(2) The United States Court of Appeals for the District
of Columbia shall have exclusive jurisdiction to review de-
terminations made under section 101(b)(3).
(3) No action commenced to assert or enforce a duty,
claim, or right arising under this Act shall be stayed pend-
ing any such determination by the Attorney General or the
Federal Communications Commission.
(f) SUBPOENAS.—In an action commenced under this
Act, a subpoena requiring the attendance of a witness at
a hearing or a trial may be served at any place within
the United States.
SEC. 106. DEFINITIONS.
For purposes of this title:
(1) AFFILIATE.—The term ‘‘affiliate’’ means a
person that (directly or indirectly) owns or controls,
is owned or controlled by, or is under common owner-
ship or control with, another person. For purposes of
this paragraph, to own refers to owning an equity in-
terest (or the equivalent thereof) of more than 50 per-
cent.
(2) ALARM
MONITORING
SERVICES.—The term
‘‘alarm monitoring services’’ means services that de-
tect threats to life, safety, or property, by burglary,
fire, vandalism, bodily injury, or other emergency,
through the use of devices that transmit signals to a
central point in a customer’s residence, place of busi-
ness, or other fixed premises which—
(A) retransmits such signals to a remote
monitoring center by means of transmission fa-
cilities of a Bell operating company or its affili-
ates, and
(B) serves to alert persons at the monitoring
center of the need to inform customers or other
persons, or police, fire, rescue, or other security
or public safety personnel of the threat at such
premises.
Such term does not include medical monitoring de-
vices attached to individuals for the automatic sur-
veillance of ongoing medical conditions.
(3) ANTITRUST
LAWS.—The term ‘‘antitrust
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 Patman Act, and section 5 of
the Federal Trade Commission Act (15 U.S.C. 45) to
the extent that such section 5 applies to unfair meth-
ods of competition.
(4) BELL OPERATING COMPANY.—The term ‘‘Bell
operating company’’ means—
(A) Bell Telephone Company of Nevada, Il-
linois Bell Telephone Company, Indiana Bell
Telephone Company, Incorporated, Michigan
Bell Telephone Company, New England Tele-
phone and Telegraph Company, New Jersey Bell
Telephone Company, New York Telephone Com-
pany, U S West Communications Company,
South Central Bell Telephone Company, South-
ern Bell Telephone and Telegraph Company,
Southwestern Bell Telephone Company, The Bell
Telephone Company of Pennsylvania, The Chesa-
peake and Potomac Telephone Company, The
Chesapeake and Potomac Telephone Company of
Maryland, The Chesapeake and Potomac Tele-
phone Company of Virginia, The Chesapeake
and Potomac Telephone Company of West Vir-
ginia, The Diamond State Telephone Company,
The Ohio Bell Telephone Company, The Pacific
Telephone and Telegraph Company, or Wiscon-
sin Telephone Company, or
(B) any successor or assign of any such
company.
(5) CUSTOMER
PREMISES
EQUIPMENT.—The
term ‘‘customer premises equipment’’ means equip-
ment employed on the premises of a person (other
than a person engaged in the business of providing a
telecommunications service) to originate, route, or ter-
minate telecommunications, and includes software in-
tegral to such equipment.
(6) ELECTRONIC PUBLISHING.—The term ‘‘elec-
tronic publishing’’ means the provision via tele-
communications, by a Bell operating company or an
affiliate of such company to a person other than an
affiliate of such company, of information—
(A) which such company or affiliate has, or
has caused to be, originated, authored, compiled,
collected, or edited, or
(B) in which such company or affiliate has
a direct or indirect financial or proprietary
interest.
(7) EXCHANGE
AREA.—The term ‘‘exchange
area’’ means a contiguous geographic area established
by a Bell operating company such that no exchange
area includes points within more than 1 metropolitan
statistical area, consolidated metropolitan statistical
area, or State, except as expressly permitted under the
Modification of Final Judgment before the date of the
enactment of this Act.
(8) EXCHANGE SERVICE.—The term ‘‘exchange
service’’ means a telecommunications service provided
within an exchange area.
(9) INFORMATION.—The term ‘‘information’’
means knowledge or intelligence represented by any
form of writing, signs, signals, pictures, sounds, or
other symbols.
