IB
Union Calendar No. 448
105TH CONGRESS
2D SESSION
H. R. 3888
[Report No. 105–801]
To amend the Communications Act of 1934 to improve the protection of
consumers against ‘‘slamming’’ by telecommunications carriers, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 14, 1998
Mr. TAUZIN (for himself, Mr. BASS, Mr. GOODLATTE, Mr. GILLMOR, Mr.
BURR of North Carolina, Mr. SKEEN, Mr. FRANKS of New Jersey, and
Mr. BACHUS) introduced the following bill; which was referred to the
Committee on Commerce
OCTOBER 8, 1998
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 May 14, 1998]
A BILL
To amend the Communications Act of 1934 to improve the
protection of consumers against ‘‘slamming’’ by tele-
communications carriers, 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 ‘‘Telecommunications
Competition and Consumer Protection Act of 1998’’.
TITLE I—SLAMMING
SEC. 101. IMPROVED PROTECTION FOR CONSUMERS.
(a) CONSUMER PROTECTION PRACTICES.—Section 258
of the Communications Act of 1934 (47 U.S.C. 258) is
amended to read as follows:
‘‘SEC. 258. ILLEGAL CHANGES IN SUBSCRIBER SELECTIONS
OF CARRIERS.
‘‘(a) ALTERNATIVE MODES OF REGULATION.—
‘‘(1) INDUSTRY/COMMISSION CODE.—Within 180
days after the date of enactment of the Telecommuni-
cations Competition and Consumer Protection Act of
1998, the Commission, after consulting with the Fed-
eral Trade Commission and representatives of tele-
communications carriers providing telephone toll
service and telephone exchange service, State commis-
sions, and consumers, and considering any proposals
developed by such representatives, shall prescribe,
after notice and public comment and in accordance
with subsection (b), a Code of Subscriber Protection
Practices (hereinafter in this section referred as the
‘Code’) governing changes in a subscriber’s selection of
a provider of telephone exchange service or telephone
toll service.
‘‘(2) OBLIGATION TO COMPLY.—No telecommuni-
cations carrier (including a reseller of telecommuni-
cations services) shall submit or execute a change in
a subscriber’s selection of a provider of telephone ex-
change service or telephone toll service except in ac-
cordance with—
‘‘(A) the Code, if such carrier elects to com-
ply with the Code in accordance with subsection
(b)(2); or
‘‘(B) the requirements of subsection (c), if—
‘‘(i) the carrier does not elect to comply
with the Code under subsection (b)(2); or
‘‘(ii) such election is revoked or with-
drawn.
‘‘(b) MINIMUM PROVISIONS OF THE CODE.—
‘‘(1) SUBSCRIBER PROTECTION PRACTICES.—The
Code required by subsection (a)(1) shall include pro-
visions addressing the following:
‘‘(A) IN GENERAL.—A telecommunications
carrier (including a reseller of telecommuni-
cations services) electing to comply with the Code
shall submit or execute a change in a subscriber’s
selection of a provider of telephone exchange serv-
ice or telephone toll service only in accordance
with the provisions of the Code.
‘‘(B) NEGATIVE
OPTION.—A telecommuni-
cations carrier shall not use negative option
marketing.
‘‘(C) VERIFICATION.—A telecommunications
carrier shall verify the subscriber’s selection of
the carrier in accordance with procedures speci-
fied in the Code.
‘‘(D) UNFAIR
AND
DECEPTIVE
ACTS
AND
PRACTICES.—No telecommunications carrier, nor
any person acting on behalf of any such carrier,
shall engage in any unfair or deceptive acts or
practices in connection with the solicitation of a
change in a subscriber’s selection of a tele-
communications carrier.
‘‘(E) NOTIFICATION AND RIGHTS.—A tele-
communications carrier shall provide timely and
accurate notification to the subscriber in accord-
ance with procedures specified in the Code.
‘‘(F) 
SLAMMING
LIABILITY
AND
REM-
EDIES.—
‘‘(i) REQUIRED REIMBURSEMENT AND
CREDIT.—A 
telecommunications 
carrier
that has improperly changed the subscrib-
er’s selection of a telecommunications car-
rier without authorization, shall at a mini-
mum—
‘‘(I) reimburse the subscriber for
the fees associated with switching the
subscriber back to their original car-
rier; and
‘‘(II) provide a credit for any tele-
communications charges incurred by
the subscriber during the period, not to
exceed 30 days, while that subscriber
was improperly presubscribed.
