108
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-
109
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
110
‘‘(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,
111
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
112
‘‘(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
113
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.
114
‘‘(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
115
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
116
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,
117
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
118
‘‘(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—
119
‘‘(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
120
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—
121
‘‘(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-
122
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.
123
‘‘(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;
124
‘‘(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
125
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.
126
‘‘(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;
127
‘‘(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
128
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
129
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-
130
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
131
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-
132
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—
133
‘‘(A) lacks economies of scale or scope, as
determined in accordance with regulations pre-
scribed by the Commission pursuant to this
subsection; and
‘‘(B) is a common carrier which offers tele-
phone exchange service, telephone exchange ac-
cess service, and any other service that is within
the definition of universal service, to all cus-
tomers without preference throughout one or
more exchange areas in existence on the date of
enactment of this subsection.
‘‘(3) TERMS
AND
CONDITIONS
OF
REGULA-
TIONS.—The regulations prescribed by the Commis-
sion pursuant to this subsection—
‘‘(A) shall not require any local exchange
carrier to take any action that is economically
unreasonable or that is contrary to the public
interest or to provide telecommunications facili-
ties and functions to any qualifying carrier that
is not reasonably proximate to such local ex-
change carrier;
‘‘(B) shall permit, but shall not require,
the joint ownership or operation of public
switched telecommunications network facilities,
134
functions, and services by or among the local
exchange carrier and the qualifying carrier;
‘‘(C) shall ensure that a local exchange
carrier shall not be treated by the Commission
or any State commission as a common carrier
for hire, or as offering common carrier services,
with respect to any technology, information, fa-
cilities, or functions made available to a qualify-
ing carrier pursuant to this subsection;
‘‘(D) shall ensure that local exchange car-
riers make such technology, information, facili-
ties, or functions available to qualifying carriers
on fair and reasonable terms and conditions
that permit such qualifying carriers to fully
benefit from the economies of scale and scope
of the providing local exchange carrier, as de-
termined in accordance with guidelines pre-
scribed by the Commission in such regulations;
‘‘(E) shall establish conditions that pro-
mote cooperation between local exchange car-
riers and qualifying carriers; and
‘‘(F) shall not require any local exchange
carrier to engage in any infrastructure sharing
agreement for any geographic area where such
135
carrier is required to provide services subject to
State regulation.
‘‘(4) INFORMATION CONCERNING DEPLOYMENT
OF NEW SERVICES AND EQUIPMENT.—Any local ex-
change carrier that has entered into an agreement
with a qualifying carrier under this subsection shall
provide to each party to such agreement timely in-
formation on the planned deployment of tele-
communications services and equipment, including
software integral to such telecommunications serv-
ices and equipment, including upgrades.’’.
(b) PREEMPTION OF FRANCHISING AUTHORITY REG-
ULATION OF TELECOMMUNICATIONS SERVICES.—
(1) TELECOMMUNICATIONS SERVICES.—Section
621(b) of the Communications Act of 1934 (47
U.S.C. 541(c)) is amended by adding at the end
thereof the following new paragraph:
‘‘(3)(A) To the extent that a cable operator or affili-
ate thereof is engaged in the provision of telecommuni-
cations services—
‘‘(i) such cable operator or affiliate shall not be
required to obtain a franchise under this title; and
‘‘(ii) the provisions of this title shall not apply
to such cable operator or affiliate.
136
‘‘(B) A franchising authority may not impose any re-
quirement that has the purpose or effect of prohibiting,
limiting, restricting, or conditioning the provision of a tele-
communications service by a cable operator or an affiliate
thereof.
‘‘(C) A franchising authority may not order a cable
operator or affiliate thereof—
‘‘(i) to discontinue the provision of a tele-
communications service, or
‘‘(ii) to discontinue the operation of a cable sys-
tem, to the extent such cable system is used for the
provision of a telecommunications service, by reason
of the failure of such cable operator or affiliate
thereof to obtain a franchise or franchise renewal
under this title with respect to the provision of such
telecommunications service.
‘‘(D) A franchising authority may not require a cable
operator to provide any telecommunications service or fa-
cilities as a condition of the initial grant of a franchise
or a franchise renewal.’’.
(2) FRANCHISE FEES.—Section 622(b) of the
Communications Act of 1934 (47 U.S.C. 542(b)) is
amended by inserting ‘‘to provide cable services’’ im-
mediately before the period at the end of the first
sentence thereof.
137
(c) CONFORMING AMENDMENT.—Section 2(b) of the
Communications Act of 1934 (47 U.S.C. 152(b)) is
amended by inserting ‘‘201 (c) and (d),’’ after ‘‘Except
as provided in sections’’.
SEC. 303. TELECOMMUNICATIONS SERVICES FOR EDU-
CATIONAL INSTITUTIONS, HEALTH CARE IN-
STITUTIONS, AND LIBRARIES.
Title II of the Communications Act of 1934 is
amended by adding at the end the following new section:
‘‘SEC. 234. TELECOMMUNICATIONS SERVICES FOR EDU-
CATIONAL INSTITUTIONS, HEALTH CARE IN-
STITUTIONS, AND LIBRARIES.
‘‘(a) PROMOTION OF DELIVERY OF ADVANCED SERV-
ICES.—In fulfillment of its obligation under section 1 to
make available to all the people of the United States a
rapid, efficient, nationwide, and worldwide communica-
tions service, the Commission shall promote the provision
of advanced telecommunications services by wire, wireless,
cable, and satellite technologies to—
‘‘(1) educational institutions;
‘‘(2) health care institutions; and
‘‘(3) public libraries.
‘‘(b) ANNUAL SURVEY REQUIRED.—The National
Telecommunications and Information Administration shall
conduct a nationwide survey of the availability of advanced
138
telecommunications services to educational institutions,
health care institutions, and public libraries. The Adminis-
tration shall complete the survey and release publicly the
results of such survey not later than one year after the
date of enactment of this section. The results of such sur-
vey shall include—
‘‘(1) the number of educational institutions and
classrooms, health care institutions, and public li-
braries;
‘‘(2) the number of educational institutions and
classrooms, health care institutions, and public li-
braries that have access to advanced telecommuni-
cations services; and
‘‘(3) the nature of the telecommunications fa-
cilities through which such educational institutions,
health care institutions, and public libraries obtain
access to advanced telecommunications services.
