pany, affiliate, or separated affiliate shall be liable as
provided in section 206 of this Act (47 U.S.C. 207);
except that damages may not be awarded for a viola-
tion that is discovered by a compliance review as re-
quired by subsection (b)(8) or (c)(9) 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.
‘‘(o) ANTITRUST LAWS.—Nothing in this section shall
be construed to modify, impair, or supersede the applicabil-
ity of any of the antitrust laws.
‘‘(p) EQUAL
EMPLOYMENT
OPPORTUNITIES.—Any
Bell operating company, and any affiliate or joint venture
or other business partner of a Bell operating company, that
is engaged in the provision of electronic publishing shall
be subject to the provisions of section 634 of this Act, except
that the Commission shall prescribe by regulation appro-
priate job classifications in lieu of the job classifications
in subsection (d)(3)(A) of such section.
‘‘(q) DEFINITIONS.—As used in this section—
‘‘(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
any wireline telephone exchange service or wireline
telephone exchange facility provided by a Bell operat-
ing company in a telephone exchange area, except—
‘‘(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 provided
by an affiliate that is required by the Commis-
sion to be a corporate entity separate from the
Bell operating company.
‘‘(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)(A) The term ‘electronic publishing’ means
the dissemination, provision, publication, or sale to
an unaffiliated entity or person, using a Bell operat-
ing company’s basic telephone service of—
‘‘(i) news,
‘‘(ii) business, financial, legal, consumer, or
credit material;
‘‘(iii) editorials;
‘‘(iv) columns;
‘‘(v) sports reporting;
‘‘(vi) features;
‘‘(vii) advertising;
‘‘(viii) photos or images;
‘‘(ix) archival or research material;
‘‘(x) legal notices or public records;
‘‘(xi) scientific, educational, instructional,
technical, professional, trade, or other literary
materials; or
‘‘(xii) other like or similar information.
‘‘(B) The term ‘electronic publishing’ shall not
include the following network services:
‘‘(i) ‘Information access’ as that term is de-
fined by the Modification of Final Judgment.
‘‘(ii) The transmission of information as a
common carrier.
‘‘(iii) 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.
‘‘(iv) Voice storage and retrieval services,
including voice messaging and electronic mail
services.
‘‘(v) Level 2 gateway services as those serv-
ices are defined by the Commission’s Second Re-
port and Order, Recommendation to Congress
and Second Further Notice of Proposed Rule-
making in CC Docket No. 87–266 dated August
14, 1992.
‘‘(vi) Data processing services that do not
involve the generation or alteration of the con-
tent of information.
‘‘(vii) Transaction processing systems that
do not involve the generation or alteration of the
content of information.
‘‘(viii) Electronic billing or advertising of a
Bell operating company’s regulated telecommuni-
cations services.
‘‘(ix) Language translation.
‘‘(x) Conversion of data from one format to
another.
‘‘(xi) The provision of information nec-
essary for the management, control, or operation
of a telephone company telecommunications sys-
tem.
‘‘(xii) The provision of directory assistance
that provides names, addresses, and telephone
numbers and does not include advertising.
‘‘(xiii) Caller identification services.
‘‘(xiv) Repair and provisioning databases
for telephone company operations.
‘‘(xv) Credit card and billing validation for
telephone company operations.
‘‘(xvi) 911–E and other emergency assist-
ance databases.
‘‘(xvii) 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.
‘‘(xviii) Any upgrades to these network serv-
ices that do not involve the generation or alter-
ation of the content of information.
‘‘(C) The term ‘electronic publishing’ also shall
not include—
‘‘(i) full motion video entertainment on de-
mand; and
‘‘(ii) video programming as defined in sec-
tion 602 of the Communications Act of 1934.
‘‘(6) 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.
‘‘(7) The term ‘entity’ means any organization,
and includes corporations, partnerships, sole propri-
etorships, associations, and joint ventures.
‘‘(8) The term ‘inbound telemarketing’ means the
marketing of property, goods, or services by telephone
to a customer or potential customer who initiated the
call.
‘‘(9) 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.
‘‘(10) 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.
‘‘(11) The term ‘Bell operating company’ means
the corporations subject to the Modification of Final
Judgment and listed in Appendix A thereof, or any
entity owned or controlled by such corporation, or
any successor or assign of such corporation, but does
not include an electronic publishing joint venture
owned by such corporation or entity.’’.
SEC. 204. PRIVACY OF CUSTOMER INFORMATION.
(a) PRIVACY OF CUSTOMER PROPRIETARY NETWORK
INFORMATION.—
(1) AMENDMENT.—Title II of the Communica-
tions Act of 1934 is amended by adding at the end
the following new section:
‘‘SEC. 232. PRIVACY OF CUSTOMER PROPRIETARY NETWORK
INFORMATION.
‘‘(a) DUTY TO PROVIDE SUBSCRIBER LIST INFORMA-
TION.—Notwithstanding subsections (b), (c), and (d), a car-
rier that provides subscriber list information to any affili-
ated or unaffiliated service provider or person shall provide
subscriber list information on a timely and unbundled
basis, under nondiscriminatory and reasonable rates, terms,
and conditions, to any person upon request.
‘‘(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 communications services, (ii) in
the provision of a service necessary to or used in
the provision of common carrier communications
services, or (iii) to continue to provide a particu-
lar information service that the carrier provided
as of March 15, 1994 to persons who were cus-
tomers 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 service from which such information is de-
rived;
‘‘(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, or whenever such carrier pro-
vides any compiled information derived from cus-
tomer proprietary network information or any data
base to any person to whom disclosure is permitted
by paragraph (1), notify the Commission of the avail-
ability of such aggregate information or compiled in-
formation and shall—
‘‘(A) provide such aggregate information on
reasonable terms and conditions to any other
service or equipment provider upon reasonable
request therefor; and
‘‘(B) provide such compiled information on
reasonable terms and conditions to any other
person to whom disclosure is permitted by para-
graph (1) 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 or
compiled 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 subparagraph (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) REGULATIONS.—The Commission shall prescribe
regulations to carry out this section within 1 year after the
date of its enactment.
‘‘(f) DEFINITION OF AGGREGATE INFORMATION.—For
purposes of this section, the term ‘aggregate information’
means collective data that relates to a group or category
of services or customers, from which individual customer
identities and characteristics have been removed.’’.
(2) CONFORMING AMENDMENT.—Section 3 of the
Communications Act of 1934 (47 U.S.C. 153) is
amended by adding at the end the following:
‘‘(gg) ‘Customer proprietary network information’
means—
‘‘(1) information which relates to the quantity,
technical 
configuration, 
type, 
destination, 
and
amount of use of telephone exchange service or tele-
phone toll service subscribed to by any customer of a
carrier, and is made available to the carrier by the
customer solely by virtue of the carrier-customer rela-
tionship;
‘‘(2) information contained in the bills pertain-
ing to telephone exchange service or telephone toll
service received by a customer of a carrier; and
‘‘(3) such other information concerning the cus-
tomer as is available to the local exchange carrier by
virtue of the customer’s use of the carrier’s telephone
exchange service or interexchange telephone services,
and specified as within the definition of such term by
such rules as the Commission shall prescribe consist-
ent with the public interest;
except that such term does not include subscriber list infor-
mation.
‘‘(hh) ‘Subscriber list information’ means any infor-
mation—
‘‘(1) identifying the names of subscribers of a
carrier and such subscribers’ telephone numbers, ad-
dresses, or advertising classifications, or any com-
bination of such names, numbers, addresses, or classi-
fications; and
‘‘(2) that the carrier or an affiliate has published
or accepted for future publication.’’.