(10) 
INTEREXCHANGE
TELECOMMUNICATIONS
SERVICES.—The term ‘‘interexchange telecommuni-
cations services’’ means a telecommunications service
between a point located in an exchange area and a
point located outside such exchange area. Such term
does not include alarm monitoring services or elec-
tronic publishing.
(11) MODIFICATION OF FINAL JUDGMENT.—The
term ‘‘Modification of Final Judgment’’ means the
order entered August 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.
(12) PERSON.—The term ‘‘person’’ has the mean-
ing given it in subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)).
(13) TELECOMMUNICATIONS.—The term ‘‘tele-
communications’’ means the transmission of informa-
tion between points by electromagnetic means.
(14) TELECOMMUNICATIONS
EQUIPMENT.—The
term ‘‘telecommunications equipment’’ means equip-
ment, other than customer premises equipment, used
to provide a telecommunications service, and includes
software integral to such equipment.
(15) TELECOMMUNICATIONS SERVICE.—The term
‘‘telecommunications service’’ means the offering for
hire of transmission facilities or of telecommuni-
cations by means of such facilities. Such term does
not include alarm monitoring services or electronic
publishing.
(16) 
TRANSMISSION
FACILITIES.—The 
term
‘‘transmission facilities’’ means equipment (including
wire, cable, microwave, satellite, and fiber-optics) that
transmits information by electromagnetic means or
that directly supports such transmission, but does not
include customer 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 Judg-
ment, relating to AT&T reorganization,
(2) section II(A) (including Appendix B) and
II(B) of the Modification of Final Judgment, relating
to equal access and nondiscrimination,
(3) section IV(F) and IV(I) of the Modification
of Final Judgment, with respect to the requirements
included in the definitions of ‘‘exchange access’’ and
‘‘information access’’,
(4) section VIII(B) of the Modification of Final
Judgment, relating to printed advertising directories,
(5) section VIII(E) of the Modification of Final
Judgment, relating to notice to customers of AT&T,
(6) section VIII(F) of the Modification of Final
Judgment, relating to less than equal exchange access,
(7) section VIII(G) of the Modification of Final
Judgment, relating to transfer of AT&T assets, in-
cluding all exceptions granted thereunder before the
date of the enactment of this Act,
(8) with respect to the parts of the Modification
of Final Judgment described in paragraphs (1)
through (7)—
(A) section III of the Modification of Final
Judgment, relating to applicability,
(B) section IV of the Modification of Final
Judgment, relating to definitions,
(C) section V of the Modification of Final
Judgment, relating to compliance,
(D) section VI of the Modification of Final
Judgment, relating to visitorial provisions,
(E) section VII of the Modification of Final
Judgment, relating to retention of jurisdiction,
and
(F) section VIII(I) of the Modification of
Final Judgment, relating to the court’s sua
sponte authority.
(b) ANTITRUST LAWS.—Nothing in this Act shall be
construed to modify, impair, or supersede the applicability
of any other antitrust law.
(c) FEDERAL, STATE, AND LOCAL LAW.—(1) Except
as provided in paragraph (2), this Act shall not be con-
strued 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.
(d) CUMULATIVE PENALTY.—Any penalty imposed, or
relief granted, under this Act 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 described in this
Act.
SEC. 108. AMENDMENT TO DEFINITION OF ANTITRUST
LAWS APPEARING IN THE CLAYTON ACT.
Subsection (a) of the first section of the Clayton Act
(15 U.S.C. 12(a)) is amended by inserting ‘‘title I of the
Antitrust and Communications Reform Act of 1994;’’ after
‘‘thirteen;’’.
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 require-
ments of this section and the regulations prescribed there-
under, but notwithstanding any restriction or obligation
imposed before the date of enactment of this section pursu-
ant to the Modification of Final Judgment on the lines of
business in which a Bell operating company may engage,
a Bell operating company, through an affiliate of that com-
pany, may manufacture and provide telecommunications
equipment and manufacture customer premises equipment.
‘‘(b) SEPARATE MANUFACTURING AFFILIATE.—Any
manufacturing or provision authorized under subsection (a)
shall be conducted only through an affiliate that is separate
from any Bell operating company.
‘‘(c) COMMISSION REGULATION OF MANUFACTURING
AFFILIATE.—
‘‘(1) REGULATIONS
REQUIRED.—The Commis-
sion shall prescribe regulations to ensure that Bell op-
erating companies and their affiliates comply with
the requirements of this section.