The National Telecommunications and Information Ad-
ministration shall update annually the survey required by
this section. The survey required under this subsection
shall be prepared in consultation with the Department of
Education, Department of Health and Human Services,
and such other Federal, State, and local departments,
agencies, and authorities that may maintain or have ac-
cess to information concerning the availability of advanced
139
telecommunications services to educational institutions,
health care institutions, and libraries.
‘‘(c) RULEMAKING REQUIRED.—Within one year
after the date of enactment of this section, the Commis-
sion shall issue a notice of proposed rulemaking for the
purpose of adopting regulations that—
‘‘(1) enhance, to the extent technically feasible
and economically reasonable, the availability of ad-
vanced telecommunications services to all edu-
cational institutions and classrooms, health care in-
stitutions, and public libraries by the year 2000;
‘‘(2) ensure that appropriate functional require-
ments or performance standards, or both, including
interoperability standards, are established for tele-
communications systems or facilities that inter-
connect educational institutions, health care institu-
tions, and public libraries with the public switched
telecommunications network;
‘‘(3) define the circumstances under which a
carrier may be required to interconnect its tele-
communications network with educational institu-
tions, health care institutions, and public libraries;
‘‘(4) provide for either the establishment of
preferential rates for telecommunications services,
including advanced services, that are provided to
140
educational institutions, health care institutions, and
public libraries, or the use of alternative mechanisms
to enhance the availability of advanced services to
these institutions; and
‘‘(5) address such other related matters as the
Commission may determine.
‘‘(d) FEASIBILITY STUDY.—The Commission shall
assess the feasibility of including postsecondary edu-
cational institutions in any regulations promulgated under
this section.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘educational institutions’ means
elementary and secondary educational institutions;
and
‘‘(2) the term ‘health care institutions’ means
not-for-profit health care institutions, including hos-
pitals and clinics.’’.
SEC. 304. DISCRIMINATORY INTERCONNECTION.
Section 208 of the Communications Act of 1934 is
amended by adding at the end thereof the following new
subsection:
‘‘(c) EXPEDITED
REVIEW
OF
CERTAIN
COM-
PLAINTS.—The Commission shall issue a final order with
respect to any complaint arising from alleged violations
of the regulations and orders prescribed pursuant to sec-
141
tion 201(c) within 180 days after the date such complaint
is filed.’’.
SEC. 305. EXPEDITED LICENSING OF NEW TECHNOLOGIES
AND SERVICES.
Section 7 of the Communications Act of 1934 (47
U.S.C. 157) is amended by adding at the end thereof the
following new subsection:
‘‘(c) LICENSING OF NEW TECHNOLOGIES.—
‘‘(1) EXPEDITED
RULEMAKING.—Within 24
months after making a determination under sub-
section (b) that a technology or service related to the
furnishing of telecommunications services is in the
public interest, the Commission shall, with respect to
any such service requiring a license or other author-
ization from the Commission, adopt and make effec-
tive regulations for—
‘‘(A) the provision of such technology or
service; and
‘‘(B) the filing of applications for the li-
censes or authorizations necessary to offer such
technology or service to the public, and shall act
on any such application within 24 months after
it is filed.
‘‘(2) REVIEW OF APPLICATIONS.—Any applica-
tion filed by a carrier under this subsection for the
142
construction or extension of a line shall also be sub-
ject to section 214 and to any necessary approval by
the appropriate State commissions.’’.
SEC. 306. NEW OR EXTENDED LINES.
Section 214 of the Communications Act of 1934 (47
U.S.C. 214) is amended by adding at the end the following
new subsection:
‘‘(e) Any application filed under this section for au-
thority to construct or extend a line shall address the
means by which such construction or extension will meet
the network access needs of individuals with disabilities.’’.
SEC. 307. POLE ATTACHMENTS.
Section 224 of the Communications Act of 1934 (47
U.S.C. 244) is amended—
(1) in subsection (a)(4), by inserting after ‘‘sys-
tem’’ the following: ‘‘or a provider of telecommuni-
cations service’’;
(2) in subsection (c)(2)(B), by striking ‘‘cable
television services’’ and inserting ‘‘the services of-
fered via such attachments’’;
(3) by redesignating subsection (d)(2) as sub-
section (d)(4); and
(4) by striking subsection (d)(1) and inserting
the following:
143
‘‘(d)(1) For purposes of subsection (b) of this section,
the Commission shall, no later than 1 year after the date
of enactment of the Antitrust and Communications Re-
form Act of 1995, prescribe regulations for ensuring that
utilities charge just and reasonable and nondiscriminatory
rates for pole attachments provided to all providers of tele-
communications services, including such attachments used
by cable television systems to provide telecommunications
services (as defined in section 3(oo) of this Act). Such reg-
ulations shall—
‘‘(A) recognize that the entire pole, duct, con-
duit, or right-of-way other than the usable space is
of equal benefit to all attachments to the pole, duct,
conduit, or right-of-way and therefore apportion the
cost of the space other than the usable space equally
among all such attachments,
‘‘(B) recognize that the usable space is of pro-
portional benefit to all entities attached to the pole,
duct, conduit, or right-of-way and therefore appor-
tion the cost of the usable space according to the
percentage of usable space required for each entity,
and
‘‘(C) allow for reasonable terms and conditions
relating to health, safety, and the provision of reli-
able utility service.
144
‘‘(2) The final regulations prescribed by the Commis-
sion pursuant to subparagraphs (A), (B), and (C) of para-
graph (1) shall not apply to a pole attachment used by
a cable television system solely to provide cable service as
defined in section 602(6) of this Act. The rates for pole
attachments used for such purposes shall assure a utility
the recovery of not less than the additional costs of provid-
ing pole attachments, nor more than an amount deter-
mined by multiplying the percentage of the total usable
space, or the percentage of the total duct, conduit, or
right-of-way capacity, which is occupied by the pole at-
tachment by the sum of the operating expenses and actual
capital costs of the utility attributable to the entire pole,
duct, conduit, or right-of-way.
‘‘(3) For all providers of telecommunications services
except members of the exchange carrier association estab-
lished in 47 C.F.R. 69.601 as of December 31, 1993, upon
enactment of this paragraph and until the Commission
promulgates its final regulations pursuant to subpara-
graphs (A), (B), and (C) of paragraph (1), the rate for-
mula contained in any joint use pole attachment agree-
ment between the electric utility and the largest local ex-
change carrier having such a joint use agreement in the
utility’s service area, in effect on January 1, 1994, shall
also apply to the pole attachments in the utility’s service
145
area, but if no such joint use agreement containing a rate
formula exists, then the pole attachment rate shall be the
rate applicable under paragraph (2) to cable television sys-
tems which solely provide cable service as defined in sec-
tion 602(6) of this Act. Disputes concerning the applica-
bility of a joint use agreement shall be resolved by the
Commission or the States, as appropriate.’’.