(b) IMPACT OF CONVERGING COMMUNICATIONS TECH-
NOLOGIES ON CONSUMER PRIVACY.—
(1) PROCEEDING REQUIRED.—Within one year
after the date of enactment of this Act, the Commis-
sion 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).
TITLE 
III—FEDERAL 
COMMU-
NICATIONS COMMISSION RE-
SOURCES
SEC. 301. 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 purposes of section
9(b)(2), additional amounts appropriated pursuant to sub-
section (a) shall be construed to be changes in the amounts
appropriated for the performance of activities described in
section 9(a).
SECTION 1. SHORT TITLES.
(a) SHORT TITLE OF THIS ACT.—This Act
may be cited as the ‘‘Antitrust and Commu-
nications Reform Act of 1994’’.
(b) SHORT TITLES
OF DIVISIONS
OF THIS
ACT.—(1) Title I of this Act may be cited as the
‘‘Antitrust Reform Act of 1994’’.
(2) Title II of this Act may be cited as the
‘‘Communications Reform Act of 1994’’.
TITLE I—SUPERSESSION OF THE
MODIFICATION 
OF 
FINAL
JUDGMENT
SEC. 101. AUTHORIZATION FOR BELL OPERATING COM-
PANY TO ENTER COMPETITIVE LINES OF
BUSINESS.
(a) APPLICATION.—
(1) IN GENERAL.—After the applicable
date specified in paragraph (2), a Bell op-
erating company may apply to the Attor-
ney General and the Federal Communica-
tions Commission for authorization, not-
withstanding the Modification of Final
Judgment—
(A) to provide alarm monitoring
services, or
(B) to provide interexchange tele-
communications services.
The application shall describe with par-
ticularity the nature and scope of the ac-
tivity, and of each product market or
service market, and each geographic
market, 
for 
which 
authorization 
is
sought.
(2) APPLICABLE DATES.—For purposes
of paragraph (1), the applicable date after
which a Bell operating company may
apply for authorization shall be—
(A) the date of the enactment of
this Act, with respect to providing
interexchange 
telecommunications
services, and
(B) 
the 
date 
that 
occurs 
months after the date of the enact-
ment of this Act, with respect to pro-
viding alarm monitoring services.
(3) INTERAGENCY NOTIFICATION.—When-
ever the Attorney General or the Federal
Communications Commission receives an
application made under paragraph (1),
the recipient of the application shall no-
tify the other of such receipt.
(4) PUBLICATION.—Not later than 10
days after receiving an application made
under paragraph (1), the Attorney Gen-
eral and the Federal Communications
Commission jointly shall publish the ap-
plication in the Federal Register.
(b) SEPARATE DETERMINATIONS BY THE AT-
TORNEY GENERAL
AND
THE FEDERAL COMMU-
NICATIONS COMMISSION.—
(1) COMMENT PERIOD.—Not later than
45 days after an application is published
under subsection (a)(4), interested per-
sons may submit written comments to the
Attorney General, to the Federal Commu-
nications Commission, or to both regard-
ing the application. Submitted comments
shall be available to the public.
(2) INTERAGENCY
CONSULTATION.—Be-
fore making their respective determina-
tions under paragraph (3), the Attorney
General and the Federal Communications
Commission shall consult with each other
regarding the application involved.
(3) DETERMINATIONS.—(A) After the
time for comment under paragraph (1)
has expired, but not later than 180 days
after 
receiving 
an 
application 
made
under subsection (a)(1), the Attorney
General and the Federal Communications
Commission each shall issue separately a
written determination, on the record
after an opportunity for a hearing, with
respect to granting the authorization for
which the Bell operating company has
applied.
(B) Such determination shall be based
on a preponderence of the evidence.
(C) Any person who would be threat-
ened with loss or damage as a result of
the approval of the authorization re-
quested shall be permitted to participate
as a party in the proceeding on which the
determination is based.
(D)(i) The Attorney General shall ap-
prove the granting of the authorization
requested in the application only to the
extent that the Attorney General finds
that there is no substantial possibility
that such company or its affiliates could
use monopoly power to impede competi-
tion in the market such company seeks to
enter. The Attorney General shall deny
the remainder of the requested author-
ization.
(ii) 
The 
Federal 
Communications
Commission shall approve the granting of
the requested authorization only to the
extent that the Commission finds that
granting the requested authorization is
consistent with the public interest, con-
venience, and necessity. The Commission
shall deny the remainder of the re-
quested authorization.
(iii) Notwithstanding clauses (i) and
(ii), within 180 days after the date of the
enactment of this Act, the Attorney Gen-
eral and the Federal Communications
Commission shall each prescribe regula-
tions to establish procedures and criteria
for the expedited determination and ap-
proval of applications for authorization
to provide interexchange telecommuni-
cations services that are incidental to the
provision of another service which the
Bell operating company may lawfully
provide. Before prescribing such regula-
tions, the Attorney General and the Com-
mission shall consult with respect to such
regulations.
(E) 
In 
making 
its 
determination
under subparagraph (D)(ii) regarding the
public interest, convenience, and neces-
sity, the Commission shall take into ac-
count—
(i) the probability that granting
the requested authorization will se-
cure reduced rates for consumers of
the services that are the subject of
the application, especially residential
subscribers,
(ii) 
whether 
granting 
the 
re-
quested authorization will result in
increases in rates for consumers of
exchange service,
(iii) the extent to which granting
the requested authorization will ex-
pedite the delivery of new services
and products to consumers,
(iv) the extent to which the Com-
mission’s regulations, or other laws
or regulations, will preclude the ap-
plicant from engaging in predatory
pricing or other anticompetitive eco-
nomic practices with respect to the
services that are the subject of the
application,
(v) the extent to which granting
the requested authorization will per-
mit collusive acts or practices be-
tween or among Bell operating com-
panies that are not affiliates of each
other,
(vi) whether granting the re-
quested authorization will result, di-
rectly or indirectly, in increasing con-
centration among providers of the
service that is the subject of the ap-
plication to such an extent that con-
sumers will not be protected from
rates that are unjust or unreasonable
or that are unjustly or unreasonably
discriminatory, and
(vii) in the case of an application
to provide alarm monitoring services,
whether the Commission has the ca-
pability to enforce effectively the reg-
ulations established pursuant to sec-
tion 230 of the Communications Act
of 1934 as added by this Act.
(F) A determination that approves the
granting of any part of a requested au-
thorization shall describe with particu-
larity the nature and scope of the activ-
ity, and of each product market or serv-
ice market, and each geographic market,
to which approval applies.
(4) PUBLICATION.—Not later than 10
days after issuing a determination under
paragraph (3), the Attorney General or
the Federal Communications Commis-
sion, as the case may be, shall publish in
the Federal Register a brief description
of the determination.
(5) FINALITY.—A determination made
under paragraph (3) shall be final unless
a civil action with respect to such deter-
mination is timely commenced under sub-
section (c)(1).
(6) AUTHORIZATION
GRANTED.—A re-
quested authorization is granted to the
extent that—
(A)(i) both the Attorney General
and 
the 
Federal 
Communications
Commission 
approve 
under 
para-
graph (3) the granting of the author-
ization, and
(ii) neither of their approvals is
vacated or reversed as a result of ju-
dicial 
review 
authorized 
by 
sub-
section (c), or
(B) as a result of such judicial re-
view of either or both determinations,
both the Attorney General and the
Federal Communications Commission
approve the granting of the requested
authorization.
