IB
Union Calendar No. 314
103D CONGRESS
2D SESSION
H. R. 3636
[Report No. 103–560]
To promote a national communications infrastructure to encourage deploy-
ment of advanced communications services through competition, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 22, 1993
Mr. MARKEY (for himself, Mr. FIELDS of Texas, Mr. BOUCHER, Mr. OXLEY,
Mr. HALL of Texas, Mr. MOORHEAD, Mr. BRYANT, Mr. BARTON of
Texas, Mr. LEHMAN, Mr. HASTERT, Mr. RICHARDSON, Mr. GILLMOR,
and Ms. SCHENK) introduced the following bill; which was referred to the
Committee on Energy and Commerce
FEBRUARY 10, 1994
Additional sponsors: Mr. MOAKLEY, Mr. STUDDS, Mr. FRANK of Massachu-
setts, Mr. LEVY, Mr. MEEHAN, Mr. OLVER, Mr. FRANKS of Connecticut,
Mr. MACHTLEY, Mr. BLUTE, and Mr. MCHUGH
JUNE 24, 1994
Additional sponsors: Mr. LAFALCE, Mr. QUINN, Mr. BOEHLERT, Mr.
NADLER, Mr. SWETT, Mr. PAXON, Mr. TORKILDSEN, Mr. LAZIO, Mr.
ENGEL, Mrs. LOWEY, Mr. SOLOMON, Mr. KING, Ms. MOLINARI, Mr.
NEAL of Massachusetts, Mr. OWENS, Mr. KENNEDY, Mr. SHAYS, Mr.
TAUZIN, Mr. SCHAEFER, Mr. YATES, and Mr. QUILLEN
JUNE 24, 1994
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on November 22, 1993]
A BILL
To promote a national communications infrastructure to en-
courage deployment of advanced communications services
through competition, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Na-
tional Communications Competition and Information In-
frastructure Act of 1994’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—TELECOMMUNICATIONS INFRASTRUCTURE AND
COMPETITION
Sec. 101. Policy; definitions.
Sec. 102. Equal access and network functionality and quality.
Sec. 103. Telecommunications services for educational institutions, health care in-
stitutions, and libraries.
Sec. 104. Discriminatory interconnection.
Sec. 105. Expedited licensing of new technologies and services.
Sec. 106. New or extended lines.
Sec. 107. Pole attachments.
Sec. 108. Inquiry on civic participation.
Sec. 109. Competition by small business and minority-owned business concerns.
TITLE II—COMMUNICATIONS COMPETITIVENESS
Sec. 201. Cable service provided by telephone companies.
Sec. 202. Review of broadcasters ownership restrictions.
Sec. 203. Review of statutory ownership restriction.
Sec. 204. Broadcaster spectrum flexibility.
Sec. 205. Interactive services and critical interfaces.
Sec. 206. Video programming accessibility.
Sec. 207. Public access.
Sec. 208. Automated ship distress and safety systems.
Sec. 209. Cable technical standards review.
Sec. 210. Exclusive Federal jurisdiction over direct broadcast satellite service.
TITLE III—PROCUREMENT PRACTICES OF TELECOMMUNICATIONS
PROVIDERS
Sec. 301. Findings.
Sec. 302. Purposes.
Sec. 303. Annual plan submission.
Sec. 304. Sanctions and remedies.
Sec. 305. Definitions.
TITLE IV—FEDERAL COMMUNICATIONS COMMISSION RESOURCES
Sec. 401. Authorization of appropriations.
TITLE I—TELECOMMUNICATIONS
INFRASTRUCTURE AND COM-
PETITION
SEC. 101. POLICY; DEFINITIONS.
(a) POLICY.—Section 1 of the Communications Act of
1934 (47 U.S.C. 151) is amended—
(1) by inserting ‘‘(a)’’ after ‘‘SECTION 1.’’; and
(2) by adding at the end thereof the following
new subsection:
‘‘(b) The purposes described in subsection (a), as they
relate to common carrier services, include—
‘‘(1) to preserve and enhance universal tele-
communications service at just and reasonable rates;
‘‘(2) to encourage the continued development and
deployment of advanced and reliable capabilities and
services in telecommunications networks;
‘‘(3) to make available, so far as possible, to all
the people of the United States, regardless of location
or disability, a switched, broadband telecommuni-
cations network capable of enabling users to originate
and receive affordable high quality voice, data, graph-
ics, and video telecommunications services;
‘‘(4) to ensure that the costs of such networks and
services are allocated equitably among users and are
constrained by competition whenever possible;
‘‘(5) to ensure a seamless and open nationwide
telecommunications network through joint planning,
coordination, and service arrangements between and
among carriers; and
‘‘(6) to ensure that common carriers’ networks
function at a high standard of quality in delivering
advances in network capabilities and services.’’.
(b) DEFINITIONS.—Section 3 of such Act (47 U.S.C.
153) is amended—
(1) in subsection (r)—
(A) by inserting ‘‘(A)’’ after ‘‘means’’; and
(B) by inserting before the period at the end
the following: ‘‘, or (B) service provided through
a system of switches, transmission equipment, or
other facilities (or combination thereof) by which
a subscriber can originate and terminate a tele-
communications service within a State but
which does not result in the subscriber incurring
a telephone toll charge’’; and
(2) by adding at the end thereof the following:
‘‘(gg) ‘Information service’ means the offering of a ca-
pability for generating, acquiring, storing, transforming,
processing, retrieving, utilizing, or making available infor-
mation via telecommunications, and includes electronic
publishing, but does not include any use of any such capa-
bility for the management, control, or operation of a tele-
communications system or the management of a tele-
communications service.
‘‘(hh) ‘Equal access’ means to afford, to any person
seeking to provide an information service or a telecommuni-
cations service, reasonable and nondiscriminatory access on
an unbundled basis—
‘‘(1) to databases, signaling systems, poles, ducts,
conduits, and rights-of-way owned or controlled by a
local exchange carrier, or other facilities, functions, or
information (including subscriber numbers) integral
to the efficient transmission, routing, or other provi-
sion of telephone exchange services or telephone ex-
change access services;
‘‘(2) that is at least equal in type, quality, and
price to the access which the carrier affords to itself
or to any other person; and
‘‘(3) that is sufficient to ensure the full inter-
operability of the equipment and facilities of the car-
rier and of the person seeking such access.
‘‘(ii) ‘Open platform service’ means a switched, end-
to-end digital telecommunications service that is subject to
title II of this Act, and that (1) provides subscribers with
sufficient network capability to access multimedia informa-
tion services, (2) is widely available throughout a State,
(3) is provided based on industry standards, and (4) is
available to all subscribers on a single line basis upon rea-
sonable request.
‘‘(jj) ‘Local exchange carrier’ means any person that
is engaged in the provision of telephone exchange service
or telephone exchange access service. Such term does not in-
clude a person insofar as such person is engaged in the pro-
vision of a commercial mobile service under section 332(c),
except to the extent that the Commission finds that such
service as provided by such person in a State is a replace-
ment for a substantial portion of the wireline telephone ex-
change service within such State.
‘‘(kk) ‘Telephone exchange access service’ means the of-
fering of telephone exchange services or facilities for the pur-
pose of the origination or termination of interexchange tele-
communications services to or from an exchange area.
‘‘(ll) ‘Telecommunications’ means the transmission, be-
tween or among points specified by the subscriber, of infor-
mation of the subscriber’s choosing, without change in the
form or content of the information as sent and received,
by means of an electromagnetic transmission medium, in-
cluding all instrumentalities, facilities, apparatus, and
services (including the collection, storage, forwarding,
switching, and delivery of such information) essential to
such transmission.
‘‘(mm) ‘Telecommunications service’ means the offer-
ing, on a common carrier basis, of telecommunications fa-
cilities, or of telecommunications by means of such facili-
ties. Such term does not include an information service.’’.
SEC. 102. EQUAL ACCESS AND NETWORK FUNCTIONALITY
AND QUALITY.
(a) AMENDMENT.—Section 201 of the Communications
Act of 1934 (47 U.S.C. 201) is amended by adding at the
end thereof the following new subsections:
‘‘(c) EQUAL ACCESS.—
‘‘(1) OPENNESS
AND
ACCESSIBILITY
OBLIGA-
TIONS.—
‘‘(A) COMMON CARRIER OBLIGATIONS.—The
duty of a common carrier under subsection (a)
to furnish communications service includes the
duty to interconnect with the facilities and
equipment of other providers of telecommuni-
cations services and information services in ac-
cordance with such regulations as the Commis-
sion may prescribe as necessary or desirable in
the public interest with respect to the openness
and accessibility of common carrier networks.
‘‘(B) ADDITIONAL OBLIGATIONS OF LOCAL
EXCHANGE
CARRIERS.—The duty under sub-
section (a) of a local exchange carrier includes
the duty—
‘‘(i) to provide, in accordance with the
regulations prescribed under paragraph (2),
equal access to and interconnection with the
facilities of the carrier’s networks to any
other carrier or person providing tele-
communications services or information
services reasonably requesting such equal
access and interconnection, so that such net-
works are fully interoperable with such tele-
communications services and information
services; and
‘‘(ii) to offer unbundled features, func-
tions, and capabilities whenever technically
feasible and economically reasonable, in ac-
cordance with requirements prescribed by
the Commission pursuant to this subsection
and other laws.
‘‘(2) EQUAL
ACCESS
AND
INTERCONNECTION
REGULATIONS.—
‘‘(A) REGULATIONS REQUIRED.—Within 1
year after the date of enactment of this sub-
section, the Commission shall establish regula-
tions that require reasonable and nondiscrim-
inatory equal access to and interconnection with
the facilities of a local exchange carrier’s network
at any technically feasible and economically rea-
sonable point within the carrier’s network on
reasonable terms and conditions, to any other
carrier or person offering telecommunications
services requesting such access. The Commission
shall establish such regulations after consultation
with the Joint Board established pursuant to
subparagraph (D). Such regulations shall pro-
vide for actual collocation of equipment nec-
essary for interconnection for telecommuni-
cations services at the premises of a local ex-
change carrier, except that the regulations shall
provide for virtual collocation where the local ex-
change carrier demonstrates that actual colloca-
tion is not practical for technical reasons or be-
cause of space limitations.
‘‘(B) COMPENSATION.—Within 1 year after
the date of enactment of this subsection, the Com-
mission shall establish regulations requiring just
and reasonable compensation to the exchange
carrier providing such equal access and inter-
connection pursuant to subparagraph (A). Such
regulations shall include regulations to require
the carrier, to the extent it provides a tele-
communications service or an information serv-
ice, to impute such access and interconnection
charges to itself as the Commission determines
are reasonable and nondiscriminatory.
‘‘(C) EXEMPTIONS
AND
MODIFICATIONS.—
Notwithstanding paragraph (1) or subparagraph
(A) of this paragraph, a rural telephone com-
pany shall not be required to provide equal ac-
cess and interconnection to another local ex-
change carrier. The Commission shall not apply
the requirements of this paragraph or impose re-
quirements pursuant to paragraph (1)(B)(ii) to
any rural telephone company, except to the ex-
tent that the Commission determines that com-
pliance with such requirements would not be un-
duly economically burdensome, unfairly competi-
tive, technologically infeasible, or otherwise not
in the public interest. The Commission may
modify the requirements of this paragraph for
any other local exchange carrier that has, in the
aggregate nationwide, fewer than 500,000 access
lines installed, to the extent that the Commission
determines that compliance with such require-
ments (without such modification) would be un-
duly economically burdensome, technologically
infeasible, or otherwise not in the public interest.
