I
104TH CONGRESS
1ST SESSION
H. R. 411
To supersede the Modification of Final Judgment entered August 24, 1982,
in the antitrust action styled United States v. Western Electric, Civil
Action No. 82–0192, United States District Court for the District of
Columbia; to amend the Communications Act of 1934 to regulate the
manufacturing of Bell operating companies, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. DINGELL (for himself, Mr. MARKEY, and Mr. CONYERS) introduced the
following bill; which was referred to the Committee on Commerce and,
in addition, to the Committee on the Judiciary, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To supersede the Modification of Final Judgment entered
August 24, 1982, in the antitrust action styled United
States v. Western Electric, Civil Action No. 82–0192,
United States District Court for the District of Colum-
bia; to amend the Communications Act of 1934 to regu-
late the manufacturing of Bell operating companies, 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 TITLES; TABLE OF CONTENTS.
(a) SHORT TITLE OF THIS ACT.—This Act may be
cited as the ‘‘Antitrust and Communications Reform Act
of 1995’’.
(b) SHORT TITLE OF TITLE I OF THIS ACT.—Title
I of this Act may be cited as the ‘‘Antitrust Reform Act
of 1995’’.
(c) TABLE OF CONTENTS.—
Sec. 1. Short titles; table of contents.
TITLE I—SUPERSESSION OF THE MODIFICATION OF FINAL
JUDGMENT
Sec. 101. Authorization for Bell operating company to enter competitive lines
of business.
Sec. 102. Authorization as prerequisite.
Sec. 103. Limitations on manufacturing and providing equipment.
Sec. 104. Anticompetitive tying arrangements.
Sec. 105. Enforcement.
Sec. 106. Definitions.
Sec. 107. Relationship to other laws.
Sec. 108. Required regulatory actions.
TITLE II—REGULATION OF MANUFACTURING, ALARM SERVICES,
AND ELECTRONIC PUBLISHING BY BELL OPERATING COMPANIES
Sec. 201. Regulation of manufacturing by Bell operating companies.
Sec. 202. Regulation of entry into alarm monitoring services.
Sec. 203. Regulation of electronic publishing.
Sec. 204. Privacy of customer information.
Sec. 205. Telemessaging services.
Sec. 206. Enhanced services safeguards.
TITLE III—TELECOMMUNICATIONS INFRASTRUCTURE AND
COMPETITION
Sec. 301. Policy; definitions.
Sec. 302. Equal access and network functionality and quality.
Sec. 303. Telecommunications services for educational institutions, health care
institutions, and libraries.
Sec. 304. Discriminatory interconnection.
Sec. 305. Expedited licensing of new technologies and services.
Sec. 306. New or extended lines.
Sec. 307. Pole attachments.
Sec. 308. Civic participation.
Sec. 309. Competition by small business and minority-owned business concerns.
TITLE IV—COMMUNICATIONS COMPETITIVENESS
Sec. 401. Cable service provided by telephone companies.
Sec. 402. Review of broadcasters’ ownership restrictions.
Sec. 403. Review of statutory ownership restriction.
Sec. 404. Broadcaster spectrum flexibility.
Sec. 405. Interactive services and critical interfaces.
Sec. 406. Video programming accessibility.
Sec. 407. Public access.
Sec. 408. Automated ship distress and safety systems.
Sec. 409. Exclusive Federal jurisdiction over direct broadcast satellite service.
Sec. 410. Technical amendments.
Sec. 411. Availability of screening devices to preclude display of encrypted pro-
gramming.
TITLE V—PROCUREMENT PRACTICES OF TELECOMMUNICATIONS
PROVIDERS
Sec. 501. Findings.
Sec. 502. Purpose.
Sec. 503. Annual plan submission.
Sec. 504. Sanctions and remedies.
Sec. 505. Definitions.
TITLE VI—FEDERAL COMMUNICATIONS COMMISSION RESOURCES
Sec. 601. Authorization of appropriations.
TITLE I—SUPERSESSION OF THE
MODIFICATION 
OF 
FINAL
JUDGMENT
SEC. 101. AUTHORIZATION FOR BELL OPERATING COM-
PANY TO ENTER COMPETITIVE LINES OF
BUSINESS.
(a) APPLICATION.—
(1) IN
GENERAL.—After the applicable date
specified in paragraph (2), a Bell operating company
may apply to the Attorney General and the Federal
Communications Commission for authorization, not-
withstanding the Modification of Final Judgment—
(A) to provide alarm monitoring services,
or
(B) to provide interexchange telecommuni-
cations services.
The application shall describe with particularity the
nature and scope of the activity, and of each product
market or service market, and each geographic mar-
ket, for which authorization is sought.
(2) APPLICABLE
DATES.—For purposes of
paragraph (1), the applicable date after which a Bell
operating company may apply for authorization shall
be—
(A) the date of the enactment of this Act,
with respect to providing interexchange tele-
communications services, and
(B) the date that occurs 66 months after
the date of the enactment of this Act, with re-
spect to providing alarm monitoring services.
(3) INTERAGENCY
NOTIFICATION.—Whenever
the Attorney General or the Federal Communica-
tions Commission receives an application made
under paragraph (1), the recipient of the application
shall notify the other of such receipt.
(4) PUBLICATION.—Not later than 10 days
after receiving an application made under paragraph
(1), the Attorney General and the Federal Commu-
section 230 of the Communications Act of 1934
as added by this Act.
(F) A determination that approves the granting
of any part of a requested authorization shall de-
scribe with particularity the nature and scope of the
activity, and of each product market or service mar-
ket, and each geographic market, to which approval
applies.
(4) PUBLICATION.—Not later than 10 days
after issuing a determination under paragraph (3),
the Attorney General or the Federal Communica-
tions Commission, as the case may be, shall publish
in the Federal Register a brief description of the
determination.
(5) FINALITY.—A determination made under
paragraph (3) shall be final unless a civil action with
respect to such determination is timely commenced
under subsection (c)(1).
(6) AUTHORIZATION
GRANTED.—A requested
authorization is granted to the extent that—
(A)(i) both the Attorney General and the
Federal Communications Commission approve
under paragraph (3) the granting of the au-
thorization, and
(ii) neither of their approvals is vacated or
reversed as a result of judicial review author-
ized by subsection (c), or
(B) as a result of such judicial review of
either or both determinations, both the Attor-
ney General and the Federal Communications
Commission approve the granting of the re-
quested authorization.
(c) JUDICIAL REVIEW.—
(1) COMMENCEMENT
OF
ACTION.—Not later
than 45 days after a determination by the Attorney
General or the Federal Communications Commission
is published under subsection (b)(4), the Bell operat-
ing company that applied to the Attorney General
and the Federal Communications Commission under
subsection (a), or any person who would be threat-
ened with loss or damage as a result of the deter-
mination regarding such company’s engaging in the
activity described in such company’s application,
may commence an action in the United States Court
of Appeals for the District of Columbia Circuit
against the Attorney General or the Federal Com-
munications Commission, as the case may be, for ju-
dicial review of the determination regarding the ap-
plication.
(2) CERTIFICATION OF RECORD.—As part of
the answer to the complaint, the Attorney General
or the Federal Communications Commission, as the
case may be, shall file in such court a certified copy
of the record upon which the determination is based.
(3) CONSOLIDATION OF ACTIONS.—The court
shall consolidate for judicial review all actions com-
menced under this subsection with respect to the ap-
plication.
(4) JUDGMENT.—(A) The court shall enter a
judgment after reviewing the determination in ac-
cordance with section 706 of title 5 of the United
States Code.
(B) A judgment—
(i) affirming any part of the determination
that approves granting all or part of the re-
quested authorization, or
(ii) reversing any part of the determination
that denies all or part of the requested author-
ization,
shall describe with particularity the nature and
scope of the activity, and of each product market or
service market, and each geographic market, to
which the affirmance or reversal applies.
SEC. 102. AUTHORIZATION AS PREREQUISITE.
(a) PREREQUISITE.—Until a Bell operating company
is so authorized in accordance with section 101, it shall
be unlawful for such company, directly or through an af-
filiated enterprise, to engage in an activity described in
section 101(a)(1).