SEC. 308. CIVIC PARTICIPATION.
(a) POLICIES TO ENHANCE CIVIC DIALOGUE.—The
Commission, in consultation with the National Tele-
communications and Information Administration, shall
study policies that will enhance civic participation through
the national information infrastructure. The study shall
request and record public comments on Federal policies
that would enhance and expand democratic dialogue
through national computer and data networks. The study
shall examine, but not be limited to, the social benefits
of flat rate pricing for access to computer and data net-
works, the policies which will determine how access to
computer networks will be priced, including the access
needs of individuals with disabilities, and the appropriate
role of common carriers in the development of national
computer and data networks. The Commission shall re-
ceive comments in both paper and electronic formats and
shall establish an online discussion group accessed
146
through the national information infrastructure to encour-
age citizen participation in the study.
(b) PARTICIPATION IN REGULATORY AFFAIRS.—The
Commission, in consultation with the Office of Consumer
Affairs, shall conduct a study of how to encourage citizen
participation in regulatory issues and, within 120 days
from the date of enactment of this Act, report to Congress
on the results of the study.
SEC. 309. COMPETITION BY SMALL BUSINESS AND MINOR-
ITY-OWNED BUSINESS CONCERNS.
Title II of the Communications Act of 1934 is
amended by adding at the end the following new section:
‘‘SEC. 235. POLICY AND RULEMAKING TO PROMOTE DIVER-
SITY OF OWNERSHIP.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) in furtherance of the purposes of this Act
to make available to all people of the United States
a rapid and efficient communications service, and
for the purposes of promoting a diversity of opinion
in the broadcasting service, the Commission has es-
tablished regulations and policies to promote owner-
ship of broadcasting services by members of minority
groups;
‘‘(2) these regulations have served to promote
more vigorous communications on public issues, to
147
broaden the number and variety of stakeholders in
the American economy, and to promote innovation
by and creativity by Americans of different cultures
and national origins, and thereby have served to
build a more cohesive and productive society;
‘‘(3) while the Commission has adopted regula-
tions to promote participation by businesses owned
by members of minority groups and women, and
small businesses, in auctions for certain spectrum-
based services which promote diversity of ownership
in those services, no other regulations have been es-
tablished to promote such diversity of participation
in the provision of common carrier services or in the
provision of other telecommunications and informa-
tion services;
‘‘(4) the goals of competitively priced services,
service innovation, employment, and diversity of
viewpoint can be advanced by promoting market-
place penetration by small business concerns, busi-
ness concerns owned by women and members of mi-
nority groups, and nonprofit entities; and
‘‘(5) it should be the policy of the Commission
to promote whenever possible diversity of ownership
in the provision of information services and tele-
148
communication services by such concerns and enti-
ties.
‘‘(b) RULEMAKING REQUIRED.—Within 1 year after
the date of enactment of this section, the Commission, in
consultation with the National Telecommunications and
Information Administration, shall initiate a rulemaking
proceeding for the purpose of lowering market entry bar-
riers for small business, business concerns owned by
women and members of minority groups, and nonprofit
entities that are seeking to provide telecommunication
services and information services. The proceeding shall
seek to provide remedies for, among other things, lack of
access to capital and technical and marketing expertise on
the part of such concerns and entities. Consistent with the
broad policy and finding set forth in subsection (a), the
Commission shall adopt such regulations and make such
recommendations to Congress as the Commission deems
appropriate. Not later than 2 years after the date of enact-
ment of this section, the Commission shall complete the
proceeding required by this subsection.’’.
TITLE IV—COMMUNICATIONS
COMPETITIVENESS
SEC. 401. CABLE SERVICE PROVIDED BY TELEPHONE COM-
PANIES.
(a) GENERAL REQUIREMENT.—
149
(1) AMENDMENT.—Section 613(b) of the Com-
munications Act of 1934 (47 U.S.C. 533(b)) is
amended to read as follows:
‘‘(b)(1) Subject to the requirements of part V and
the other provisions of this title, any common carrier sub-
ject in whole or in part to title II of this Act may, either
through its own facilities or through an affiliate owned,
operated, or controlled by, or under common control with,
the common carrier, provide video programming directly
to subscribers in its telephone service area.
‘‘(2) Subject to the requirements of part V and the
other provisions of this title, any common carrier subject
in whole or in part to title II of this Act may provide chan-
nels of communications or pole, line, or conduit space, or
other rental arrangements, to any entity which is directly
or indirectly owned, operated, or controlled by, or under
common control with, such common carrier, if such facili-
ties or arrangements are to be used for, or in connection
with, the provision of video programming directly to sub-
scribers in its telephone service area.
‘‘(3) Notwithstanding paragraphs (1) and (2), an af-
filiate that—
‘‘(A) is, consistent with section 656, owned, op-
erated, or controlled by, or under common control
150
with, a common carrier subject in whole or in part
to title II of this Act, and
‘‘(B) provides video programming to subscribers
in the telephone service area of such carrier, but
‘‘(C) does not utilize the local exchange facili-
ties or services of any affiliated common carrier in
distributing such programming,
shall not be subject to the requirements of part V, but
shall be subject to the requirements of this part and parts
III and IV.’’.
(2) CONFORMING
AMENDMENT.—Section 602
of the Communications Act of 1934 (47 U.S.C. 531)
is amended—
(A) in paragraph (6)(B), by inserting ‘‘or
use’’ after ‘‘the selection’’;
(B) by redesignating paragraphs (18) and
(19) as paragraphs (19) and (20) respectively;
and
(C) by inserting after paragraph (17) the
following new paragraph:
‘‘(18) the term ‘telephone service area’ when
used in connection with a common carrier subject in
whole or in part to title II of this Act means the
area within which such carrier provides telephone ex-
change service as of November 20, 1993, but if any
151
common carrier after such date transfers its ex-
change service facilities to another common carrier,
the area to which such facilities provide telephone
exchange service shall be treated as part of the tele-
phone service area of the acquiring common carrier
and not of the selling common carrier;’’.
(b) PROVISIONS FOR REGULATION OF CABLE SERV-
ICE PROVIDED BY TELEPHONE COMPANIES.—Title VI of
the Communications Act of 1934 (47 U.S.C. 521 et seq.)
is amended by adding at the end the following new part:
‘‘PART V—VIDEO PROGRAMMING SERVICES
PROVIDED BY TELEPHONE COMPANIES
‘‘SEC. 651. DEFINITIONS.