The Commission may include, in the regulations
prescribed pursuant to paragraph (1)(B), modi-
fied requirements for any feature, function, or
capability that the Commission determines is
generally available to competing providers of
telecommunications services or information serv-
ices at the same or better price, terms, and con-
ditions.
‘‘(D) JOINT BOARD ON EQUAL ACCESS AND
INTERCONNECTION STANDARDS.—Within 30 days
after the date of enactment of this subsection, the
Commission shall convene a Federal-State Joint
Board under section 410(c) for the purpose of
preparing a recommended decision for the Com-
mission with respect to the equal access and
interconnection regulations required by this
paragraph.
‘‘(E) ENFORCEMENT OF EXISTING REGULA-
TIONS.—Nothing in this section shall be con-
strued to prohibit the Commission from enforc-
ing regulations prescribed prior to the date of en-
actment of this subsection in fulfilling the re-
quirements of this subsection to the extent that
such regulations are consistent with the provi-
sions of this subsection.
‘‘(F) DEFINITION
OF
RURAL
TELEPHONE
COMPANY.—For the purpose of subparagraph (C)
of this paragraph, the term ‘rural telephone com-
pany’ means a local exchange carrier operating
entity to the extent that such entity—
‘‘(i) provides common carrier service to
any local exchange carrier study area that
does not include either—
‘‘(I) any incorporated place of
10,000 inhabitants or more, or any
part thereof, based on the most recent
available population statistics of the
Bureau of the Census; or
‘‘(II) any territory, incorporated
or unincorporated, included in an ur-
banized area, as defined by the Bureau
of the Census as of August 10, 1993;
‘‘(ii) provides telephone exchange serv-
ice, including telephone exchange access
service, to fewer than 50,000 access lines; or
‘‘(iii) provides telephone exchange serv-
ice to any local exchange carrier study area
with fewer than 100,000 access lines.
‘‘(3) PREEMPTION.—
‘‘(A) LIMITATION.—Notwithstanding section
2(b), no State or local government may, after one
year after the date of enactment of this sub-
section—
‘‘(i) effectively prohibit any person or
carrier from providing any interstate or
intrastate telecommunications service or in-
formation service, or impose any restriction
or condition on entry into the business of
providing any such service;
‘‘(ii) prohibit any carrier or other per-
son providing interstate or intrastate tele-
communications services or information
services from exercising the access and
interconnection rights provided under this
subsection; or
‘‘(iii) impose any limitation on the ex-
ercise of such rights.
‘‘(B) 
PERMITTED
TERMS
AND
CONDI-
TIONS.—Subparagraph (A) shall not be con-
strued to prohibit a State from imposing a term
or condition on providers of telecommunications
services or information services if such term or
condition is not inconsistent with subparagraph
(A) and is necessary and appropriate to—
‘‘(i) protect public safety and welfare;
‘‘(ii) ensure the continued quality of
intrastate telecommunications;
‘‘(iii) ensure that rates for intrastate
telecommunications services are just and
reasonable; or
‘‘(iv) ensure that the provider’s busi-
ness practices are consistent with consumer
protection laws and regulations.
‘‘(C) EXCEPTION.—In the case of commer-
cial mobile services, the provisions of section
332(c)(3) shall apply in lieu of the provisions of
this paragraph.
‘‘(D) PARITY
OF
FRANCHISE
AND
OTHER
CHARGES.—Notwithstanding section 2(b), no
local government may, after 1 year after the date
of enactment of this subsection, impose or collect
any franchise, license, permit, or right-of-way fee
or any assessment, rental, or any other charge or
equivalent thereof as a condition for operating in
the locality or for obtaining access to, occupying,
or crossing public rights-of-way from any pro-
vider of telecommunications services that distin-
guishes between or among providers of tele-
communications services, including the local ex-
change carrier. For purposes of this subsection,
a franchise, license, permit, or right-of-way fee
or an assessment, rental, or any other charge or
equivalent thereof does not include any imposi-
tion of general applicability which does not dis-
tinguish between or among providers of tele-
communications services, or any tax.
‘‘(4) TARIFFS.—
‘‘(A) GENERALLY.—Within 18 months after
the date of enactment of this subsection, a local
exchange carrier shall prepare and file tariffs in
accordance with this Act with respect to the serv-
ices or elements offered to comply with the equal
access and interconnection regulations required
under this subsection. The costs that a carrier
incurs in providing such services or elements
shall be borne solely by the users of the features
and functions comprising such services or ele-
ments or of the feature or function that uses or
includes such services or elements. The Commis-
sion shall review such tariffs to ensure that—
‘‘(i) the charges for such services or ele-
ments are cost-based; and
‘‘(ii) the terms and conditions con-
tained in such tariffs unbundle any sepa-
rable services, elements, features, or func-
tions 
in 
accordance 
with 
paragraph
(1)(B)(ii) and any regulations thereunder.
‘‘(B) SUPPORTING INFORMATION.—A local
exchange carrier shall submit supporting infor-
mation with its tariffs for equal access and
interconnection that is sufficient to enable the
Commission and the public to determine the re-
lationship between the proposed charges and the
costs of providing such services or elements. The
submission of such information shall be pursuant
to regulations adopted by the Commission to en-
sure that similarly situated carriers provide such
information in a uniform fashion.
‘‘(5) PRICING FLEXIBILITY.—
‘‘(A) ESTABLISHMENT OF CRITERIA.—With-
in 270 days after the date of enactment of this
subsection, the Commission, by regulation, shall
establish criteria for determining—
‘‘(i) whether a telecommunications
service or provider of such service has be-
come, or is substantially certain to become,
subject to competition, either within a geo-
graphic area or within a class or category
of service;
‘‘(ii) whether such competition will ef-
fectively prevent rates for such service that
are unjust or unreasonable or that are un-
justly or unreasonably discriminatory; and
‘‘(iii) appropriate flexible pricing pro-
cedures that can be used in lieu of the filing
of tariff schedules, or in lieu of other pric-
ing procedures established by the Commis-
sion, and that are consistent with the pro-
tection of subscribers and the public inter-
est, convenience, and necessity.
‘‘(B) DETERMINATIONS.—The Commission,
with respect to rates for interstate or foreign
communications, and State commissions, with
respect to rates for intrastate communications,
shall, upon application—
‘‘(i) render determinations in accord-
ance with the criteria established under
clauses (i) and (ii) of subparagraph (A)
concerning the services or providers that are
the subject of such application; and
‘‘(ii) upon a proper showing, establish
appropriate flexible pricing procedures con-
sistent with the criteria established under
clause (iii) of such subparagraph.
The Commission shall approve or reject any such
application within 180 days after the date of its
submission.
‘‘(C) EXCEPTION.—In the case of commer-
cial mobile services, the provisions of section
332(c)(1) shall apply in lieu of the provisions of
this paragraph.
‘‘(6) JOINT
BOARD
TO
PRESERVE
UNIVERSAL
SERVICE.—
‘‘(A) ESTABLISHMENT; FUNCTIONS.—With-
in 30 days after the date of enactment of this
subsection, the Commission shall convene a Fed-
eral-State Joint Board under section 410(c) for
the purpose of recommending actions to the Com-
mission and State commissions for the preserva-
tion of universal service. As a part of preparing
such recommendations, the Joint Board shall
survey providers and users of telephone exchange
service and consult with State commissions in
order to determine the pecuniary difference be-
tween the cost of providing universal service and
the prices determined to be appropriate for such
service.
‘‘(B) PRINCIPLES.—The Joint Board shall
base policies for the preservation of universal
service on the following principles:
‘‘(i) A plan adopted by the Commis-
sion and the States should ensure the con-
tinued viability of universal service by
maintaining quality services at just and
reasonable rates.
‘‘(ii) Such plan should define the na-
ture and extent of the services encompassed
within carriers’ universal service obliga-
tions. Such plan should seek to promote ac-
cess to advanced telecommunications serv-
ices and capabilities, including open plat-
form service, for all Americans by including
access to advanced telecommunications serv-
ices and capabilities in the definition of
universal service while maintaining just
and reasonable rates. Such plan should en-
sure reasonably comparable services for the
general public in urban and rural areas.
‘‘(iii) Such plan should establish spe-
cific and predictable mechanisms to provide
adequate and sustainable support for uni-
versal service.
‘‘(iv) All providers of telecommuni-
cations services should make an equitable
and 
nondiscriminatory 
contribution 
to
preservation of universal service.
‘‘(v) Such plan should permit residen-
tial subscribers to continue to receive only
basic voice-grade local telephone service,
equivalent to the service generally available
to residential subscribers on the date of en-
actment of this subsection, at just, reason-
able, and affordable rates. Determinations
concerning the affordability of rates for such
services shall take into account the rates
generally available to residential subscribers
on such date of enactment and the pricing
rules established by the States. If the plan
would result in any increases in the rates
for such services for residential subscribers
that are not attributable to changes in
consumer prices generally, such plan shall
include a requirement that a rate increase
shall be permitted in any proceeding com-
menced after March 16, 1994, only upon a
showing that such increase is necessary to
prevent competitive disadvantages for one
or more service providers and is in the pub-
lic interest. Such plan should provide that
any such increase in rates shall be mini-
mized to the greatest extent practical and
shall be implemented over a time period of
not less than 5 years.
‘‘(vi) To the extent that a common car-
rier 
establishes 
advanced 
telecommuni-
cations services, such plan should include
provisions to promote public access to ad-
vanced telecommunications services, other
than a video platform, at a preferential rate
that will recover only the added costs of pro-
viding such service, for educational, library,
public broadcast, and other tax-exempt in-
stitutions, and governmental entities, both
as producers and users of services as soon as
technically feasible and economically rea-
sonable. Such preferential rates should only
be made available to such institutions and
entities for the purpose of providing non-
commercial information services or tele-
communications services to the general pub-
lic and not for the internal telecommuni-
cations needs or commercial use of such in-
stitutions and entities.
‘‘(vii) Such plan should determine and
establish mechanisms to ensure that rates
charged by a provider of interexchange tele-
communications services for services in
rural areas are maintained at levels no
higher than those charged by the same car-
rier to subscribers in urban areas.
‘‘(viii) Such plan should, notwith-
standing any other provision of law, require
common 
carriers 
serving 
more 
than
1,800,000 access lines in the aggregate na-
tionwide, to be subject to alternative or
price regulation, and not cost-based rate-of-
return regulation, for services that are sub-
ject to the jurisdiction of the Commission or
the States, as applicable, when such car-
rier’s network has been made open to com-
petition as a result of its implementation of
the equal access, interconnection, and acces-
sibility provisions of this subsection.
‘‘(ix) Such other principles as the
Board determines are necessary and appro-
priate for the protection of the public inter-
est, convenience, and necessity and consist-
ent with the purposes of this Act.
‘‘(C) DEFINITION OF UNIVERSAL SERVICE;
ACCESS
TO
ADVANCED
SERVICES.—In defining
the nature and extent of the services encompassed
within carriers’ universal service obligations
under subparagraph (B)(ii), the Joint Board
shall consider the extent to which—
‘‘(i) a telecommunications service has,
through the operation of market choices by
customers, been subscribed to by a substan-
tial majority of residential customers;
‘‘(ii) denial of access to such service to
any individual would unfairly deny that
individual educational and economic oppor-
tunities;
‘‘(iii) such service has been deployed in
the public switched telecommunications net-
work; and
‘‘(iv) inclusion of such service within
carriers’ universal service obligations is oth-
erwise consistent with the public interest,
convenience, and necessity.