(b) GENERAL EXCEPTIONS.—Except with respect to
providing alarm monitoring services, subsection (a) shall
not prohibit a Bell operating company from engaging, at
any time after the date of the enactment of this Act—
(1) in any activity as authorized by an order
entered by the United States District Court for the
District of Columbia pursuant to section VII or
VIII(C) of the Modification of Final Judgment, if—
(A) such order was entered on or before
the date of the enactment of this Act, or
(B) a request for such authorization was
pending before such court on the date of the
enactment of this Act,
(2) in providing intrastate interexchange tele-
communications services if—
(A) after the date of the enactment of this
Act, the State involved approves or authorizes
such company to provide such services, after
taking into account the potential effects of such
approval or authorization on competition and
the public interest,
(B) not less than 90 days before such com-
pany offers to provide such services, such com-
pany gives notice to the public and the Attorney
General that such approval or authorization has
been granted by such State, and appoints an
agent for the purpose of receiving service of
process,
(C) the Attorney General—
(i) fails to commence a civil action in
accordance with subsection (d), not later
than 90 days after the Attorney General
receives the notice described in subpara-
graph (B), to obtain a preliminary injunc-
tion or temporary restraining order enjoin-
ing such company from providing such
services, or
(ii) so commences such civil action
but—
(I) fails to obtain such an injunc-
tion or order from the district court
involved enjoining such company from
providing such services, or
(II) such injunction issued by
such court is vacated on appeal, and
(D) the Bell operating company is required
by regulations prescribed by the Federal Com-
munications Commission and such State, for
the services subject to their respective jurisdic-
tions, to pay a nondiscriminatory access charge
to the local exchange carrier (including itself)
that provides the Bell operating company with
telephone exchange access, and
(3) in providing interexchange telecommuni-
cations services through resale of telecommuni-
cations services purchased from a person who is not
an affiliated enterprise of such company if—
(A) such interexchange telecommunications
services involve only telecommunications that
originate in a State in which, on the date of the
enactment of this Act, such company provided
wireline telephone exchange services,
(B) such State has approved or authorized
persons that are not affiliated enterprises of
such company to provide intraexchange toll tele-
communications services in such a manner that
customers in such State have the ability to
route automatically, without the use of any ac-
cess code, their intraexchange toll telecommuni-
cations to the telecommunications services pro-
vider of the customer’s designation from among
2 or more telecommunications services providers
(including such company),
(C) after the date of the enactment of this
Act and not less than 90 days before such com-
pany offers to provide such interexchange tele-
communications services, such company gives
notice to the public and the Attorney General
that such approval or authorization has been
granted by such State, and
(D) the Attorney General—
(i) fails to commence a civil action in
accordance with subsection (d), not later
than 90 days after the Attorney General
receives the notice described in subpara-
graph (C), to obtain a preliminary injunc-
tion or temporary restraining order enjoin-
ing such company from providing such
services, or
(ii) so commences such civil action
but—
(I) fails to obtain such an injunc-
tion or order from the district court
ance with paragraph (4) to enjoin such com-
pany from engaging in the activity described in
such notification, or
(ii) before the expiration of such waiting
period, the Attorney General notifies such com-
pany in writing that the Attorney General does
not intend to commence such a civil action with
respect to such activity.
(2) NOTIFICATION.—The notification required
by paragraph (1) shall be in such form and shall
contain such documentary material and information
relevant to the proposed activity as is necessary and
appropriate for the Attorney General to determine
whether there is no substantial possibility that such
company or its affiliates could use monopoly power
to impede competition in the market such company
seeks to enter for such activity.
(3) WAITING PERIOD.—The waiting period re-
ferred to in paragraph (1) is the 1-year period be-
ginning on the date the notification required by such
paragraph is received by the Attorney General.
(4) CIVIL ACTION.—Not later than 1 year after
receiving a notification required by paragraph (1),
the Attorney General may commence a civil action in
an appropriate district court of the United States to
enjoin the Bell operating company from engaging in
the activity described in such notification, if the At-
torney General determines that there is a substantial
possibility that such company or its affiliates could
use monopoly power to impede competition in the
market it seeks to enter with respect to such activ-
ity.
(c) EXCEPTION FOR PREVIOUSLY AUTHORIZED AC-
TIVITIES.—Subsections (a) and (b) shall not prohibit a
Bell operating company from engaging, at any time after
the date of the enactment of this Act, in any activity as
authorized by an order entered by the United States Dis-
trict Court for the District of Columbia pursuant to sec-
tion VII or VIII(C) of the Modification of Final Judg-
ment, if—
(1) such order was entered on or before the
date of the enactment of this Act, or
(2) a request for such authorization was pend-
ing before such court on the date of the enactment
of this Act.
SEC. 104. ANTICOMPETITIVE TYING ARRANGEMENTS.
A Bell operating company with monopoly power in
any exchange service market shall not tie (directly or indi-
rectly) in any relevant market the sale of any product or
service to the provision of any telecommunications service,
if the effect of such tying may be to substantially lessen
competition, or to tend to create a monopoly, in any line
of commerce.
SEC. 105. ENFORCEMENT.
(a) EQUITABLE POWERS OF UNITED STATES ATTOR-
NEYS.—It shall be the duty of the several United States
attorneys, under the direction of the Attorney General, to
institute proceedings in equity in their respective districts
to prevent and restrain violations of this title.
(b) CRIMINAL LIABILITY.—Whoever knowingly en-
gages or knowingly attempts to engage in an activity that
is prohibited by section 102, 103, or 104 shall be guilty
of a felony, and on conviction thereof, shall be punished
to the same extent as a person is punished upon conviction
of a violation of section 1 of the Sherman Act
(15 U.S.C. 1).
(c) PRIVATE RIGHT OF ACTION.—Any person who is
injured in its business or property by reason of a violation
of this title—
(1) may bring a civil action in any district court
of the United States in the district in which the de-
fendant resides or is found or has an agent, without
respect to the amount in controversy, and
(2) shall recover threefold the damages sus-
tained, and the cost of suit (including a reasonable
attorney’s fee).
The court may award under this section, pursuant to a
motion by such person promptly made, simple interest on
actual damages for the period beginning on the date of
service of such person’s pleading setting forth a claim
under this title and ending on the date of judgment, or
for any shorter period therein, if the court finds that the
award of such interest for such period is just in the
circumstances.
(d) PRIVATE INJUNCTIVE RELIEF.—Any person shall
be entitled to sue for and have injunctive relief, in any
court of the United States having jurisdiction over the
parties, against threatened loss or damage by a violation
of this title, when and under the same conditions and prin-
ciples as injunctive relief is available under section 16 of
the Clayton Act (15 U.S.C. 26). In any action under this
subsection in which the plaintiff substantially prevails, the
court shall award the cost of suit, including a reasonable
attorney’s fee, to such plaintiff.
(e) JURISDICTION.—(1) Subject to paragraph (2),
the courts of the United States shall have exclusive juris-
diction to make determinations with respect to a duty,
claim, or right arising under this title, other than deter-
minations authorized to be made by the Attorney General
and the Federal Communications Commission under sec-
tion 101(b)(3).
(2) The United States Court of Appeals for the Dis-
trict of Columbia shall have exclusive jurisdiction to review
determinations made under section 101(b)(3).
(3) No action commenced to assert or enforce a duty,
claim, or right arising under this title shall be stayed
pending any such determination by the Attorney General
or the Federal Communications Commission.
(f) SUBPOENAS.—In an action commenced under this
title, a subpoena requiring the attendance of a witness at
a hearing or a trial may be served at any place within
the United States.
(g) APPLICABILITY OF OTHER LAWS TO ENFORCE-
MENT OF THIS TITLE.—
(1) SECTION 5 OF THE CLAYTON ACT.—Section
5 of the Clayton Act (15 U.S.C. 16) shall apply with
respect to actions under this section brought by or
on behalf of the United States.
(2) ANTITRUST CIVIL PROCESS ACT.—Section
2(a) of the Antitrust Civil Process Act (15 U.S.C.
1311(a)) is amended—
(A) in paragraph (1) by striking ‘‘and’’ at
the end,
(B) in paragraph (2) by striking the period
at the end and inserting ‘‘and’’, and
(C) by adding at the end the following:
‘‘(3) title I of the Antitrust and Commu-
nications Reform Act of 1995.’’.
SEC. 106. DEFINITIONS.
For purposes of this title:
(1) AFFILIATE.—The term ‘‘affiliate’’ means a
person that (directly or indirectly) owns or controls,
is owned or controlled by, or is under common own-
ership or control with, another person. For purposes
of this paragraph, to own refers to owning an equity
interest (or the equivalent thereof) of more than 50
percent.
(2) ALARM MONITORING SERVICE.—The term
‘‘alarm monitoring service’’ means a service that
uses a device located at a residence, place of busi-
ness, or other fixed premises—
(A) to receive signals from other devices lo-
cated at or about such premises regarding a
possible threat at such premises to life, safety,
or property, from burglary, fire, vandalism,
bodily injury, or other emergency, and
(B) to transmit a signal regarding such
threat by means of transmission facilities of a
Bell operating company or one of its affiliates
to a remote monitoring center to alert a person
at such center of the need to inform the cus-
tomer or another person or police, fire, rescue,
security, or public safety personnel of such
threat,
but does not include a service that uses a medical
monitoring device attached to an individual for the
automatic surveillance of an ongoing medical condi-
tion.
(3) ANTITRUST
LAWS.—The term ‘‘antitrust
laws’’ has the meaning given it in subsection (a) of
the first section of the Clayton Act (15 U.S.C.
12(a)), except that such term includes the Act of
June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et
seq.), commonly known as the Robinson Patman
Act, and section 5 of the Federal Trade Commission
Act (15 U.S.C. 45) to the extent that such section
5 applies to unfair methods of competition.
