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‘‘(v) Level 2 gateway services as those
services are defined by the Commission’s Sec-
ond Report and Order, Recommendation to
Congress and Second Further Notice of Pro-
posed Rulemaking in CC Docket No. 87–266
dated August 14, 1992.
‘‘(vi) Data processing services that do not
involve the generation or alteration of the con-
tent of information.
‘‘(vii) Transaction processing systems that
do not involve the generation or alteration of
the content of information.
‘‘(viii) Electronic billing or advertising of a
Bell 
operating 
company’s 
regulated 
tele-
communications services.
‘‘(ix) Language translation.
‘‘(x) Conversion of data from one format
to another.
‘‘(xi) The provision of information nec-
essary for the management, control, or oper-
ation of a telephone company telecommuni-
cations system.
‘‘(xii) The provision of directory assistance
that provides names, addresses, and telephone
numbers and does not include advertising.
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‘‘(xiii) Caller identification services.
‘‘(xiv) Repair and provisioning databases
for telephone company operations.
‘‘(xv) Credit card and billing validation for
telephone company operations.
‘‘(xvi) 911–E and other emergency assist-
ance databases.
‘‘(xvii) Any other network service of a type
that is like or similar to these network services
and that does not involve the generation or al-
teration of the content of information.
‘‘(xviii) Any upgrades to these network
services that do not involve the generation or
alteration of the content of information.
‘‘(C) The term ‘electronic publishing’ also shall
not include—
‘‘(i) full motion video entertainment on de-
mand; and
‘‘(ii) video programming as defined in sec-
tion 602 of the Communications Act of 1934.
‘‘(6) The term ‘electronic publishing joint ven-
ture’ means a joint venture owned by a Bell operat-
ing company or affiliate that engages in the provi-
sion of electronic publishing which is disseminated
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by means of such Bell operating company’s or any
of its affiliates’ basic telephone service.
‘‘(7) The term ‘entity’ means any organization,
and includes corporations, partnerships, sole propri-
etorships, associations, and joint ventures.
‘‘(8) The term ‘inbound telemarketing’ means
the marketing of property, goods, or services by tele-
phone to a customer or potential customer who initi-
ated the call.
‘‘(9) The term ‘own’ with respect to an entity
means to have a direct or indirect equity interest (or
the equivalent thereof) of more than 10 percent of
an entity, or the right to more than 10 percent of
the gross revenues of an entity under a revenue
sharing or royalty agreement.
‘‘(10) The term ‘separated affiliate’ means a
corporation under common ownership or control with
a Bell operating company that does not own or con-
trol a Bell operating company and is not owned or
controlled by a Bell operating company and that en-
gages in the provision of electronic publishing which
is disseminated by means of such Bell operating
company’s or any of its affiliates’ basic telephone
service.
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‘‘(11) The term ‘Bell operating company’ means
the corporations subject to the Modification of Final
Judgment and listed in Appendix A thereof, or any
entity owned or controlled by such corporation, or
any successor or assign of such corporation, but
does not include an electronic publishing joint ven-
ture owned by such corporation or entity.’’.
SEC. 204. PRIVACY OF CUSTOMER INFORMATION.
(a) PRIVACY OF CUSTOMER PROPRIETARY NETWORK
INFORMATION.—
(1) AMENDMENT.—Title II of the Communica-
tions Act of 1934 is amended by adding at the end
the following new section:
‘‘SEC. 232. PRIVACY OF CUSTOMER PROPRIETARY NET-
WORK INFORMATION.
‘‘(a) DUTY TO PROVIDE SUBSCRIBER LIST INFOR-
MATION.—Notwithstanding subsections (b), (c), and (d),
a carrier that provides subscriber list information to any
affiliated or unaffiliated service provider or person shall
provide subscriber list information on a timely and
unbundled basis, under nondiscriminatory and reasonable
rates, terms, and conditions, to any person upon request.
