal ap-
plication filed by such licensee under section 308;
and
161
‘‘(B) only thereafter accept and consider
such applications for a construction permit as
may be filed under section 308 specifying the
channel or broadcasting facilities of the former
licensee.
‘‘(4) 
COMPETITOR
CONSIDERATION
PROHIB-
ITED.—In making the determinations specified in
paragraph (1) or (2), the Commission shall not con-
sider whether the public interest, convenience, and ne-
cessity might be served by the grant of a license to a
person other than the renewal applicant.’’.
(b) CONFORMING AMENDMENT.—Section 309(d) of the
Act (47 U.S.C. 309(d)) is amended by inserting after ‘‘with
subsection (a)’’ each place such term appears the following:
‘‘(or subsection (k) in the case of renewal of any broadcast
station license)’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to any application for renewal filed on
or after May 31, 1995.
SEC. 306. EXCLUSIVE FEDERAL JURISDICTION OVER DI-
RECT BROADCAST SATELLITE SERVICE.
Section 303 of the Act (47 U.S.C. 303) is amended by
adding at the end thereof the following new subsection:
‘‘(v) Have exclusive jurisdiction over the regulation of
the direct broadcast satellite service.’’.