(4) AUDIO
PROGRAMMING.—The term ‘‘audio
programming’’ means programming provided by, or
generally considered comparable to programming
provided by, a radio broadcast station.
(5) BELL
OPERATING
COMPANY.—The term
‘‘Bell operating company’’ means—
(A) Bell Telephone Company of Nevada,
Illinois Bell Telephone Company, Indiana Bell
Telephone Company, Incorporated, Michigan
Bell Telephone Company, New England Tele-
phone and Telegraph Company, New Jersey
Bell Telephone Company, New York Telephone
Company, U S West Communications Com-
pany, South Central Bell Telephone Company,
Southern Bell Telephone and Telegraph Com-
pany, Southwestern Bell Telephone Company,
The Bell Telephone Company of Pennsylvania,
The Chesapeake and Potomac Telephone Com-
pany, The Chesapeake and Potomac Telephone
Company of Maryland, The Chesapeake and
Potomac Telephone Company of Virginia, The
Chesapeake and Potomac Telephone Company
of West Virginia, The Diamond State Tele-
phone Company, The Ohio Bell Telephone
Company, The Pacific Telephone and Telegraph
Company, or Wisconsin Telephone Company,
(B) any successor or assign of any such
company, or
(C) any affiliate of any person described in
subparagraph (A) or (B).
(6) CABLE SYSTEM.—The term ‘‘cable system’’
has the meaning given such term in section 602(7)
of the Communications Act of 1934 (47 U.S.C.
522(7)).
(7) CARRIER.—The term ‘‘carrier’’ has the
meaning given such term in section 3 of the Commu-
nications Act of 1934 (47 U.S.C. 153).
(8) COMMERCIAL MOBILE SERVICES.—The term
‘‘commercial mobile services’’ has the meaning given
such term in section 332(d) of the Communications
Act of 1934 (47 U.S.C. 332(d)).
(9) CUSTOMER
PREMISES
EQUIPMENT.—The
term ‘‘customer premises equipment’’ means equip-
ment employed on the premises of a person (other
than a carrier) to originate, route, or terminate tele-
communications, and includes software integral to
such equipment.
(10) EXCHANGE ACCESS.—The term ‘‘exchange
access’’ means exchange services provided for the
purpose of originating or terminating interexchange
telecommunications.
(11) EXCHANGE AREA.—The term ‘‘exchange
area’’ means a contiguous geographic area estab-
lished by a Bell operating company such that no ex-
change area includes points within more than 1 met-
ropolitan statistical area, consolidated metropolitan
statistical area, or State, except as expressly per-
mitted under the Modification of Final Judgment
before the date of the enactment of this Act.
(12) EXCHANGE
SERVICE.—The term ‘‘ex-
change service’’ means a telecommunications service
provided within an exchange area.
(13) INFORMATION.—Except as provided in
paragraph (17), the term ‘‘information’’ means
knowledge or intelligence represented by any form of
writing, signs, signals, pictures, sounds, or other
symbols.
(14) 
INTEREXCHANGE
TELECOMMUNI-
CATIONS.—The term ‘‘interexchange telecommuni-
cations’’ means telecommunications between a point
located in an exchange area and a point located out-
side such exchange area.
(15) MANUFACTURE.—The term ‘‘manufac-
ture’’ has the meaning given such term under the
Modification of Final Judgment.
(16) MODIFICATION
OF
FINAL
JUDGMENT.—
The term ‘‘Modification of Final Judgment’’ means
the order entered August 24, 1982, in the antitrust
action styled United States v. Western Electric, Civil
Action No. 82–0192, in the United States District
Court for the District of Columbia, and includes any
judgment or order with respect to such action en-
tered on or after August 24, 1982.
(17) OTHER
PROGRAMMING
SERVICES.—The
term ‘‘other programming services’’ means informa-
tion (other than audio programming or video pro-
gramming) that the person who offers a video pro-
gramming service makes available to all subscribers
generally. For purposes of the preceding sentence,
the terms ‘‘information’’ and ‘‘makes available to all
subscribers generally’’ have the same meaning such
terms have under section 602(13) of the Commu-
nications Act of 1934 (47 U.S.C. 522(13)).
(18) PERSON.—The term ‘‘person’’ has the
meaning given such term in subsection (a) of the
first section of the Clayton Act (15 U.S.C. 12(a)).
(19) STATE.—The term ‘‘State’’ means any of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth
of the Northern Mariana Islands, the Federated
States of Micronesia, the Republic of the Marshall
Islands, Palau, or any territory or possession of the
United States.
(20) TELECOMMUNICATIONS.—The term ‘‘tele-
communications’’ means the transmission of infor-
mation between points by electromagnetic means.
(21) TELECOMMUNICATIONS EQUIPMENT.—The
term ‘‘telecommunications equipment’’ means equip-
ment, other than customer premises equipment, used
by a carrier to provide a telecommunications service,
and includes software integral to such equipment.
(22) 
TELECOMMUNICATIONS
SERVICE.—The
term ‘‘telecommunications service’’ means the offer-
ing for hire of transmission facilities or of tele-
communications by means of such facilities.
(23) TRANSMISSION
FACILITIES.—The term
‘‘transmission facilities’’ means equipment (including
wire, cable, microwave, satellite, and fiber-optics)
that transmits information by electromagnetic means
or that directly supports such transmission, but does
not include customer premises equipment.
(24) VIDEO PROGRAMMING.—The term ‘‘video
programming’’ has the meaning given such term in
section 602(19) of the Communications Act of 1934
(47 U.S.C. 522(19)).
SEC. 107. RELATIONSHIP TO OTHER LAWS.
(a) MODIFICATION OF FINAL JUDGMENT.—This title
shall supersede the Modification of Final Judgment, ex-
cept that this title shall not affect—
(1) section I of the Modification of Final Judg-
ment, relating to AT&T reorganization,
(2) section II(A) (including appendix B) and
II(B) of the Modification of Final Judgment, relat-
ing to equal access and nondiscrimination,
(3) section IV(F) and IV(I) of the Modification
of Final Judgment, with respect to the requirements
included in the definitions of ‘‘exchange access’’ and
‘‘information access’’,
(4) section VIII(B) of the Modification of Final
Judgment, relating to printed advertising directories,
(5) section VIII(E) of the Modification of Final
Judgment, relating to notice to customers of AT&T,
(6) section VIII(F) of the Modification of Final
Judgment, relating to less than equal exchange ac-
cess,
(7) section VIII(G) of the Modification of Final
Judgment, relating to transfer of AT&T assets, in-
cluding all exceptions granted thereunder before the
date of the enactment of this Act, and
(8) with respect to the parts of the Modification
of Final Judgment described in paragraphs (1)
through (7)—
(A) section III of the Modification of Final
Judgment, relating to applicability and effect,
(B) section IV of the Modification of Final
Judgment, relating to definitions,
(C) section V of the Modification of Final
Judgment, relating to compliance,
(D) section VI of the Modification of Final
Judgment, relating to visitorial provisions,
(E) section VII of the Modification of
Final Judgment, relating to retention of juris-
diction, and
(F) section VIII(I) of the Modification of
Final Judgment, relating to the court’s sua
sponte authority.
(b) ANTITRUST LAWS.—Except as provided in sec-
tion 105(g), nothing in this Act shall be construed to mod-
ify, impair, or supersede the applicability of any of the
antitrust laws.
(c) FEDERAL, STATE, AND LOCAL LAW.—(1) Except
as provided in paragraph (2), this title shall not be con-
strued to modify, impair, or supersede Federal, State, or
local law unless expressly so provided in this title.
(2) This title shall supersede State and local law to
the extent that such law would impair or prevent the oper-
ation of this title.
(d) CUMULATIVE PENALTY.—Any penalty imposed,
or relief granted, under this title shall be in addition to,
and not in lieu of, any penalty or relief authorized by any
other law to be imposed with respect to conduct described
in this title.
SEC. 108. REQUIRED REGULATORY ACTIONS.
(a) 
REGULATIONS
TO
PROHIBIT
CROSS-SUB-
SIDIES.—Not later than 180 days after the date of enact-
ment of this Act, the Federal Communications Commis-
sion shall review its regulations and revise such regula-
tions to the extent necessary to prevent a Bell operating
company from engaging in any improper cross-subsidiza-
tion in connection with any of the services described in
paragraphs (1) through (6) of section 102(c).