‘‘(ii) PROCEDURES.—The Code shall
prescribe procedures by which—
‘‘(I) a subscriber may make an al-
legation of a violation under clause (i);
‘‘(II) the telecommunications car-
rier may rebut such allegation;
‘‘(III) the subscriber may, without
undue delay, burden, or expense, chal-
lenge the rebuttal; and
‘‘(IV) resolve any administrative
review of such an allegation within 75
days after receipt of an appeal.
‘‘(G) RECORDKEEPING.—A telecommuni-
cations carrier shall make and maintain a
service or telephone toll service provider under
this subsection, the telecommunications carrier
submitting the change to an executing carrier
shall, at a minimum, require the subscriber—
‘‘(i) to affirm that the subscriber is au-
thorized to select the provider of that service
for the telephone number in question;
‘‘(ii) to acknowledge the type of service
to be changed as a result of the selection;
‘‘(iii) to affirm the subscriber’s intent
to select the provider as the provider of that
service;
‘‘(iv) to acknowledge that the selection
of the provider will result in a change in
providers of that service; and
‘‘(v) to provide such other information
as the Commission considers appropriate
for the protection of the subscriber.
‘‘(B) 
ADDITIONAL
REQUIREMENTS.—The
procedures prescribed by the Commission to ver-
ify a subscriber’s selection of a provider shall—
‘‘(i) preclude the use of negative option
marketing;
‘‘(ii) provide for a complete copy of
verification of a change in telephone ex-
change service or telephone toll service pro-
vider in oral, written, or electronic form;
‘‘(iii) require the retention of such ver-
ification in such manner and form and for
such time as the Commission considers ap-
propriate;
‘‘(iv) mandate that verification occur
in the same language as that in which the
change was solicited; and
‘‘(v) provide for verification to be made
available to a subscriber on request.
‘‘(C) NOTICE TO SUBSCRIBER.—Whenever a
telecommunication carrier submits a change in a
subscriber’s selection of a provider of telephone
exchange service or telephone toll service, such
telecommunications carrier shall clearly notify
the subscriber in writing, not more than 15 days
after the change is submitted to the executing
carrier—
‘‘(i) of the subscriber’s new carrier;
and
‘‘(ii) that the subscriber may request
information regarding the date on which
the change was agreed to and the name of
the individual who authorized the change.
‘‘(3) LIABILITY FOR VIOLATIONS.—
‘‘(A) NOTIFICATION OF CHANGE.—The first
bill issued after the effective date of a change in
a subscriber’s provider of telephone exchange
service or telephone toll service by the executing
carrier for such change shall—
‘‘(i) prominently disclose the change in
provider and the effective date of such
change;
‘‘(ii) contain the name and toll-free
number of any telecommunications carrier
for such new service; and
‘‘(iii) direct the subscriber to contact
the executing carrier if the subscriber be-
lieves that such change was not authorized
and that the change was made in violation
of this subsection, and contain the toll-free
number by which to make such contact.
‘‘(B) AUTOMATIC SWITCH-BACK OF SERVICE
AND CREDIT TO CONSUMER OF CHARGES.—
‘‘(i) OBLIGATIONS OF EXECUTING CAR-
RIER.—If a subscriber of telephone exchange
service or telephone toll service makes an al-
legation, orally or in writing, to the execut-
ing carrier that a violation of this sub-
section has occurred with respect to such
subscriber—
‘‘(I) the executing carrier shall,
without charge to the subscriber, exe-
cute an immediate change in the pro-
vider of the telephone service that is the
subject of the allegation to restore the
previous provider of such service for
the subscriber;
‘‘(II) the executing carrier shall
provide an immediate credit to the
subscriber’s account for any charges for
executing the original change of service
provider; and
‘‘(III) if the executing carrier con-
ducts billing for the carrier that is the
subject of the allegation, the executing
carrier shall provide an immediate
credit to the subscriber’s account for
such service, in an amount equal to
any charges for the telephone service
that is the subject of the allegation in-
curred during the period—
‘‘(aa) beginning upon the
date of the change of service that
is the subject of the allegation;
and
‘‘(bb) ending on the earlier of
the date that the subscriber is re-
stored to the previous provider, or
30 days after the date the bill de-
scribed in subparagraph (A) is
issued.