‘‘(b) PRIVACY REQUIREMENTS FOR COMMON CAR-
RIERS.—A carrier—
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‘‘(1) shall not, except as required by law or with
the approval of the customer to which the informa-
tion relates—
‘‘(A) use customer proprietary network in-
formation in the provision of any service except
to the extent necessary (i) in the provision of
common carrier communications services, (ii) in
the provision of a service necessary to or used
in the provision of common carrier communica-
tions services, including the publishing of direc-
tories, or (iii) to continue to provide a particu-
lar information service that the carrier provided
as of March 15, 1994, to persons who were cus-
tomers of such service on that date;
‘‘(B) use customer proprietary network in-
formation in the identification or solicitation of
potential customers for any service other than
the service from which such information is de-
rived;
‘‘(C) use customer proprietary network in-
formation in the provision of customer premises
equipment; or
‘‘(D) disclose customer proprietary net-
work information to any person except to the
extent necessary to permit such person to pro-
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vide services or products that are used in and
necessary to the provision by such carrier of the
services described in subparagraph (A);
‘‘(2) shall disclose customer proprietary net-
work information, upon affirmative written request
by the customer, to any person designated by the
customer;
‘‘(3) shall, whenever such carrier provides any
aggregate information, notify the Commission of the
availability of such aggregate information and shall
provide such aggregate information on reasonable
terms and conditions to any other service or equip-
ment provider upon reasonable request therefor; and
‘‘(4) except for disclosures permitted by para-
graph (1)(D), shall not unreasonably discriminate
between affiliated and unaffiliated service or equip-
ment providers in providing access to, or in the use
and disclosure of, individual and aggregate informa-
tion made available consistent with this subsection.
‘‘(c) RULE OF CONSTRUCTION.—This section shall
not be construed to prohibit the use or disclosure of cus-
tomer proprietary network information as necessary—
‘‘(1) to render, bill, and collect for the services
identified in subparagraph (A);
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‘‘(2) to render, bill, and collect for any other
service that the customer has requested;
‘‘(3) to protect the rights or property of the
carrier;
‘‘(4) to protect users of any of those services
and other carriers from fraudulent, abusive, or un-
lawful use of or subscription to such service; or
‘‘(5) to provide any inbound telemarketing, re-
ferral, or administrative services to the customer for
the duration of the call if such call was initiated by
the customer and the customer approves of the use
of such information to provide such service.
‘‘(d) EXEMPTION
PERMITTED.—The Commission
may, by rule, exempt from the requirements of subsection
(b) carriers that have, together with any affiliated carriers,
in the aggregate nationwide, fewer than 500,000 access
lines installed if the Commission determines that such ex-
emption is in the public interest or if compliance with the
requirements would impose an undue economic burden on
the carrier.
‘‘(e) REGULATIONS.—The Commission shall pre-
scribe regulations to carry out this section within 1 year
after the date of its enactment.
‘‘(f) DEFINITION OF AGGREGATE INFORMATION.—
For purposes of this section, the term ‘aggregate informa-
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tion’ means collective data that relates to a group or cat-
egory of services or customers, from which individual cus-
tomer identities and characteristics have been removed.’’.
(2) CONFORMING AMENDMENT.—Section 3 of
the Communications Act of 1934 (47 U.S.C. 153) is
amended by adding at the end the following:
‘‘(gg) ‘Customer proprietary network information’
means—
‘‘(1) information which relates to the quantity,
technical 
configuration, 
type, 
destination, 
and
amount of use of telephone exchange service or tele-
phone toll service subscribed to by any customer of
a carrier, and is made available to the carrier by the
customer solely by virtue of the carrier-customer re-
lationship;
‘‘(2) information contained in the bills pertain-
ing to telephone exchange service or telephone toll
service received by a customer of a carrier; and
‘‘(3) such other information concerning the cus-
tomer as is available to the local exchange carrier by
virtue of the customer’s use of the carrier’s tele-
phone exchange service or interexchange telephone
services, and specified as within the definition of
such term by such rules as the Commission shall
prescribe consistent with the public interest;
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except that such term does not include subscriber list in-
formation.
‘‘(hh) ‘Subscriber list information’ means any infor-
mation—
‘‘(1) identifying the listed names of subscribers
of a carrier and such subscribers’ telephone num-
bers, addresses, or primary advertising classifica-
tions, or any combination of such listed names, num-
bers, addresses, or classifications; and
‘‘(2) that the carrier or an affiliate has pub-
lished or accepted for future publication.’’.