(c) JUDICIAL REVIEW.—
(1) COMMENCEMENT
OF
ACTION.—Not
later than 45 days after a determination
by the Attorney General or the Federal
Communications 
Commission 
is 
pub-
lished under subsection (b)(4), the Bell
operating company that applied to the
Attorney General and the Federal Com-
munications 
Commission 
under 
sub-
section (a), or any person who would be
threatened with loss or damage as a re-
sult of the determination regarding such
company’s engaging in the activity de-
scribed in such company’s application,
may commence an action in the United
States Court of Appeals for the District of
Columbia Circuit against the Attorney
General or the Federal Communications
Commission, as the case may be, for judi-
cial review of the determination regard-
ing the application.
(2) CERTIFICATION OF RECORD.—As part
of the answer to the complaint, the Attor-
ney General or the Federal Communica-
tions Commission, as the case may be,
shall file in such court a certified copy of
the record upon which the determination
is based.
(3) CONSOLIDATION
OF
ACTIONS.—The
court shall consolidate for review all civil
actions commenced under this subsection
with respect to the application.
(4) JUDGMENT.—(A) The court shall
enter a judgment after reviewing the de-
termination in accordance with section
706 of title 5 of the United States Code.
(B) A judgment—
(i) affirming any part of the deter-
mination that approves granting all
or part of the requested authoriza-
tion, or
(ii) reversing any part of the de-
termination that denies all or part of
the requested authorization,
shall describe with particularity the na-
ture and scope of the activity, and of
each product market or service market,
and each geographic market, to which
the affirmance or reversal applies.
SEC. 102. AUTHORIZATION AS PREREQUISITE.
(a) PREREQUISITE.—Until a Bell operating
company is so authorized in accordance with
section 101, it shall be unlawful for such com-
pany, directly or through an affiliated enter-
prise, to engage in an activity described in
section 101(a)(1).
(b) EXCEPTIONS.—Except with respect to
providing alarm monitoring services, sub-
section (a) shall not prohibit a Bell operating
company from engaging, at any time after the
date of the enactment of this Act—
(1) 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—
(A) such order was entered on or
before the date of the enactment of
this Act, or
(B) a request for such authoriza-
tion was pending before such court
on the date of the enactment of this
Act,
(2) 
in 
providing 
intrastate
interexchange telecommunications serv-
ices if—
(A) after the date of the enact-
ment of this Act, the State involved
approves or authorizes such company
to provide such services, after taking
into account the potential effects of
such approval or authorization on
competition and the public interest,
(B) not less than 120 days before
such company offers to provide such
services, such company gives notice
to the public and the Attorney Gen-
eral that such approval or authoriza-
tion is final and that all time for any
State appeal or review has expired,
and
(C) the Attorney General fails to
commence a civil action in accord-
ance with subsection (c) to enjoin
such company from providing such
services,
(3) in providing interexchange tele-
communications services through resale
of 
telecommunications 
services 
pur-
chased from a person who is not an affili-
ated enterprise of such company if—
(A) the State involved approves or
authorizes persons that are not affili-
ated enterprises of such company to
provide 
intraexchange 
toll 
tele-
communications services in such a
manner that customers in such State
have the ability to route automati-
cally, without the use of any access
code, their intraexchange toll tele-
communications to the telecommuni-
cations services provider of the cus-
tomer’s designation from among 2 or
more 
telecommunications 
services
providers (including such company),
(B) not less than 120 days before
such 
company 
so 
provides 
such
interexchange 
telecommunications
services, such company gives notice
to the public and the Attorney Gen-
eral that such approval or authoriza-
tion is final and that all time for any
State appeal or review has expired,
and
(C) the Attorney General fails to
commence a civil action in accord-
ance with subsection (c) to enjoin
such company from so providing such
interexchange 
telecommunications
services,
(4) in providing interexchange tele-
communication services to provide cable
service if such telecommunication serv-
ices are provided using receive-only an-
tennas, satellite master antenna tele-
vision facilities, and satellite earth sta-
tions, owned and operated solely for the
purpose of providing such cable service,
100
(5) in providing interexchange tele-
communication services to provide cable
service within any cable system serving a
franchised territory,
(6) in providing interexchange tele-
communication services to provide sat-
ellite transmission of cable television pro-
gramming from a satellite uplink site to
cable systems or video dialtone systems,
solely for the purpose of providing cable
service, and
(7) in providing interexchange tele-
communication services—
(A) 
to 
provide 
interexchange
intersystem handoff of wireless mo-
bile radio transmission between adja-
cent wireless systems to allow the
continuation of calls in progress with-
out interruption or degradation of
service due to the movement of the
mobile telephone unit or the charac-
teristics of radio propagation,
(B) to carry data concerning—
101
(i) the location and status of a
customer’s wireless mobile radio
unit, and
(ii) the customer’s instruc-
tions for the handling of incoming
communications 
between 
such
company’s wireless mobile radio
system and a wireless system lo-
cated in another exchange area,
whenever such customer is located
beyond the boundaries of the wireless
system to which such customer is
subscribed, or
(C) to provide for the origination
of one-way paging messages and for
access to voice storage and retrieval
services provided by such company in
conjunction with its paging services,
if such company provides commercial
mobile service in any exchange area in-
volved, if the transmission facilities used
to 
provide 
such 
interexchange 
tele-
communication services are leased by
such company on terms and conditions
(including price) no more favorable than
102
those available to the competitors of such
company, and if such company provides
exchange access and interconnection to
such commercial mobile service on terms
and conditions (including price) no more
favorable than those offered by the com-
petitors of such company.
(c) CIVIL ACTION.—(1) For the purpose of
paragraph (2) or (3) of subsection (b), the At-
torney General may commence a civil action,
not later than 120 days after receiving the no-
tice required by subparagraph (B) of such
paragraph, to enjoin such company from pro-
viding 
interexchange 
telecommunications
services pursuant to such paragraph if the At-
torney General determines that there is a sub-
stantial possibility that such company or its
affiliates could use monopoly power to im-
pede competition in the market it seeks to
enter with respect to such interexchange tele-
communications services.
(2) In the 10-day period beginning—
(A) on the date a civil action is com-
menced under paragraph (1), or
103
(B) 120 days after receiving such no-
tice,
whichever is earlier, the Attorney General
shall publish in the Federal Register the de-
termination that the Attorney General has
made with respect to the existence of such
substantial possibility.
SEC. 103. LIMITATIONS ON MANUFACTURING AND PROVID-
ING EQUIPMENT.
(a) ABSOLUTE LIMITATION.—Until the expi-
ration of the 1-year period beginning on the
date of the enactment of this Act, it shall be
unlawful for a Bell operating company, di-
rectly or through an affiliated enterprise, to
manufacture or provide telecommunications
equipment, or to manufacture customer prem-
ises equipment.
(b) QUALIFIED LIMITATION.—
(1) REQUIRED
CONDITIONS.—After the
expiration of the 1-year period beginning
on the date of the enactment of this Act,
it shall be lawful for a Bell operating
company, directly or through an affili-
ated enterprise, to manufacture or pro-
vide telecommunications equipment, or
104
to manufacture customer premises equip-
ment, only as described in a notification
to the Attorney General that meets the
requirements of paragraph (2) and only
if—
(A) such company submits to the
Attorney General, at any time after
the date of the enactment of this Act,
the notification described in para-
graph (2) and such additional mate-
rial and information described in
such paragraph as the Attorney Gen-
eral may request, and complies with
the waiting period specified in para-
graph (3), and
(B)(i) the waiting period specified
in paragraph (3) expires without the
commencement of a civil action by
the Attorney General in accordance
with paragraph (4) to enjoin such
company from engaging in the activ-
ity described in such notification, or
(ii) before the expiration of such
waiting period, the Attorney General
notifies such company in writing that
105
the Attorney General does not intend
to commence such a civil action with
respect to such activity.