(b) MOBILE SERVICE ACCESS.—
(1) AMENDMENT.—Section 332(c) of the Com-
munications Act of 1934 (47 U.S.C. 332(c)) is
amended by adding at the end the following new
paragraph:
‘‘(7) MOBILE SERVICES ACCESS.—Within 180
days after the date of enactment of this paragraph,
the Commission shall review its regulations with re-
spect to the access to interexchange services pro-
vided to subscribers to commercial mobile services
and revise such regulations to the extent necessary
to protect the public interest, convenience, and ne-
cessity. In revising such regulations, the Commis-
sion—
‘‘(A) shall, until January 1, 1998, and
may thereafter (i) require that each provider of
two-way commercial mobile services afford its
subscribers nondiscriminatory access to a pro-
vider of interexchange services of the subscrib-
er’s choice, and (ii) establish geographic service
areas within which providers of two-way com-
mercial mobile services shall be exempt from
the access obligation under clause (i);
‘‘(B) may establish or revise technical
interconnection requirements on providers of
two-way commercial mobile services;
‘‘(C) subject to section 104 of the Anti-
trust and Communications Reform Act of 1995,
and the provisions of paragraph (1) of this sub-
section and subparagraph (A) of this paragraph
and the regulations prescribed thereunder, may
permit (with or without conditions) or prohibit
the bundling of two-way commercial mobile
services with interexchange services; and
‘‘(D) shall not, in establishing any require-
ment under subparagraph (A), (B), or (C) es-
tablish different requirements—
‘‘(i) for providers of two-way commer-
cial mobile services that also are, or are af-
filiated with, providers of wireline tele-
phone exchange service; and
‘‘(ii) for providers of two-way commer-
cial mobile services that are not, and are
not affiliated with, providers of wireline
telephone exchange service.
The regulations prescribed pursuant to this para-
graph shall supersede any inconsistent requirements
imposed by the Modification of Final Judgment (as
such term is defined in section 106 of the Antitrust
and Communications Reform Act of 1995). Nothing
in this paragraph shall affect the Commission’s au-
thority to establish the terms and conditions under
which providers of telephone exchange services pro-
vide access to the local exchange networks for com-
mercial mobile services or interexchange services.’’.
(2) EFFECTIVE
DATE
CONFORMING
AMEND-
MENT.—Section 6002(c)(2)(B) of the Omnibus
Budget Reconciliation Act of 1993 is amended by
striking ‘‘section 332(c)(6)’’ and inserting ‘‘para-
graphs (6) and (7) of section 332(c)’’.
TITLE II—REGULATION OF MAN-
UFACTURING, ALARM SERV-
ICES, AND ELECTRONIC PUB-
LISHING BY BELL OPERATING
COMPANIES
SEC. 201. REGULATION OF MANUFACTURING BY BELL OP-
ERATING COMPANIES.
Title II of the Communications Act of 1934 (47
U.S.C. 201 et seq.) is amended by adding at the end the
following new section:
‘‘SEC. 229. REGULATION OF MANUFACTURING BY BELL
OPERATING COMPANIES.
‘‘(a) GENERAL AUTHORITY.—Subject to the require-
ments of this section and the regulations prescribed there-
under, but notwithstanding any restriction or obligation
imposed before the date of enactment of this section pur-
suant to the Modification of Final Judgment on the lines
of business in which a Bell operating company may en-
gage, a Bell operating company, through an affiliate of
that company, may manufacture and provide tele-
communications equipment and manufacture customer
premises equipment.
‘‘(b) SEPARATE MANUFACTURING AFFILIATE.—Any
manufacturing or provision authorized under subsection
(a) shall be conducted only through an affiliate that is sep-
arate from any Bell operating company.
‘‘(c) COMMISSION REGULATION OF MANUFACTURING
AFFILIATE.—
‘‘(1) REGULATIONS REQUIRED.—The Commis-
sion shall prescribe regulations to ensure that Bell
operating companies and their affiliates comply with
the requirements of this section.
‘‘(2) BOOKS, RECORDS, ACCOUNTS.—A manu-
facturing affiliate required by subsection (b) shall—
‘‘(A) maintain books, records, and ac-
counts that are separate from the books,
records, and accounts of its affiliated Bell oper-
ating company and that identify all financial
transactions between the manufacturing affili-
ate and its affiliated Bell operating company,
and
‘‘(B) even if such manufacturing affiliate
is not a publicly held corporation, prepare fi-
nancial statements which are in compliance
with financial reporting requirements under the
Federal securities laws for publicly held cor-
porations, file such statements with the Com-
mission, and make such statements available
for public inspection.
‘‘(3) IN-KIND BENEFITS TO AFFILIATE.—Con-
sistent with the provisions of this section, neither a
Bell 
operating 
company 
nor 
any 
of 
its
nonmanufacturing affiliates shall perform sales, ad-
vertising, installation, production, or maintenance
operations for a manufacturing affiliate, except
that—
‘‘(A) a Bell operating company and its
nonmanufacturing affiliates may sell, advertise,
install, and maintain telecommunications equip-
ment and customer premises equipment after
acquiring such equipment from their manufac-
turing affiliate; and
‘‘(B) institutional advertising, of a type not
related to specific telecommunications equip-
ment, carried out by the Bell operating com-
pany or its affiliates, shall be permitted.
‘‘(4) DOMESTIC MANUFACTURING REQUIRED.—
‘‘(A) GENERAL RULE.—Except as other-
wise provided in this paragraph, a manufactur-
ing affiliate required by subsection (b) shall
conduct all of its manufacturing within the
United States and all component parts of cus-
tomer premises equipment manufactured by
such affiliate, and all component parts of tele-
communications equipment manufactured by
such affiliate, shall have been manufactured
within the United States.
‘‘(B) EXCEPTION.—(i) Such affiliate may
use component parts manufactured outside the
United States if—
‘‘(I) such affiliate first makes a good
faith effort to obtain equivalent component
parts manufactured within the United
States at reasonable prices, terms, and
conditions; and
‘‘(II) for the aggregate of tele-
communications equipment and customer
premises equipment manufactured and sold
in the United States by such affiliate, the
cost of the components manufactured out-
side the United States contained in all
such equipment does not exceed 40 percent
of the sales revenue derived in any cal-
endar year from such equipment.
‘‘(ii) Subparagraph (A) shall apply except
to the extent that any of its provisions are de-
termined to be inconsistent with any multilat-
eral or bilateral agreement to which the United
States is a party.
‘‘(C) 
CERTIFICATION
REQUIRED.—Any
such affiliate that uses component parts manu-
factured outside the United States in the manu-
facture of telecommunications equipment and
customer premises equipment within the United
States shall—
‘‘(i) certify to the Commission that a
good faith effort was made to obtain equiv-
alent 
parts 
manufactured 
within 
the
United States at reasonable prices, terms,
and conditions, which certification shall be
filed on a quarterly basis with the Commis-
sion and list component parts, by type,
manufactured outside the United States;
and
‘‘(ii) certify to the Commission on an
annual basis that such affiliate complied
with the requirements of subparagraph
(B)(ii), as adjusted in accordance with
subparagraph (G).
‘‘(D) REMEDIES FOR FAILURES.—(i) If the
Commission determines, after reviewing the cer-
tification required in subparagraph (C)(i), that
such affiliate failed to make the good faith ef-
fort required in subparagraph (B)(i) or, after
reviewing the certification required in subpara-
graph (C)(ii), that such affiliate has exceeded
the 
percentage 
specified 
in 
subparagraph
(B)(ii), the Commission may impose penalties
or forfeitures as provided for in title V of this
Act.
‘‘(ii) Any supplier claiming to be damaged
because a manufacturing affiliate failed to
make the good faith effort required in subpara-
graph (B)(i) may make complaint to the Com-
mission as provided for in section 208 of this
Act, or may bring suit for the recovery of actual
damages for which such supplier claims such
affiliate may be liable under the provisions of
this Act in any district court of the United
States of competent jurisdiction.
‘‘(E) ANNUAL REPORT.—The Commission,
in consultation with the Secretary of Commerce,
shall, on an annual basis, determine the cost of
component parts manufactured outside the
United States contained in all telecommuni-
cations equipment and customer premises
equipment sold in the United States as a per-
centage of the revenues from sales of such
equipment in the previous calendar year.
‘‘(F) USE OF INTELLECTUAL PROPERTY IN
MANUFACTURE.—Notwithstanding 
subpara-
graph (A), a manufacturing affiliate may use
intellectual property created outside the United
States in the manufacture of telecommuni-
cations equipment and customer premises
equipment in the United States. A component
manufactured using such intellectual property
shall not be treated for purposes of subpara-
graph (B)(ii) as a component manufactured
outside the United States solely on the basis of
the use of such intellectual property.
‘‘(G) RESTRICTIONS ON COMMISSION AU-
THORITY.—The Commission may not waive or
alter the requirements of this paragraph, except
that the Commission, on an annual basis, shall
adjust the percentage specified in subparagraph
(B)(ii) to the percentage determined by the
Commission, in consultation with the Secretary
of Commerce, pursuant to subparagraph (E).
‘‘(5) INSULATION OF RATE PAYERS FROM MAN-
UFACTURING AFFILIATE DEBT.—Any debt incurred
by any such manufacturing affiliate may not be is-
sued by its affiliated Bell operating company and
such manufacturing affiliate shall be prohibited from
incurring debt in a manner that would permit a
creditor, on default, to have recourse to the assets
of its affiliated Bell operating company.