‘‘(ii) OBLIGATIONS OF CARRIERS NOT
BILLING THROUGH EXECUTING CARRIERS.—
If a subscriber of telephone exchange service
or telephone toll service transmits, orally or
in writing, to any carrier that does not use
an executing carrier to conduct billing an
allegation that a violation of this subsection
has occurred with respect to such subscriber,
the carrier shall provide an immediate cred-
it to the subscriber’s account for such serv-
ice, and the subscriber shall, except as pro-
vided in subparagraph (C)(iii), be dis-
charged from liability, for an amount equal
to any charges for the telephone service that
is the subject of the allegation incurred dur-
ing the period—
‘‘(I) beginning upon the date of
the change of service that is the subject
of the allegation; and
‘‘(II) ending on the earlier of the
date that the subscriber is restored to
the previous provider, or 30 days after
the date the bill described in para-
graph (1) is issued.
‘‘(iii) TIME
LIMITATION.—This sub-
paragraph shall apply only to allegations
made by subscribers before the expiration of
the 1-year period that begins on the
issuance of the bill described in subpara-
graph (A).
‘‘(C) PROCEDURE FOR CARRIER REMEDY.—
‘‘(i) IN
GENERAL.—The Commission
shall, by rule, establish a procedure for ren-
dering determinations with respect to viola-
tions of this subsection. Such procedure
shall permit such determinations to be made
upon the filing of (I) a complaint by a tele-
communications carrier that was providing
telephone exchange service or telephone toll
service to a subscriber before the occurrence
of an alleged violation, and seeking damages
under clause (ii), or (II) a complaint by a
telecommunications carrier that was pro-
viding services after the alleged violation,
and seeking a reinstatement of charges
under clause (iii). Either such complaint
shall be filed not later than 6 months after
the date on which any subscriber whose alle-
gation is included in the complaint submit-
ted an allegation of the violation to the exe-
cuting carrier under subparagraph (B)(ii).
Either such complaint may seek determina-
tions under this paragraph with respect to
multiple alleged violations in accordance
with such procedures as the Commission
shall establish in the rules prescribed under
this subparagraph.
‘‘(ii) DETERMINATION
OF
VIOLATION
AND
REMEDIES.—In a proceeding under
this subparagraph, if the Commission deter-
mines that a violation of this subsection has
occurred, other than an inadvertent or un-
intentional violation, the Commission shall
award damages—
‘‘(I) to the telecommunications
carrier filing the complaint, in an
amount equal to the sum of (aa) the
gross amount of charges that the car-
rier would have received from the sub-
scriber during the violation, and (bb)
$500 per violation; and
‘‘(II) to the subscriber that was
subjected to the violation, in the
amount of $500.
‘‘(iii) DETERMINATION OF NO VIOLA-
TION.—If the Commission determines that a
violation of this subsection has not occurred,
the Commission shall order that any credit
provided to the subscriber under subpara-
graph (B)(ii) be reversed, or that the carrier
may resubmit a bill for the amount of the
credit to the subscriber notwithstanding any
discharge under subparagraph (B)(ii).
‘‘(iv) SPEEDY
RESOLUTION
OF
COM-
PLAINTS.—The procedure established under
this subparagraph shall provide for a deter-
mination of each complaint filed under the
procedure not later than 6 months after fil-
ing.
‘‘(D) MAINTENANCE OF INFORMATION.—
‘‘(i) IN
GENERAL.—The Commission
shall, by rule, require each executing carrier
to maintain information regarding each al-
leged violation of this subsection of which
the carrier has been notified.
‘‘(ii) CONTENTS.—The information re-
quired to be maintained pursuant to this
paragraph shall include, for each alleged
violation of this subsection, the effective date
of the change of service involved in the al-
leged violation, the name of the provider of
the service to which the change was made,
the name, address, and telephone number of
the subscriber who was subject to the alleged
violation, and the amount of any credit
provided under subparagraph (B)(ii).
‘‘(iii) FORM.—The Commission shall
prescribe one or more computer data for-
mats for the maintenance of information
under this paragraph, which shall be de-
signed to facilitate submission and compila-
tion pursuant to this subparagraph.
‘‘(iv) MONTHLY REPORTS.—Each exe-
cuting carrier shall, on not less than a
monthly basis, submit the information
maintained pursuant to this subparagraph
to the Commission.