‘‘For purposes of this part—
‘‘(1) the term ‘control’ means—
‘‘(A) an ownership interest in which an en-
tity has the right to vote more than 50 percent
of the outstanding common stock or other own-
ership interest; or
‘‘(B) if no single entity directly or indi-
rectly has the right to vote more than 50 per-
cent of the outstanding common stock or other
ownership interest, actual working control, in
whatever manner exercised, as defined by the
Commission by regulation on the basis of rel-
152
evant factors and circumstances, which shall in-
clude partnership and direct ownership inter-
ests, voting stock interests, the interests of offi-
cers and directors, and the aggregation of vot-
ing interests; and
‘‘(2) the term ‘rural area’ means a geographic
area that does not include either—
‘‘(A) any incorporated or unincorporated
place of 10,000 inhabitants or more, or any
part thereof; or
‘‘(B) any territory, incorporated or unin-
corporated, included in an urbanized area.
‘‘SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.
‘‘(a) IN GENERAL.—Except as provided in subsection
(d) of this section, a common carrier subject to title II
of this Act shall not provide video programming directly
to subscribers in its telephone service area unless such
video programming is provided through a video program-
ming affiliate that is separate from such carrier.
‘‘(b) BOOKS AND MARKETING.—
‘‘(1) IN GENERAL.—A video programming affili-
ate of a common carrier shall—
‘‘(A) maintain books, records, and ac-
counts separate from such carrier which iden-
tify all transactions with such carrier;
153
‘‘(B) carry out directly (or through any
nonaffiliated person) its own promotion, except
that institutional advertising carried out by
such carrier shall be permitted so long as each
party bears its pro rata share of the costs; and
‘‘(C) not own real or personal property in
common with such carrier.
‘‘(2) INBOUND
TELEMARKETING
AND
REFER-
RAL.—Notwithstanding paragraph (1)(B), a com-
mon carrier may provide telemarketing or referral
services in response to the call of a customer or po-
tential customer related to the provision of video
programming by a video programming affiliate of
such carrier. If such services are provided to a video
programming affiliate, such services shall be made
available to any video programmer or cable operator
on request, on nondiscriminatory terms, at just and
reasonable prices, and subject to regulations of the
Commission to ensure that the carrier’s method of
providing telemarketing or referral and its price
structure do not competitively disadvantage any
video programmer or cable operator, regardless of
size, including those which do not use the carrier’s
telemarketing services.
154
‘‘(3) JOINT
TELEMARKETING.—Notwithstand-
ing paragraph (1)(B), a common carrier may peti-
tion the Commission for permission to market video
programming directly, upon a showing that a cable
operator or other entity directly or indirectly pro-
vides telecommunications services within the tele-
phone service area of the common carrier, and mar-
kets such telecommunications services jointly with
video programming services. The common carrier
shall specify the geographic region covered by the
petition. Any such petition shall be granted or de-
nied within 180 days after the date of its submis-
sion.
‘‘(c) BUSINESS TRANSACTIONS WITH CARRIER SUB-
JECT
TO REGULATION.—Any contract, agreement, ar-
rangement, or other manner of conducting business, be-
tween a common carrier and its video programming affili-
ate, providing for—
‘‘(1) the sale, exchange, or leasing of property
between such affiliate and such carrier,
‘‘(2) the furnishing of goods or services between
such affiliate and such carrier, or
‘‘(3) the transfer to or use by such affiliate for
its benefit of any asset or resource of such carrier,
155
shall be pursuant to regulation prescribed by the Commis-
sion, shall be on a fully compensatory and auditable basis,
shall be without cost to the telephone service ratepayers
of the carrier, shall be filed with the Commission, and
shall be in compliance with regulations established by the
Commission that will enable the Commission to assess the
compliance of any transaction.
‘‘(d) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive any of the requirements of this section
for small telephone companies or telephone compa-
nies serving rural areas, if the Commission deter-
mines, after notice and comment, that—
‘‘(A) such waiver will not affect the ability
of the Commission to ensure that all video pro-
gramming activity is carried out without any
support from telephone ratepayers;
‘‘(B) the interests of telephone ratepayers
and cable subscribers will not be harmed if such
waiver is granted;
‘‘(C) such waiver will not adversely affect
the ability of persons to obtain access to the
video platform of such carrier; and
‘‘(D) such waiver otherwise is in the public
interest.
156
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘(3) CONTINUED APPLICABILITY OF SECTION
659.—In the case of a common carrier that obtains
a waiver under this subsection, any requirement that
section 659 applies to a video programming affiliate
shall instead apply to such carrier.
‘‘SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.
‘‘(a) COMMON CARRIER OBLIGATIONS.—
‘‘(1) IN GENERAL.—Any common carrier sub-
ject to title II of this Act, and that provides video
programming directly or indirectly to subscribers in
its telephone service area, shall establish a video
platform.
‘‘(2) IDENTIFICATION
OF
DEMAND
FOR
CAR-
RIAGE.—Any common carrier subject to the require-
ments of paragraph (1) shall, prior to establishing a
video platform, submit a notice to the Commission
of its intention to establish channel capacity for the
provision of video programming to meet the bona
fide demand for such capacity. Such notice shall—
‘‘(A) be in such form and contain such in-
formation as the Commission may require by
regulations pursuant to subsection (b);
157
‘‘(B) specify the methods by which any en-
tity seeking to use such channel capacity should
submit to such carrier a specification of its
channel capacity requirements; and
‘‘(C) specify the procedures by which such
carrier will determine (in accordance with the
Commission’s 
regulations 
under 
subsection
(b)(1)(B)) whether such request for capacity
are bona fide.
The Commission shall submit any such notice for
publication in the Federal Register within 5 working
days.
‘‘(3) RESPONSE TO REQUEST FOR CARRIAGE.—
After receiving and reviewing the requests for capac-
ity submitted pursuant to such notice, such common
carrier shall, subject to approval of a certificate
under section 214, establish channel capacity that is
sufficient to provide carriage for—
‘‘(A) all bona fide requests submitted pur-
suant to such notice,
‘‘(B) any additional channels required pur-
suant to section 659, and
‘‘(C) any additional channels required by
the Commission’s regulations under subsection
(b)(1)(C).