‘‘(6) RELATION
TO
OTHER
AFFILIATES.—A
manufacturing affiliate required by subsection (b)
shall not be required to operate separately from the
other affiliates of its affiliated Bell operating com-
pany, but if an affiliate of a Bell operating company
becomes affiliated with a manufacturing entity, such
affiliate shall be treated as a manufacturing affiliate
of that Bell operating company (except for purposes
of paragraph (3)) and shall comply with the require-
ments of this section.
‘‘(7) AVAILABILITY OF EQUIPMENT TO OTHER
CARRIERS.—A manufacturing affiliate required by
subsection (b) shall make available, without discrimi-
nation or preference as to price, delivery, terms, or
conditions, to any common carrier any telecommuni-
cations equipment that is used in the provision of
telephone exchange service and that is manufactured
by such affiliate only if such purchasing carrier—
‘‘(A) does not manufacture telecommuni-
cations equipment, and does not have an affili-
ated telecommunications equipment manufac-
turing entity; or
‘‘(B) agrees to make available, to the Bell
operating company affiliated with such manu-
facturing affiliate or any common carrier affili-
ate of such Bell operating company, any tele-
communications equipment that is used in the
provision of telephone exchange service and that
is manufactured by such purchasing carrier or
by any entity or organization with which such
purchasing carrier is affiliated.
‘‘(8) SALES
PRACTICES
OF
MANUFACTURING
AFFILIATES.—
‘‘(A) PROHIBITION
OF
DISCONTINUATION
OF EQUIPMENT FOR WHICH THERE IS REASON-
ABLE DEMAND.—A manufacturing affiliate re-
quired by subsection (b) shall not discontinue or
restrict sales to a common carrier of any tele-
communications equipment that is used in the
provision of telephone exchange service and that
such affiliate manufactures for sale as long as
there is reasonable demand for the equipment
by such carriers; except that such sales may be
discontinued or restricted if such manufactur-
ing affiliate demonstrates to the Commission
that it is not making a profit, under a marginal
cost standard implemented by the Commission
by regulation, on the sale of such equipment.
‘‘(B) DETERMINATIONS
OF
REASONABLE
DEMAND.—Within 60 days after receipt of an
application under subparagraph (A), the Com-
mission shall reach a determination as to the
existence of reasonable demand for purposes of
such subparagraph. In making such determina-
tion the Commission shall consider—
‘‘(i) whether the continued manufac-
ture of the equipment will be profitable;
‘‘(ii) whether the equipment is func-
tionally or technologically obsolete;
‘‘(iii) whether the components nec-
essary to manufacture the equipment con-
tinue to be available;
‘‘(iv) whether alternatives to the
equipment are available in the market; and
‘‘(v) such other factors as the Com-
mission deems necessary and proper.
‘‘(9) JOINT
PLANNING
OBLIGATIONS.—Each
Bell operating company shall, consistent with the
antitrust laws, (including title I of the Antitrust and
Communications Reform Act of 1995), engage in
joint network planning and design with other contig-
uous common carriers providing telephone exchange
service, but agreement with such other carriers shall
not be required as a prerequisite for the introduction
or deployment of services pursuant to such joint net-
work planning and design.
‘‘(d) INFORMATION REQUIREMENTS.—
‘‘(1) FILING OF INFORMATION ON PROTOCOLS
AND TECHNICAL REQUIREMENTS.—Each Bell oper-
ating company shall, in accordance with regulations
prescribed by the Commission, maintain and file
with the Commission full and complete information
with respect to the protocols and technical require-
ments for connection with and use of its telephone
exchange service facilities. Each such company shall
report promptly to the Commission any material
changes or planned changes to such protocols and
requirements, and the schedule for implementation
of such changes or planned changes.
‘‘(2) FILING AS PREREQUISITE TO DISCLOSURE
TO AFFILIATE.—A Bell operating company shall not
disclose to any of its affiliates any information re-
quired to be filed under paragraph (1) unless that
information is filed promptly, as required by regula-
tion by the Commission.
‘‘(3) ACCESS
BY
COMPETITORS
TO
INFORMA-
TION.—The Commission may prescribe such addi-
tional regulations under this subsection as may be
necessary to ensure that manufacturers in competi-
tion with a Bell operating company’s manufacturing
affiliate have access to the information with respect
to the protocols and technical requirements for con-
nection with and use of its telephone exchange serv-
ice facilities required for such competition that such
company makes available to its manufacturing
affiliate.
‘‘(4) PLANNING INFORMATION.—Each Bell op-
erating company shall provide, to contiguous com-
mon carriers providing telephone exchange service,
timely information on the planned deployment of
telecommunications equipment.
‘‘(e) ADDITIONAL COMPETITION REQUIREMENTS.—
The Commission shall prescribe regulations requiring that
any Bell operating company which has an affiliate that
engages in any manufacturing authorized by subsection
(a) shall—
‘‘(1) provide, to other manufacturers of tele-
communications equipment and customer premises
equipment that is functionally equivalent to equip-
ment manufactured by the Bell operating company
manufacturing affiliate, opportunities to sell such
equipment to such Bell operating company which are
comparable to the opportunities which such Com-
pany provides to its affiliates; and
‘‘(2) not subsidize its manufacturing affiliate
with revenues from telephone exchange service or
telephone toll service.
‘‘(f) COLLABORATION PERMITTED.—Nothing in this
section (other than subsection (l)) shall be construed to
limit or restrict the ability of a Bell operating company
and its affiliates to engage in close collaboration with any
manufacturer of customer premises equipment or tele-
communications equipment during the design and develop-
ment of hardware, software, or combinations thereof
related to such equipment.
‘‘(g) ACCESSIBILITY REQUIREMENTS.—
‘‘(1) MANUFACTURING.—The Commission shall,
within 1 year after the date of enactment of this sec-
tion, prescribe such regulations as are necessary to
ensure that telecommunications equipment and cus-
tomer premises equipment designed, developed, and
fabricated pursuant to the authority granted in this
section shall be accessible and usable by individuals
with disabilities, including individuals with func-
tional limitations of hearing, vision, movement, ma-
nipulation, speech, and interpretation of information,
unless the costs of making the equipment accessible
and usable would result in an undue burden or an
adverse competitive impact.
‘‘(2) NETWORK
SERVICES.—The Commission
shall, within 1 year after the date of enactment of
this section, prescribe such regulations as are nec-
essary to ensure that advances in network services
deployed by a Bell operating company shall be acces-
sible and usable by individuals whose access might
otherwise be impeded by a disability or functional
limitation, unless the costs of making the services
accessible and usable would result in an undue bur-
den or adverse competitive impact. Such regulations
shall seek to permit the use of 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.
‘‘(3) COMPATIBILITY.—The regulations pre-
scribed under paragraphs (1) and (2) shall require
that whenever an undue burden or adverse competi-
tive impact would result from the manufacturing or
network services requirements in such paragraphs,
the manufacturing affiliate that designs, develops, or
fabricates the equipment or the Bell operating com-
pany that deploys the network service shall ensure
that the equipment or network service in question is
compatible with existing peripheral devices or spe-
cialized customer premises equipment commonly
used by persons with disabilities to achieve access,
unless doing so would result in an undue burden or
adverse competitive impact.
‘‘(4) DEFINITIONS.—As used in this subsection:
‘‘(A) UNDUE BURDEN.—The term ‘undue
burden’ means significant difficulty or expense.
In determining whether an activity would result
in an undue burden, the following factors shall
be considered:
‘‘(i) The nature and cost of the activ-
ity.
‘‘(ii) The impact on the operation of
the facility involved in the manufacturing
of the equipment or deployment of the net-
work service.
‘‘(iii) The financial resources of the
manufacturing affiliate in the case of man-
ufacturing of equipment, for as long as ap-
plicable regulatory rules prohibit cross-sub-
sidization of equipment manufacturing
with revenues from regulated telecommuni-
cations service or when the manufacturing
activities are conducted in a separate sub-
sidiary.
‘‘(iv) The financial resources of the
Bell operating company in the case of net-
work services, or in the case of manufac-
turing of equipment if applicable regu-
latory rules permit cross-subsidization of
equipment manufacturing with revenues
from regulated telecommunications services
and the manufacturing activities are not
conducted in a separate subsidiary.
‘‘(v) The type of operation or oper-
ations of the manufacturing affiliate or
Bell operating company as applicable.
‘‘(B) ADVERSE COMPETITIVE IMPACT.—In
determining whether the activity would result in
an adverse competitive impact, the following
factors shall be considered:
‘‘(i) Whether such activity would raise
the cost of the equipment or network serv-
ice in question beyond the level at which
there would be sufficient consumer demand
by the general population to make the
equipment or network service profitable.