The Joint Board may, from time to time, rec-
ommend to the Commission modifications in the
definition proposed under subparagraph (B).
‘‘(D) REPORT; COMMISSION
RESPONSE.—
The Joint Board convened pursuant to subpara-
graph (A) shall report its recommendations with-
in 270 days after the date of enactment of this
subsection. The Commission shall complete any
proceeding to act upon such recommendations
within one year after such date of enactment. A
State may adopt regulations to implement the
Joint Board’s recommendations, except that such
regulations shall not, after 18 months after such
date of enactment, be inconsistent with regula-
tions prescribed by the Commission to implement
such recommendations.
‘‘(7) CROSS SUBSIDIES PROHIBITION.—The Com-
mission shall—
‘‘(A) prescribe regulations to prohibit a
common carrier from engaging in any practice
that results in the inclusion in rates for tele-
phone exchange service or telephone exchange ac-
cess service of any operating expenses, costs, de-
preciation charges, capital investments, or other
expenses directly associated with the provision of
competing telecommunications services, informa-
tion services, or video programming services by
the common carrier or affiliate; and
‘‘(B) ensure such competing telecommuni-
cations services, information services or video
programming services bear a reasonable share of
the joint and common costs of facilities used to
provide telephone exchange service or telephone
exchange access service and competing tele-
communications services, information services, or
video programming services.
‘‘(8) RESALE.—The resale or sharing of tele-
phone exchange service (or unbundled services, ele-
ments, features, or functions of such service) in con-
junction with the furnishing of a telecommunications
service or any information service shall not be prohib-
ited nor subject to unreasonable conditions by the car-
rier, the Commission, or any State.
‘‘(9) 
TELECOMMUNICATIONS
NUMBER
PORT-
ABILITY.—The Commission shall prescribe regulations
to ensure that—
‘‘(A) 
telecommunications 
number 
port-
ability shall be available, upon request, as soon
as technically feasible and economically reason-
able; and
‘‘(B) an impartial entity shall administer
telecommunications numbering and make such
numbers available on an equitable basis.
The Commission shall have exclusive jurisdiction over
those portions of the North American Numbering Plan
that pertain to the United States. For the purpose of
this paragraph, the term ‘telecommunications number
portability’ means the ability of users of telecommuni-
cations services to retain existing telecommunications
numbers without impairment of quality, reliability,
or convenience when switching from one provider of
telecommunications services to another.
‘‘(10) REVIEW
OF
STANDARDS
AND
REQUIRE-
MENTS.—At least once every three years, the Commis-
sion shall—
‘‘(A) conduct a proceeding in which inter-
ested parties shall have an opportunity to com-
ment on whether the standards and requirements
established by or under this subsection have
opened the networks of carriers to reasonable and
nondiscriminatory access by providers of tele-
communications services and information serv-
ices;
‘‘(B) review the definition of, and the ade-
quacy of support for, universal service, and
evaluate the extent to which universal service has
been protected and access to advanced services
has been facilitated pursuant to this subsection
and the plans and regulations thereunder; and
‘‘(C) submit to the Congress a report con-
taining a statement of the Commission’s findings
pursuant to such proceeding, and including an
identification of any defects or delays observed in
attaining the objectives of this subsection and a
plan for correcting such defects and delays.
‘‘(11) STUDY OF RURAL PHONE SERVICE.—With-
in 1 year after the date of enactment of this sub-
section, the Commission shall initiate an inquiry to
examine the effects of competition in the provision of
telephone exchange access service and telephone ex-
change service on the availability and rates for tele-
phone exchange access service and telephone exchange
service furnished by rural exchange carriers.
‘‘(d) NETWORK FUNCTIONALITY AND QUALITY.—
‘‘(1) FUNCTIONALITY AND RELIABILITY OBLIGA-
TIONS.—The duty of a common carrier under sub-
section (a) to furnish communications service includes
the duty to furnish that service in accordance with
such regulations of functionality and reliability as the
Commission may prescribe as necessary or desirable
in the public interest pursuant to this subsection.
‘‘(2) COORDINATED PLANNING FOR INTEROPER-
ABILITY
AND
OTHER
PURPOSES.—The Commission
shall establish—
‘‘(A) procedures for the conduct of coordi-
nated network planning by common carriers and
other providers of telecommunications services or
information services, subject to Commission su-
pervision, for the effective and efficient inter-
connection and interoperability of public and
private networks; and
‘‘(B) procedures for Commission oversight of
the development by appropriate standards-set-
ting organizations of—
‘‘(i) standards for the interconnection
and interoperability of such networks;
‘‘(ii) standards that promote access to
network capabilities and services by indi-
viduals with disabilities; and
‘‘(iii) standards that promote access to
information services by subscribers to tele-
phone exchange service furnished by a rural
telephone company (as such term is defined
in subsection (c)(2)(F)).
‘‘(3) OPEN PLATFORM SERVICE.—
‘‘(A) STUDY.—Within 90 days after the
date of enactment of this subsection, the Commis-
sion shall initiate an inquiry to consider the reg-
ulations and policies necessary to make open
platform service available to subscribers at rea-
sonable rates based on the reasonably identifiable
costs of providing such service, utilizing existing
facilities or new facilities with improved capa-
bility or efficiency. The inquiry required under
this paragraph shall be completed within 180
days after the date of its initiation.
‘‘(B) REGULATIONS.—On the basis of the
results of the inquiry required under subpara-
graph (A), the Commission shall prescribe and
make effective such regulations as are necessary
to implement the inquiry’s conclusions. Such
regulations may require a local exchange carrier
to file, in the appropriate jurisdiction, tariffs for
the origination and termination of open plat-
form service as soon as such service is economi-
cally and technically feasible. In establishing
any such regulations, the Commission shall take
into account the proximate and long-term de-
ployment plans of local exchange carriers.
‘‘(C) TEMPORARY
WAIVER.—The Commis-
sion shall also establish a procedure to waive
temporarily specific provisions of the regulations
prescribed under this paragraph if a local ex-
change carrier demonstrates that compliance
with such requirement—
‘‘(i) would be economically or tech-
nically infeasible, or
‘‘(ii) would materially delay the de-
ployment of new facilities with improved
capabilities or efficiencies that will be used
to meet the requirements of open platform
services.
Such petitions shall be decided by the Commis-
sion within 180 days after the date of its submis-
sion.
‘‘(D) COST ALLOCATION.—Any such regula-
tions shall provide for the allocation of all costs
of facilities jointly used to provide open platform
service and telephone exchange service or tele-
phone exchange access services.
‘‘(E) STATE AUTHORITY.—Nothing in this
paragraph shall be construed to limit a State’s
authority to continue to regulate any services
subject to State jurisdiction under this Act.
‘‘(F) CONTINUING
OVERSIGHT.—Commenc-
ing not later than 2 years after the date of enact-
ment of this subsection, the Commission shall
conduct an inquiry on the progress of open plat-
form service deployment. The Commission shall
submit a report to the Congress on the results of
such inquiry within 180 days after the com-
mencement of such inquiry and annually there-
after for the succeeding 5 years.
‘‘(4) ACCESSIBILITY REGULATIONS.—
‘‘(A) REGULATIONS.—Within 1 year after
the date of enactment of this section, the Com-
mission shall prescribe such regulations as are
necessary to ensure that advances in network
services deployed by local exchange carriers shall
be accessible and usable by individuals with dis-
abilities, including individuals with functional
limitations of hearing, vision, movement, manip-
ulation, speech, and interpretation of informa-
tion, unless the cost of making the services acces-
sible and usable would result in an undue bur-
den or adverse competitive impact. Such regula-
tions shall seek to permit the use of both stand-
ard and special equipment, and seek to minimize
the need of individuals to acquire additional de-
vices beyond those used by the general public to
obtain such access. Throughout the process of de-
veloping such regulations, the Commission shall
coordinate and consult with representatives of
individuals with disabilities and interested
equipment and service providers to ensure their
concerns and interests are given full consider-
ation in such process.
‘‘(B) 
COMPATIBILITY.—Such 
regulations
shall require that whenever an undue burden or
adverse competitive impact would result from the
requirements in subparagraph (A), the local ex-
change carrier that deploys the network service
shall ensure that the network service in question
is compatible with existing peripheral devices or
specialized customer premises equipment com-
monly used by persons with disabilities to
achieve access, unless doing so would result in an
undue burden or adverse competitive impact.
‘‘(C) UNDUE
BURDEN.—The term ‘undue
burden’ means significant difficulty or expense.
In determining whether the activity necessary to
comply with the requirements of this paragraph
would result in an undue burden, the factors to
be considered include the following:
‘‘(i) The nature and cost of the activ-
ity.
‘‘(ii) The impact on the operation of
the facility involved in the deployment of
the network service.
‘‘(iii) The financial resources of the
local exchange carrier.
‘‘(iv) The type of operations of the local
exchange carrier.
‘‘(D) ADVERSE
COMPETITIVE
IMPACT.—In
determining whether the activity necessary to
comply with the requirements of this paragraph
would result in adverse competitive impact, the
following factors shall be considered:
‘‘(i) Whether such activity would raise
the cost of the network service in question
beyond the level at which there would be
sufficient consumer demand by the general
population to make the network service
profitable.
‘‘(ii) Whether such activity would, with
respect to the network service in question,
put the local exchange carrier at a competi-
tive disadvantage. This factor may be con-
sidered so long as competing network service
providers are not held to the same obliga-
tion with respect to access by persons with
disabilities.
‘‘(E) REVIEW OF STANDARDS AND REQUIRE-
MENTS.—At least once every 3 years, the Com-
mission shall conduct a proceeding in which in-
terested parties shall have an opportunity to
comment on whether the regulations established
under this paragraph have ensured that ad-
vances in network services by providers of tele-
communications services and information serv-
ices are accessible and usable by individuals
with disabilities.
‘‘(F) EFFECTIVE DATE.—The regulations re-
quired by this paragraph shall become effective
18 months after the date of enactment of this
subsection.
‘‘(5) QUALITY RULES.—
‘‘(A) MEASURES
OR
BENCHMARKS
RE-
QUIRED.—The Commission shall designate or
otherwise establish network reliability and qual-
ity performance measures or benchmarks for
common carriers for the purpose of ensuring the
continued maintenance and evolution of common
carrier facilities and service. Not later than 180
days after the date of enactment of this sub-
section, the Commission shall initiate a rule-
making proceeding to establish such performance
measures or benchmarks.
‘‘(B) CONTENTS
OF
REGULATIONS.—Such
regulations shall include—
‘‘(i) quantitative network reliability
and service quality performance measures
or benchmarks;
‘‘(ii) procedures to monitor and evalu-
ate common carrier efforts to increase net-
work reliability and service quality; and
‘‘(iii) procedures to resolve network re-
liability and service quality complaints.
‘‘(C) COORDINATION AND CONSULTATION.—
Throughout the process of developing network re-
liability and service quality performance meas-
ures or benchmarks, as required by subpara-
graphs (A) and (B), the Commission shall co-
ordinate and consult with service and equipment
providers and users and State regulatory bodies
to ensure their concerns and interests are given
full consideration in such process.