158
‘‘(4) RESPONSES TO CHANGES IN DEMAND FOR
CAPACITY.—Any common carrier that establishes a
video platform under this section shall—
‘‘(A) immediately notify the Commission
and each video programming provider of any
delay in or denial of channel capacity or service,
and the reasons therefor;
‘‘(B) continue to receive and grant, to the
extent of available capacity, carriage in re-
sponse to bona fide requests for carriage from
existing or additional video programming pro-
viders;
‘‘(C) if at any time the number of channels
required for bona fide requests for carriage may
reasonably be expected soon to exceed the exist-
ing capacity of such video platform, imme-
diately notify the Commission of such expecta-
tion and of the manner and date by which such
carrier will provide sufficient capacity to meet
such excess demand; and
‘‘(D) construct, subject to approval of a
certificate under section 214, such additional
capacity as may be necessary to meet such ex-
cess demand.
159
‘‘(5) DISPUTE RESOLUTION.—The Commission
shall have the authority to resolve disputes under
this section and the regulations prescribed there-
under. Any such dispute shall be resolved within 180
days after notice of such dispute is submitted to the
Commission. At that time or subsequently in a sepa-
rate damages proceeding, the Commission may
award damages sustained in consequence of any vio-
lation of this section to any person denied carriage,
or require carriage, or both. Any aggrieved party
may seek any other remedy available under this Act.
‘‘(b) COMMISSION REGULATIONS.—
‘‘(1) IN GENERAL.—Within one year after the
date of the enactment of this section, the Commis-
sion shall prescribe regulations that—
‘‘(A) consistent with the requirements of
section 659, prohibit a common carrier from
discriminating among video programming pro-
viders with regard to carriage on its video plat-
form, and ensure that the rates, terms, and
conditions for such carriage are just, reason-
able, and nondiscriminatory;
‘‘(B) prescribe definitions and criteria for
the purposes of determining whether a request
160
shall be considered a bona fide request for pur-
poses of this section;
‘‘(C) establish a requirement that video
platforms contain a suitable margin of unused
channel capacity to meet reasonable growth in
bona fide demand for such capacity;
‘‘(D) extend to video platforms the Com-
mission’s regulations concerning network non-
duplication (47 C.F.R. 76.92 et seq.) and syn-
dicated exclusivity (47 C.F.R. 76.151 et seq.);
‘‘(E) require the video platform to provide
service, 
transmission, 
interconnection, 
and
interoperability for unaffiliated or independent
video programming providers that is equivalent
to that provided to the common carrier’s video
programming affiliate;
‘‘(F)(i) prohibit a common carrier from
discriminating among video programming pro-
viders with regard to material or information
provided by the common carrier to subscribers
for the purposes of selecting programming on
the video platform, or in the way such material
or information is presented to subscribers;
‘‘(ii) require a common carrier to ensure
that video programming providers or copyright
161
holders (or both) are able suitably and uniquely
to identify their programming services to sub-
scribers; and
‘‘(iii) if such identification is transmitted
as part of the programming signal, require the
carrier to transmit such identification without
change or alteration; and
‘‘(G) prohibit a common carrier from ex-
cluding areas from its video platform service
area on the basis of the ethnicity, race, or in-
come of the residents of that area, and provide
for public comments on the adequacy of the
proposed service area on the basis of the stand-
ards set forth under this subparagraph.
‘‘(2) EXTENSION OF REGULATIONS TO OTHER
HIGH
CAPACITY
SYSTEMS.—The Commission shall
extend the requirements of the regulations pre-
scribed pursuant to this section, in lieu of the re-
quirements of section 612, to any cable operator of
a cable system that has installed a switched,
broadband video programming delivery system, ex-
cept that the Commission shall not extend the re-
quirements of the regulations prescribed pursuant to
subsection (b)(1)(D) or any other requirement that
the Commission determines is clearly inappropriate.
162
‘‘(c) COMMISSION INQUIRY.—The Commission shall
conduct a study of whether it is in the public interest to
extend the requirements of subsection (a) to any other
cable operators in lieu of the requirements of section 612.
The Commission shall submit to the Congress a report on
the results of such study not later than 2 years after the
date of enactment of this section.
‘‘SEC. 654. EQUAL ACCESS COMPLIANCE.
‘‘(a) CERTIFICATION REQUIRED.—
‘‘(1) IN GENERAL.—A common carrier subject
to title II of this Act shall not provide video pro-
gramming directly to subscribers in its telephone
service area unless such carrier has certified to the
Commission that such carrier is in compliance with
the requirements of paragraphs (1) and (2) of sec-
tion 201(c) of this Act, and regulations prescribed
pursuant to such paragraphs.
‘‘(2) EXCEPTION.—Notwithstanding paragraph
(1), a common carrier subject to title II of this Act
may provide video programming directly to subscrib-
ers in its telephone service area during any period
prior to the date the Commission first prescribes
final regulations pursuant to paragraphs (1) and (2)
of section 201(c) of this Act if such carrier has cer-
tified to the Commission that such carrier is in com-
163
pliance with State laws and regulations concerning
equal access, interconnection, and unbundling that
are substantially similar to and fully consistent with
the requirements of such paragraphs or if there is
no statutory prohibition against such carrier provid-
ing video programming directly to subscribers in its
telephone service area on the date of enactment of
this section. A common carrier that is permitted to
provide video programming under this paragraph
prior to the effective date of such regulations shall
not be exempt from the requirements of paragraph
(1) after the effective date of such final regulations.
‘‘(b) 
CERTIFICATION
AND
APPLICATION
AP-
PROVAL.—A common carrier that submits a certification
under paragraph (1) or (2) of subsection (a) shall be eligi-
ble to provide video programming to subscribers in accord-
ance with the requirements of this part, subject to the ap-
proval of any necessary application under section 214 for
authority to establish a video platform. An application
under section 214 may be filed simultaneously with the
filing of such certification or at any time after the date
of enactment of this section, and the Commission shall act
to approve (with or without modification) or reject such
application within 180 days after the date of its submis-
sion. If the Commission acts to approve such an applica-
164
tion prior to the filing of such certification, such approval
shall not be effective until such certification is filed.
‘‘SEC. 655. PROHIBITION OF CROSS-SUBSIDIZATION.
‘‘(a) CROSS SUBSIDIES PROHIBITION.—The Commis-
sion shall—
‘‘(1) prescribe regulations to prohibit a common
carrier from engaging in any practice that results in
the inclusion in rates for telephone exchange service
or telephone exchange access service of any operat-
ing expenses, costs, depreciation charges, capital in-
vestments, or other expenses directly associated with
the provision of competing video programming serv-
ices by the common carrier or affiliate; and
‘‘(2) ensure such competing video programming
services bear a reasonable share of the joint and
common costs of facilities used to provide telephone
exchange service or telephone exchange access serv-
ice and competing video programming services.