(b) IMPACT
OF
CONVERGING
COMMUNICATIONS
TECHNOLOGIES ON CONSUMER PRIVACY.—
(1) PROCEEDING REQUIRED.—Within one year
after the date of enactment of this Act, the Commis-
sion shall commence a proceeding—
(A) to examine the impact of the integra-
tion into interconnected communications net-
works of wireless telephone, cable, satellite, and
other technologies on the privacy rights and
remedies of the consumers of those tech-
nologies;
(B) to examine the impact that the
globalization of such integrated communications
networks has on the international dissemination
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of consumer information and the privacy rights
and remedies to protect consumers;
(C) to propose changes in the Commis-
sion’s regulations to ensure that the effect on
consumer privacy rights is considered in the in-
troduction of new telecommunications services
and that the protection of such privacy rights
is incorporated as necessary in the design of
such services or the rules regulating such serv-
ices;
(D) to propose changes in the Commis-
sion’s regulations as necessary to correct any
defects identified pursuant to subparagraph (A)
in such rights and remedies; and
(E) to prepare recommendations to the
Congress for any legislative changes required to
correct such defects.
(2) SUBJECTS FOR EXAMINATION.—In conduct-
ing the examination required by paragraph (1), the
Commission shall determine whether consumers are
able, and, if not, the methods by which consumers
may be enabled—
(A) to have knowledge that consumer in-
formation is being collected about them through
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their utilization of various communications
technologies;
(B) to have notice that such information
could be used, or is intended to be used, by the
entity collecting the data for reasons unrelated
to the original communications, or that such in-
formation could be sold (or is intended to be
sold) to other companies or entities; and
(C) to stop the reuse or sale of that infor-
mation.
(3) SCHEDULE FOR COMMISSION RESPONSES.—
The Commission shall, within 18 months after the
date of enactment of this Act—
(A) complete any rulemaking required to
revise Commission regulations to correct defects
in such regulations identified pursuant to para-
graph (1); and
(B) submit to the Congress a report con-
taining the recommendations required by para-
graph (1)(C).
SEC. 205. TELEMESSAGING SERVICES.
Title II of the Communications Act of 1934 (47
U.S.C. 201 et seq.) is amended by adding at the end there-
of the following new section:
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‘‘SEC. 233. TELEMESSAGING SERVICES.
‘‘(a) NONDISCRIMINATION.—A common carrier en-
gaged in the provision of telemessaging services shall—
‘‘(1) provide nonaffiliated entities, upon reason-
able request, with the network services it provides to
its own telemessaging operations, on nondiscrim-
inatory terms and conditions; and
‘‘(2) not subsidize its telemessaging services
with revenues from telephone exchange service.
‘‘(b) 
EXPEDITED
CONSIDERATION
OF
COM-
PLAINTS.—The Commission shall establish procedures for
the receipt and review of complaints concerning violations
of subsection (a) or the regulations thereunder that result
in material financial harm to a provider of telemessaging
service. Such procedures shall ensure that the Commission
will make a final determination with respect to any such
complaint within 120 days after receipt of the complaint.
If the complaint contains an appropriate showing that the
alleged violation occurred, as determined by the Commis-
sion in accordance with such regulations, the Commission
shall, within 60 days after receipt of the complaint, order
the common carrier and its affiliates to cease engaging
in such violation pending such final determination.
‘‘(c) DEFINITIONS.—As used in this section, the term
‘telemessaging services’ means voice mail and voice stor-
age and retrieval services provided over telephone lines for
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telemessaging customers and any live operator services
used to answer, record, transcribe, and relay messages
(other than telecommunications relay services) from in-
coming telephone calls on behalf of the telemessaging cus-
tomers (other than any service incidental to directory as-
sistance).’’.
SEC. 206. ENHANCED SERVICES SAFEGUARDS.
Within 60 days after the date of the enactment of
this Act, the Commission shall initiate a proceeding to re-
consider its decision in the Report and Order In the Mat-
ter of Computer III Remand Proceedings, CC Docket No.
90–623, released December 20, 1993, relieving the Bell
operating companies of the obligation to provide enhanced
services through fully separate affiliates. Within 180 days
after the date of the enactment of this Act, the Commis-
sion shall, to the extent it determines necessary or appro-
priate in the public interest, adopt regulations prescribing
the structural or nonstructural safeguards, or both, with
which local exchange carriers shall comply when providing
enhanced services.
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TITLE 
III—TELECOMMUNI-
CATIONS 
INFRASTRUCTURE
AND COMPETITION
SEC. 301. 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 loca-
tion or disability, a switched, broadband tele-
communications network capable of enabling users
to originate and receive affordable high quality voice,
data, graphics, and video telecommunications serv-
ices;
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‘‘(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 telecommunications 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:
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‘‘(ii) ‘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.