(2) NOTIFICATION.—The notification re-
quired by paragraph (1) shall be in such
form and shall contain such documentary
material and information relevant to the
proposed activity as is necessary and ap-
propriate for the Attorney General to de-
termine whether there is no substantial
possibility that such company or its affili-
ates could use monopoly power to impede
competition in the market such company
seeks to enter for such activity.
(3) WAITING PERIOD.—The waiting pe-
riod referred to in paragraph (1) is the 1-
year period beginning on the date the no-
tification required by such paragraph is
received by the Attorney General.
(4) CIVIL
ACTION.—Not later than 1
year after receiving a notification re-
quired by paragraph (1), the Attorney
General may commence a civil action in
an appropriate district court of the Unit-
ed States to enjoin the Bell operating
106
company from engaging in the activity
described in such notification, if the At-
torney General determines that there is a
substantial possibility that such company
or its affiliates could use monopoly power
to impede competition in the market it
seeks to enter with respect to such activ-
ity.
(c) EXCEPTION FOR PREVIOUSLY AUTHORIZED
ACTIVITIES.—Subsections (a) and (b) shall not
prohibit a Bell operating company from en-
gaging, at any time after the date of the enact-
ment of this Act, in any activity as authorized
by an order entered by the United States Dis-
trict Court for the District of Columbia pursu-
ant to section VII or VIII(C) of the Modifica-
tion of Final Judgment, if—
(1) such order was entered on or be-
fore the date of the enactment of this Act,
or
(2) a request for such authorization
was pending before such court on the
date of the enactment of this Act.
107
SEC. 104. ANTICOMPETITIVE TYING ARRANGEMENTS.
A Bell operating company with monopoly
power in any exchange service market shall
not tie (directly or indirectly) in any relevant
market the sale of any product or service to
the provision of any telecommunications serv-
ice, if the effect of such tying may be to sub-
stantially lessen competition, or to tend to
create a monopoly, in any line of commerce.
SEC. 105. ENFORCEMENT.
(a) EQUITABLE POWERS OF UNITED STATES
ATTORNEYS.—It shall be the duty of the several
United States attorneys, under the direction
of the Attorney General, to institute proceed-
ings in equity in their respective districts to
prevent and restrain violations of this Act.
(b) CRIMINAL LIABILITY.—Whoever know-
ingly engages or knowingly attempts to en-
gage in an activity that is prohibited by sec-
tion 102, 103, or 104 shall be guilty of a felony,
and on conviction thereof, shall be punished
to the same extent as a person is punished
upon conviction of a violation of section 1 of
the Sherman Act (15 U.S.C. 1).
108
(c) PRIVATE RIGHT OF ACTION.—Any person
who is injured in its business or property by
reason of a violation of this Act—
(1) may bring a civil action in any dis-
trict court of the United States in the dis-
trict in which the defendant resides or is
found or has an agent, without respect to
the amount in controversy, and
(2) shall recover threefold the dam-
ages sustained, and the cost of suit (in-
cluding a reasonable attorney’s fee).
The court may award under this section, pur-
suant to a motion by such person promptly
made, simple interest on actual damages for
the period beginning on the date of service of
such person’s pleading setting forth a claim
under this Act and ending on the date of judg-
ment, or for any shorter period therein, if the
court finds that the award of such interest for
such period is just in the circumstances.
(d) PRIVATE INJUNCTIVE RELIEF.—Any per-
son shall be entitled to sue for and have in-
junctive relief, in any court of the United
States having jurisdiction over the parties,
against threatened loss or damage by a viola-
109
tion of this Act, when and under the same con-
ditions and principles as injunctive relief is
available under section 16 of the Clayton Act
(15 U.S.C. 26). In any action under this sub-
section in which the plaintiff substantially
prevails, the court shall award the cost of suit,
including a reasonable attorney’s fee, to such
plaintiff.
(e) JURISDICTION.—(1) Subject to para-
graph (2), the courts of the United States shall
have exclusive jurisdiction to make deter-
minations with respect to a duty, claim, or
right arising under this Act, other than deter-
minations authorized to be made by the Attor-
ney General and the Federal Communications
Commission under section 101(b)(3).
(2) The United States Court of Appeals for
the District of Columbia shall have exclusive
jurisdiction to review determinations made
under section 101(b)(3).
(3) No action commenced to assert or en-
force a duty, claim, or right arising under this
Act shall be stayed pending any such deter-
mination by the Attorney General or the Fed-
eral Communications Commission.
110
(f) SUBPOENAS.—In an action commenced
under this Act, a subpoena requiring the at-
tendance of a witness at a hearing or a trial
may be served at any place within the United
States.
(g) APPLICABILITY OF OTHER LAWS TO EN-
FORCEMENT OF THIS TITLE.—
(1) SECTION 5 OF THE CLAYTON ACT.—
Section 5 of the Clayton Act (15 U.S.C. 16)
shall apply with respect to actions under
this section brought by or on behalf of
the United States.
(2) ANTITRUST CIVIL PROCESS ACT.—Sec-
tion 2(a) of the Antitrust Civil Process
Act (15 U.S.C. 1311(a)) is amended—
(A) in paragraph (1) by striking
‘‘and’’ at the end,
(B) in paragraph (2) by striking
the period at the end and inserting
‘‘and’’, and
(C) by adding at the end the fol-
lowing:
‘‘(3) title I of the Antitrust and
Communications 
Reform 
Act 
of
1994.’’.
111
SEC. 106. DEFINITIONS.
For purposes of this title:
(1) AFFILIATE.—The term ‘‘affiliate’’
means a person that (directly or indi-
rectly) owns or controls, is owned or con-
trolled by, or is under common owner-
ship or control with, another person. For
purposes of this paragraph, to own refers
to owning an equity interest (or the
equivalent thereof) of more than 50 per-
cent.
(2) AFFILIATED ENTERPRISE.—The term
‘‘affiliated enterprise’’ has the meaning
given such term under the Modification
of Final Judgment.
(3) 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 located at or about such
premises regarding a possible threat
at such premises to life, safety, or
property, from burglary, fire, vandal-
112
ism, bodily injury, or other emer-
gency, 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 condition.
(4) ANTITRUST LAWS.—The term ‘‘anti-
trust laws’’ has the meaning given it in
subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)), except that
such term includes the Act of June 19,
1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.),
commonly known as the Robinson Pat-
man Act, and section 5 of the Federal
Trade Commission Act (15 U.S.C. 45) to
113
the extent that such section 5 applies to
unfair methods of competition.