‘‘(b) CABLE OPERATOR PROHIBITIONS.—The Com-
mission shall prescribe regulations to prohibit a cable op-
erator from engaging in any practice that results in im-
proper cross-subsidization between its regulated cable op-
erations and its provision of telecommunications service,
either directly or through an affiliate.
165
‘‘SEC. 656. PROHIBITION ON BUYOUTS.
‘‘(a) GENERAL PROHIBITION.—No common carrier
that provides telephone exchange service, and no entity
owned by or under common ownership or control with such
carrier, may purchase or otherwise obtain control over any
cable system that is located within its telephone service
area and is owned by an unaffiliated person.
‘‘(b) EXCEPTIONS.—Notwithstanding subsection (a),
a common carrier may—
‘‘(1) obtain a controlling interest in, or form a
joint venture or other partnership with, a cable sys-
tem that serves a rural area;
‘‘(2) obtain, in addition to any interest, joint
venture, or partnership obtained or formed pursuant
to paragraph (1), a controlling interest in, or form
a joint venture or other partnership with, any cable
system or systems if—
‘‘(A) such systems in the aggregate serve
less than 10 percent of the households in the
telephone service area of such carrier; and
‘‘(B) no such system serves a franchise
area with more than 35,000 inhabitants, except
that a common carrier may obtain such interest
or form such joint venture or other partnership
with a cable system that serves a franchise area
with more than 35,000 but not more than
166
50,000 inhabitants if such system is not affili-
ated (as such term is defined in section 602)
with any other system whose franchise area is
contiguous to the franchise area of the acquired
system;
‘‘(3) obtain, with the concurrence of the cable
operator on the rates, terms, and conditions, the use
of that part of the transmission facilities of such a
cable system extending from the last multi-user ter-
minal to the premises of the end user, if such use
is reasonably limited in scope and duration, as deter-
mined by the Commission; or
‘‘(4) obtain a controlling interest in, or form a
joint venture or other partnership with, or provide
financing to, a cable system (hereinafter in this
paragraph referred to as ‘the subject cable system’),
if—
‘‘(A) the subject cable system operates in
a television market that is not in the top 25
markets, and that has more than 1 cable sys-
tem operator, and the subject cable system is
not the largest cable system in such television
market;
‘‘(B) the subject cable system and the larg-
est cable system in such television market held
167
on March 1, 1994, cable television franchises
from the largest municipality in the television
market and the boundaries of such franchises
were identical on such date;
‘‘(C) the subject cable system is not owned
by or under common ownership or control of
any one of the 50 largest cable system opera-
tors as existed on March 1, 1994; and
‘‘(D) the largest system in the television
market is owned by or under common owner-
ship or control of any one of the 10 largest
cable system operators as existed on March 1,
1994.
‘‘(c) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive the restrictions in subsection (a) of this
section only upon a showing by the applicant that—
‘‘(A) because of the nature of the market
served by the cable system concerned—
‘‘(i) the incumbent cable operator
would be subjected to undue economic dis-
tress by the enforcement of such sub-
section; or
168
‘‘(ii) the cable system would not be
economically viable if such subsection were
enforced; and
‘‘(B) the local franchising authority ap-
proves of such waiver.
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘SEC. 657. PENALTIES.
‘‘If the Commission finds that any common carrier
has knowingly violated any provision of this part, the
Commission shall assess such fines and penalties as it
deems appropriate pursuant to this Act.
‘‘SEC. 658. CONSUMER PROTECTION.
‘‘(a) JOINT BOARD REQUIRED.—Within 30 days
after the date of enactment of this part, the Commission
shall convene a Federal-State Joint Board under the pro-
visions of section 410(c) for the purpose of recommending
a decision concerning the practices, classifications, and
regulations as may be necessary to ensure proper jurisdic-
tional separation and allocation of the costs of establishing
and providing a video platform. The Board shall issue its
recommendations to the Commission within 270 days after
the date of enactment of this part.
169
‘‘(b) COMMISSION REGULATIONS REQUIRED.—The
Commission, with respect to interstate switched access
service, and the States, with respect to telephone exchange
service and intrastate interexchange service, shall establish
such regulations as may be necessary to implement section
655 within one year after the date of the enactment of
this part.
‘‘(c) NO EFFECT
ON CARRIER REGULATION AU-
THORITY.—Nothing in this section shall be construed to
limit or supersede the authority of any State or the Com-
mission with respect to the allocation of costs associated
with intrastate or interstate communication services.
‘‘SEC. 659. APPLICABILITY OF FRANCHISE AND OTHER RE-
QUIREMENTS.
‘‘(a) IN GENERAL.—Any provision that applies to a
cable operator under—
‘‘(1) sections 613, 616, 617, 628, 631, 632,
and 634 of this title, shall apply,
‘‘(2) sections 611, 612, 614, and 615 of this
title, and section 325 of title III, shall apply in ac-
cordance with the regulations prescribed under sub-
section (b), and
‘‘(3) parts III and IV (other than sections 628,
631, 632, and 634) of this title shall not apply,
170
to any video programming affiliate established by a com-
mon carrier in accordance with the requirements of this
part.
‘‘(b) IMPLEMENTATION OF REQUIREMENTS.—
‘‘(1) REGULATIONS.—The Commission shall
prescribe regulations to ensure that a video pro-
gramming affiliate of a common carrier shall provide
(A) capacity, services, facilities, and equipment for
public, educational, and governmental use, (B) ca-
pacity for commercial use, (C) carriage of commer-
cial and non-commercial broadcast television sta-
tions, and (D) an opportunity for commercial broad-
cast stations to choose between mandatory carriage
and reimbursement for retransmission of the signal
of such station. In prescribing such regulations, the
Commission shall, to the extent possible, impose ob-
ligations that are no greater or lesser than the obli-
gations contained in the provisions described in sub-
section (a)(2) of this section. Such regulations shall
also require that, if a common carrier establishes a
video platform but does not provide or ceases to pro-
vide video programming through a video program-
ming affiliate, such carrier shall comply with the
regulations prescribed under this paragraph and
171
with the provisions described in subsection (a)(1) in
the operation of its video platform.