‘‘(6) RURAL EXEMPTION.—The Commission may
modify, or grant exemptions from, the requirements of
this subsection in the case of a common carrier pro-
viding telecommunications services in a rural area.
‘‘(e) INFRASTRUCTURE SHARING.—
‘‘(1) REGULATIONS REQUIRED.—Within one year
after the date of enactment of this subsection, the
Commission shall prescribe regulations that require
local exchange carriers to make available to any
qualifying carrier such public switched telecommuni-
cations network technology and information and tele-
communications facilities and functions as may be re-
quested by such qualifying carrier for the purpose of
enabling that carrier to provide telecommunications
services, or to provide access to information services,
in the geographic area in which that carrier has re-
quested and obtained designation as the qualifying
carrier.
‘‘(2) QUALIFYING
CARRIERS.—For purposes of
paragraph (1), the term ‘qualifying carrier’ means a
local exchange carrier that—
‘‘(A) lacks economies of scale or scope, as
determined in accordance with regulations pre-
scribed by the Commission pursuant to this sub-
section; and
‘‘(B) is a common carrier which offers tele-
phone exchange service, telephone exchange access
service, and any other service that is within the
definition of universal service, to all customers
without preference throughout one or more ex-
change areas in existence on the date of enact-
ment of this subsection.
‘‘(3) TERMS
AND
CONDITIONS
OF
REGULA-
TIONS.—The regulations prescribed by the Commis-
sion pursuant to this subsection—
‘‘(A) shall not require any local exchange
carrier to take any action that is economically
unreasonable or that is contrary to the public in-
terest;
‘‘(B) shall permit, but shall not require, the
joint ownership or operation of public switched
telecommunications network facilities, functions,
and services by or among the local exchange car-
rier and the qualifying carrier;
‘‘(C) shall ensure that a local exchange car-
rier shall not be treated by the Commission or
any State commission as a common carrier for
hire, or as offering common carrier services, with
respect to any technology, information, facilities,
or functions made available to a qualifying car-
rier pursuant to this subsection;
‘‘(D) shall ensure that local exchange car-
riers make such technology, information, facili-
ties, or functions available to qualifying carriers
on fair and reasonable terms and conditions that
permit such qualifying carriers to fully benefit
from the economies of scale and scope of the pro-
viding local exchange carrier, as determined in
accordance with guidelines prescribed by the
Commission in such regulations;
‘‘(E) shall establish conditions that promote
cooperation between local exchange carriers and
qualifying carriers; and
‘‘(F) shall not require any local exchange
carrier to engage in any infrastructure sharing
agreement for any geographic area where such
carrier is required to provide services subject to
State regulation.
‘‘(4) INFORMATION CONCERNING DEPLOYMENT OF
NEW SERVICES AND EQUIPMENT.—Any local exchange
carrier that has entered into an agreement with a
qualifying carrier under this subsection shall provide
to each party to such agreement timely information
on the planned deployment of telecommunications
services and equipment, including software integral to
such telecommunications services and equipment, in-
cluding upgrades.’’.
(b) PREEMPTION OF FRANCHISING AUTHORITY REGU-
LATION OF TELECOMMUNICATIONS SERVICES.—
(1) TELECOMMUNICATIONS
SERVICES.—Section
621(b) of the Communications Act of 1934 (47 U.S.C.
541(c)) is amended by adding at the end thereof the
following new paragraph:
‘‘(3)(A) To the extent that a cable operator or affiliate
thereof is engaged in the provision of telecommunications
services—
‘‘(i) such cable operator or affiliate shall not be
required to obtain a franchise under this title; and
‘‘(ii) the provisions of this title shall not apply
to such cable operator or affiliate.
‘‘(B) A franchising authority may not impose any re-
quirement that has the purpose or effect of prohibiting, lim-
iting, restricting, or conditioning the provision of a tele-
communications service by a cable operator or an affiliate
thereof.
‘‘(C) A franchising authority may not order a cable
operator or affiliate thereof—
‘‘(i) to discontinue the provision of a tele-
communications service, or
‘‘(ii) to discontinue the operation of a cable sys-
tem, to the extent such cable system is used for the
provision of a telecommunications service, by reason
of the failure of such cable operator or affiliate thereof
to obtain a franchise or franchise renewal under this
title with respect to the provision of such tele-
communications service.
‘‘(D) A franchising authority may not require a cable
operator to provide any telecommunications service or fa-
cilities as a condition of the initial grant of a franchise
or a franchise renewal.’’.
(2) FRANCHISE
FEES.—Section 622(b) of the
Communications Act of 1934 (47 U.S.C. 542(b)) is
amended by inserting ‘‘to provide cable services’’ im-
mediately before the period at the end of the first sen-
tence thereof.
(c) CONFORMING AMENDMENT.—Section 2(b) of the
Communications Act of 1934 (47 U.S.C. 152(b)) is amend-
ed by inserting ‘‘201(c) and (d),’’ after ‘‘Except as provided
in sections’’.
SEC. 103. TELECOMMUNICATIONS SERVICES FOR EDU-
CATIONAL INSTITUTIONS, HEALTH CARE IN-
STITUTIONS, AND LIBRARIES.
Title II of the Communications Act of 1934 is amended
by adding at the end the following new section:
‘‘SEC. 229. TELECOMMUNICATIONS SERVICES FOR EDU-
CATIONAL INSTITUTIONS, HEALTH CARE IN-
STITUTIONS, AND LIBRARIES.
‘‘(a) PROMOTION OF DELIVERY OF ADVANCED SERV-
ICES.—In fulfillment of its obligation under section 1 to
make available to all the people of the United States a
rapid, efficient, nationwide, and worldwide communica-
tions service, the Commission shall promote the provision
of advanced telecommunications services by wire, wireless,
cable, and satellite technologies to—
‘‘(1) educational institutions;
‘‘(2) health care institutions; and
‘‘(3) public libraries.
‘‘(b) ANNUAL SURVEY REQUIRED.—The National Tele-
communications and Information Administration shall
conduct a nationwide survey of the availability of advanced
telecommunications services to educational institutions,
health care institutions, and public libraries. The Adminis-
tration shall complete the survey and release publicly the
results of such survey not later than one year after the date
of enactment of this section. The results of such survey shall
include—
‘‘(1) the number of educational institutions and
classrooms, health care institutions, and public li-
braries;
‘‘(2) the number of educational institutions and
classrooms, health care institutions, and public li-
braries that have access to advanced telecommuni-
cations services; and
‘‘(3) the nature of the telecommunications facili-
ties through which such educational institutions,
health care institutions, and public libraries obtain
access to advanced telecommunications services.
The National Telecommunications and Information Ad-
ministration shall update annually the survey required by
this section. The survey required under this subsection shall
be prepared in consultation with the Department of Edu-
cation, Department of Health and Human Services, and
such other Federal, State, and local departments, agencies,
and authorities that may maintain or have access to infor-
mation concerning the availability of advanced tele-
communications services to educational institutions, health
care institutions, and libraries.
‘‘(c) RULEMAKING REQUIRED.—Within one year after
the date of enactment of this section, the Commission shall
issue a notice of proposed rulemaking for the purpose of
adopting regulations that—
‘‘(1) enhance, to the extent technically feasible
and economically reasonable, the availability of ad-
vanced telecommunications services to all educational
institutions and classrooms, health care institutions,
and public libraries by the year 2000;
‘‘(2) ensure that appropriate functional require-
ments or performance standards, or both, including
interoperability standards, are established for tele-
communications systems or facilities that interconnect
educational institutions, health care institutions, and
public libraries with the public switched telecommuni-
cations network;
‘‘(3) define the circumstances under which a car-
rier may be required to interconnect its telecommuni-
cations network with educational institutions, health
care institutions, and public libraries;
‘‘(4) provide for either the establishment of pref-
erential rates for telecommunications services, includ-
ing advanced services, that are provided to edu-
cational institutions, health care institutions, and
public libraries, or the use of alternative mechanisms
to enhance the availability of advanced services to
these institutions; and
‘‘(5) address such other related matters as the
Commission may determine.
‘‘(d) FEASIBILITY STUDY.—The Commission shall as-
sess the feasibility of including postsecondary educational
institutions in any regulations promulgated under this sec-
tion.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘educational institutions’ means el-
ementary and secondary educational institutions; and
‘‘(2) the term ‘health care institutions’ means
not-for-profit health care institutions, including hos-
pitals and clinics.’’.
SEC. 104. DISCRIMINATORY INTERCONNECTION.
Section 208 of the Communications Act of 1934 is
amended by adding at the end thereof the following new
subsection:
‘‘(c) EXPEDITED REVIEW OF CERTAIN COMPLAINTS.—
The Commission shall issue a final order with respect to
any complaint arising from alleged violations of the regula-
tions and orders prescribed pursuant to section 201(c) with-
in 180 days after the date such complaint is filed.’’.
SEC. 105. EXPEDITED LICENSING OF NEW TECHNOLOGIES
AND SERVICES.
Section 7 of the Communications Act of 1934 (47
U.S.C. 157) is amended by adding at the end thereof the
following new subsection:
‘‘(c) LICENSING OF NEW TECHNOLOGIES.—
‘‘(1) 
EXPEDITED
RULEMAKING.—Within 
months after making a determination under sub-
section (b) that a technology or service related to the
furnishing of telecommunications services is in the
public interest, the Commission shall, with respect to
any such service requiring a license or other author-
ization from the Commission, adopt and make effec-
tive regulations for—
‘‘(A) the provision of such technology or
service; and
‘‘(B) the filing of applications for the li-
censes or authorizations necessary to offer such
technology or service to the public, and shall act
on any such application within 24 months after
it is filed.
‘‘(2) REVIEW OF APPLICATIONS.—Any applica-
tion filed by a carrier under this subsection for the
construction or extension of a line shall also be subject
to section 214 and to any necessary approval by the
appropriate State commissions.’’.
SEC. 106. NEW OR EXTENDED LINES.
Section 214 of the Communications Act of 1934 is
amended by adding at the end the following new subsection:
‘‘(e) Any application filed under this section for au-
thority to construct or extend a line shall address the means
by which such construction or extension will meet the net-
work access needs of individuals with disabilities.’’.
SEC. 107. POLE ATTACHMENTS.
Section 224 of the Communications Act of 1934 (47
U.S.C. 244) is amended—
(1) in subsection (a)(4), by inserting after ‘‘sys-
tem’’ the following: ‘‘or a provider of telecommuni-
cations service’’;
(2) in subsection (c)(2)(B), by striking ‘‘cable tel-
evision services’’ and inserting ‘‘the services offered
via such attachments’’;
(3) by redesignating subsection (d)(2) as sub-
section (d)(4); and
(4) by striking subsection (d)(1) and inserting
the following:
‘‘(d)(1) For purposes of subsection (b) of this section,
the Commission shall, no later than 1 year after the date
of enactment of the National Communications Competition
and Information Infrastructure Act of 1994, prescribe regu-
lations for ensuring that utilities charge just and reasonable
and nondiscriminatory rates for pole attachments provided
to all providers of telecommunications services, including
such attachments used by cable television systems to provide
telecommunications services (as defined in section 3(mm)
of this Act). Such regulations shall—
‘‘(A) recognize that the entire pole, duct, conduit,
or right-of-way other than the usable space is of equal
benefit to all attachments to the pole, duct, conduit,
‘‘(3) For all providers of telecommunications services
except members of the exchange carrier association estab-
lished in 47 C.F.R. 69.601 as of December 31, 1993, upon
enactment of this paragraph and until the Commission pro-
mulgates its final regulations pursuant to subparagraphs
(A), (B), and (C) of paragraph (1), the rate formula con-
tained in any joint use pole attachment agreement between
the electric utility and the largest local exchange carrier
having such a joint use agreement in the utility’s service
area, in effect on January 1, 1994, shall also apply to the
pole attachments in the utility’s service area, but if no such
joint use agreement containing a rate formula exists, then
the pole attachment rate shall be the rate applicable under
paragraph (2) to cable television systems which solely pro-
vide cable service as defined in section 602(6) of this Act.