‘‘(v) ACCESS
TO
INFORMATION.—The
Commission shall make the information
submitted pursuant to clause (iv) available
upon request to any telecommunications
carrier. Any telecommunications carrier ob-
taining access to such information shall use
such information exclusively for the pur-
poses of investigating, filing, or resolving
complaints under this section.
‘‘(4) CIVIL PENALTIES.—Unless the Commission
determines that there are mitigating circumstances,
violation of this subsection is punishable by a forfeit-
ure of not less than $40,000 for the first offense, and
not less than $150,000 for each subsequent offense.
‘‘(5) RECOVERY
OF
FORFEITURES.—The Com-
mission may take such action as may be necessary—
‘‘(A) to collect any forfeitures it imposes
under this subsection; and
‘‘(B) on behalf of any subscriber, to collect
any damages awarded the subscriber under this
subsection.
‘‘(d) APPLICATION TO WIRELESS.—This section does
not apply to a provider of commercial mobile service.
‘‘(e) COMMISSION REQUIREMENTS.—
‘‘(1) SEMIANNUAL REPORTS.—Every 6 months,
the Commission shall compile and publish a report
ranking telecommunications carriers by the percent-
age of verified complaints, excluding those generated
by the carrier’s unaffiliated resellers, compared to the
number of changes in a subscriber’s selection of a pro-
vider of telephone exchange service and telephone toll
service.
‘‘(2) INVESTIGATION.—If a telecommunications
carrier is listed among the 5 worst performers based
upon the percentage of verified complaints, excluding
those generated by the carrier’s unaffiliated resellers,
compared to its number of carrier selection changes in
the semiannual reports 3 times in succession, the
Commission shall investigate the carrier’s practices
regarding subscribers’ selections of providers of tele-
phone exchange service and telephone toll service. If
the Commission finds that the carrier is misrepresent-
ing adherence to the Code or is willfully and repeat-
edly changing subscribers’ selections of providers, it
shall find such carrier to be in violation of this sec-
tion and shall fine the carrier up to $1,000,000.
‘‘(3) CODE REVIEW.—Every 2 years, the Com-
mission shall review the Code to ensure its require-
ments adequately protect subscribers from improper
changes in a subscriber’s selection of a provider of
telephone exchange service and telephone toll service.
‘‘(f) ACTIONS BY STATES.—
‘‘(1) IN GENERAL.—Whenever an attorney gen-
eral of any State has reason to believe that the inter-
ests of the residents of that State have been or are
being threatened or adversely affected because any
person has violated the Code or subsection (c), or any
rule or regulation prescribed by the Commission
under subsection (c), the State may bring a civil ac-
tion on behalf of its residents in an appropriate dis-
trict court of the United States to enjoin such viola-
tion, to enforce compliance with such Code, sub-
section, rule, or regulation, to obtain damages on be-
half of their residents, or to obtain such further and
other relief as the court may deem appropriate.
‘‘(2) NOTICE.—The State shall serve prior writ-
ten notice of any civil action under paragraph (1)
upon the Commission and provide the Commission
with a copy of its complaint, except that if it is not
feasible for the State to provide such prior notice, the
State shall serve such notice immediately upon insti-
tuting such action. Upon receiving a notice respecting
a civil action, the Commission shall have the right
(A) to intervene in such action, (B) upon so interven-
ing, to be heard on all matters arising therein, and
(C) to file petitions for appeal.
‘‘(3) VENUE.—Any civil action brought under
this section in a district court of the United States
may be brought in the district wherein the defendant
is found or is an inhabitant or transacts business or
wherein the violation occurred or is occurring, and
process in such cases may be served in any district
in which the defendant is an inhabitant or wherever
the defendant may be found.
‘‘(4) INVESTIGATORY POWERS.—For purposes of
bringing any civil action under this section, nothing
in this Act shall prevent the attorney general from ex-
ercising the powers conferred on the attorney general
by the laws of such State to conduct investigations or
to administer oaths or affirmations or to compel the
attendance of witnesses or the production of documen-
tary and other evidence.
‘‘(5) EFFECT ON STATE COURT PROCEEDINGS.—
Nothing contained in this subsection shall prohibit an
authorized State official from proceeding in State
court on the basis of an alleged violation of any gen-
eral civil or criminal statute of such State.