‘‘(2) FEES.—A video programming affiliate of
any common carrier that establishes a video plat-
form under this part, and any multichannel video
programming distributor offering a competing serv-
ice using such video platform (as determined in ac-
cordance with regulations of the Commission), shall
be subject to the payment of fees imposed by a local
franchising authority, in lieu of the fees required
under section 622. The rate at which such fees are
imposed shall not exceed the rate at which franchise
fees are imposed on any cable operator transmitting
video programming in the same service area.
‘‘SEC. 660. RURAL AREA EXEMPTION.
‘‘The provisions of sections 652, 653, 654, and 656
shall not apply to video programming provided in a rural
area by a common carrier that provides telephone ex-
change service in the same area.’’.
SEC. 402. REVIEW OF BROADCASTERS’ OWNERSHIP RE-
STRICTIONS.
Within one year after the date of enactment of this
Act, the Commission shall, after a notice and comment
proceeding, prescribe regulations to modify, maintain, or
remove the ownership regulations on radio and television
172
broadcasters as necessary to ensure that broadcasters are
able to compete fairly with other information providers
while protecting the goals of diversity and localism.
SEC. 403. REVIEW OF STATUTORY OWNERSHIP RESTRIC-
TION.
Within one year after the date of enactment of this
Act, the Commission shall review the ownership restriction
in section 613(a)(1) of the Communications Act of 1934
(47 U.S.C. 553(a)(1)) and report to Congress whether or
not such restriction continues to serve the public interest.
SEC. 404. BROADCASTER SPECTRUM FLEXIBILITY.
(a) REGULATIONS REQUIRED.—If the Commission
determines to issue additional licenses for advanced tele-
vision services, and initially limits the eligibility for such
licenses to persons that, as of the date of such issuance,
are licensed to operate a television broadcast station or
hold a permit to construct such a station (or both), the
Commission shall adopt regulations that allow such licens-
ees or permittees to offer such ancillary or supplementary
services on designated frequencies as may be consistent
with the public interest, convenience, and necessity.
(b) CONTENTS
OF REGULATIONS.—In prescribing
the regulations required by subsection (a), the Commission
shall—
173
(1) only permit such licensee or permittee to
offer ancillary or supplementary services if the use
of a designated frequency for such services is indivis-
ible from the use of such designated frequency for
the provision of advanced television services;
(2) limit the broadcasting of ancillary or supple-
mentary services on designated frequencies so as to
avoid derogation of any advanced television services,
including high definition television broadcasts, that
the Commission may require using such frequencies;
(3) treat any such ancillary or supplementary
services for which the licensee or permittee solicits
and receives compensation in return for transmitting
commercial advertising as broadcast services for the
purposes of the Communications Act of 1934 and
the Children’s Television Act of 1990 (47 U.S.C.
303a), and the Commission’s regulations thereunder,
including regulations promulgated pursuant to sec-
tion 315 of the Communications Act of 1934 (47
U.S.C. 315);
(4) apply to any other ancillary or supple-
mentary service such of the Commission’s regula-
tions as are applicable to the offering of analogous
services by any other person;
174
(5) adopt such technical and other requirements
as may be necessary or appropriate to assure the
quality of the signal used to provide advanced tele-
vision services, including regulations that stipulate
the minimum number of hours per day that such
signal must be transmitted; and
(6) prescribe such other regulations as may be
necessary for the protection of the public interest,
convenience, and necessity.
(c) RECOVERY OF LICENSE.—
(1) CONDITIONS
REQUIRED.—If the Commis-
sion limits the eligibility for licenses to provide ad-
vanced television services in the manner described in
subsection (a), the Commission shall, as a condition
of such license, require that, upon a determination
by the Commission pursuant to the regulations pre-
scribed under paragraph (2), either the additional li-
cense or the original license held by the licensee be
surrendered to the Commission in accordance with
such regulations for reallocation or reassignment (or
both) pursuant to Commission regulation.
(2) REGULATIONS.—The Commission shall pre-
scribe regulations establishing criteria for rendering
determinations concerning license surrender pursu-
175
ant to license conditions required by paragraph (1).
Such regulations shall—
(A) require such determinations to be
based on whether the substantial majority of
the public have obtained television receivers
that are capable of receiving advanced television
services; and
(B) not require the cessation of the broad-
casting if such cessation would render the tele-
vision receivers of a substantial portion of the
public useless, or otherwise cause undue bur-
dens on the owners of such television receivers.
(d) FEES REQUIRED.—
(1) SERVICES TO WHICH FEES APPLY.—If the
regulations prescribed pursuant to subsection (a)
permit a licensee to offer ancillary or supplementary
services on a designated frequency—
(A) for which the payment of a subscrip-
tion fee is required in order to receive such
services, or
(B) for which the licensee directly or indi-
rectly receives compensation from a third party
in return for transmitting material furnished by
such third party (other than commercial adver-
176
tisements used to support broadcasting for
which a subscription fee is not required),
the Commission shall establish by regulation a pro-
gram to assess and collect an annual fee or royalty
payment.
(2) CRITERIA FOR REGULATIONS.—The regula-
tions required by paragraph (1) shall—
(A) be designed (i) to recover for the pub-
lic a portion of the value of the public spectrum
resource made available for such commercial
use, and (ii) to avoid unjust enrichment
through the method employed to permit such
uses of that resource;
(B) recover for the public an amount that
is, to maximum extent feasible, equal (over the
term of the license) to the amount that would
have been recovered had such services been li-
censed pursuant to the provisions of section
309(j) of the Communications Act of 1934 (47
U.S.C. 309(j)) and the Commission’s regula-
tions thereunder; and
(C) be adjusted by the Commission from
time to time in order to continue to comply with
the requirements of this paragraph.
(3) TREATMENT OF REVENUES.—
177
(A) GENERAL RULE.—Except as provided
in subparagraph (B), all proceeds obtained pur-
suant to the regulations required by this sub-
section shall be deposited in the Treasury in ac-
cordance with chapter 33 of title 31, United
States Code.
(B) RETENTION OF REVENUES.—Notwith-
standing subparagraph (A), the salaries and ex-
penses account of the Commission shall retain
as an offsetting collection such sums as may be
necessary from such proceeds for the costs of
developing and implementing the program re-
quired by this section and regulating and super-
vising advanced television services. Such offset-
ting collections shall be available for obligation
subject to the terms and conditions of the re-
ceiving appropriations account, and shall be de-
posited in such accounts on a quarterly basis.
(4) REPORT.—Within 5 years after the date of
the enactment of this section, the Commission shall
report to the Congress on the implementation of the
program required by this subsection, and shall annu-
ally thereafter advise the Congress on the amounts
collected pursuant to such program.