‘‘(ii) Whether such activity would,
with respect to the equipment or network
service in question, put the manufacturing
affiliate or Bell operating company, as ap-
plicable, at a competitive disadvantage in
comparison with one or more providers of
one or more competing products and serv-
ices. This factor may only be considered so
long as competing manufacturers and net-
work service providers are not held to the
same obligation with respect to access by
persons with disabilities.
‘‘(C) ACTIVITY.—For the purposes of this
paragraph, the term ‘activity’ includes—
‘‘(i) the research, design, development,
deployment, and fabrication activities nec-
essary to comply with the requirements of
this section; and
‘‘(ii) the acquisition of the related ma-
terials and equipment components.
‘‘(5) EFFECTIVE
DATE.—The regulations re-
quired by this subsection shall become effective 18
months after the date of enactment of this section.
‘‘(h) PUBLIC NETWORK ENHANCEMENT.—A Bell op-
erating company manufacturing affiliate shall, as a part
of its overall research and development effort, establish
a permanent program for manufacturing research and de-
velopment of products and applications for the enhance-
ment of the public switched telephone network and to pro-
mote public access to advanced telecommunications serv-
ices. Such program shall focus its work substantially on
developing technological advancements in public telephone
network applications, telecommunication equipment and
products, and access solutions to new services and tech-
nology, including access by (1) public institutions, includ-
ing educational and health care institutions; and (2) peo-
ple with disabilities and functional limitations. Notwith-
standing the limitations in subsection (a), a Bell operating
company and its affiliates may engage in such a program
in conjunction with a Bell operating company not so affili-
ated or any of its affiliates. The existence or establishment
of such a program that is jointly provided by manufactur-
ing affiliates of Bell operating companies shall satisfy the
requirements of this section as it pertains to all such affili-
ates of a Bell operating company.
‘‘(i) RULEMAKING
REQUIRED.—The Commission
shall prescribe regulations to implement this section with-
in 180 days after the date of enactment of this section.
‘‘(j) ADMINISTRATION AND ENFORCEMENT AUTHOR-
ITY.—
‘‘(1) COMMISSION REGULATORY AUTHORITY.—
For the purposes of administering and enforcing the
provisions of this section and the regulations pre-
scribed thereunder, the Commission shall have the
same authority, power, and functions with respect to
any Bell operating company or any affiliate thereof
as the Commission has in administering and enforc-
ing the provisions of this title with respect to any
common carrier subject to this Act.
‘‘(2) PRIVATE ACTIONS.—Any common carrier
that provides telephone exchange service and that is
injured by an act or omission of a Bell operating
company or its manufacturing affiliate which vio-
lates the requirements of paragraph (7) or (8) of
subsection (c), or the Commission’s regulations im-
plementing such paragraphs, may initiate an action
in a district court of the United States to recover
the full amount of damages sustained in con-
sequence of any such violation and obtain such or-
ders from the court as are necessary to terminate
existing violations and to prevent future violations;
or such regulated local telephone exchange carrier
may seek relief from the Commission pursuant to
sections 206 through 209.
‘‘(k) EXISTING
MANUFACTURING
AUTHORITY.—
Nothing in this section shall prohibit any Bell operating
company from engaging, directly or through any affiliate,
in any manufacturing activity in which any Bell operating
company or affiliate was authorized to engage on the date
of enactment of this section.
‘‘(l) ANTITRUST LAWS.—Nothing in this section shall
be construed to modify, impair, or supersede the applica-
bility of any of the antitrust laws (including title I of the
Antitrust and Communications Reform Act of 1995).
‘‘(m) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘affiliate’ means any organiza-
tion or entity that, directly or indirectly, owns or
controls, is owned or controlled by, or is under com-
mon ownership with a Bell operating company. The
terms ‘owns’, ‘owned’, and ‘ownership’ mean an eq-
uity interest of more than 10 percent.
‘‘(2) The term ‘Bell operating company’ means
those companies listed in appendix A of the Modi-
fication of Final Judgment, and includes any succes-
sor or assign of any such company, but does not in-
clude any affiliate of any such company.
‘‘(3) The term ‘customer premises equipment’
means equipment employed on the premises of a
person (other than a carrier) to originate, route, or
terminate telecommunications.
‘‘(4) The term ‘manufacturing’ has the same
meaning as such term has under the Modification of
Final Judgment.
‘‘(5) The term ‘manufacturing affiliate’ means
an affiliate of a Bell operating company established
in accordance with subsection (b) of this section.
‘‘(6) The term ‘Modification of Final Judg-
ment’ means the decree entered August 24, 1982, in
United States v. Western Electric Civil Action No.
82–0192 (United States District Court, District of
Columbia), and includes any judgment or order with
respect to such action entered on or after August
24, 1982, and before the date of enactment of this
section.
‘‘(7) The term ‘telecommunications’ means the
transmission, between or among points specified by
the user, of information of the user’s choosing, with-
out change in the form or content of the information
as sent and received, by means of an electromagnetic
transmission medium, including all instrumentalities,
facilities, apparatus, and services (including the col-
lection, storage, forwarding, switching, and delivery
of such information) essential to such transmission.
‘‘(8) The term ‘telecommunications equipment’
means equipment, other than customer premises
equipment, used by a carrier to provide tele-
communications services, and includes software inte-
gral to such equipment (including upgrades).
‘‘(9) The term ‘telecommunications service’
means the offering for hire of telecommunications
facilities, or of telecommunications by means of such
facilities.’’.
SEC. 202. REGULATION OF ENTRY INTO ALARM MONITOR-
ING SERVICES.
(a) AMENDMENT.—Title II of the Communications
Act of 1934 is amended by adding at the end the following
new section:
‘‘SEC. 230. REGULATION OF ENTRY INTO ALARM MONITOR-
ING SERVICES.
‘‘(a) REGULATIONS REQUIRED.—The Commission
shall prescribe regulations—
‘‘(1) to establish such requirements, limitations,
or conditions as are (A) necessary and appropriate
in the public interest with respect to the provision of
alarm monitoring services by Bell operating compa-
nies and their affiliates, and (B) effective at such
time as a Bell operating company or any of its affili-
ates is authorized to provide alarm monitoring serv-
ices;
‘‘(2) to prohibit Bell operating companies and
their affiliates, at that or any earlier time after the
date of enactment of this section, from recording or
using in any fashion the occurrence or the contents
of calls received by providers of alarm monitoring
services for the purposes of marketing such services
on behalf of the Bell operating company, any of its
affiliates, or any other entity; and
‘‘(3) to establish procedures for the receipt and
review of complaints concerning violations by such
companies of such regulations, or of any other provi-
sion of this Act or the regulations thereunder, that
result in material financial harm to a provider of
alarm monitoring services.
‘‘(b) 
EXPEDITED
CONSIDERATION
OF
COM-
PLAINTS.—The procedures established under subsection
(a)(3) shall ensure that the Commission will make a final
determination with respect to any complaint described in
such subsection within 120 days after receipt of the com-
plaint. If the complaint contains an appropriate showing
that the alleged violation occurred, as determined by the
Commission in accordance with such regulations, the Com-
mission shall, within 60 days after receipt of the com-
plaint, issue a cease and desist order to prevent the Bell
operating company and its affiliates from continuing to
engage in such violation pending such final determination.
‘‘(c) REMEDIES.—The Commission may use any rem-
edy available under title V of this Act to terminate and
punish violations described in subsection (a)(2). Such rem-
edies may include, if the Commission determines that such
violation was willful or repeated, ordering the Bell operat-
ing company to cease offering alarm monitoring services.
‘‘(d) RULEMAKING SCHEDULE.—The Commission
shall prescribe the regulations required by subsection
(a)(2) within 180 days after the date of enactment of this
section and shall prescribe the regulations required by
subsection (a)(1) and (a)(3) prior to the date on which
any Bell operating company may commence providing
alarm monitoring services pursuant to title I of the Anti-
trust and Communication Reform Act of 1995.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) BELL
OPERATING
COMPANY.—The term
‘Bell operating company’ has the meaning provided
in subparagraphs (A) or (B) of section 106(5) of the
Antitrust and Communication Reform Act of 1995.
‘‘(2) ALARM MONITORING SERVICES.—The term
‘alarm monitoring services’ has the meaning pro-
vided in section 106(2) of such Act.
‘‘(3) AFFILIATE.—The term ‘affiliate’ means a
person that (directly or indirectly) owns or controls,
is owned or controlled by, or is under common own-
ership or control with, another person. For purposes
of this paragraph, to own refers to owning an equity
interest (or the equivalent thereof) of more than 10
percent.’’.
SEC. 203. REGULATION OF ELECTRONIC PUBLISHING.
Title II of the Communications Act of 1934 (47
U.S.C. 201 et seq.) is amended by adding at the end there-
of the following new section:
‘‘SEC. 231. REGULATION OF ELECTRONIC PUBLISHING.
‘‘(a) IN GENERAL.—
‘‘(1) PROHIBITION.—A Bell operating company
and any affiliate shall not engage in the provision of
electronic publishing that is disseminated by means
of such Bell operating company’s or any of its affili-
ates’ basic telephone service.