Disputes concerning the applicability of a joint use agree-
ment shall be resolved by the Commission or the States, as
appropriate.’’.
SEC. 108. INQUIRY ON CIVIC PARTICIPATION.
(a) INQUIRY ON POLICIES TO ENHANCE CIVIC PAR-
TICIPATION ON THE INTERNET.—The Commission, in con-
sultation with the National Telecommunications and Infor-
mation Administration, shall initiate an inquiry into poli-
cies that will enhance civic participation through the
Internet. The inquiry shall request public comment on the
question of whether common carriers should be required to
provide citizens with a flat rate service for gaining access
to the Internet.
(b) PARTICIPATION IN REGULATORY AFFAIRS.—The
Commission, in consultation with the Office of Consumer
Affairs, shall conduct a study of how to encourage citizen
participation in regulatory issues and, within 120 days
from the date of enactment of this Act, report to Congress
on the results of the study.
SEC. 109. COMPETITION BY SMALL BUSINESS AND MINOR-
ITY-OWNED BUSINESS CONCERNS.
Title II of the Communications Act of 1934 is amended
by adding at the end the following new section:
‘‘SEC. 230. POLICY AND RULEMAKING TO PROMOTE COM-
PETITION BY SMALL BUSINESS AND MINOR-
ITY-OWNED BUSINESS CONCERNS.
‘‘(a) POLICY; FINDING.—It shall be the policy of the
Commission to promote whenever possible the ownership of
information services and telecommunication services by
small business concerns, minority-owned business concerns,
and nonprofit entities. The Congress finds that the goals
of competitively priced services, service innovation, employ-
ment, and diversity of viewpoint can be advanced by pro-
moting marketplace penetration by such concerns and enti-
ties.
‘‘(b) RULEMAKING REQUIRED.—Within 1 year after
the date of enactment of this section, the Commission, in
consultation with the National Telecommunications and In-
formation Administration, shall initiate a rulemaking pro-
ceeding for the purpose of lowering market entry barriers
for small business, minority-owned business concerns, and
nonprofit entities that are seeking to provide telecommuni-
cation services and information services. The proceeding
shall seek to provide remedies for, among other things, lack
of access to capital and technical and marketing expertise
on the part of such concerns and entities. Consistent with
the broad policy and finding set forth in subsection (a), the
Commission shall adopt such regulations and make such
recommendations to Congress as the Commission deems ap-
propriate. Not later than 2 years after the date of enactment
of this section, the Commission shall complete the proceed-
ing required by this subsection.’’.
TITLE II—COMMUNICATIONS
COMPETITIVENESS
SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COM-
PANIES.
(a) GENERAL REQUIREMENT.—
(1) AMENDMENT.—Section 613(b) of the Commu-
nications Act of 1934 (47 U.S.C. 533(b)) is amended
to read as follows:
‘‘(b)(1) Subject to the requirements of part V and the
other provisions of this title, any common carrier subject
in whole or in part to title II of this Act may, either
through its own facilities or through an affiliate owned, op-
erated, or controlled by, or under common control with, the
common carrier, provide video programming directly to
subscribers in its telephone service area.
‘‘(2) Subject to the requirements of part V and the
other provisions of this title, any common carrier subject
in whole or in part to title II of this Act may provide chan-
nels of communications or pole, line, or conduit space, or
other rental arrangements, to any entity which is directly
or indirectly owned, operated, or controlled by, or under
common control with, such common carrier, if such facili-
ties or arrangements are to be used for, or in connection
with, the provision of video programming directly to sub-
scribers in its telephone service area.
‘‘(3) Notwithstanding paragraphs (1) and (2), an affil-
iate that—
‘‘(A) is, consistent with section 656, owned, oper-
ated, or controlled by, or under common control with,
a common carrier subject in whole or in part to title
II of this Act, and
‘‘(B) provides video programming to subscribers
in the telephone service area of such carrier, but
‘‘(C) does not utilize the local exchange facilities
or services of any affiliated common carrier in dis-
tributing such programming,
shall not be subject to the requirements of part V, but shall
be subject to the requirements of this part and parts III
and IV.’’.
(2) CONFORMING AMENDMENT.—Section 602 of
the Communications Act of 1934 (47 U.S.C. 531) is
amended—
(A) in paragraph (6)(B), by inserting ‘‘or
use’’ after ‘‘the selection’’;
(B) by redesignating paragraphs (18) and
(19) as paragraphs (19) and (20) respectively;
and
(C) by inserting after paragraph (17) the
following new paragraph:
‘‘(18) the term ‘telephone service area’ when used
in connection with a common carrier subject in whole
or in part to title II of this Act means the area with-
in which such carrier provides telephone exchange
service as of November 20, 1993, but if any common
carrier after such date transfers its exchange service
facilities to another common carrier, the area to
which such facilities provide telephone exchange serv-
ice shall be treated as part of the telephone service
area of the acquiring common carrier and not of the
selling common carrier;’’.
(b) PROVISIONS FOR REGULATION OF CABLE SERVICE
PROVIDED BY TELEPHONE COMPANIES.—Title VI of the
Communications Act of 1934 (47 U.S.C. 521 et seq.) is
amended by adding at the end the following new part:
‘‘PART V—VIDEO PROGRAMMING SERVICES
PROVIDED BY TELEPHONE COMPANIES
‘‘SEC. 651. DEFINITIONS.
‘‘For purposes of this part—
‘‘(1) the term ‘control’ means—
‘‘(A) an ownership interest in which an en-
tity has the right to vote more than 50 percent
of the outstanding common stock or other owner-
ship interest; or
‘‘(B) actual working control, as defined in
the order of the Commission entitled ‘Implemen-
tation of Sections 11 and 13 of the Cable Tele-
vision Consumer Protection and Competitive Act
of 1992—Horizontal and Vertical Ownership
Limits, Cross-Ownership Limitations, and Anti-
Trafficking Provisions’, MM Docket 92–264,
adopted September 23, 1993, if no single entity
directly or indirectly has the right to vote more
than 50 percent of the outstanding common stock
or other ownership interest;
‘‘(2) the term ‘video platform’ has the same
meaning as the term ‘basic platform’ in the order of
the Commission entitled ‘Telephone Company-Cable
Television Cross-Ownership Rules, Sections 63.54–
63.58’, CC Docket No. 87–266, adopted July 16, 1992,
except that the Commission may modify this defini-
tion by regulation consistent with the purposes of this
Act; and
‘‘(3) the term ‘rural area’ means a geographic
area that does not include either—
‘‘(A) any incorporated or unincorporated
place of 10,000 inhabitants or more, or any part
thereof; or
‘‘(B) any territory, incorporated or unin-
corporated, included in an urbanized area.
‘‘SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.
‘‘(a) IN GENERAL.—Except as provided in subsection
(d) of this section, a common carrier subject to title II of
this Act shall not provide video programming directly to
subscribers in its telephone service area unless such video
programming is provided through a video programming af-
filiate that is separate from such carrier.
‘‘(b) BOOKS AND MARKETING.—
‘‘(1) IN GENERAL.—A video programming affili-
ate of a common carrier shall—
‘‘(A) maintain books, records, and accounts
separate from such carrier which identify all
transactions with such carrier;
‘‘(B) carry out directly (or through any
nonaffiliated person) its own promotion, except
that institutional advertising carried out by such
carrier shall be permitted so long as each party
bears its pro rata share of the costs; and
‘‘(C) not own real or personal property in
common with such carrier.
‘‘(2) INBOUND
TELEMARKETING
AND
REFER-
RAL.—Notwithstanding paragraph (1)(B), a common
carrier may provide telemarketing or referral services
in response to the call of a customer or potential cus-
tomer related to the provision of video programming
by a video programming affiliate of such carrier. If
such services are provided to a video programming af-
filiate, such services shall be made available to any
video programmer or cable operator on request, on
nondiscriminatory terms, at just and reasonable
prices, and subject to regulations of the Commission
to ensure that the carrier’s method of providing
telemarketing or referral and its price structure do
not competitively disadvantage any video program-
mer or cable operator, regardless of size, including
those which do not use the carrier’s telemarketing
services.
‘‘(3) JOINT TELEMARKETING.—Notwithstanding
paragraph (1)(B), a common carrier may petition the
Commission for permission to market video program-
ming directly, upon a showing that a cable operator
or other entity directly or indirectly provides tele-
communications services within the telephone service
area of the common carrier, and markets such tele-
communications services jointly with video program-
ming services. The common carrier shall specify the
geographic region covered by the petition. Any such
petition shall be granted or denied within 180 days
after the date of its submission.
‘‘(c) BUSINESS TRANSACTIONS WITH CARRIER SUB-
JECT TO REGULATION.—Any contract, agreement, arrange-
ment, or other manner of conducting business, between a
common carrier and its video programming affiliate, pro-
viding for—
‘‘(1) the sale, exchange, or leasing of property be-
tween such affiliate and such carrier,
‘‘(2) the furnishing of goods or services between
such affiliate and such carrier, or
‘‘(3) the transfer to or use by such affiliate for
its benefit of any asset or resource of such carrier,
shall be pursuant to regulation prescribed by the Commis-
sion, shall be on a fully compensatory and auditable basis,
shall be without cost to the telephone service ratepayers of
the carrier, shall be filed with the Commission, and shall
be in compliance with regulations established by the Com-
mission that will enable the Commission to assess the com-
pliance of any transaction.
‘‘(d) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive any of the requirements of this section for
small telephone companies or telephone companies
serving rural areas, if the Commission determines,
after notice and comment, that—
‘‘(A) such waiver will not affect the ability
of the Commission to ensure that all video pro-
gramming activity is carried out without any
support from telephone ratepayers;
‘‘(B) the interests of telephone ratepayers
and cable subscribers will not be harmed if such
waiver is granted;
‘‘(C) such waiver will not adversely affect
the ability of persons to obtain access to the
video platform of such carrier; and
‘‘(D) such waiver otherwise is in the public
interest.
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘(3) CONTINUED
APPLICABILITY
OF
SECTION
659.—In the case of a common carrier that obtains a
waiver under this subsection, any requirement that
section 659 applies to a video programming affiliate
shall instead apply to such carrier.
‘‘SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.
‘‘(a) COMMON CARRIER OBLIGATIONS.—
‘‘(1) IN GENERAL.—Any common carrier subject
to title II of this Act and that provides, through a
video programming affiliate, video programming di-
rectly to subscribers in its telephone service area, shall
establish a video platform.