‘‘(6) LIMITATION.—Whenever the Commission
has instituted a civil action for violation of this sec-
tion or any rule or regulation thereunder, no State
may, during the pendency of such action instituted by
the Commission, subsequently institute a civil action
against any defendant named in the Commission’s
complaint for violation of any rule as alleged in the
Commission’s complaint.
‘‘(7) ACTIONS BY OTHER STATE OFFICIALS.—In
addition to actions brought by an attorney general of
a State under paragraph (1), such an action may be
brought by officers of such State who are authorized
by the State to bring actions in such State for protec-
tion of consumers.
‘‘(g) STATE LAW NOT PREEMPTED.—
‘‘(1) IN GENERAL.—Nothing in this section or in
the regulations prescribed under this section shall pre-
empt any State law that imposes requirements, regu-
lations, damages, costs, or penalties on changes in a
subscriber’s selection of a provider of telephone ex-
change service or telephone toll service that are less re-
strictive than those imposed under this section.
‘‘(2) EFFECT ON STATE COURT PROCEEDINGS.—
Except as provided in subsection (f)(6), nothing con-
tained in this section shall be construed to prohibit
an authorized State official from proceeding in State
court on the basis of an alleged violation of any gen-
eral civil or criminal statute of such State or any
specific civil or criminal statute of such State not
preempted by this section.
‘‘(h) RULES OF CONSTRUCTION.—
‘‘(1) CHANGE INCLUDES INITIAL SELECTION.—
For purposes of this section, the initiation of service
to a subscriber by a telecommunications carrier shall
be treated as a change in a subscriber’s selection of
a provider of telephone exchange service or telephone
toll service.
‘‘(2) ACTION BY UNAFFILIATED RESELLER NOT
IMPUTED TO CARRIER.—No telecommunications car-
rier may be found in violation of this section solely
on the basis of a violation of this section by an unaf-
filiated reseller of that carrier’s services or facilities.
‘‘(i) DEFINITIONS.—For purposes of this section:
‘‘(1) SUBSCRIBER.—The term ‘subscriber’ means
the person named on the billing statement or account,
or any other person authorized to make changes in
the providers of telephone exchange service or tele-
phone toll service.
‘‘(2) EXECUTING CARRIER.—The term ‘executing
carrier’ means, with respect to any change in the pro-
vider of local exchange service or telephone toll serv-
ice, the local exchange carrier that executed such
change.
‘‘(3) ATTORNEY GENERAL.—The term ‘attorney
general’ means the chief legal officer of a State.’’.
(b) NTIA STUDY
OF THIRD-PARTY ADMINISTRA-
TION.—Within 180 days of enactment of this Act, the Na-
tional Telecommunications and Information Administra-
tion shall report to the Committee on Commerce of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate on the feasibility
and desirability of establishing a neutral third-party ad-
ministration system to prevent illegal changes in telephone
subscriber carrier selections. The study shall include—
(1) an analysis of the cost of establishing a sin-
gle national or several regional independent databases
or clearinghouses to verify and submit changes in car-
rier selections;
(2) the additional cost to carriers, per change in
carrier selection, to fund the ongoing operation of any
or all such independent databases or clearinghouses;
and
(3) the advantages and disadvantages of utiliz-
ing independent databases or clearinghouses for veri-
fying and submitting carrier selection changes.
TITLE II—SPAMMING
SEC. 201. SENSE OF THE CONGRESS.
It is the sense of the Congress that—
(1) in order to avoid interference with the rapid
development and expansion of commerce over the
Internet, the Congress should decline to enact regu-
latory legislation with respect to unfair or intrusive
practices on the Internet that the private sector can,
given a sufficient opportunity, deter or prevent; and
(2) it is the responsibility of the private sector
to use that opportunity promptly to adopt, imple-
ment, and enforce measures to deter and prevent the
improper use of unsolicited commercial electronic
mail.
TITLE III—AUCTION RESCISSION
AND RE-AUCTION
SEC. 301. RE-AUCTION OF C-BLOCK LICENSES.
(a) OPTION TO ELECT RESCISSION.—Upon the elec-
tion of a C-block licensee, the Commission shall rescind such
licensee’s authority to utilize frequencies in the C-block in
accordance with the provisions of subsection (b), and such
action by the Commission shall cancel the debt obligations
the licensee assumed under the C-block installment payment
program.
