I
107TH CONGRESS
1ST SESSION
H. R. 1542
To deregulate the Internet and high speed data services, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 2001
Mr. TAUZIN (for himself, Mr. DINGELL, Mr. GOODLATTE, Mr. BOUCHER, Mr.
ENGLISH, Mr. FROST, Mr. SMITH of Washington, Mr. LUCAS of Ken-
tucky, Mr. WHITFIELD, Mr. MURTHA, Mr. COLLINS, Mr. BLAGOJEVICH,
Mr. FOSSELLA, Mr. DICKS, Mr. GILLMOR, Mr. BARTON of Texas, Mr.
KIND, Mr. GREENWOOD, Mr. MEEKS of New York, Mr. CAMP, Mr.
BALDACCI, Mr. RAHALL, Mr. HOLDEN, Mrs. MCCARTHY of New York,
Mr. BRADY of Pennsylvania, Mr. SIMPSON, Mr. BOYD, Mrs. NORTHUP,
Mr. ENGEL, Mr. SANDLIN, Mr. EVERETT, Mr. BOEHNER, Mr. REY-
NOLDS, Mr. WELDON of Pennsylvania, Mr. SESSIONS, Mr. BONIOR, Mr.
MALONEY of Connecticut, Mr. BUYER, Mr. CUNNINGHAM, Mr. MCCRERY,
Mr. BISHOP, Mr. LAMPSON, Mr. VITTER, Mr. BASS, Mr. ACKERMAN, Mr.
BLUNT, Mr. MCHUGH, Mr. RYAN of Wisconsin, Mr. QUINN, Mr. BACA,
Mr. GONZALEZ, Mr. BAKER, Mr. WALSH, Mr. GREEN of Texas, Mr.
WEXLER, Mr. OXLEY, Mr. RADANOVICH, Mr. DIAZ-BALART, Mr.
COOKSEY, Mr. CLEMENT, Mr. LARSEN of Washington, Mr. SCHROCK,
Mr. PETRI, Mr. WATKINS, Ms. ROS-LEHTINEN, Mr. HILLIARD, Mr.
OTTER, Mr. SHADEGG, Mr. BRYANT, Mr. PLATTS, Mr. PUTNAM, Mr.
CUMMINGS, Mr. RODRIGUEZ, Mr. CONDIT, Mr. BURR of North Carolina,
and Mr. WYNN) introduced the following bill; which was referred to the
Committee on Energy and Commerce
A BILL
To deregulate the Internet and high speed data services,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Internet Freedom and
Broadband Deployment Act of 2001’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) Internet access services are inherently inter-
state and international in nature, and should there-
fore not be subject to regulation by the States.
(2) The imposition of regulations by the Fed-
eral Communications Commission and the States
has impeded the rapid delivery of high speed Inter-
net access services to the public, thereby reducing
consumer choice and welfare.
(3) The Telecommunications Act of 1996 rep-
resented a careful balance between the need to open
up local telecommunications markets to competition
and the need to increase competition in the provision
of interLATA voice telecommunications services.
(4) In enacting the prohibition on Bell oper-
ating company provision of interLATA services,
Congress recognized that certain telecommunications
services have characteristics that render them in-
compatible with the prohibition on Bell operating
company provision of interLATA services, and ex-
empted such services from the interLATA prohibi-
tion.
(5) High speed data services and Internet ac-
cess services constitute unique markets that are like-
wise incompatible with the prohibition on Bell oper-
ating company provision of interLATA services.
(6) Since the enactment of the Telecommuni-
cations Act of 1996, the Federal Communications
Commission has construed the prohibition on Bell
operating company provision of interLATA services
in a manner that has impeded the development of
advanced telecommunications services, thereby lim-
iting consumer choice and welfare.
(7) Internet users should have choice among
competing Internet service providers.
(8) Internet service providers should have the
right to interconnect with high speed data networks
in order to provide service to Internet users.
(b) PURPOSES.—It is therefore the purpose of this
Act to provide market incentives for the rapid delivery of
advanced telecommunications services—
(1) by deregulating high speed data services
and Internet access services;
(2) by clarifying that the prohibition on Bell op-
erating company provision of interLATA services
does not extend to the provision of high speed data
services and Internet access services;
(3) by ensuring that consumers can choose
among competing Internet service providers; and
(4) by ensuring that Internet service providers
can interconnect with competitive high speed data
networks in order to provide Internet access service
to the public.
SEC. 3. DEFINITIONS
(a) AMENDMENTS.—Section 3 of the Communica-
tions Act of 1934 (47 U.S.C. 153) is amended—
(1) by redesignating paragraph (20) as para-
graph (21);
(2) by redesignating paragraphs (21) through
(52) as paragraphs (24) through (54), respectively;
(3) by inserting after paragraph (19) the fol-
lowing new paragraph:
‘‘(20) HIGH SPEED DATA SERVICE.—The term
‘high speed data service’ means any service that con-
sists of or includes the offering of a capability to
transmit, using a packet-switched or successor tech-
nology, information at a rate that is generally not
less than 384 kilobits per second in at least one di-
rection.’’;
(4) by inserting after paragraph (22) the fol-
lowing new paragraphs:
‘‘(23) INTERNET.—The term ‘Internet’ means
collectively the myriad of computer and tele-
communications facilities, including equipment and
operating software, which comprise the inter-
connected world-wide network of networks that em-
ploy the Transmission Control Protocol/Internet
Protocol, or any predecessor or successor protocols
to such protocol, to communicate information of all
kinds by wire or radio.