(5) BELL
OPERATING
COMPANY.—The
term ‘‘Bell operating company’’ means—
(A) Bell Telephone Company of
Nevada, Illinois Bell Telephone Com-
pany, Indiana Bell Telephone Com-
pany, Incorporated, Michigan Bell
Telephone Company, New England
Telephone and Telegraph Company,
New Jersey Bell Telephone Company,
New York Telephone Company, US
West 
Communications 
Company,
South Central Bell Telephone Com-
pany, Southern Bell Telephone and
Telegraph 
Company, 
Southwestern
Bell Telephone Company, The Bell
Telephone Company of Pennsylvania,
The Chesapeake and Potomac Tele-
phone Company, The Chesapeake and
Potomac 
Telephone 
Company 
of
Maryland, The Chesapeake and Poto-
mac Telephone Company of Virginia,
The Chesapeake and Potomac Tele-
phone Company of West Virginia, The
114
Diamond State Telephone Company,
The Ohio Bell Telephone Company,
The Pacific Telephone and Telegraph
Company, or Wisconsin Telephone
Company,
(B) any successor or assign of any
such company, or
(C) any affiliate of any person de-
scribed in subparagraph (A) or (B).
(6) CABLE
SERVICE.—The term ‘‘cable
service’’ has the meaning given such term
in section 602 of the Communications Act
of 1934 (47 U.S.C. 522).
(7) CARRIER.—The term ‘‘carrier’’ has
the meaning given such term in section 3
of the Communications Act of 1934 (47
U.S.C. 153).
(8) COMMERCIAL MOBILE SERVICE.—The
term ‘‘commercial mobile service’’ has the
meaning given such term in section 332
of the Communications Act of 1934 (47
U.S.C. 332).
(9) CUSTOMER
PREMISES
EQUIPMENT.—
The term ‘‘customer premises equipment’’
means equipment employed on the prem-
115
ises of a person (other than a carrier) to
originate, 
route, 
or 
terminate 
tele-
communications, and includes software
integral to such equipment.
(10) 
ELECTRONIC
PUBLISHING.—The
term ‘‘electronic publishing’’ means the
provision via telecommunications, by a
Bell operating company or an affiliate of
such company to a person other than an
affiliate of such company, of informa-
tion—
(A) which such company or affili-
ate has, or has caused to be, origi-
nated, authored, compiled, collected,
or edited, or
(B) in which such company or af-
filiate has a direct or indirect finan-
cial or proprietary interest.
(11) EXCHANGE ACCESS.—The term ‘‘ex-
change access’’ means exchange services
provided for the purpose of originating
or 
terminating 
interexchange 
tele-
communications.
(12) EXCHANGE
AREA.—The term ‘‘ex-
change area’’ means a contiguous geo-
116
graphic area established by a Bell operat-
ing company such that no exchange area
includes points within more than 1 met-
ropolitan statistical area, consolidated
metropolitan statistical area, or State, ex-
cept as expressly permitted under the
Modification of Final Judgment before
the date of the enactment of this Act.
(13) EXCHANGE
SERVICE.—The term
‘‘exchange service’’ means a telecommuni-
cations service provided within an ex-
change area.
(14) INFORMATION.—The term ‘‘infor-
mation’’ means knowledge or intelligence
represented by any form of writing, signs,
signals, pictures, sounds, or other sym-
bols.
(15) 
INTEREXCHANGE
TELECOMMUNI-
CATIONS.—The term ‘‘interexchange tele-
communications’’ 
means 
telecommuni-
cations between a point located in an ex-
change area and a point located outside
such exchange area. Such term does not
include alarm monitoring services or
electronic publishing.
117
(16) MANUFACTURE.—The term ‘‘manu-
facture’’ has the meaning given such term
under the Modification of Final Judg-
ment.
(17) MODIFICATION
OF
FINAL
JUDG-
MENT.—The term ‘‘Modification of Final
Judgment’’ means the order entered Au-
gust 24, 1982, in the antitrust action
styled United States v. Western Electric,
Civil Action No. 82–0192, in the United
States District Court for the District of
Columbia, and includes any judgment or
order with respect to such action entered
on or after August 24, 1982.
(18) PERSON.—The term ‘‘person’’ has
the meaning given it in subsection (a) of
the first section of the Clayton Act (15
U.S.C. 12(a)).
(19) STATE.—The term ‘‘State’’ means
any of the several States, the District of
Columbia, the Commonwealth of Puerto
Rico, the Commonwealth of the Northern
Mariana Islands, the Federated States of
Micronesia, the Republic of the Marshall
118
Islands, Palau, or any territory or posses-
sion of the United States.
(20) TELECOMMUNICATIONS.—The term
‘‘telecommunications’’ means the trans-
mission of information between points by
electromagnetic means.
(21) 
TELECOMMUNICATIONS
EQUIP-
MENT.—The 
term 
‘‘telecommunications
equipment’’ means equipment, other than
customer premises equipment, used by a
carrier to provide a telecommunications
service, and includes software integral to
such equipment.
(22) TELECOMMUNICATIONS
SERVICE.—
The term ‘‘telecommunications service’’
means the offering for hire of trans-
mission facilities or of telecommuni-
cations by means of such facilities. Such
term does not include alarm monitoring
services or electronic publishing.
(23) 
TRANSMISSION
FACILITIES.—The
term 
‘‘transmission 
facilities’’ 
means
equipment (including wire, cable, micro-
wave, satellite, and fiber-optics) that
transmits information by electromagnetic
119
means or that directly supports such
transmission, but does not include cus-
tomer premises equipment.
SEC. 107. RELATIONSHIP TO OTHER LAWS.
(a) MODIFICATION
OF FINAL JUDGMENT.—
This Act shall supersede the Modification of
Final Judgment, except that this Act shall not
affect—
(1) section I of the Modification of
Final Judgment, relating to AT&T reorga-
nization,
(2) section II(A) (including Appendix
B) and II(B) of the Modification of Final
Judgment, relating to equal access and
nondiscrimination,
(3) section III of the Modification of
Final Judgment, relating to applicability
and effect,
(4) section IV(F) and IV(I) of the
Modification of Final Judgment, with re-
spect to the requirements included in the
definitions of ‘‘exchange access’’ and ‘‘in-
formation access’’,
120
(5) section VIII(B) of the Modification
of Final Judgment, relating to printed ad-
vertising directories,
(6) section VIII(E) of the Modification
of Final Judgment, relating to notice to
customers of AT&T,
(7) section VIII(F) of the Modification
of Final Judgment, relating to less than
equal exchange access, and
(8) section VIII(G) of the Modification
of Final Judgment, relating to transfer of
AT&T assets, including all exceptions
granted thereunder before the date of the
enactment of this Act, and
(9) with respect to the parts of the
Modification 
of 
Final 
Judgment 
de-
scribed in paragraphs (1) through (7)—
(A) section III of the Modification
of Final Judgment, relating to appli-
cability,
(B) section IV of the Modification
of Final Judgment, relating to defini-
tions,
121
(C) section V of the Modification
of Final Judgment, relating to compli-
ance,
(D) section VI of the Modification
of 
Final 
Judgment, 
relating 
to
visitorial provisions,
(E) section VII of the Modification
of Final Judgment, relating to reten-
tion of jurisdiction, and
(F) section VIII(I) of the Modifica-
tion of Final Judgment, relating to
the court’s sua sponte authority.
(b) ANTITRUST LAWS.—Except as provided
in section 105(g), nothing in this Act shall be
construed to modify, impair, or supersede the
applicability of any of the antitrust laws.
(c) FEDERAL, STATE, AND LOCAL LAW.—(1)
Except as provided in paragraph (2), this Act
shall not be construed to modify, impair, or
supersede Federal, State, or local law unless
expressly so provided in this Act.
(2) This Act shall supersede State and
local law to the extent that such law would
impair or prevent the operation of this Act.
122
(d) CUMULATIVE
PENALTY.—Any penalty
imposed, or relief granted, under this title
shall be in addition to, and not in lieu of, any
penalty or relief authorized by any other law
to be imposed with respect to conduct de-
scribed in this title.