‘‘(jj) ‘Equal access’ means to afford, to any person
seeking to provide an information service or a tele-
communications service, reasonable and nondiscriminatory
access on an unbundled basis—
‘‘(1) to databases, signaling systems, poles,
ducts, conduits, and rights-of-way owned or con-
trolled by a local exchange carrier, or other facilities,
functions, or information (including subscriber num-
bers) integral to the efficient transmission, routing,
or other provision of telephone exchange services or
telephone exchange 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.
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‘‘(kk) ‘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 in-
formation 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 reasonable request.
‘‘(ll) ‘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
include a person insofar as such person is engaged in the
provision 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 replacement for a substantial portion of the wireline
telephone exchange service within such State.
‘‘(mm) ‘Telephone exchange access service’ means the
offering of telephone exchange services or facilities for the
purpose of the origination or termination of interexchange
telecommunications services to or from an exchange area.
‘‘(nn) ‘Telecommunications’ means the transmission,
between or among points specified by the subscriber, of
information of the subscriber’s choosing, without change
in the form or content of the information as sent and re-
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ceived, by means of an electromagnetic transmission me-
dium, including all instrumentalities, facilities, apparatus,
and services (including the collection, storage, forwarding,
switching, and delivery of such information) essential to
such transmission.
‘‘(oo) ‘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. 302. EQUAL ACCESS AND NETWORK FUNCTIONALITY
AND QUALITY.
(a) AMENDMENT.—Section 201 of the Communica-
tions 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
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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
telecommunications services or information
services reasonably requesting such equal
access and interconnection, so that such
networks are fully interoperable with such
telecommunications services and informa-
tion services; and
‘‘(ii) to offer unbundled features,
functions, and capabilities whenever tech-
nically feasible and economically reason-
able, in accordance with requirements pre-
scribed by the Commission pursuant to
this subsection and other laws.
‘‘(2) EQUAL
ACCESS
AND
INTERCONNECTION
REGULATIONS.—
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the Commission shall establish regulations re-
quiring just and reasonable compensation to the
exchange carrier providing such equal access
and interconnection pursuant to subparagraph
(A). Such regulations shall include regulations
to require the carrier, to the extent it provides
a telecommunications service or an information
service, to impute such access and interconnec-
tion charges to itself as the Commission deter-
mines are reasonable and nondiscriminatory.
‘‘(C) EXEMPTIONS AND MODIFICATIONS.—
Notwithstanding paragraph (1) or subpara-
graph (A) of this paragraph, a rural telephone
company shall not be required to provide equal
access and interconnection to another local ex-
change carrier. The Commission shall not apply
the requirements of this paragraph or impose
requirements pursuant to paragraph (1)(B)(ii)
to any rural telephone company, except to the
extent that the Commission determines that
compliance with such requirements would not
be unduly economically burdensome, unfairly
competitive, technologically infeasible, or other-
wise not in the public interest. The Commission
may modify the requirements of this paragraph
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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 requirements (without such modification)
would be unduly economically burdensome,
technologically infeasible, or otherwise not in
the public interest. The Commission may in-
clude, in the regulations prescribed pursuant to
paragraph (1)(B), modified requirements for
any feature, function, or capability that the
Commission determines is generally available to
competing 
providers 
of 
telecommunications
services or information services at the same or
better price, terms, and conditions.
‘‘(D) JOINT BOARD ON EQUAL ACCESS AND
INTERCONNECTION
STANDARDS.—Within 
days after the date of enactment of this sub-
section, the Commission shall convene a Fed-
eral-State Joint Board under section 410(c) for
the purpose of preparing a recommended deci-
sion for the Commission with respect to the
equal access and interconnection regulations re-
quired by this paragraph.
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‘‘(E) ENFORCEMENT OF EXISTING REGU-
LATIONS.—Nothing in this section shall be con-
strued to prohibit the Commission from enforc-
ing regulations prescribed prior to the date of
enactment 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
company’ means a local exchange carrier oper-
ating 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 Bu-
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reau 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
service to any local exchange carrier study
area with fewer than 100,000 access lines.