‘‘(2) BOOKS, RECORDS, ACCOUNTS.—A manufac-
turing affiliate required by subsection (b) shall—
‘‘(A) maintain books, records, and accounts
that are separate from the books, records, and ac-
counts of its affiliated Bell operating company
and that identify all financial transactions be-
tween the manufacturing affiliate and its affili-
ated Bell operating company, and
‘‘(B) even if such manufacturing affiliate is
not a publicly held corporation, prepare finan-
cial statements which are in compliance with fi-
nancial reporting requirements under the Fed-
eral securities laws for publicly held corpora-
tions, file such statements with the Commission,
and make such statements available for public
inspection.
‘‘(3) IN-KIND BENEFITS TO AFFILIATE.—Consist-
ent with the provisions of this section, neither a Bell
operating company nor any of its nonmanufacturing
affiliates shall perform sales, advertising, installation,
production, or maintenance operations for a manu-
facturing affiliate, except that—
‘‘(A) a Bell operating company and its
nonmanufacturing affiliates may sell, advertise,
install, and maintain telecommunications equip-
ment and customer premises equipment after ac-
quiring such equipment from their manufactur-
ing affiliate; and
‘‘(B) institutional advertising, of a type not
related to specific telecommunications equip-
ment, carried out by the Bell operating company
or its affiliates, shall be permitted.
‘‘(4) DOMESTIC MANUFACTURING REQUIRED.—
‘‘(A) GENERAL
RULE.—A manufacturing
affiliate required by subsection (b) shall conduct
all of its manufacturing within the United
States and, except as otherwise provided in this
paragraph, all component parts of customer
premises equipment manufactured by such affili-
ate, and all component parts of telecommuni-
cations equipment manufactured by such affili-
ate, shall have been manufactured within the
United States.
‘‘(B) EXCEPTION.—Such affiliate may use
component parts manufactured outside the Unit-
ed States if—
‘‘(i) such affiliate first makes a good
faith effort to obtain equivalent component
parts manufactured within the United
States at reasonable prices, terms, and con-
ditions; and
‘‘(ii) for the aggregate of telecommuni-
cations equipment and customer premises
equipment manufactured and sold in the
United States by such affiliate, the cost of
the components manufactured outside the
United States contained in all such equip-
ment does not exceed 40 percent of the sales
revenue derived in any calendar year from
such equipment.
‘‘(C) CERTIFICATION REQUIRED.—Any such
affiliate that uses component 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 to obtain equiva-
lent parts manufactured within the United
States at reasonable prices, terms, and con-
ditions, which certification shall be filed on
a quarterly basis with the Commission and
list component parts, by type, manufactured
outside the United States; and
‘‘(ii) certify to the Commission on an
annual basis that such affiliate complied
with the requirements of subparagraph
(B)(ii), as adjusted in accordance with sub-
paragraph (G).
‘‘(D) REMEDIES FOR FAILURES.—(i) If the
Commission determines, after reviewing the cer-
tification required in subparagraph (C)(i), that
such affiliate failed to make the good faith effort
required in subparagraph (B)(i) or, after review-
ing the certification required in subparagraph
(C)(ii), that such affiliate has exceeded the per-
centage specified in subparagraph (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 affiliate failed to make
the good faith effort required in subparagraph
(B)(i) may make complaint to the Commission
as provided for in section 208 of this Act, or
may bring suit for the recovery of actual dam-
ages 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 com-
petent jurisdiction.
‘‘(E) ANNUAL REPORT.—The Commission,
in consultation with the Secretary of Commerce,
shall, on an annual basis, determine the cost of
component parts manufactured outside the Unit-
ed States contained in all telecommunications
equipment and customer premises equipment
sold in the United States as a percentage of the
revenues from sales of such equipment in the pre-
vious calendar year.
‘‘(F) USE OF INTELLECTUAL PROPERTY IN
MANUFACTURE.—Notwithstanding subparagraph
(A), a manufacturing affiliate may use intellec-
tual property created outside the United States
in the manufacture of telecommunications equip-
ment and customer premises equipment in the
United States. A component manufactured using
such intellectual property shall not be treated for
purposes of subparagraph (B)(ii) as a compo-
nent manufactured outside the United States
solely on the basis of the use of such intellectual
property.