(b) REQUIREMENTS.—In carrying out the provisions
of this section, the Commission shall—
(1) require any licensee making an election
under subsection (a) to do so with regard to all its
C-block licenses;
(2) permit all licensees that returned C-block li-
censes to the Commission prior to the effective date of
this section (including those who elected a C-block re-
structuring option on June 8, 1998, pursuant to WT
Docket No. 97–82) to reconsider their decision prior
to making the election specified in subsection (a);
(3) grant each licensee that makes an election
pursuant to subsection (a) of this section a full bid-
ding credit in an amount equal to the sum of all
down payments, installment payments, and interest
payments made prior to the effective date of this sec-
tion, with such credit to be available to the licensee
to use in bidding on any license in a subsequent re-
auction of C-block frequencies that the Commission
shall commence prior to March 24, 1999;
(4) permit such bidding credit to be freely trans-
ferable, in whole or in part, to any entity that is eli-
gible to participate in the re-auction in accordance
with paragraph (7);
(5) not refund any unused bidding credit;
(6) not utilize installment payments in C-block
re-auctions;
(7) limit eligibility to participate in any re-auc-
tion of C-block spectrum to entities that (A) partici-
pated in the C-block auction which began on Decem-
ber 18, 1995, or the C-block auction which began on
July 3, 1996; and (B) any entity that would have
been eligible to participate in either of those auctions
under Commission rules in effect as of those dates;
and
(8) take final action within 60 days following
the end of a C-block re-auction on license applications
filed by entities the Commission has named as win-
ning bidders in the re-auction.
(c) OPERATIONAL LICENSEES.—The Commission shall
restructure the indebtedness of any C-block licensee that has
commenced offering service to the public in any BTA prior
to the start of the re-auction required by this section so that
the amount that such licensee owes the Commission for the
license for such BTA is approximately equal to the winning
amount bid at such re-auction for BTA’s with comparable
populations.
(d) RULEMAKING REQUIRED.—The Commission shall
adopt a final order in WT Docket 97–82 implementing the
requirements of this section within 30 days of its enactment.
(e) SUSPENSION
OF PAYMENTS.—The Commission
shall suspend all payments due under the C-block restruc-
turing rules (pursuant to WT Docket 97–82) until comple-
tion of the re-auction required by this section.
(f) DEFINITIONS.—As used in this section—
(1) the term ‘‘Commission’’ means the Federal
Communications Commission;
(2) the term ‘‘C-block’’ has the same meaning as
under the Commission’s rules;
(3) the term ‘‘BTA’’ has the same meaning as
under the Commission’s rules; and
(4) the term ‘‘licensee’’ means any entity the
Commission named a high bidder in C-block auctions
that began on December 18, 1995, or July 3, 1996,
and who thereafter was authorized to utilize C-block
frequencies, regardless of whether such entity subse-
quently returned such licenses to the Commission in
whole or in part.
TITLE IV—GWCS AUCTION
DEADLINE
SEC. 401. ELIMINATION OF ARBITRARY AUCTION DEADLINE.
Section 309(j)(9) of the Communications Act of 1934
(47 U.S.C. 309(j)(9)) is amended by striking ‘‘, not later
than 5 years after the date of enactment of this subsection,’’.
TITLE V—REINSTATEMENT OF
CERTAIN APPLICANTS
SEC. 501. REINSTATEMENT OF APPLICANTS AS TENTATIVE
SELECTEES.
(a) IN GENERAL.—Notwithstanding the order of the
Federal Communications Commission in the proceeding de-
scribed in subsection (b), the Commission shall—
(1) reinstate each applicant as a tentative se-
lectee under the covered rural service area licensing
proceeding; and
(2) permit each applicant to amend its applica-
tion, to the extent necessary to update factual infor-
mation and to comply with the rules of the Commis-
sion, at any time before the Commission’s final licens-
ing action in the covered rural service area licensing
proceeding.
(b) PROCEEDING.—The proceeding described in this
subsection is the proceeding of the Commission In re Appli-
cations of Cellwave Telephone Services L.P., Futurewave
General Partners L.P., and Great Western Cellular Part-
ners, 7 FCC Rcd No. 19 (1992).
SEC. 502. CONTINUATION OF LICENSE PROCEEDING.
(a) AWARD
OF LICENSES.—The Commission shall
award licenses under the covered rural service area licens-
ing proceeding within 90 days after the date of the enact-
ment of this title.