‘‘(2) PERMITTED
ACTIVITIES
OF
SEPARATED
AFFILIATE.—Nothing in this section shall prohibit a
separated affiliate or electronic publishing joint ven-
ture from engaging in the provision of electronic
publishing or any other lawful service in any area.
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in
this section shall prohibit a Bell operating company
or affiliate from engaging in the provision of any
lawful service other than electronic publishing in any
area or from engaging in the provision of electronic
publishing that is not disseminated by means of such
Bell operating company’s or any of its affiliates’
basic telephone service.
‘‘(b) SEPARATED AFFILIATE OR ELECTRONIC PUB-
LISHING JOINT VENTURE REQUIREMENTS.—A separated
affiliate or electronic publishing joint venture shall—
‘‘(1) maintain books, records, and accounts that
are separate from those of the Bell operating com-
pany and from any affiliate and that record in ac-
cordance with generally accepted accounting prin-
ciples all transactions, whether direct or indirect,
with the Bell operating company;
‘‘(2) not incur debt in a manner that would per-
mit a creditor upon default to have recourse to the
assets of the Bell operating company;
‘‘(3) prepare financial statements that are not
consolidated with those of the Bell operating com-
pany or an affiliate, provided that consolidated
statements may also be prepared;
‘‘(4) file with the Commission annual reports in
a form substantially equivalent to the Form 10–K
required by regulations of the Securities and Ex-
change;
‘‘(5) after 1 year from the effective date of this
section, not hire—
‘‘(A) as corporate officers, sales and mar-
keting management personnel whose respon-
sibilities at the separated affiliate or electronic
publishing joint venture will include the geo-
graphic area where the Bell operating company
provides basic telephone service;
‘‘(B) network operations personnel whose
responsibilities at the separated affiliate or elec-
tronic publishing joint venture would require
dealing directly with the Bell operating com-
pany; or
‘‘(C) any person who was employed by the
Bell operating company during the year preced-
ing their date of hire,
except that the requirements of this paragraph shall
not apply to persons subject to a collective bargain-
ing agreement that gives such persons rights to be
employed by a separated affiliate or electronic pub-
lishing joint venture of the Bell operating company;
‘‘(6) not provide any wireline telephone ex-
change service in any telephone exchange area where
a Bell operating company with which it is under
common ownership or control provides basic tele-
phone exchange service except on a resale basis;
‘‘(7) not use the name, trademarks, or service
marks of an existing Bell operating company except
for names, trademarks, or service marks that are or
were used in common with the entity that owns or
controls the Bell operating company;
‘‘(8) have performed annually by March 31, or
any other date prescribed by the Commission, a
compliance review—
‘‘(A) that is conducted by an independent
entity that is subject to professional, legal, and
ethical obligations for the purpose of determin-
ing compliance during the preceding calendar
year with any provision of this section that im-
poses a requirement on such separated affiliate
or electronic publishing joint venture; and
‘‘(B) the results of which are maintained
by the separated affiliate for a period of 5 years
subject to review by any lawful authority;
‘‘(9) within 90 days of receiving a review de-
scribed in paragraph (8), file a report of any excep-
tions and corrective action with the Commission and
allow any person to inspect and copy such report
subject to reasonable safeguards to protect any pro-
prietary information contained in such report from
being used for purposes other than to enforce or
pursue remedies under this section.
‘‘(c) BELL OPERATING COMPANY REQUIREMENTS.—
A Bell operating company under common ownership or
control with a separated affiliate or electronic publishing
joint venture shall—
‘‘(1) not provide a separated affiliate any facili-
ties, services, or basic telephone service information
unless it makes such facilities, services, or informa-
tion available to unaffiliated entities upon request
and on the same terms and conditions;
‘‘(2) carry out transactions with a separated af-
filiate in a manner equivalent to the manner that
unrelated parties would carry out independent trans-
actions and not based upon the affiliation;
‘‘(3) carry out transactions with a separated af-
filiate, which involve the transfer of personnel, as-
sets, or anything of value, pursuant to written con-
tracts or tariffs that are filed with the Commission
and made publicly available;
‘‘(4) carry out transactions with a separated af-
filiate in a manner that is auditable in accordance
with generally accepted auditing standards;
‘‘(5) value any assets that are transferred to a
separated affiliate at the greater of net book cost or
fair market value;
‘‘(6) value any assets that are transferred to
the Bell operating company by its separated affiliate
at the lesser of net book cost or fair market value;
‘‘(7) except for—
‘‘(A) instances where Commission or State
regulations permit in-arrears payment for
tariffed telecommunications services; or
‘‘(B) the investment by an affiliate of divi-
dends or profits derived from a Bell operating
company,
not provide debt or equity financing directly or indi-
rectly to a separated affiliate;
‘‘(8) comply fully with all applicable Commis-
sion and State cost allocation and other accounting
rules;
‘‘(9) have performed annually by March 31, or
any other date prescribed by the Commission, a
compliance review—
‘‘(A) that is conducted by an independent
entity that is subject to professional, legal, and
ethical obligations for the purpose of determin-
ing compliance during the preceding calendar
year with any provision of this section that im-
poses a requirement on such Bell operating
company; and
‘‘(B) the results of which are maintained
by the Bell operating company for a period of
5 years subject to review by any lawful author-
ity;
‘‘(10) within 90 days of receiving a review de-
scribed in paragraph (9), file a report of any excep-
tions and corrective action with the Commission and
allow any person to inspect and copy such report
subject to reasonable safeguards to protect any pro-
prietary information contained in such report from
being used for purposes other than to enforce or
pursue remedies under this section;
‘‘(11) if it provides facilities or services for tele-
communication, transmission, billing and collection,
or physical collocation to any electronic publisher,
exchange for consideration at least equal to the
greater of its net book cost or fair market value,
except the investment by an affiliate of dividends or
profits derived from a Bell operating company;
‘‘(17) not discriminate in the presentation or
provision of any gateway for electronic publishing
services or any electronic directory of information
services, which is provided over such Bell operating
company’s basic telephone service;
‘‘(18) have no directors, officers, or employees
in common with a separated affiliate;
‘‘(19) not own any property in common with a
separated affiliate;
‘‘(20) not perform hiring or training of person-
nel performed on behalf of a separated affiliate;
‘‘(21) not perform the purchasing, installation,
or maintenance of equipment on behalf of a sepa-
rated affiliate, except for telephone service that it
provides under tariff or contract subject to the pro-
visions of this section; and
‘‘(22) not perform research and development on
behalf of a separated affiliate.
‘‘(d) CUSTOMER PROPRIETARY NETWORK INFORMA-
TION.—Consistent with section 232 of this Act, a Bell op-
erating company or any affiliate shall not provide to any
electronic publisher, including a separated affiliate or elec-
tronic publishing joint venture, customer proprietary net-
work information for use with or in connection with the
provision of electronic publishing that is disseminated by
means of such Bell operating company’s or any of its af-
filiates’ basic telephone service that is not made available
by the Bell operating company or affiliate to all electronic
publishers on the same terms and conditions.
‘‘(e) COMPLIANCE WITH SAFEGUARDS.—No Bell op-
erating company or affiliate thereof (including a separated
affiliate) shall act in concert with another Bell operating
company or any other entity in order to knowingly and
willfully violate or evade the requirements of this section.
‘‘(f) TELEPHONE
OPERATING
COMPANY
DIVI-
DENDS.—Nothing in this section shall prohibit an affiliate
from investing dividends derived from a Bell operating
company in its separated affiliate, and subsections (i) and
(j) of this section shall not apply to any such investment.
‘‘(g) JOINT MARKETING.—Except as provided in sub-
section (h)—
‘‘(1) a Bell operating company shall not carry
out any promotion, marketing, sales, or advertising
for or in conjunction with a separated affiliate; and
‘‘(2) a Bell operating company shall not carry
out any promotion, marketing, sales, or advertising
for or in conjunction with an affiliate that is related
to the provision of electronic publishing.
‘‘(h) PERMISSIBLE JOINT ACTIVITIES.—
‘‘(1) JOINT TELEMARKETING.—A Bell operat-
ing company may provide inbound telemarketing or
referral services related to the provision of electronic
publishing for a separated affiliate, electronic pub-
lishing joint venture, affiliate, or unaffiliated elec-
tronic publisher, provided that if such services are
provided to a separated affiliate, electronic publish-
ing joint venture, or affiliate, such services shall be
made available to all electronic publishers on re-
quest, on nondiscriminatory terms, at compensatory
prices, and subject to regulations of the Commission
to ensure that the Bell operating company’s method
of providing telemarketing or referral and its price
structure do not competitively disadvantage any elec-
tronic publishers regardless of size, including those
which do not use the Bell operating company’s
telemarketing services.