TITLE II—REGULATION OF MAN-
UFACTURING, ALARM SERV-
ICES AND ELECTRONIC PUB-
LISHING BY BELL OPERATING
COMPANIES
SEC. 201. REGULATION OF MANUFACTURING BY BELL OP-
ERATING COMPANIES.
Title II of the Communications Act of 1934
(47 U.S.C. 201 et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 229. REGULATION OF MANUFACTURING BY BELL
OPERATING COMPANIES.
‘‘(a) GENERAL AUTHORITY.—Subject to the
requirements of this section and the regula-
tions prescribed thereunder, but notwith-
standing any restriction or obligation im-
posed before the date of enactment of this sec-
tion pursuant to the Modification of Final
Judgment on the lines of business in which a
123
Bell operating company may engage, a Bell
operating company, through an affiliate of
that company, may manufacture and provide
telecommunications equipment and manufac-
ture customer premises equipment.
‘‘(b) 
SEPARATE
MANUFACTURING
AFFILI-
ATE.—Any manufacturing or provision author-
ized under subsection (a) shall be conducted
only through an affiliate that is separate from
any Bell operating company.
‘‘(c) COMMISSION REGULATION OF MANUFAC-
TURING AFFILIATE.—
‘‘(1) 
REGULATIONS
REQUIRED.—The
Commission shall prescribe regulations
to ensure that Bell operating companies
and their affiliates comply with the re-
quirements of this section.
‘‘(2) BOOKS, 
RECORDS, 
ACCOUNTS.—A
manufacturing affiliate required by sub-
section (b) shall maintain books, records,
and accounts separate from its affiliated
Bell operating company which identify
all financial transactions between the
manufacturing affiliate and its affiliated
Bell operating company and, even if such
124
manufacturing affiliate is not a publicly
held corporation, prepare financial state-
ments which are in compliance with fi-
nancial reporting requirements under
the Federal securities laws for publicly
held corporations, file such statements
with the Commission, and make such
statements 
available 
for 
public
inspection.
‘‘(3) IN-KIND BENEFITS TO AFFILIATE.—
Consistent with the provisions of this sec-
tion, neither a Bell operating company
nor any of its nonmanufacturing affili-
ates shall perform sales, advertising, in-
stallation, production, or maintenance
operations for a manufacturing affiliate,
except that—
‘‘(A) a Bell operating company
and its nonmanufacturing affiliates
may sell, advertise, install, and main-
tain telecommunications equipment
and customer premises equipment
after acquiring such equipment from
their manufacturing affiliate; and
125
‘‘(B) institutional advertising, of a
type not related to specific tele-
communications equipment, carried
out by the Bell operating company or
its affiliates, shall be permitted.
‘‘(4) 
DOMESTIC
MANUFACTURING
RE-
QUIRED.—
‘‘(A) GENERAL
RULE.—A manufac-
turing 
affiliate 
required 
by 
sub-
section (b) shall conduct all of its
manufacturing 
within 
the 
United
States and, except as otherwise pro-
vided in this paragraph, all compo-
nent 
parts 
of 
customer 
premises
equipment manufactured by such af-
filiate, and all component parts of
telecommunications equipment man-
ufactured by such affiliate, shall have
been manufactured within the United
States.
‘‘(B) 
EXCEPTION.—Such 
affiliate
may use component parts manufac-
tured outside the United States if—
‘‘(i) such affiliate first makes a
good faith effort to obtain equiva-
126
lent component parts manufac-
tured within the United States at
reasonable prices, terms, and con-
ditions; and
‘‘(ii) for the aggregate of tele-
communications equipment and
customer 
premises 
equipment
manufactured and sold in the
United States by such affiliate,
the cost of the components manu-
factured 
outside 
the 
United
States 
contained 
in 
all 
such
equipment does not exceed 40
percent of the sales revenue de-
rived in any calendar year from
such equipment.
‘‘(C) 
CERTIFICATION
REQUIRED.—
Any such affiliate that uses compo-
nent parts manufactured outside the
United States in the manufacture of
telecommunications equipment and
customer premises equipment within
the United States shall—
‘‘(i) certify to the Commission
that a good faith effort was made
127
to obtain equivalent parts manu-
factured within the United States
at reasonable prices, terms, and
conditions, 
which 
certification
shall be filed on a quarterly basis
with the Commission and list
component parts, by type, manu-
factured 
outside 
the 
United
States; and
‘‘(ii) certify to the Commission
on an annual basis that such affil-
iate complied with the require-
ments of subparagraph (B)(ii), as
adjusted in accordance with sub-
paragraph (G).
‘‘(D) REMEDIES
FOR
FAILURES.—(i)
If the Commission determines, after
reviewing the certification required
in subparagraph (C)(i), that such af-
filiate failed to make the good faith
effort required in subparagraph (B)(i)
or, after reviewing the certification
required in subparagraph (C)(ii), that
such affiliate has exceeded the per-
centage specified in subparagraph
128
(B)(ii), the Commission may impose
penalties or forfeitures as provided
for in title V of this Act.
‘‘(ii) Any supplier claiming to be
damaged because a manufacturing af-
filiate failed to make the good faith
effort required in subparagraph (B)(i)
may make complaint to the Commis-
sion as provided for in section 208 of
this Act, or may bring suit for the re-
covery of actual damages for which
such supplier claims such affiliate
may be liable under the provisions of
this Act in any district court of the
United States of competent jurisdic-
tion.
‘‘(E) ANNUAL
REPORT.—The Com-
mission, in consultation with the Sec-
retary of Commerce, shall, on an an-
nual basis, determine the cost of com-
ponent parts manufactured outside
the United States contained in all
telecommunications equipment and
customer premises equipment sold in
the United States as a percentage of
129
the revenues from sales of such
equipment in the previous calendar
year.
‘‘(F) USE
OF
INTELLECTUAL
PROP-
ERTY IN MANUFACTURE.—Notwithstand-
ing subparagraph (A), a manufactur-
ing affiliate may use intellectual
property created outside the United
States in the manufacture of tele-
communications equipment and cus-
tomer premises equipment in the
United States. A component manufac-
tured using such intellectual prop-
erty shall not be treated for purposes
of subparagraph (B)(ii) as a compo-
nent manufactured outside the Unit-
ed States solely on the basis of the
use of such intellectual property.
‘‘(G) RESTRICTIONS ON COMMISSION
AUTHORITY.—The Commission may not
waive or alter the requirements of
this paragraph, except that the Com-
mission, on an annual basis, shall ad-
just the percentage specified in sub-
paragraph (B)(ii) to the percentage
130
determined by the Commission, in
consultation with the Secretary of
Commerce, pursuant to subparagraph
(E).
‘‘(5) INSULATION OF RATE PAYERS FROM
MANUFACTURING
AFFILIATE
DEBT.—Any
debt incurred by any such manufacturing
affiliate may not be issued by its affili-
ated Bell operating company and such
manufacturing affiliate shall be prohib-
ited from incurring debt in a manner that
would permit a creditor, on default, to
have recourse to the assets of its affili-
ated Bell operating company.
‘‘(6) RELATION TO OTHER AFFILIATES.—A
manufacturing affiliate required by sub-
section (b) shall not be required to oper-
ate separately from the other affiliates of
its affiliated Bell operating company, but
if an affiliate of a Bell operating company
becomes affiliated with a manufacturing
entity, such affiliate shall be treated as a
manufacturing affiliate of that Bell oper-
ating company and shall comply with the
requirements of this section.