‘‘(2) IDENTIFICATION
OF
DEMAND
FOR
CAR-
RIAGE.—Any common carrier subject to the require-
ments of paragraph (1) shall, prior to establishing a
video platform, submit a notice to the Commission of
its intention to establish channel capacity for the pro-
vision of video programming to meet the bona fide de-
mand for such capacity. Such notice shall—
‘‘(A) be in such form and contain such in-
formation as the Commission may require by
regulations pursuant to subsection (b);
‘‘(B) specify the methods by which any en-
tity seeking to use such channel capacity should
submit to such carrier a specification of its
channel capacity requirements; and
‘‘(C) specify the procedures by which such
carrier will determine (in accordance with the
Commission’s 
regulations 
under 
subsection
(b)(1)(B)) whether such request for capacity are
bona fide.
The Commission shall submit any such notice for
publication in the Federal Register within 5 working
days.
‘‘(3) RESPONSE TO REQUEST FOR CARRIAGE.—
After receiving and reviewing the requests for capac-
ity submitted pursuant to such notice, such common
carrier shall, subject to approval of a certificate under
section 214, establish channel capacity that is suffi-
cient to provide carriage for—
‘‘(A) all bona fide requests submitted pursu-
ant to such notice,
‘‘(B) any additional channels required pur-
suant to section 659, and
‘‘(C) any additional channels required by
the Commission’s regulations under subsection
(b)(1)(C).
‘‘(4) RESPONSES TO CHANGES IN DEMAND FOR
CAPACITY.—Any common carrier that establishes a
video platform under this section shall—
‘‘(A) immediately notify the Commission
and each video programming provider of any
delay in or denial of channel capacity or service,
and the reasons therefor;
‘‘(B) continue to receive and grant, to the
extent of available capacity, carriage in response
to bona fide requests for carriage from existing
or additional video programming providers;
‘‘(C) if at any time the number of channels
required for bona fide requests for carriage may
reasonably be expected soon to exceed the existing
capacity of such video platform, immediately no-
tify the Commission of such expectation and of
the manner and date by which such carrier will
provide sufficient capacity to meet such excess
demand; and
‘‘(D) construct, subject to approval of a cer-
tificate under section 214, such additional capac-
ity as may be necessary to meet such excess de-
mand.
‘‘(5) DISPUTE
RESOLUTION.—The Commission
shall have the authority to resolve disputes under this
section and the regulations prescribed thereunder.
Any such dispute shall be resolved within 180 days
after notice of such dispute is submitted to the Com-
mission. At that time or subsequently in a separate
damages proceeding, the Commission may award
damages sustained in consequence of any violation of
this section to any person denied carriage, or require
carriage, or both. Any aggrieved party may seek any
other remedy available under this Act.
‘‘(b) COMMISSION REGULATIONS.—
‘‘(1) IN GENERAL.—Within one year after the
date of the enactment of this section, the Commission
shall prescribe regulations that—
‘‘(A) consistent with the requirements of sec-
tion 659, prohibit a common carrier from dis-
criminating among video programming provid-
ers with regard to carriage on its video platform,
and ensure that the rates, terms, and conditions
for such carriage are just, reasonable, and non-
discriminatory;
‘‘(B) prescribe definitions and criteria for
the purposes of determining whether a request
shall be considered a bona fide request for pur-
poses of this section;
‘‘(C) establish a requirement that video
platforms contain a suitable margin of unused
channel capacity to meet reasonable growth in
bona fide demand for such capacity;
‘‘(D) extend to video platforms the Commis-
sion’s regulations concerning network non-
duplication (47 C.F.R. 76.92 et seq.) and syn-
dicated exclusivity (47 C.F.R. 76.151 et seq.);
‘‘(E) require the video platform to provide
service, transmission, interconnection, and inter-
operability for unaffiliated or independent video
programming providers that is equivalent to that
provided to the common carrier’s video program-
ming affiliate;
‘‘(F)(i) prohibit a common carrier from dis-
criminating among video programming provid-
ers with regard to material or information pro-
vided by the common carrier to subscribers for
the purposes of selecting programming on the
video platform, or in the way such material or
information is presented to subscribers;
‘‘(ii) require a common carrier to ensure
that video programming providers or copyright
holders (or both) are able suitably and uniquely
to identify their programming services to sub-
scribers; and
‘‘(iii) if such identification is transmitted
as part of the programming signal, require the
carrier to transmit such identification without
change or alteration; and
‘‘(G) prohibit a common carrier from ex-
cluding areas from its video platform service
area on the basis of the ethnicity, race, or income
of the residents of that area, and provide for
public comments on the adequacy of the proposed
service area on the basis of the standards set
forth under this subparagraph.
‘‘(2) EXTENSION
OF
REGULATIONS
TO
OTHER
HIGH CAPACITY SYSTEMS.—The Commission shall ex-
tend the requirements of the regulations prescribed
pursuant to this section, in lieu of the requirements
of section 612, to any cable operator of a cable system
that has installed a switched, broadband video pro-
gramming delivery system, except that the Commis-
sion shall not extend the requirements of the regula-
tions prescribed pursuant to subsection (b)(1)(D) or
any other requirement that the Commission deter-
mines is clearly inappropriate.
‘‘(c) COMMISSION INQUIRY.—The Commission shall
conduct a study of whether it is in the public interest to
extend the requirements of subsection (a) to any other cable
operators in lieu of the requirements of section 612. The
Commission shall submit to the Congress a report on the
results of such study not later than 2 years after the date
of enactment of this section.
‘‘SEC. 654. EQUAL ACCESS COMPLIANCE.
‘‘(a) CERTIFICATION REQUIRED.—
‘‘(1) IN GENERAL.—A common carrier subject to
title II of this Act shall not provide video program-
ming directly to subscribers in its telephone service
area unless such carrier has certified to the Commis-
sion that such carrier is in compliance with the re-
quirements of paragraphs (1) and (2) of section
201(c) of this Act, and regulations prescribed pursu-
ant to such paragraphs.
‘‘(2) EXCEPTION.—Notwithstanding paragraph
(1), a common carrier subject to title II of this Act
may provide video programming directly to subscrib-
ers in its telephone service area during any period
prior to the date the Commission first prescribes final
regulations pursuant to paragraphs (1) and (2) of
section 201(c) of this Act if such carrier has certified
to the Commission that such carrier is in compliance
with State laws and regulations concerning equal ac-
cess, interconnection, and unbundling that are sub-
stantially similar to and fully consistent with the re-
quirements of such paragraphs or if there is no statu-
tory prohibition against such carrier providing video
programming directly to subscribers in its telephone
service area on the date of enactment of this section.
A common carrier that submits a certification pursu-
ant to this paragraph shall not be exempt from the
requirements of paragraph (1) after the effective date
of such final regulations.
‘‘(b) CERTIFICATION AND APPLICATION APPROVAL.—
A common carrier that submits a certification under para-
graph (1) or (2) of subsection (a) shall be eligible to provide
video programming to subscribers in accordance with the
requirements of this part, subject to the approval of any
necessary application under section 214 for authority to es-
tablish a video platform. An application under section 214
may be filed simultaneously with the filing of such certifi-
cation or at any time after the date of enactment of this
section, and the Commission shall act to approve (with or
without modification) or reject such application within 180
days after the date of its submission. If the Commission
acts to approve such an application prior to the filing of
such certification, such approval shall not be effective until
such certification is filed.
‘‘SEC. 655. PROHIBITION OF CROSS-SUBSIDIZATION.
‘‘(a) CROSS SUBSIDIES PROHIBITION.—The Commis-
sion shall—
‘‘(1) prescribe regulations to prohibit a common
carrier from engaging in any practice that results in
the inclusion in rates for telephone exchange service
or telephone exchange access service of any operating
expenses, costs, depreciation charges, capital invest-
ments, or other expenses directly associated with the
provision of competing video programming services
by the common carrier or affiliate; and
‘‘(2) ensure such competing video programming
services bear a reasonable share of the joint and com-
mon costs of facilities used to provide telephone ex-
change service or telephone exchange access service
and competing video programming services.
‘‘(b) CABLE OPERATOR PROHIBITIONS.—The Commis-
sion shall prescribe regulations to prohibit a cable operator
from engaging in any practice that results in improper
cross-subsidization between its regulated cable operations
and its provision of telecommunications service, either di-
rectly or through an affiliate.
‘‘SEC. 656. PROHIBITION ON BUYOUTS.
‘‘(a) GENERAL PROHIBITION.—No common carrier
that provides telephone exchange service, and no entity
owned by or under common ownership or control with such
carrier, may purchase or otherwise obtain control over any
cable system that is located within its telephone service area
and is owned by an unaffiliated person.
‘‘(b) EXCEPTIONS.—Notwithstanding subsection (a), a
common carrier may—
‘‘(1) obtain a controlling interest in, or form a
joint venture or other partnership with, a cable sys-
tem that serves a rural area;
‘‘(2) obtain, in addition to any interest, joint
venture, or partnership obtained or formed pursuant
to paragraph (1), a controlling interest in, or form a
joint venture or other partnership with, any cable
system or systems if—
‘‘(A) such systems in the aggregate serve less
than 10 percent of the households in the tele-
phone service area of such carrier; and
‘‘(B) no such system serves a franchise area
with more than 35,000 inhabitants, except that
a common carrier may obtain such interest or
form such joint venture or other partnership
with a cable system that serves a franchise area
with more than 35,000 but not more than 50,000
inhabitants if such system is not affiliated (as
such term is defined in section 602) with any
other system whose franchise area is contiguous
to the franchise area of the acquired system; or
‘‘(3) obtain, with the concurrence of the cable op-
erator on the rates, terms, and conditions, the use of
that part of the transmission facilities of such a cable
system extending from the last multi-user terminal to
the premises of the end user, if such use is reasonably
limited in scope and duration, as determined by the
Commission.
‘‘(c) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive the restrictions in subsection (a) of this
section only upon a showing by the applicant that—
‘‘(A) because of the nature of the market
served by the cable system concerned—
‘‘(i) the incumbent cable operator
would be subjected to undue economic dis-
tress by the enforcement of such subsection;
or
‘‘(ii) the cable system would not be eco-
nomically viable if such subsection were en-
forced; and
‘‘(B) the local franchising authority ap-
proves of such waiver.
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘SEC. 657. PENALTIES.
‘‘If the Commission finds that any common carrier has
knowingly violated any provision of this part, the Commis-
sion shall assess such fines and penalties as it deems appro-
priate pursuant to this Act.
‘‘SEC. 658. CONSUMER PROTECTION.
‘‘(a) JOINT BOARD REQUIRED.—Within 30 days after
the date of enactment of this part, the Commission shall
convene a Federal-State Joint Board under the provisions
of section 410(c) for the purpose of recommending a decision
concerning the practices, classifications, and regulations as
may be necessary to ensure proper jurisdictional separation
and allocation of the costs of establishing and providing a
video platform. The Board shall issue its recommendations
to the Commission within 270 days after the date of enact-
ment of this part.
‘‘(b) COMMISSION
REGULATIONS
REQUIRED.—The
Commission, with respect to interstate switched access serv-
ice, and the States, with respect to telephone exchange serv-
ice and intrastate interexchange service, shall establish such
regulations as may be necessary to implement section 655
within one year after the date of the enactment of this part.
‘‘(c) NO EFFECT ON CARRIER REGULATION AUTHOR-
ITY.—Nothing in this section shall be construed to limit or
supersede the authority of any State or the Commission
with respect to the allocation of costs associated with intra-
state or interstate communication services.
‘‘SEC. 659. APPLICABILITY OF FRANCHISE AND OTHER RE-
QUIREMENTS.