‘‘(3) PREEMPTION.—
‘‘(A) LIMITATION.—Notwithstanding sec-
tion 2(b), no State or local government may,
after one year after the date of enactment of
this subsection—
‘‘(i) effectively prohibit any person or
carrier from providing any interstate or
intrastate telecommunications service or
information service, or impose any restric-
tion 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
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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 does not effectively prohibit any per-
son or carrier from providing any interstate or
intrastate telecommunications service or infor-
mation service 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) NORMAL
CONSTRUCTION
PERMITS
PERMITTED.—Subparagraph (A) shall not be
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construed to prohibit a local government from
requiring a person or carrier to obtain ordinary
and usual construction or similar permits for its
operations if (i) such permit is required without
regard to the nature of the business, and (ii)
requiring such permit does not effectively pro-
hibit any person or carrier from providing any
interstate 
or 
intrastate 
telecommunications
service or information service.
‘‘(D) 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.
‘‘(E) 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 condi-
tion for operating in the locality or for obtain-
ing access to, occupying, or crossing public
rights-of-way 
from 
any 
provider 
of 
tele-
communications services that distinguishes be-
tween or among providers of telecommuni-
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cations services, including the local exchange
carrier. For purposes of this subsection, a fran-
chise, 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 services or elements offered to comply
with the equal access and interconnection regu-
lations 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 elements or of the feature or
function that uses or includes such services or
elements. The Commission shall review such
tariffs to ensure that—
‘‘(i) the charges for such services or
elements are cost-based; and
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‘‘(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 Com-
mission to ensure that similarly situated car-
riers provide such information in a uniform
fashion.
‘‘(5) PRICING FLEXIBILITY.—
‘‘(A) ESTABLISHMENT
OF
CRITERIA.—
Within 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,
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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 fil-
ing of tariff schedules, or in lieu of other
pricing procedures established by the Com-
mission, and that are consistent with the
protection of subscribers and the public in-
terest, convenience, and necessity.
‘‘(B) DETERMINATIONS.—The Commis-
sion, with respect to rates for interstate or for-
eign communications, and State commissions,
with respect to rates for intrastate communica-
tions, 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
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‘‘(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.—
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 recommending actions to the
Commission and State commissions for the
preservation of universal service. As a part of
preparing such recommendations, the Joint
Board shall survey providers and users of tele-
phone exchange service and consult with State
commissions in order to determine the pecu-
niary difference between the cost of providing
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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 encom-
passed within carriers’ universal service ob-
ligations. Such plan should seek to pro-
mote access to advanced telecommuni-
cations services and capabilities, including
open platform service, for all Americans by
including access to advanced telecommuni-
cations services and capabilities in the defi-
nition of universal service while maintain-
ing just and reasonable rates. Such plan
should seek to promote reasonably com-
parable services for the general public in
urban and rural areas.
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‘‘(iii) Such plan should establish spe-
cific and predictable mechanisms to pro-
vide adequate and sustainable support for
universal 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,
for a period of not more than 5 years,
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 sub-
scribers 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
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plan should include a requirement that a
rate increase shall be permitted in any pro-
ceeding commenced after March 16, 1994,
only upon a showing that such increase is
necessary to prevent competitive disadvan-
tages for one or more service providers and
is in the public interest. Such plan should
provide that any such increase in rates
shall be minimized to the greatest extent
practical and shall be implemented over a
time period of not less than 5 years after
the date of enactment of this subsection.
‘‘(vi) To the extent that a common
carrier 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 providing such service, for public service
institutions, both as producers and users of
services, as soon as technically feasible and
economically reasonable. Such plan shall
provide that such preferential rates should
only be made available to such institutions
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for the purpose of providing noncommer-
cial information services or telecommuni-
cations services to the general public and
not for the internal telecommunications
needs or commercial use of such institu-
tions.
‘‘(vii) Such plan should determine and
establish mechanisms to ensure that rates
charged by a provider of interexchange
telecommunications services for services in
rural areas are maintained at levels no
higher than those charged by the same
carrier to subscribers in urban areas.
‘‘(viii) Such plan should, notwith-
standing any other provision of law, re-
quire 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
subject to the jurisdiction of the Commis-
sion or the States, as applicable, when
such carrier’s network has been made open
to competition as a result of its implemen-
tation of the equal access, interconnection,
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and accessibility provisions of this sub-
section.
‘‘(ix) Such other principles as the
Board determines are necessary and appro-
priate for the protection of the public in-
terest, convenience, and necessity and con-
sistent with the purposes of this Act.