131
‘‘(7) AVAILABILITY
OF
EQUIPMENT
TO
OTHER CARRIERS.—A manufacturing affili-
ate required by subsection (b) shall make
available, without discrimination or self-
preference as to price, delivery, terms, or
conditions, to any common carrier any
telecommunications equipment that is
used in the provision of telephone ex-
change service and that is manufactured
by such affiliate so long as each such pur-
chasing carrier—
‘‘(A) does not either manufacture
telecommunications 
equipment, 
or
have 
an 
affiliated 
telecommuni-
cations equipment manufacturing en-
tity; or
‘‘(B) agrees to make available, to
the Bell operating company affiliated
with such manufacturing affiliate or
any common carrier affiliate of such
Bell operating company, any tele-
communications equipment that is
used in the provision of telephone ex-
change service and that is manufac-
tured by such purchasing carrier or
132
by any entity or organization with
which such purchasing carrier is af-
filiated.
‘‘(8) SALES PRACTICES OF MANUFACTUR-
ING AFFILIATES.—
‘‘(A) PROHIBITION
OF
DISCONTINU-
ATION OF EQUIPMENT FOR WHICH THERE
IS
REASONABLE
DEMAND.—A manufac-
turing 
affiliate 
required 
by 
sub-
section (b) shall not discontinue or
restrict sales to a common carrier of
any telecommunications equipment
that is used in the provision of tele-
phone exchange service and that
such affiliate manufactures for sale
as long as there is reasonable demand
for the equipment by such carriers;
except that such sales may be discon-
tinued or restricted if such manufac-
turing affiliate demonstrates to the
Commission that it is not making a
profit, under a marginal cost stand-
ard implemented by the Commission
by regulation, on the sale of such
equipment.
133
‘‘(B) DETERMINATIONS
OF
REASON-
ABLE
DEMAND.—Within 60 days after
receipt of an application under sub-
paragraph (A), the Commission shall
reach a determination as to the exist-
ence of reasonable demand for pur-
poses of such subparagraph. In mak-
ing such determination the Commis-
sion shall consider—
‘‘(i) whether the continued
manufacture of the equipment
will be profitable;
‘‘(ii) whether the equipment is
functionally 
or 
technologically
obsolete;
‘‘(iii) whether the components
necessary 
to 
manufacture 
the
equipment continue to be avail-
able;
‘‘(iv) whether alternatives to
the equipment are available in
the market; and
‘‘(v) such other factors as the
Commission deems necessary and
proper.
134
‘‘(9) JOINT
PLANNING
OBLIGATIONS.—
Each Bell operating company shall, con-
sistent with the antitrust laws (including
title I of the Antitrust and Communica-
tions Reform Act of 1994), engage in joint
network planning and design with other
contiguous common carriers providing
telephone exchange service, but agree-
ment with such other carriers shall not
be required as a prerequisite for such in-
troduction or deployment.
‘‘(d) INFORMATION REQUIREMENTS.—
‘‘(1) FILING OF INFORMATION ON PROTO-
COLS AND TECHNICAL REQUIREMENTS.—Each
Bell operating company shall, in accord-
ance with regulations prescribed by the
Commission, maintain and file with the
Commission full and complete informa-
tion with respect to the protocols and
technical requirements for connection
with and use of its telephone exchange
service facilities. Each such company
shall report promptly to the Commission
any material changes or planned changes
to such protocols and requirements, and
135
the schedule for implementation of such
changes or planned changes.
‘‘(2) FILING AS PREREQUISITE TO DISCLO-
SURE TO AFFILIATE.—A Bell operating com-
pany shall not disclose to any of its affili-
ates any information required to be filed
under paragraph (1) unless that informa-
tion is filed promptly, as required by reg-
ulation by the Commission.
‘‘(3) ACCESS BY COMPETITORS TO INFOR-
MATION.—The Commission may prescribe
such additional regulations under this
subsection as may be necessary to ensure
that manufacturers in competition with a
Bell operating company’s manufacturing
affiliate have access to the information
with respect to the protocols and tech-
nical requirements for connection with
and use of its telephone exchange service
facilities required for such competition
that such company makes available to its
manufacturing affiliate.
‘‘(4) 
PLANNING
INFORMATION.—Each
Bell operating company shall provide, to
contiguous common carriers providing
136
telephone exchange service, timely infor-
mation on the planned deployment of
telecommunications equipment.
‘‘(e) ADDITIONAL
COMPETITION
REQUIRE-
MENTS.—The Commission shall prescribe reg-
ulations requiring that any Bell operating
company which has an affiliate that engages
in any manufacturing authorized by sub-
section (a) shall—
‘‘(1) provide, to other manufacturers
of telecommunications equipment and
customer premises equipment that is
functionally 
equivalent 
to 
equipment
manufactured by the Bell operating com-
pany manufacturing affiliate, opportuni-
ties to sell such equipment to such Bell
operating 
company 
which 
are 
com-
parable to the opportunities which such
Company provides to its affiliates; and
‘‘(2) not subsidize its manufacturing
affiliate with revenues from telephone ex-
change service or telephone toll service.
‘‘(f) COLLABORATION PERMITTED.—Nothing
in this section (other than subsection (m))
shall be construed to limit or restrict the abil-
137
ity of a Bell operating company and its affili-
ates to engage in close collaboration with any
manufacturer of customer premises equip-
ment or telecommunications equipment dur-
ing the design and development of hardware,
software, or combinations thereof related to
such equipment.
‘‘(g) ACCESSIBILITY REQUIREMENTS.—
‘‘(1) MANUFACTURING.—The Commis-
sion shall, within 1 year after the date of
enactment of this section, prescribe such
regulations as are necessary to ensure
that telecommunications equipment and
customer premises equipment designed,
developed, and fabricated pursuant to
the authority granted in this section shall
be accessible and usable by individuals
with disabilities, including individuals
with functional limitations of hearing, vi-
sion, movement, manipulation, speech,
and interpretation of information, unless
the costs of making the equipment acces-
sible and usable would result in an undue
burden or an adverse competitive impact.
138
‘‘(2) NETWORK SERVICES.—The Commis-
sion shall, within 1 year after the date of
enactment of this section, prescribe such
regulations as are necessary to ensure
that advances in network services de-
ployed by a Bell operating company shall
be accessible and usable by individuals
whose access might otherwise be im-
peded by a disability or functional limita-
tion, unless the costs of making the serv-
ices accessible and usable would result in
an undue burden or adverse competitive
impact. Such regulations shall seek to
permit the use of both standard and spe-
cial equipment and seek to minimize the
need of individuals to acquire additional
devices beyond those used by the general
public to obtain such access.
‘‘(3) COMPATIBILITY.—The regulations
prescribed under paragraphs (1) and (2)
shall require that whenever an undue
burden or adverse competitive impact
would result from the manufacturing or
network services requirements in such
paragraphs, the manufacturing affiliate
139
that designs, develops, or fabricates the
equipment or the Bell operating company
that deploys the network service shall en-
sure that the equipment or network serv-
ice in question is compatible with exist-
ing peripheral devices or specialized cus-
tomer 
premises 
equipment 
commonly
used by persons with disabilities to
achieve access, unless doing so would re-
sult in an undue burden or adverse com-
petitive impact.