(b) SERVICE REQUIREMENTS.—The Commission shall
provide that, as a condition of an applicant receiving a
license pursuant to the covered rural service area licensing
proceeding, the applicant shall provide cellular radio-
telephone service to subscribers in accordance with sections
22.946 and 22.947 of the Commission’s rules (47 CFR
22.946, 22.947); except that the time period applicable
under section 22.947 of the Commission’s rules (or any suc-
cessor rule) to the applicants identified in subparagraphs
(A) and (B) of section 504(1) shall be 3 years rather than
5 years and the waiver authority of the Commission shall
apply to such 3-year period.
(c) EDUCATIONAL AND PUBLIC SAFETY INFRASTRUC-
TURE.—Upon the grant of a license by the Commission to
an applicant under the covered rural service area licensing
proceeding, the applicant shall provide to each public
school, library, and public safety entity (including police,
fire, and emergency medical service entities) located within
the rural service area of the grantee, at the option of each
such entity and free of charge—
(1) 1 cellular telephone; and
(2) not less than 200 minutes of local service per
month for each such cellular telephone.
A telephone and local service for the telephone provided pur-
suant to this subsection may be used only while the tele-
phone is in the rural service area of the grantee and may
be used only for official business of the school, library, or
public safety entity for which it is provided.
(d) ENHANCED EMERGENCY SERVICES.—After the
grant of a license by the Commission to an applicant under
the covered rural service area licensing proceeding, the ap-
plicant shall provide free of charge, during each emergency
that requires activation of the Emergency Alert System (as
referred to in section 11.1 of the Commission’s rules (47
CFR 11.1) or any successor rule) within the rural service
area of the grantee, to public safety personnel (including
police, fire, and emergency medical services personnel)—
(1) at least 50, but not more than 100, cellular
telephones; and
(2) service for each cellular telephone provided
pursuant to paragraph (1).
A telephone and service for the telephone provided pursuant
to this subsection may be used only for official business of
public service personnel during the emergency for which it
is provided.
(e) PRIVACY SAFEGUARDS.—Except as otherwise pro-
vided under Federal law and the Commission’s rules, an
applicant that is granted a license by the Commission
under the covered rural service area licensing proceeding
shall not disclose to any third party any location informa-
tion generated through a subscriber’s use of a cellular tele-
phone in the service area of the applicant.
(f) AUCTION AUTHORITY.—If, after the amendment of
an application pursuant to section 501(a)(2) of this title,
the Commission finds that the applicant is ineligible for
grant of a license to provide cellular radiotelephone services
for a rural service area or the applicant does not meet the
requirements under subsection (b) of this section, the Com-
mission shall grant the license for which the applicant is
the tentative selectee (pursuant to section 501(a)(1)) by
competitive bidding pursuant to section 309(j) of the Com-
munications Act of 1934 (47 U.S.C. 309(j)).
SEC. 503. PROHIBITION OF TRANSFER.
During the 5-year period that begins on the date that
an applicant is granted any license pursuant to section
501, the Commission may not authorize the transfer or as-
signment of that license under section 310 of the Commu-
nications Act of 1934 (47 U.S.C. 310). Nothing in this title
may be construed to prohibit any applicant granted a li-
cense pursuant to section 501 from contracting with other
licensees to improve cellular telephone service.
SEC. 504. DEFINITIONS.
For the purposes of this title, the following definitions
shall apply:
(1) APPLICANT.—The term ‘‘applicant’’ means—
(A) Great Western Cellular Partners, a
California general partnership chosen by the
Commission as tentative selectee for RSA #492
on May 4, 1989;
(B) Monroe Telephone Services L.P., a
Delaware limited partnership chosen by the
Commission as tentative selectee for RSA #370
on August 24, 1989 (formerly Cellwave Tele-
phone Services L.P.); and
(C) FutureWave General Partners L.P., a
Delaware limited partnership chosen by the
Commission as tentative selectee for RSA #615
on May 25, 1990.
(2) 
COMMISSION.—The 
term 
‘‘Commission’’
means the Federal Communications Commission.
(3) COVERED RURAL SERVICE AREA LICENSING
PROCEEDING.—The term ‘‘covered rural service area
licensing proceeding’’ means the proceeding of the
Commission for the grant of cellular radiotelephone
licenses for rural service areas #492 (Minnesota 11),
#370 (Florida 11), and #615 (Pennsylvania 4).