‘‘(C) DEFINITION OF UNIVERSAL SERVICE;
ACCESS TO ADVANCED SERVICES.—In defining
the nature and extent of the services encom-
passed within carriers’ universal service obliga-
tions 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 sub-
stantial majority of residential customers;
‘‘(ii) denial of access to such service to
any individual would unfairly deny that in-
dividual educational and economic opportu-
nities;
‘‘(iii) such service has been deployed
in the public switched telecommunications
network; and
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‘‘(iv) inclusion of such service within
carriers’ universal service obligations is
otherwise consistent with the public inter-
est, 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 sub-
paragraph (A) shall report its recommendations
within 270 days after the date of enactment of
this subsection. The Commission shall complete
any proceeding to act upon such recommenda-
tions within one year after such date of enact-
ment. A State may adopt regulations to imple-
ment the Joint Board’s recommendations, ex-
cept that such regulations shall not, after 18
months after such date of enactment, be incon-
sistent with regulations prescribed by the Com-
mission to implement such recommendations.
‘‘(E) DEFINITION OF PUBLIC SERVICE IN-
STITUTION.—For the purposes of this para-
graph, the term ‘public service institution’
means—
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‘‘(i) an agency or instrumentality of
Federal, State, or local government;
‘‘(ii) a nonprofit educational institu-
tion, health care institution, public library,
public museum, or public broadcasting sta-
tion or entity;
‘‘(iii) a charitable organization that
(I) is exempt from Federal income taxes
under section 501(c)(3) of the Internal
Revenue Code of 1986; (II) provides public
services in conjunction with an agency, in-
strumentality, institution, or entity de-
scribed in clause (i) or (ii); and (III) pro-
vides information that is useful to the pub-
lic and that is related to the work of such
an agency, instrumentality, institution, or
entity.
‘‘(7) CROSS
SUBSIDIES
PROHIBITION.—The
Commission 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
access service of any operating expenses, costs,
depreciation charges, capital investments, or
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other expenses directly associated with the pro-
vision of competing telecommunications serv-
ices, information services, or video program-
ming services by the common carrier or affili-
ate; 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 tele-
phone exchange access service and competing
telecommunications services, information serv-
ices, or video programming services.
‘‘(8) RESALE.—The resale or sharing of tele-
phone exchange service (or unbundled services, ele-
ments, features, or functions of telephone exchange
service) in conjunction with the furnishing of a tele-
communications service or an information service
shall not be prohibited nor subject to unreasonable
conditions by the carrier, the Commission, or any
State.
‘‘(9) TELECOMMUNICATIONS
NUMBER
PORT-
ABILITY.—The Commission shall prescribe regula-
tions to ensure that—
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‘‘(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 Number-
ing Plan that pertain to the United States. For the
purpose of this paragraph, the term ‘telecommuni-
cations number portability’ means the ability of
users of telecommunications services to retain exist-
ing 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 Com-
mission shall—
‘‘(A) conduct a proceeding in which inter-
ested parties shall have an opportunity to com-
ment on whether the standards and require-
ments established by or under this subsection
have opened the networks of carriers to reason-
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able and nondiscriminatory access by providers
of telecommunications services and information
services;
‘‘(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 serv-
ices has been facilitated pursuant to this sub-
section and the plans and regulations there-
under; and
‘‘(C) submit to the Congress a report con-
taining a statement of the Commission’s find-
ings pursuant to such proceeding, and including
an identification of any defects or delays ob-
served in attaining the objectives of this sub-
section and a plan for correcting such defects
and delays.
‘‘(11) STUDY
OF
RURAL
PHONE
SERVICE.—
Within 1 year after the date of enactment of this
subsection, the Commission shall initiate an inquiry
to examine the effects of competition in the provision
of telephone exchange access service and telephone
exchange service on the availability and rates for
telephone exchange access service and telephone ex-
change service furnished by rural exchange carriers.
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‘‘(d) NETWORK FUNCTIONALITY AND QUALITY.—
‘‘(1) FUNCTIONALITY AND RELIABILITY OBLI-
GATIONS.—The duty of a common carrier under
subsection (a) to furnish communications service in-
cludes the duty to furnish that service in accordance
with such regulations of functionality and reliability
as the Commission may prescribe as necessary or de-
sirable in the public interest pursuant to this sub-
section.