‘‘(a) IN GENERAL.—Any provision that applies to a
cable operator under—
‘‘(1) sections 613, 616, 617, 628, 631, 632, and
634 of this title, shall apply,
‘‘(2) sections 611, 612, 614, and 615 of this title,
and section 325 of title III, shall apply in accordance
with the regulations prescribed under subsection (b),
and
‘‘(3) parts III and IV (other than sections 628,
631, 632, and 634) of this title shall not apply,
to any video programming affiliate established by a com-
mon carrier in accordance with the requirements of this
part.
‘‘(b) IMPLEMENTATION OF REQUIREMENTS.—
‘‘(1) REGULATIONS.—The Commission shall pre-
scribe regulations to ensure that a video programming
affiliate of a common carrier shall provide (A) capac-
ity, services, facilities, and equipment for public, edu-
cational, and governmental use, (B) capacity for com-
mercial use, (C) carriage of commercial and non-com-
mercial broadcast television stations, and (D) an op-
portunity for commercial broadcast stations to choose
between mandatory carriage and reimbursement for
retransmission of the signal of such station. In pre-
scribing such regulations, the Commission shall, to the
extent possible, impose obligations that are no greater
or lesser than the obligations contained in the provi-
sions described in subsection (a)(2) of this section.
Such regulations shall also require that, if a common
carrier establishes a video platform but does not pro-
vide or ceases to provide video programming through
a video programming affiliate, such carrier shall
comply with the regulations prescribed under this
paragraph and with the provisions described in sub-
section (a)(1) in the operation of its video platform.
‘‘(2) FEES.—A video programming affiliate of
any common carrier that establishes a video platform
under this part, and any multichannel video pro-
gramming distributor offering a competing service
using such video platform (as determined in accord-
ance with regulations of the Commission), shall be
subject to the payment of fees imposed by a local fran-
chising authority, in lieu of the fees required under
section 622. The rate at which such fees are imposed
shall not exceed the rate at which franchise fees are
imposed on any cable operator transmitting video
programming in the same service area.
‘‘SEC. 660. RURAL AREA EXEMPTION.
‘‘The provisions of sections 652, 653, 654, and 656
shall not apply to video programming provided in a rural
area by a common carrier that provides telephone exchange
service in the same area.’’.
SEC. 202. REVIEW OF BROADCASTERS OWNERSHIP RE-
STRICTIONS.
Within one year after the date of enactment of this
Act, the Commission shall, after a notice and comment pro-
ceeding, prescribe regulations to modify, maintain, or re-
move the ownership regulations on radio and television
broadcasters as necessary to ensure that broadcasters are
able to compete fairly with other information providers
while protecting the goals of diversity and localism.
SEC. 203. REVIEW OF STATUTORY OWNERSHIP RESTRIC-
TION.
Within one year after the date of enactment of this
Act, the Commission shall review the ownership restriction
in section 613(a)(1) of the Communications Act of 1934 (47
U.S.C. 553(a)(1)) and report to Congress whether or not
such restriction continues to serve the public interest.
SEC. 204. BROADCASTER SPECTRUM FLEXIBILITY.
(a) REGULATIONS REQUIRED.—If the Commission de-
termines to issue additional licenses for advanced television
services, and initially limits the eligibility for such licenses
to persons that, as of the date of such issuance, are licensed
to operate a television broadcast station or hold a permit
to construct such a station (or both), the Commission shall
adopt regulations that allow such licensees or permittees to
offer such ancillary or supplementary services on designated
frequencies as may be consistent with the public interest,
convenience, and necessity.
(b) CONTENTS OF REGULATIONS.—In prescribing the
regulations required by subsection (a), the Commission
shall—
(1) only permit such licensee or permittee to
offer ancillary or supplementary services if the use of
a designated frequency for such services is indivisible
from the use of such designated frequency for the pro-
vision of advanced television services;
(2) limit the broadcasting of ancillary or supple-
mentary services on designated frequencies so as to
avoid derogation of any advanced television services,
including high definition television broadcasts, that
the Commission may require using such frequencies;
(3) treat any such ancillary or supplementary
services for which the licensee or permittee solicits
and receives compensation in return for transmitting
commercial advertising as broadcast services for the
purposes of the Communications Act of 1934 and the
Children’s Television Act of 1990 (47 U.S.C. 303a),
and the Commission’s regulations thereunder, includ-
ing regulations promulgated pursuant to section 315
of the Communications Act of 1934 (47 U.S.C. 315);
(4) apply to any other ancillary or supple-
mentary service such of the Commission’s regulations
as are applicable to the offering of analogous services
by any other person;
(5) adopt such technical and other requirements
as may be necessary or appropriate to assure the
quality of the signal used to provide advanced tele-
vision services, including regulations that stipulate
the minimum number of hours per day that such sig-
nal must be transmitted; and
(6) prescribe such other regulations as may be
necessary for the protection of the public interest, con-
venience, and necessity.
(c) RECOVERY OF LICENSE.—
(1) CONDITIONS REQUIRED.—If the Commission
limits the eligibility for licenses to provide advanced
television services in the manner described in sub-
section (a), the Commission shall, as a condition of
such license, require that, upon a determination by
the Commission pursuant to the regulations pre-
scribed under paragraph (2), either the additional li-
cense or the original license held by the licensee be
surrendered to the Commission in accordance with
such regulations for reallocation or reassignment (or
both) pursuant to Commission regulation.
(2) REGULATIONS.—The Commission shall pre-
scribe regulations establishing criteria for rendering
determinations concerning license surrender pursuant
to license conditions required by paragraph (1). Such
regulations shall—
(A) require such determinations to be based
on whether the substantial majority of the public
have obtained television receivers that are capa-
ble of receiving advanced television services; and
(B) not require the cessation of the broad-
casting if such cessation would render the tele-
vision receivers of a substantial portion of the
public useless, or otherwise cause undue burdens
on the owners of such television receivers.
(d) FEES REQUIRED.—
(1) SERVICES TO WHICH FEES APPLY.—If the
regulations prescribed pursuant to subsection (a) per-
mit a licensee to offer ancillary or supplementary
services on a designated frequency—
(A) for which the payment of a subscription
fee is required in order to receive such services,
or
(B) for which the licensee directly or indi-
rectly receives compensation from a third party
in return for transmitting material furnished by
such third party (other than commercial adver-
tisements used to support broadcasting for which
a subscription fee is not required),
the Commission shall establish by regulation a pro-
gram to assess and collect an annual fee or royalty
payment.
(2) CRITERIA FOR REGULATIONS.—The regula-
tions required by paragraph (1) shall—
(A) be designed (i) to recover for the public
a portion of the value of the public spectrum re-
source made available for such commercial use,
and (ii) to avoid unjust enrichment through the
method employed to permit such uses of that re-
source;
(B) recover for the public an amount that
is, to maximum extent feasible, equal (over the
term of the license) to the amount that would
have been recovered had such services been li-
censed pursuant to the provisions of section
309(j) of the Communications Act of 1934 (47
U.S.C. 309(j)) and the Commission’s regulations
thereunder; and
(C) be adjusted by the Commission from
time to time in order to continue to comply with
the requirements of this paragraph.
(3) TREATMENT OF REVENUES.—
(A) GENERAL RULE.—Except as provided
in subparagraph (B), all proceeds obtained pur-
suant to the regulations required by this sub-
section shall be deposited in the Treasury in ac-
cordance with chapter 33 of title 31, United
States Code.
(B) RETENTION
OF
REVENUES.—Notwith-
standing subparagraph (A), the salaries and ex-
penses account of the Commission shall retain as
an offsetting collection such sums as may be nec-
essary from such proceeds for the costs of devel-
oping and implementing the program required
by this section and regulating and supervising
advanced television services. Such offsetting col-
lections shall be available for obligation subject
to the terms and conditions of the receiving ap-
propriations account, and shall be deposited in
such accounts on a quarterly basis.
(4) REPORT.—Within 5 years after the date of
the enactment of this section, the Commission shall
report to the Congress on the implementation of the
program required by this subsection, and shall annu-
ally thereafter advise the Congress on the amounts
collected pursuant to such program.
(e) EVALUATION REQUIRED.—Within 10 years after
the date the Commission first issues additional licenses for
advanced television services, the Commission shall conduct
an evaluation of the advanced television services program.
Such evaluation shall include—
(1) an assessment of the willingness of consumers
to purchase the television receivers necessary to re-
ceive broadcasts of advanced television services;
(2) an assessment of alternative uses, including
public safety use, of the frequencies used for such
broadcasts; and
(3) the extent to which the Commission has been
or will be able to reduce the amount of spectrum as-
signed to licensees in order to issue additional licenses
for the provision of advanced television services.
(f) DEFINITIONS.—As used in this section:
(1) ADVANCED TELEVISION SERVICES.—The term
‘‘advanced television services’’ means television serv-
ices provided using digital or other advanced tech-
nology to enhance audio quality and video resolution,
as further defined in the opinion, report, and order
of the Commission entitled ‘‘Advanced Television Sys-
tems and Their Impact Upon the Existing Television
Broadcast Service’’, MM Docket 87–268, adopted Sep-
tember 17, 1992, and successor proceedings.
(2) DESIGNATED FREQUENCIES.—The term ‘‘des-
ignated frequency’’ means each of the frequencies des-
ignated by the Commission for licenses for advanced
television services.
(3) HIGH
DEFINITION
TELEVISION.—The term
‘‘high definition television’’ refers to systems that offer
approximately twice the vertical and horizontal reso-
lution of receivers generally available on the date of
enactment of this section, as further defined in the
proceedings described in paragraph (1) of this sub-
section.
SEC. 205. INTERACTIVE SERVICES AND CRITICAL INTER-
FACES.
(a) FINDINGS.—The Congress finds that—
(1) the convergence of communications, comput-
ing, and video technologies will permit improvements
in interoperability between and among those tech-
nologies;
(2) in the public switched telecommunications
network, open protocols and technical requirements
for connection between the network and the consumer,
and the availability of unbundled customer equipment
through retailers and other third party vendors, have
served to broaden consumer choice, lower prices, and
spur competition and innovation in the customer
equipment industry;
(3) set-top boxes and other interactive commu-
nications devices could similarly serve as a critical
gateway between American homes and businesses and
advanced telecommunications and video program-
ming networks;
(4) American consumers have benefited from the
ability to own or rent customer premises equipment
obtained from retailers and other vendors and the
ability to access the network with portable, compatible
equipment;
(5) in order to promote diversity, competition,
and technological innovation among suppliers of
equipment and services, it may be necessary to make
certain critical interfaces with such networks open
and accessible to a broad range of equipment manu-
facturers and information providers;
(6) the identification of critical interfaces with
such networks and the assessment of their openness
must be accomplished with due recognition that open
and accessible systems may include standards that in-
volve both nonproprietary and proprietary tech-
nologies;
(7) such identification and assessment must also
be accomplished with due recognition of the need for
owners and distributors of video programming and
information services to ensure system and signal secu-
rity and to prevent theft of service;
(8) whenever possible, standards in dynamic in-
dustries such as interactive systems are best set by the
marketplace or by private sector standard-setting bod-
ies; and
(9) the role of the Commission in this regard
is—
(A) to identify, in consultation with indus-
try groups, consumer interests, and independent
experts, critical interfaces with such networks (i)
to ensure that end users can connect information
devices to such networks, and (ii) to ensure that
information service providers are able to trans-
mit information to end users, and
(B) as necessary, to take steps to ensure
these networks and services are accessible to a
broad range of equipment manufactures, infor-
mation providers, and program suppliers.