178
(e) EVALUATION REQUIRED.—Within 10 years after
the date the Commission first issues additional licenses for
advanced television services, the Commission shall conduct
an evaluation of the advanced television services program.
Such evaluation shall include—
(1) an assessment of the willingness of consum-
ers to purchase the television receivers necessary to
receive broadcasts of advanced television services;
(2) an assessment of alternative uses, including
public safety use, of the frequencies used for such
broadcasts; and
(3) the extent to which the Commission has
been or will be able to reduce the amount of spec-
trum assigned to licensees in order to issue addi-
tional licenses for the provision of advanced tele-
vision services.
(f) DEFINITIONS.—As used in this section:
(1) ADVANCED
TELEVISION
SERVICES.—The
term ‘‘advanced television services’’ means television
services provided using digital or other advanced
technology to enhance audio quality and video reso-
lution, as further defined in the opinion, report, and
order of the Commission entitled ‘‘Advanced Tele-
vision Systems and Their Impact Upon the Existing
Television Broadcast Service’’, MM Docket 87–268,
179
adopted September 17, 1992, and successor proceed-
ings.
(2) DESIGNATED
FREQUENCIES.—The term
‘‘designated frequency’’ means each of the fre-
quencies designated by the Commission for licenses
for advanced television services.
(3) HIGH DEFINITION TELEVISION.—The term
‘‘high definition television’’ refers to systems that
offer approximately twice the vertical and horizontal
resolution of receivers generally available on the date
of enactment of this section, as further defined in
the proceedings described in paragraph (1) of this
subsection.
SEC. 405. INTERACTIVE SERVICES AND CRITICAL INTER-
FACES.
(a) FINDINGS.—The Congress finds that—
(1) the convergence of communications, com-
puting, and video technologies will permit improve-
ments in interoperability between and among those
technologies;
(2) in the public switched telecommunications
network, open protocols and technical requirements
for connection between the network and the
consumer, and the availability of unbundled cus-
tomer equipment through retailers and other third
180
party vendors, have served to broaden consumer
choice, lower prices, and spur competition and inno-
vation in the customer equipment industry;
(3) set-top boxes and other interactive commu-
nications devices could similarly serve as a critical
gateway between American homes and businesses
and advanced telecommunications and video pro-
gramming networks;
(4) American consumers have benefited from
the ability to own or rent customer premises equip-
ment obtained from retailers and other vendors and
the ability to access the network with portable, com-
patible equipment;
(5) in order to promote diversity, competition,
and technological innovation among suppliers of
equipment and services, it may be necessary to make
certain critical interfaces with such networks open
and accessible to a broad range of equipment manu-
facturers and information providers;
(6) the identification of critical interfaces with
such networks and the assessment of their openness
must be accomplished with due recognition that open
and accessible systems may include standards that
involve both nonproprietary and proprietary tech-
nologies;
181
(7) such identification and assessment must
also be accomplished with due recognition of the
need for owners and distributors of video program-
ming and information services to ensure system and
signal security and to prevent theft of service;
(8) whenever possible, standards in dynamic in-
dustries such as interactive systems are best set by
the marketplace or by private sector standard-set-
ting bodies; and
(9) the role of the Commission in this regard
is—
(A) to identify, in consultation with indus-
try groups, consumer interests, and independent
experts, critical interfaces with such networks
(i) to ensure that end users can connect infor-
mation devices to such networks, and (ii) to en-
sure that information service providers are able
to transmit information to end users, and
(B) as necessary, to take steps to ensure
these networks and services are accessible to a
broad range of equipment manufacturers, infor-
mation providers, and program suppliers.
(b) INQUIRY REQUIRED.—Within 6 months after the
date of the enactment of this Act, the Commission shall
commence an inquiry—
182
(1) to examine the impact of the convergence of
technologies on cable, telephone, satellite, and wire-
less and other communications technologies likely to
offer interactive communications services;
(2) to ascertain the importance of maintaining
open and accessible systems in interactive commu-
nications services;
(3) to examine the costs and benefits of main-
taining varying levels of interoperability between and
among interactive communications services;
(4) to examine the costs and benefits of estab-
lishing open interfaces (A) between the network pro-
vider and the set-top box or other interactive com-
munications devices used in the home or office, and
(B) between network providers and information serv-
ice providers, and to determine how best to establish
such interfaces;
(5) to determine methods by which converter
boxes or other interactive communications devices
may be sold through retailers and other third party
vendors and to determine the vendors’ responsibil-
ities for ensuring that their devices are interoperable
with interactive networks;
(6) to assess how the security of cable, satellite,
and other interactive systems or their services can
183
continue to be ensured with the establishment of an
interface between the network and a converter box
or other interactive communications device, including
those manufactured and distributed at retail by enti-
ties independent of network providers and informa-
tion service providers, and to determine the respon-
sibilities of such independent entities for assuring
network security and for conforming to signal inter-
ference standards;
(7) to ascertain the conditions necessary to en-
sure that any critical interface is available to infor-
mation and content providers and others who seek to
design, build, and distribute interoperable devices for
these networks so as to ensure network access and
fair competition for independent information provid-
ers and consumers;
(8) to assess the impact of the deployment of
digital technologies on individuals with disabilities,
with particular emphasis on any regulatory, policy,
or design barriers which would limit functionally
equivalent access by such individuals;
(9) to assess current regulation of telephone,
cable, satellite, and other communications delivery
systems to ascertain how best to ensure interoper-
ability between those systems;
184
(10) to assess the adequacy of current regula-
tion of telephone, cable, satellite, and other commu-
nications delivery systems with respect to bundling
of equipment and services and to identify any
changes in unbundling regulations necessary to as-
sure effective competition and encourage techno-
logical innovation, consistent with the finding in sub-
section (a)(6) and the objectives of paragraph (6) of
this subsection, in the market for converter boxes or
interactive communications devices and for other
customer premises equipment;
(11) to solicit comment on any changes in the
Commission’s regulations that are necessary to en-
sure that diversity, competition, and technological
innovation are promoted in communications services
and equipment; and
(12) to prepare recommendations to the Con-
gress for any legislative changes required.
(c) REPORT TO CONGRESS.—Within 12 months after
the date of the enactment of this Act, the Commission
shall submit to the Congress a report on the results of
the inquiry required by subsection (b). Within 6 months
after the date of submission of such report, the Commis-
sion shall prescribe such changes in its regulations as the