‘‘(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 serv-
ices or information services, subject to Commis-
sion supervision, for the effective and efficient
interconnection and interoperability of public
and private networks; and
‘‘(B) procedures for Commission oversight
of the development by appropriate standards-
setting organizations of—
‘‘(i) standards for the interconnection
and interoperability of such networks;
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‘‘(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
telephone 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 Com-
mission shall initiate an inquiry to consider the
regulations and policies necessary to make open
platform service available to subscribers at rea-
sonable rates based on the reasonably identifi-
able costs of providing such service, utilizing ex-
isting facilities or new facilities with improved
capability 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
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regulations may require a local exchange carrier
to file, in the appropriate jurisdiction, tariffs
for the origination and termination of open
platform service as soon as such service is eco-
nomically and technically feasible. In establish-
ing any such regulations, the Commission shall
take into account the proximate and long-term
deployment plans of local exchange carriers.
‘‘(C) TEMPORARY WAIVER.—The Commis-
sion shall also establish a procedure to waive
temporarily specific provisions of the regula-
tions prescribed under this paragraph if a local
exchange 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 sub-
mission.
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‘‘(D) COST ALLOCATION.—Any such regu-
lations shall provide for the allocation of all
costs of facilities jointly used to provide open
platform service and telephone exchange service
or telephone 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) COMMISSION
INQUIRY.—Within 2
years after the date of enactment of this para-
graph, the Commission shall conduct an inquiry
concerning the deployment of open platform
service and other advanced telecommunications
network 
capabilities, 
including 
switched,
broadband telecommunications facilities. In con-
ducting such inquiry, the Commission shall seek
to develop information concerning—
‘‘(i) the availability of such network
capabilities to all Americans;
‘‘(ii) the availability of such network
capabilities to different regions, States,
and classes of subscribers;
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‘‘(iii) the availability of advanced net-
work technology needed to deploy such net-
work capabilities; and
‘‘(iv) likely deployment schedules for
such network capabilities by region, State,
and classes of subscribers.
The Commission shall submit a report to the
Congress on the results of such inquiry within
270 days after the commencement of such in-
quiry, and annually thereafter for the succeed-
ing 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 disabilities, including individuals with
functional limitations of hearing, vision, move-
ment, manipulation, speech, and interpretation
of information, unless the cost of making the
services accessible and usable would result in an
undue burden or adverse competitive impact.
Such regulations shall seek to permit the use of
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both standard and special equipment, and seek
to minimize the need of individuals to acquire
additional devices beyond those used by the
general public to obtain such access. Through-
out the process of developing such regulations,
the Commission shall coordinate and consult
with representatives of individuals with disabil-
ities and interested equipment and service pro-
viders to ensure their concerns and interests are
given full consideration 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
exchange carrier that deploys the network serv-
ice shall ensure that the network service in
question is compatible with existing peripheral
devices or specialized customer premises equip-
ment commonly used by persons with disabil-
ities to achieve access, unless doing so would re-
sult 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
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to comply with the requirements of this para-
graph would result in an undue burden, the fac-
tors 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 ques-
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tion, put the local exchange carrier at a
competitive disadvantage. This factor may
be considered so long as competing net-
work service providers are not held to the
same obligation with respect to access by
persons with disabilities.
‘‘(E) REVIEW
OF
STANDARDS
AND
RE-
QUIREMENTS.—At least once every 3 years, the
Commission shall conduct a proceeding in which
interested 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
required by this paragraph shall become effec-
tive 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
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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 subsection, the Commission shall initiate a
rulemaking proceeding to establish such per-
formance 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
reliability and service quality complaints.
‘‘(C) 
COORDINATION
AND
CONSULTA-
TION.—Throughout the process of developing
network reliability and service quality perform-
ance measures or benchmarks, as required by
subparagraphs (A) and (B), the Commission
shall coordinate and consult with service and
equipment providers and users and State regu-
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latory bodies to ensure their concerns and inter-
ests are given full consideration in such process.
‘‘(6) RURAL
EXEMPTION.—The Commission
may modify, or grant exemptions from, the require-
ments of this subsection in the case of a common
carrier providing 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 re-
quire local exchange carriers to make available to
qualifying carriers such public switched tele-
communications network technology and information
and telecommunications facilities and functions as
may be requested by such a qualifying carrier for
the purpose of enabling that carrier to provide tele-
communications services, or to provide access to in-
formation services, in the geographic area in which
that carrier has requested 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—