(b) INQUIRY REQUIRED.—Within 6 months after the
date of the enactment of this Act, the Commission shall com-
mence an inquiry—
(1) to examine the impact of the convergence of
technologies on cable, telephone, satellite, and wireless
and other communications technologies likely to offer
interactive communications services;
(2) to ascertain the importance of maintaining
open and accessible systems in interactive commu-
nications services;
(3) to examine the costs and benefits of main-
taining varying levels of interoperability between and
among interactive communications services;
(4) to examine the costs and benefits of establish-
ing open interfaces (A) between the network provider
and the set-top box or other interactive communica-
tions devices used in the home or office, and (B) be-
tween network providers and information service pro-
viders, and to determine how best to establish such
interfaces;
(5) to determine methods by which converter
boxes or other interactive communications devices
may be sold through retailers and other third party
vendors and to determine the vendors’ responsibilities
for ensuring that their devices are interoperable with
interactive networks;
(6) to assess how the security of cable, satellite,
and other interactive systems or its service can con-
tinue to be ensured with the establishment of an inter-
face between the network and a converter box or other
interactive communications device, including those
manufactured and distributed at retail by entities
independent of network providers and information
service providers, and to determine the responsibilities
of such independent entities for assuring network se-
curity and for conforming to signal interference
standards;
(7) to ascertain the conditions necessary to en-
sure that any critical interface is available to infor-
mation and content providers and others who seek to
design, build, and distribute interoperable devices for
these networks so as to ensure network access and fair
competition for independent information providers
and consumers;
(8) to assess the impact of the deployment of dig-
ital technologies on individuals with disabilities, with
particular emphasis on any regulatory, policy, or de-
sign barriers which would limit functionally equiva-
lent access by such individuals;
(9) to assess current regulation of telephone,
cable, satellite, and other communications delivery
systems to ascertain how best to ensure interoper-
ability between those systems;
(10) to assess the adequacy of current regulation
of telephone, cable, satellite, and other communica-
tions delivery systems with respect to bundling of
equipment and services and to identify any changes
in unbundling regulations necessary to assure effec-
tive competition and encourage technological innova-
tion, consistent with the finding in subsection (a)(6)
and the objectives of paragraph (6) of this subsection,
in the market for converter boxes or interactive com-
munications devices and for other customer premises
equipment;
(11) to solicit comment on any changes in the
Commission’s regulations that are necessary to ensure
that diversity, competition, and technological innova-
tion are promoted in communications services and
equipment; and
(12) to prepare recommendations to the Congress
for any legislative changes required.
(c) REPORT TO CONGRESS.—Within 12 months after
the date of the enactment of this Act, the Commission shall
submit to the Congress a report on the results of the inquiry
required by subsection (b). Within 6 months after the date
of submission of such report, the Commission shall prescribe
such changes in its regulations as the Commission deter-
mines are necessary pursuant to subsection (b)(10).
(d) PRESERVATION OF EXISTING AUTHORITY.—Noth-
ing in this section shall be construed as limiting, supersed-
ing, or otherwise modifying the existing authority and re-
sponsibilities of the Commission or National Institute of
Standards and Technology.
SEC. 206. VIDEO PROGRAMMING ACCESSIBILITY.
(a) INQUIRY REQUIRED.—Within 180 days after the
date of enactment of this section, the Federal Communica-
tions Commission shall complete an inquiry to ascertain
the level at which video programming is closed captioned.
Such inquiry shall examine the extent to which existing or
previously published programming is closed captioned, the
size of the video programming provider or programming
owner providing closed captioning, the size of the market
served, the relative audience shares achieved, or any other
related factors. The Commission shall submit to the Con-
gress a report on the results of such inquiry.
(b) CONTENTS OF REGULATIONS.—Within 18 months
after the date of enactment, the Commission shall prescribe
such regulations as are necessary to implement this section.
Such regulations shall ensure that—
(1) video programming first published or exhib-
ited after the effective date of such regulations is fully
accessible through the provision of closed captions, ex-
cept as provided in subsection (d); and
(2) video programming providers or owners
maximize the accessibility of video programming first
published or exhibited prior to the effective date of
such regulations through the provision of closed cap-
tions, except as provided in subsection (d).
(c) CONTENTS OF REGULATIONS.—Such regulations
shall include an appropriate schedule of deadlines for the
provision of closed captioning of video programming.
(d) EXEMPTIONS.—Notwithstanding subsection (b)—
(1) the Commission may exempt by regulation
programs, classes of programs, or services for which
the Commission has determined that the provision of
close captioning would be economically burdensome to
the provider or owner of such programming;
(2) a provider of video programming or the
owner of any program carried by the provider shall
not be obligated to supply closed captions if such ac-
tion would be inconsistent with contracts in effect on
the date of enactment of this Act, except that nothing
in this section shall be construed to relieve a video
programming provider of its obligations to provide
services required by Federal law; and
(3) a provider of video programming or program
owner may petition the Commission for an exemption
from the requirements of this section, and the Com-
mission may grant such petition upon a showing that
the requirements contained in this section would re-
sult in an undue burden.
(e) UNDUE BURDEN.—The term ‘undue burden’ means
significant difficulty or expense. In determining whether the
closed captions necessary to comply with the requirements
of this paragraph would result in an undue economic bur-
den, the factors to be considered include—
(1) the nature and cost of the closed captions for
the programming;
(2) the impact on the operation of the provider
or program owner;
(3) the financial resources of the provider or pro-
gram owner; and
(4) the type of operations of the provider or pro-
gram owner.
(f) ADDITIONAL PROCEEDING
ON VIDEO DESCRIP-
TIONS REQUIRED.—Within 6 months after the date of en-
actment of this Act, the Commission shall commence an in-
quiry to examine the use of video descriptions on video pro-
gramming in order to ensure the accessibility of video pro-
gramming to persons with visual impairments, and report
to Congress on its findings. The Commission’s report shall
assess appropriate methods and schedules for phasing video
descriptions into the marketplace, technical and quality
standards for video descriptions, a definition of program-
ming for which video descriptions would apply, and other
technical and legal issues that the Commission deems ap-
propriate. Following the completion of such inquiry, the
Commission may adopt regulation it deems necessary to
promote the accessibility of video programming to persons
with visual impairments.
(g) MODEL PROGRAM.—The National Telecommuni-
cations and Information Administration shall establish and
oversee, and (to the extent of available funds) provide finan-
cial support for, marketplace tests of video descriptions on
commercial and noncommercial video programming serv-
ices.
(h) VIDEO DESCRIPTION.—For purposes of this sec-
tion, ‘‘video description’’ means the insertion of audio nar-
rated descriptions of a television program’s key visual ele-
ments into natural pauses between the program’s dialogue.
SEC. 207. PUBLIC ACCESS.
Within one year after the date of enactment of this
Act, the Federal Communications Commission shall pre-
scribe regulations to reserve appropriate capacity for the
public at preferential rates on cable systems and video plat-
forms.
SEC. 208. AUTOMATED SHIP DISTRESS AND SAFETY SYS-
TEMS.
Notwithstanding any provision of the Communica-
tions Act of 1934, a ship documented under the laws of the
United States operating in accordance with the Global Mar-
itime Distress and Safety System provisions of the Safety
of Life at Sea Convention shall not be required to be
equipped with a radio station operated by one or more
radio officers or operators.
SEC. 209. CABLE TECHNICAL STANDARDS REVIEW.
Within one year after the date of enactment of this
Act, the Commission shall review its standards under sec-
tions 624(e) and 624A of the Communications Act of 1934
(47 U.S.C. 544, 544a) to determine whether such standards
may be revised to ensure that neither the video program-
ming, nor the accompanying audio signal, of any program-
ming that is provided on a per channel or per program
basis is able to be presented on the television receivers of
subscribers unless the subscriber has requested that pro-
gramming, whether or not that subscriber uses a converter
or other device provided by the cable operator.
SEC. 210. EXCLUSIVE FEDERAL JURISDICTION OVER DI-
RECT BROADCAST SATELLITE SERVICE.
Section 303 of the Communications Act of 1934 (47
U.S.C. 303) is amended by adding at the end thereof the
following new subsection:
‘‘(v) Have exclusive jurisdiction over the regulation of
the direct broadcast satellite service.’’.
TITLE III—PROCUREMENT PRAC-
TICES 
OF 
TELECOMMUNI-
CATIONS PROVIDERS
SEC. 301. FINDINGS.
The Congress finds the following:
(1) It is in the public interest for business enter-
prises owned by minorities and women to participate
in procurement contracts of all providers of tele-
communications services.
(2) The opportunity for full participation in our
free enterprise system by business enterprises that are
owned by minorities and women is essential if this
Nation is to attain social and economic equality for
those businesses and improve the functioning of the
national economy.
(3) It is in this Nation’s interest to expeditiously
improve the economically disadvantaged position of
business enterprises that are owned by minorities and
women.
(4) The position of these businesses can be im-
proved through the development by the providers of
telecommunications services of substantial long-range
and annual goals, which are supported by training
and technical assistance, for the purchase, to the max-
imum practicable extent, of technology, equipment,
supplies, services, material and construction from mi-
nority business enterprises.
(5) Procurement policies which include partici-
pation of business enterprises that are owned by mi-
norities and women also benefit the communication
industry and its consumers by encouraging the ex-
pansion of the numbers of suppliers for procurement,
thereby encouraging competition among suppliers and
promoting economic efficiency in the process.
SEC. 302. PURPOSE.
The purposes of this title are—
(1) to encourage and foster greater economic op-
portunity for business enterprises that are owned by
minorities and women;
(2) to promote competition among suppliers to
providers of telecommunications services and their af-
filiates to enhance economic efficiency in the procure-
ment of telephone corporation contracts and contracts
of their State commission-regulated subsidiaries and
affiliates;
(3) to clarify and expand a program for the pro-
curement by State and federally-regulated telephone
companies of technology, equipment, supplies, serv-
ices, materials and construction work from business
enterprises that are owned by minorities and women;
and
(4) to ensure that a fair proportion of the total
purchases, contracts, and subcontracts for supplies,
commodities, technology, property, and services of-
fered by the providers of telecommunications services
and their affiliates are awarded to minority and
women business enterprises.
SEC. 303. ANNUAL PLAN SUBMISSION.
(a) ANNUAL PLANS REQUIRED.—
(1) IN GENERAL.—The Commission shall require
each provider of telecommunications services to sub-
mit annually a detailed and verifiable plan for in-
creasing its procurement from business enterprises
that are owned by minorities or women in all cat-
egories of procurement in which minorities are under
represented.
(2) CONTENTS OF PLANS.—The annual plans re-
quired by paragraph (1) shall include (but not be
limited to) short- and long-term progressive goals and
timetables, technical assistance, and training and
shall, in addition to goals for direct contracting op-
portunities, include methods for encouraging both
prime contractors and grantees to engage business en-
terprises that are owned by minorities and women in
subcontracts in all categories in which minorities are
under represented.
(3) IMPLEMENTATION REPORT.—Each provider
of telecommunications services shall furnish an an-
nual report to the Commission regarding the imple-
mentation of programs established pursuant to this
title in such form as the Commission shall require,
and at such time as the Commission shall annually
designate.