‘‘(24) INTERNET ACCESS SERVICE.—The term
‘Internet access service’ means (A) a service that
combines computer processing, information storage,
protocol conversion, and routing with transmission
to enable users to access Internet content and serv-
ices, and (B) the transmission of such service, but
does not include the portion of such transmission
from the user to the provider of such service.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 230(f) of the Communications Act
of 1934 (47 U.S.C. 230(f)) is amended—
(A) by striking paragraph (1); and
‘‘(c) CONTINUED ENFORCEMENT OF ESP EXEMP-
TION, UNIVERSAL SERVICE RULES PERMITTED.—Noth-
ing in this section shall affect the ability of the Commis-
sion to retain or modify—
‘‘(1) the exemption from interstate access
charges for enhanced service providers under Part
69 of the Commission’s Rules; or
‘‘(2) rules issued pursuant to section 254.’’.
(b) CONFORMING AMENDMENT.—Section 251 of the
Communications Act of 1934 (47 U.S.C. 251) is amended
by adding at the end thereof the following new subsection:
‘‘(j) EXEMPTION.—
‘‘(1) IN GENERAL.—Notwithstanding the provi-
sions of subsections (c) and (d), the Commission
shall not require an incumbent local exchange car-
rier to—
‘‘(A) provide unbundled access to any net-
work elements used in the provision of any high
speed data service, other than those network
elements described in section 51.319 of the
Commission’s regulations (47 C.F.R. 51.319),
as in effect on January 1, 1999; or
‘‘(B) offer for resale at wholesale rates any
high speed data service.
‘‘(2) AUTHORITY TO REDUCE ELEMENTS SUB-
JECT
TO
REQUIREMENT.—Paragraph (1)(A) shall
not prohibit the Commission from modifying the reg-
ulation referred to in that paragraph to reduce the
number of network elements subject to the
unbundling requirement, or to forbear from enforc-
ing any portion of that regulation in accordance with
the Commission’s authority under section 706 of the
Telecommunications Act of 1996, notwithstanding
any limitation on that authority in section 10 of this
Act.’’.
SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE.
Part I of title II of the Communications Act of 1934,
as amended by section 4, is amended by adding at the
end the following new section:
‘‘SEC. 233. INTERNET CONSUMERS FREEDOM OF CHOICE.
‘‘(a) PURPOSE.—It is the purpose of this section to
ensure that Internet users have freedom of choice of Inter-
net service provider.
‘‘(b) OBLIGATIONS
OF
INCUMBENT
LOCAL
EX-
CHANGE CARRIERS.—Each incumbent local exchange car-
rier has the duty to provide—
‘‘(1) Internet users with the ability to subscribe
to and have access to any Internet service provider
that interconnects with such carrier’s high speed
data service;
‘‘(2) any Internet service provider with the
right to acquire the facilities and services necessary
to interconnect with such carrier’s high speed data
service for the provision of Internet access service;
and
‘‘(3) any Internet service provider with the abil-
ity to collocate equipment in accordance with the
provisions of section 251, to the extent necessary to
achieve the objectives of paragraphs (1) and (2) of
this subsection.
‘‘(c) DEFINITIONS.—As used in this section—
‘‘(1) INTERNET SERVICE PROVIDER.—The term
‘Internet service provider’ means any provider of
Internet access service.
‘‘(2) INCUMBENT
LOCAL
EXCHANGE
CAR-
RIER.—The term ‘incumbent local exchange carrier’
has the same meaning as provided in section
251(h).’’.
SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH
SPEED DATA AND INTERNET ACCESS SERV-
ICES.
(a) 
INCIDENTAL
INTERLATA 
SERVICE
PREMITTED.—Section 271(g) of the Communications Act
of 1934 (47 U.S.C. 271(g)) is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(5);
(2) by striking the period at the end of para-
graph (6) and inserting ‘‘; or’’; and
(3) by adding at the end thereof the following
new paragraph:
‘‘(7) of high speed data service or Internet ac-
cess service.’’.
(b) PROHIBITION
ON MARKETING VOICE SERV-
ICES.—Section 271 of such Act is amended by adding at
the end thereof the following new subsection:
‘‘(k) PROHIBITION
ON MARKETING VOICE TELE-
PHONE SERVICES.—Until the date on which a Bell oper-
ating company is authorized to offer interLATA services
originating in an in-region State in accordance with the
provisions of this section, such Bell operating company of-
fering any high speed data service or Internet access serv-
ice pursuant to the provisions of paragraph (7) of sub-
section (g) may not, in such in-region State market, bill,
or collect for interLATA voice telecommunications service
obtained by means of the high speed data service or Inter-
net access service provided by such company.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 272(a)(2)(B)(i) of such Act is
amended to read as follows:
‘‘(i) incidental interLATA services de-
scribed in paragraphs (1), (2), (3), (5),
(6), and (7) of section 271(g).’’.
(2) Section 272(a)(2)(C) of such Act is re-
pealed.
Æ