‘‘(2) TEAMING ARRANGEMENTS.—A Bell oper-
ating company may engage in nondiscriminatory
teaming or business arrangements to engage in elec-
tronic publishing with any separated affiliate or with
any other electronic publisher provided that the Bell
operating company only provides facilities, services,
and basic telephone service information as author-
ized by this section and provided that the Bell oper-
ating company does not own such teaming or busi-
ness arrangement.
‘‘(3) ELECTRONIC
PUBLISHING
JOINT
VEN-
TURES.—A Bell operating company or affiliate may
participate on a nonexclusive basis in electronic pub-
lishing joint ventures with entities that are not any
Bell operating company, affiliate, or separated affili-
ate to provide electronic publishing services, provided
that the Bell operating company or affiliate has not
more than a 50 percent direct or indirect equity in-
terest (or the equivalent thereof) or the right to
more than 50 percent of the gross revenues under
a revenue sharing or royalty agreement in any elec-
tronic publishing joint venture. Officers and employ-
ees of a Bell operating company or affiliate partici-
pating in an electronic publishing joint venture may
not have more than 50 percent of the voting control
over the electronic publishing joint venture. In the
case of joint ventures with small, local electronic
publishers, the Commission for good cause shown
may authorize the Bell operating company or affili-
ate to have a larger equity interest, revenue share,
or voting control but not to exceed 80 percent. A
Bell operating company participating in an elec-
tronic publishing joint venture may provide pro-
motion, marketing, sales, or advertising personnel
and services to such joint venture.
‘‘(i) TRANSACTIONS RELATED TO THE PROVISION OF
ELECTRONIC PUBLISHING BETWEEN A TELEPHONE OP-
ERATING COMPANY AND ANY AFFILIATE.—
‘‘(1) RECORDS OF TRANSACTIONS.—Any provi-
sion of facilities, services, or basic telephone service
information, or any transfer of assets, personnel, or
anything of commercial or competitive value, from a
Bell operating company to any affiliate related to
the provision of electronic publishing shall be—
‘‘(A) recorded in the books and records of
each entity;
‘‘(B) auditable in accordance with gen-
erally accepted auditing standards; and
‘‘(C) pursuant to written contracts or tar-
iffs filed with the Commission or a State and
made publicly available.
‘‘(2) VALUATION OF TRANSFERS.—Any transfer
of assets directly related to the provision of elec-
tronic publishing from a Bell operating company to
an affiliate shall be valued at the greater of net book
cost or fair market value. Any transfer of assets re-
lated to the provision of electronic publishing from
an affiliate to the Bell operating company shall be
valued at the lesser of net book cost or fair market
value.
‘‘(3) PROHIBITION OF EVASIONS.—A Bell oper-
ating company shall not provide directly or indirectly
to a separated affiliate any facilities, services, or
basic telephone service information related to the
provision of electronic publishing that are not made
available to unaffiliated companies on the same
terms and conditions.
‘‘(j) TRANSACTIONS RELATED TO THE PROVISION OF
ELECTRONIC PUBLISHING BETWEEN AN AFFILIATE AND
A SEPARATED AFFILIATE.—
‘‘(1) RECORDS OF TRANSACTIONS.—Any facili-
ties, services, or basic telephone service information
provided or any assets, personnel, or anything of
commercial or competitive value transferred, from a
Bell operating company to any affiliate as described
in subsection (i) and then provided or transferred to
a separated affiliate shall be—
‘‘(A) recorded in the books and records of
each entity;
‘‘(k) OTHER ELECTRONIC PUBLISHERS.—Except as
provided in subsection (h)(3)—
‘‘(1) A Bell operating company shall not have
any officers, employees, property, or facilities in
common with any entity whose principal business is
publishing of which a part is electronic publishing.
‘‘(2) No officer or employee of a Bell operating
company shall serve as a director of any entity
whose principal business is publishing of which a
part is electronic publishing.
‘‘(3) For the purposes of paragraphs (1) and
(2), a Bell operating company or an affiliate that
owns an electronic publishing joint venture shall not
be deemed to be engaged in the electronic publishing
business solely because of such ownership.
‘‘(4) A Bell operating company shall not carry
out—
‘‘(A) any marketing or sales for any entity
that engages in electronic publishing; or
‘‘(B) any hiring of personnel, purchasing,
or production,
for any entity that engages in electronic publishing.
‘‘(5) The Bell operating company shall not pro-
vide any facilities, services, or basic telephone service
information to any entity that engages in electronic
publishing, for use with or in connection with the
provision of electronic publishing that is dissemi-
nated by means of such Bell operating company’s or
any of its affiliates’ basic telephone service, unless
equivalent facilities, services, or information are
made available on equivalent terms and conditions to
all.
‘‘(l) TRANSITION.—Any electronic publishing service
being offered to the public by a Bell operating company
or affiliate on the date of enactment of this section shall
have one year from such date of enactment to comply with
the requirements of this section.
‘‘(m) SUNSET.—The provisions of this section shall
not apply to conduct occurring after June 30, 2000.
‘‘(n) PRIVATE RIGHT OF ACTION.—
‘‘(1) DAMAGES.—Any person claiming that any
act or practice of any Bell operating company, affili-
ate, or separated affiliate constitutes a violation of
this section may file a complaint with the Commis-
sion or bring suit as provided in section 207 of this
Act, and such Bell operating company, affiliate, or
separated affiliate shall be liable as provided in sec-
tion 206 of this Act; except that damages may not
be awarded for a violation that is discovered by a
compliance review as required by subsection (b)(8)
or (c)(9) of this section and corrected within 90
days.
‘‘(2) CEASE AND DESIST ORDERS.—In addition
to the provisions of paragraph (1), any person claim-
ing that any act or practice of any Bell operating
company, affiliate, or separated affiliate constitutes
a violation of this section may make application to
the Commission for an order to cease and desist
such violation or may make application in any dis-
trict court of the United States of competent juris-
diction for an order enjoining such acts or practices
or for an order compelling compliance with such re-
quirement.
‘‘(o) ANTITRUST LAWS.—Nothing in this section
shall be construed to modify, impair, or supersede the ap-
plicability of any of the antitrust laws (including title I
of the Antitrust and Communications Reform Act of
1995).
‘‘(p) EQUAL EMPLOYMENT OPPORTUNITIES.—Any
Bell operating company, and any affiliate or joint venture
or other business partner of a Bell operating company,
that is engaged in the provision of electronic publishing
shall be subject to the provisions of section 634 of this
Act, except that the Commission shall prescribe by regula-
tion appropriate job classifications in lieu of the job classi-
fications in subsection (d)(3)(A) of such section.
‘‘(q) DEFINITIONS.—As used in this section—
‘‘(1) The term ‘affiliate’ means any entity that,
directly or indirectly, owns or controls, is owned or
controlled by, or is under common ownership or con-
trol with, a Bell operating company. Such term shall
not include a separated affiliate.
‘‘(2) The term ‘basic telephone service’ means
any wireline telephone exchange service, or wireline
telephone exchange facility, provided by a Bell oper-
ating company in a telephone exchange area, ex-
cept—
‘‘(A) a competitive wireline telephone ex-
change service provided in a telephone exchange
area where another entity provides a wireline
telephone exchange service that was provided on
January 1, 1984, and
‘‘(B) a commercial mobile service provided
by an affiliate that is required by the Commis-
sion to be a corporate entity separate from the
Bell operating company.
‘‘(3) The term ‘basic telephone service informa-
tion’ means network and customer information of a
Bell operating company and other information ac-
quired by a Bell operating company as a result of
its engaging in the provision of basic telephone
service.
‘‘(4) The term ‘control’ has the meaning that it
has in 17 C.F.R. 240.12b–2, the regulations promul-
gated by the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.) or any successor provision
to such section.
‘‘(5)(A) The term ‘electronic publishing’ means
the dissemination, provision, publication, or sale to
an unaffiliated entity or person, using a Bell operat-
ing company’s basic telephone service, of—
‘‘(i) news,
‘‘(ii) entertainment (other than interactive
games),
‘‘(iii) business, financial, legal, consumer,
or credit material;
‘‘(iv) editorials;
‘‘(v) columns;
‘‘(vi) sports reporting;
‘‘(vii) features;
‘‘(viii) advertising;
‘‘(ix) photos or images;
‘‘(x) archival or research material;
‘‘(xi) legal notices or public records;
‘‘(xii) scientific, educational, instructional,
technical, professional, trade, or other literary
materials; or
‘‘(xiii) other like or similar information.
‘‘(B) The term ‘electronic publishing’ shall not
include the following network services:
‘‘(i) Information access, as that term is de-
fined by the Modification of Final Judgment.
‘‘(ii) The transmission of information as a
common carrier.
‘‘(iii) The transmission of information as
part of a gateway to an information service that
does not involve the generation or alteration of
the content of information, including data
transmission, address translation, protocol con-
version, billing management, introductory infor-
mation content, and navigational systems that
enable users to access electronic publishing
services, which do not affect the presentation of
such electronic publishing services to users.
‘‘(iv) Voice storage and retrieval services,
including voice messaging and electronic mail
services.