‘‘(4) DEFINITIONS.—As used in this sub-
section:
‘‘(A) UNDUE
BURDEN.—The term
‘undue burden’ means significant dif-
ficulty or expense. In determining
whether an activity would result in
an undue burden, factors to be con-
sidered include—
‘‘(i) the nature and cost of the
activity;
‘‘(ii) the impact on the oper-
ation of the facility involved in
the manufacturing of the equip-
140
ment or deployment of the net-
work service;
‘‘(iii) the financial resources
of the manufacturing affiliate in
the case of manufacturing of
equipment, for as long as applica-
ble 
regulatory 
rules 
prohibit
cross-subsidization of equipment
manufacturing 
with 
revenues
from 
regulated 
telecommuni-
cations service or when the man-
ufacturing 
activities 
are 
con-
ducted in a separate subsidiary;
‘‘(iv) the financial resources of
the Bell operating company in the
case of network services, or in the
case of manufacturing of equip-
ment 
if 
applicable 
regulatory
rules permit cross-subsidization
of equipment manufacturing with
revenues 
from 
regulated 
tele-
communications services and the
manufacturing activities are not
conducted in a separate subsidi-
ary; and
141
‘‘(v) the type of operation or
operations of the manufacturing
affiliate or Bell operating com-
pany as applicable.
‘‘(B) 
ADVERSE
COMPETITIVE
IM-
PACT.—In determining whether the
activity would result in an adverse
competitive impact, the following fac-
tors will be considered:
‘‘(i) 
whether 
such 
activity
would raise the cost of the equip-
ment or network service in ques-
tion beyond the level at which
there 
would 
be 
sufficient
consumer demand by the general
population to make the equip-
ment or network service profit-
able; and
‘‘(ii) whether such activity
would, with respect to the equip-
ment or network service in ques-
tion, put the manufacturing affili-
ate or Bell operating company, as
applicable, at a competitive dis-
advantage in comparison with
142
one or more providers of one or
more 
competing 
products 
and
services. This factor may only be
considered so long as competing
manufacturers and network serv-
ice providers are not held to the
same obligation with respect to
access by persons with disabil-
ities.
‘‘(C) ACTIVITY.—For the purposes
of this paragraph, the term ‘activity’
includes—
‘‘(i) the research, design, de-
velopment, deployment, and fab-
rication activities necessary to
comply with the requirements of
this section; and
‘‘(ii) the acquisition of the re-
lated materials and equipment
components.
‘‘(5) EFFECTIVE DATE.—The regulations
required by this subsection shall become
effective 18 months after the date of en-
actment of this section.
143
‘‘(6) IMPACT OF ADA.—Nothing in this
section shall be interpreted to limit or
otherwise affect the application of the
Americans with Disabilities Act or its im-
plementing regulations.
‘‘(h) PUBLIC NETWORK ENHANCEMENT.—A
Bell operating company manufacturing affili-
ate shall, as a part of its overall research and
development effort, establish a permanent
program for the manufacturing research and
development of products and applications for
the enhancement of the public switched tele-
phone network and to promote public access
to advanced telecommunications services.
Such program shall focus its work substan-
tially on developing technological advance-
ments in public telephone network applica-
tions, 
telecommunication 
equipment 
and
products, and access solutions to new services
and technology, including access by (1) public
institutions, including educational and health
care institutions; and (2) people with disabil-
ities and functional limitations. Notwith-
standing the limitations in subsection (a), a
Bell operating company and its affiliates may
144
engage in such a program in conjunction with
a Bell operating company not so affiliated or
any of its affiliates. The existence or establish-
ment of such a program that is jointly pro-
vided by manufacturing affiliates of Bell oper-
ating companies shall satisfy the require-
ments of this section as it pertains to all such
affiliates of a Bell operating company.
‘‘(i) ADDITIONAL RULES AUTHORIZED.—The
Commission may prescribe such additional
rules and regulations as the Commission de-
termines necessary to carry out the provi-
sions of this section.
‘‘(j) ADMINISTRATION AND ENFORCEMENT AU-
THORITY.—
‘‘(1) COMMISSION REGULATORY AUTHOR-
ITY.—For the purposes of administering
and enforcing the provisions of this sec-
tion 
and 
the 
regulations 
prescribed
thereunder, the Commission shall have
the same authority, power, and functions
with respect to any Bell operating com-
pany as the Commission has in admin-
istering and enforcing the provisions of
145
this title with respect to any common car-
rier subject to this Act.
‘‘(2) PRIVATE
ACTIONS.—Any common
carrier that provides telephone exchange
service and that is injured by an act or
omission of a Bell operating company or
its manufacturing affiliate which violates
the requirements of paragraph (7) or (8)
of subsection (c), or the Commission’s
regulations 
implementing 
such 
para-
graphs, may initiate an action in a dis-
trict court of the United States to recover
the full amount of damages sustained in
consequence of any such violation and
obtain such orders from the court as are
necessary to terminate existing violations
and to prevent future violations; or such
regulated local telephone exchange car-
rier may seek relief from the Commission
pursuant to sections 206 through 209.
‘‘(k) RULEMAKING REQUIRED.—The Commis-
sion shall prescribe regulations to implement
this section within 180 days after the date of
enactment of this section.
146
‘‘(l) EXISTING
MANUFACTURING
AUTHOR-
ITY.—Nothing in this section shall prohibit
any Bell operating company from engaging,
directly or through any affiliate, in any manu-
facturing activity in which any Bell operating
company or affiliate was authorized to engage
on the date of enactment of this section.
‘‘(m) ANTITRUST
LAWS.—Nothing in this
section shall be construed to modify, impair,
or supersede the applicability of any of the
antitrust laws (including title I of the Anti-
trust and Communications Reform Act of
1994).
‘‘(n) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘affiliate’ means any or-
ganization or entity that, directly or indi-
rectly, owns or controls, is owned or con-
trolled by, or is under common owner-
ship with a Bell operating company. The
terms ‘owns’, ‘owned’, and ‘ownership’
mean an equity interest of more than 10
percent.
‘‘(2) The term ‘Bell operating com-
pany’ means those companies listed in
appendix A of the Modification of Final
147
Judgment, and includes any successor or
assign of any such company, but does not
include any affiliate of any such com-
pany.
‘‘(3) The term ‘customer premises
equipment’ means equipment employed
on the premises of a person (other than a
carrier) to originate, route, or terminate
telecommunications.
‘‘(4) The term ‘manufacturing’ has the
same meaning as such term has under
the Modification of Final Judgment.
‘‘(5) The term ‘manufacturing affiliate’
means an affiliate of a Bell operating
company established in accordance with
subsection (b) of this section.
‘‘(6) The term ‘Modification of Final
Judgment’ means the decree entered Au-
gust 24, 1982, in United States v. Western
Electric Civil Action No. 82–0192 (United
States District Court, District of Colum-
bia), and includes any judgment or order
with respect to such action entered on or
after August 24, 1982, and before the date
of enactment of this section.
153
the Bell operating company and from any
affiliate and which record in accordance
with generally accepted accounting prin-
ciples all transactions, whether direct or
indirect, with the Bell operating com-
pany;
‘‘(2) not incur debt in a manner that
would permit a creditor upon default to
have recourse to the assets of the Bell op-
erating company;
‘‘(3) prepare financial statements that
are not consolidated with those of the
Bell operating company or an affiliate,
provided that consolidated statements
may also be prepared;
‘‘(4) file with the Commission annual
reports in a form substantially equivalent
to the Form 10–K referenced at 17 C.F.R.
249.310 as that section and form are in ef-
fect on the date of enactment;
‘‘(5) after 1 year from the effective
date of this section, not hire as corporate
officers sales and marketing management
personnel whose responsibilities at the
separated affiliate or electronic publish-