‘‘(G) RESTRICTIONS
ON
COMMISSION
AU-
THORITY.—The Commission may not waive or
alter the requirements of this paragraph, except
that the Commission, on an annual basis, shall
adjust the percentage specified in subparagraph
(B)(ii) to the percentage determined by the Com-
mission, in consultation with the Secretary of
Commerce, pursuant to subparagraph (E).
‘‘(5) INSULATION OF RATE PAYERS FROM MANU-
FACTURING AFFILIATE DEBT.—Any debt incurred by
any such manufacturing affiliate may not be issued
by its affiliated Bell operating company and such
manufacturing affiliate shall be prohibited from in-
curring debt in a manner that would permit a credi-
tor, on default, to have recourse to the assets of its af-
filiated Bell operating company.
‘‘(6) RELATION TO OTHER AFFILIATES.—A man-
ufacturing affiliate required by subsection (b) shall
not be required to operate 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 operating company (except for purposes of sub-
section (c)(3)) and shall comply with the requirements
of this section.
‘‘(7) AVAILABILITY
OF
EQUIPMENT
TO
OTHER
CARRIERS.—A manufacturing affiliate required by
subsection (b) shall make available, without discrimi-
nation or preference as to price, delivery, terms, or
conditions, to any common carrier any telecommuni-
cations equipment that is used in the provision of
telephone exchange service and that is manufactured
by such affiliate only if such purchasing carrier—
‘‘(A) does not manufacture telecommuni-
cations equipment, and does not have an affili-
ated telecommunications equipment manufactur-
ing entity; or
‘‘(B) agrees to make available, to the Bell
operating company affiliated with such manu-
facturing affiliate or any common carrier affili-
ate of such Bell operating company, any tele-
communications equipment that is used in the
provision of telephone exchange service and that
is manufactured by such purchasing carrier or
by any entity or organization with which such
purchasing carrier is affiliated.
‘‘(8) SALES PRACTICES OF MANUFACTURING AF-
FILIATES.—
‘‘(A) PROHIBITION OF DISCONTINUATION OF
EQUIPMENT FOR WHICH THERE IS REASONABLE
DEMAND.—A manufacturing affiliate required by
subsection (b) shall not discontinue or restrict
sales to a common carrier of any telecommuni-
cations equipment that is used in the provision
of telephone exchange service and that such affili-
ate manufactures for sale as long as there is rea-
sonable demand for the equipment by such car-
riers; except that such sales may be discontinued
or restricted if such manufacturing affiliate dem-
onstrates to the Commission that it is not mak-
ing a profit, under a marginal cost standard im-
plemented by the Commission by regulation, on
the sale of such equipment.
‘‘(B) DETERMINATIONS
OF
REASONABLE
DEMAND.—Within 60 days after receipt of an
application under subparagraph (A), the Com-
mission shall reach a determination as to the ex-
istence of reasonable demand for purposes of such
subparagraph. In making such determination the
Commission shall consider—
‘‘(i) whether the continued manufac-
ture of the equipment will be profitable;
‘‘(ii) whether the equipment is func-
tionally or technologically obsolete;
‘‘(iii) whether the components nec-
essary to manufacture the equipment con-
tinue to be available;
‘‘(iv) whether alternatives to the equip-
ment are available in the market; and
‘‘(v) such other factors as the Commis-
sion deems necessary and proper.
‘‘(9) JOINT PLANNING OBLIGATIONS.—Each Bell
operating company shall, consistent with the antitrust
laws, engage in joint network planning and design
with other contiguous common carriers providing tele-
phone exchange service, but agreement with such other
carriers shall not be required as a prerequisite for the
introduction or deployment of services pursuant to
such joint network planning and design.
‘‘(d) INFORMATION REQUIREMENTS.—
‘‘(1) FILING
OF
INFORMATION
ON
PROTOCOLS
AND TECHNICAL REQUIREMENTS.—Each Bell operat-
ing company shall, in accordance with regulations
prescribed by the Commission, maintain and file with
the Commission full and complete information 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 the schedule for implementation of such changes
or planned changes.
‘‘(2) FILING AS PREREQUISITE TO DISCLOSURE
TO AFFILIATE.—A Bell operating company shall not
disclose to any of its affiliates any information re-
quired to be filed under paragraph (1) unless that in-
formation is 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 in competi-
tion with a Bell operating company’s manufacturing
affiliate have access to the information with respect to
the protocols and technical requirements for connec-
tion with and use of its telephone exchange service fa-
cilities required for such competition that such com-
pany makes available to its manufacturing affiliate.
‘‘(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.
‘‘(e) ADDITIONAL COMPETITION REQUIREMENTS.—The
Commission shall prescribe regulations requiring that any
Bell operating company which has an affiliate that engages
in any manufacturing authorized by subsection (a) shall—
‘‘(1) provide, to other manufacturers of tele-
communications equipment and customer premises
equipment that is functionally equivalent to equip-
ment manufactured by the Bell operating company
manufacturing affiliate, opportunities to sell such
equipment to such Bell operating company which are
comparable to the opportunities which such Company
provides to its affiliates; and
‘‘(2) not subsidize its manufacturing affiliate
with revenues from telephone exchange service or tele-
phone toll service.
‘‘(f) COLLABORATION PERMITTED.—Nothing in this
section (other than subsection (l)) shall be construed to limit
or restrict the ability of a Bell operating company and its
affiliates to engage in close collaboration with any manu-
facturer of customer premises equipment or telecommuni-
cations equipment during the design and development of
hardware, software, or combinations thereof related to such
equipment.
‘‘(g) ACCESSIBILITY REQUIREMENTS.—
‘‘(1) MANUFACTURING.—The Commission shall,
within 1 year after the date of enactment of this sec-
tion, prescribe such regulations as are necessary to
ensure that telecommunications equipment and cus-
tomer 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 func-
tional limitations of hearing, vision, movement, ma-
nipulation, speech, and interpretation of information,
unless the costs of making the equipment accessible
and usable would result in an undue burden or an
adverse competitive impact.
‘‘(2) NETWORK
SERVICES.—The Commission
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 deployed by
a Bell operating company shall be accessible and usa-
ble by individuals whose access might otherwise be
impeded by a disability or functional limitation, un-
less the costs of making the services accessible and us-
able would result in an undue burden or adverse com-
petitive impact. Such regulations shall seek to permit
the use of both standard and special 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 
pre-
scribed under paragraphs (1) and (2) shall require
that whenever an undue burden or adverse competi-
tive impact would result from the manufacturing or
network services requirements in such paragraphs, the
manufacturing affiliate that designs, develops, or fab-
ricates the equipment or the Bell operating company
that deploys the network service shall ensure that the
equipment or network service in question is compat-
ible with existing peripheral devices or specialized
customer premises equipment commonly used by per-
sons with disabilities to achieve access, unless doing
so would result in an undue burden or adverse com-
petitive impact.
‘‘(4) DEFINITIONS.—As used in this subsection:
‘‘(A) UNDUE
BURDEN.—The term ‘undue
burden’ means significant difficulty or expense.
In determining whether an activity would result
in an undue burden, the following factors shall
be considered:
‘‘(i) the nature and cost of the activity;
‘‘(ii) the impact on the operation of the
facility involved in the manufacturing of
the equipment or deployment of the network
service;
‘‘(iii) the financial resources of the
manufacturing affiliate in the case of man-
ufacturing of equipment, for as long as ap-
plicable regulatory rules prohibit cross-sub-
sidization of equipment manufacturing with
revenues from regulated telecommunications
service or when the manufacturing activities
are conducted 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
tion available to unaffiliated entities upon request
and on the same terms and conditions;
‘‘(2) carry out transactions with a separated af-
filiate in a manner equivalent to the manner that un-
related parties would carry out independent trans-
actions and not based upon the affiliation;
‘‘(3) carry out transactions with a separated af-
filiate, which involve the transfer of personnel, assets,
or anything of value, pursuant to written contracts or
tariffs that are filed with the Commission and made
publicly available;
‘‘(4) carry out transactions with a separated af-
filiate in a manner that is auditable in accordance
with generally accepted accounting principles;
‘‘(5) value any assets that are transferred to a
separated affiliate at the greater of net book cost or
fair market value;
‘‘(6) value any assets that are transferred to the
Bell operating company by its separated affiliate at
the lesser of net book cost or fair market value;
‘‘(7) except for—
‘‘(A) instances where Commission or State
regulations 
permit 
in-arrears 
payment 
for
tariffed telecommunications services; or