(B) provide public switched network serv-
ices that are subject to regulation with respect
to rates, terms and conditions;
(C) must provide network access to their
own competitors on nondiscriminatory rates,
terms, and conditions; and
(D) are suppliers of last resort to cus-
tomers in their serving areas.
SEC. 3. AMENDMENTS TO THE COMMUNICATIONS ACT OF
1934.
(a) AMENDMENT TO SECTION 1.—Section 1 of the
Communications Act of 1934 (47 U.S.C. 151) is amend-
ed—
(1) by inserting ‘‘(a)’’ after ‘‘SECTION 1; and
(2) by adding at the end thereof the following
new subsection:
‘‘(b) The Commission shall exercise its authority so
as to—
‘‘(1) preserve and enhance universal service at
reasonable rates;
‘‘(2) achieve universal availability of advanced
network capabilities and information services;
‘‘(3) assure a seamless nationwide distribution
network through joint network planning, coordina-
tion, and service arrangements between and among
local exchange carriers;
‘‘(4) maintain high standards of quality for ad-
vanced network services; and
‘‘(5) assure adequate communication for the
public health, safety, defense, education, national se-
curity and emergency preparedness.’’.
(b) AMENDMENT TO SECTION 2.—Section 2(b) of the
Communications Act of 1934 (47 U.S.C. 152(b)) is
amended by striking ‘‘227’’ and inserting ‘‘229’’.
(c) AMENDMENT TO SECTION 3.—Section 3 of the
Communications Act of 1934 (47 U.S.C. 153) is amended
by adding at the end thereof the following:
‘‘(hh) The term ‘local exchange carrier’ means a car-
rier which—
‘‘(1) is required to provide upon request, under
tariff or subject to other government oversight (by
the Commission or a State commission), interstate
or intrastate access services and telephone exchange
service;
‘‘(2) is, or was, a participant in one or more
interstate pools established by the Commission, or
would have been required to participate in one or
more such pools had the carrier been engaged in
interstate and intrastate access and telephone ex-
change service while such participation was manda-
tory;
‘‘(3) is subject to the requirements imposed by
the Commission or a State commission related to the
provision of equal access; and
‘‘(4) conforms with the provisions of the North
American Numbering Plan applicable to the assign-
ment of numbering resources for telephone exchange
service, as defined by the Plan’s Administrator.
‘‘(ii) The term ‘Modification of Final Judgment’
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).’’.
(d) AMENDMENT TO TITLE II.—Title II of the Com-
munications Act of 1934 (47 U.S.C. 201 et seq.) is
amended by adding at the end thereof the following new
sections:
‘‘SEC. 228. NETWORK PLANNING AND STANDARDS.
‘‘The Commission shall, within 180 days following
the date of the enactment of this section, prescribe regula-
tions that require—
‘‘(1) joint coordinated network planning, design
and cooperative implementation among all local ex-
change carriers in the provision of public switched
network infrastructure and services; and
‘‘(2) development of standards for interconnec-
tion between the local exchange carrier public
switched network and any other person by appro-
priate standard-setting bodies.
‘‘SEC. 229. INFRASTRUCTURE SHARING ARRANGEMENTS
BETWEEN OR AMONG LOCAL EXCHANGE CAR-
RIERS.
‘‘(a) SHARING
ARRANGEMENT
REGULATIONS.—
Within 180 days following the date of the enactment of
this section, the Commission shall prescribe regulations
that require local exchange carriers to share public
switched network infrastructure and functionality with re-
questing local exchange carriers lacking economies of scale
or scope, as defined in subsection (b).
‘‘(b) DEFINITION.—For the purposes of this section,
the term ‘local exchange carrier lacking economies of scale
or scope’ means any local exchange carrier which serves
a geographic area for which it lacks economies of scale
or scope for the particular required network functionality.
‘‘(c) CONTENT OF REGULATIONS.—The regulations
governing such sharing between or among local exchange
carriers shall—
‘‘(1) promote economically efficient decision-
making by local exchange carriers;
‘‘(2) not require any local exchange carrier to
make any decision that is uneconomic or adverse to
the public interest;
‘‘(3) permit, but not require, joint ownership
and operation of public switched network infrastruc-
ture and services by or among local exchange car-
riers;
‘‘(4) limit their applicability to local exchange
carriers;
‘‘(5) ensure that a local exchange carrier, when
sharing 
any 
infrastructure 
or 
providing 
any
functionality to other local exchange carriers pursu-
ant to this section, shall not be deemed a common
carrier for hire when acting in this capacity, and
such arrangements shall not be deemed common car-
rier services by the Commission or by any State
commission;
‘‘(6) contain general guidelines to ensure that
fair and reasonable terms and conditions for and in
connection with the business arrangement described
in this section are determined by local exchange car-
riers;
‘‘(7) establish conditions that promote coopera-
tion between local exchange carriers; and
‘‘(8) ensure that all regulatory rights and obli-
gations for and in connection with the business ar-
rangements described in this section shall be deter-
mined exclusively in accordance with the regulations
prescribed pursuant to this section.
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this Act
shall be construed to enact into law any economic support
currently provided to telephone exchange service or enact
into law any prohibition with regard to new economic sup-
port mechanisms for telephone exchange service or any
service other than telephone exchange service.
‘‘SEC. 230. SIGNALLING.
‘‘Notwithstanding any other provision of law or any
restriction or obligation imposed before the date of enact-
ment of this section pursuant to the Modification of Final
Judgment, no local exchange carrier shall be prohibited
from transporting or processing signalling and informa-
tion for another local exchange carrier in adjoining or rea-
sonably proximate serving areas upon request of that local
exchange carrier to the same extent that the providing
local exchange carrier is permitted to engage in such ac-
tivities for itself.
‘‘SEC. 231. INTRASTATE COMMUNICATION.
‘‘Except as provided in section 2, nothing in this Act
shall be construed to alter, limit, or supersede the author-
ity of any State with respect to the regulation of intrastate
communication service.’’.
SEC. 4. ANTITRUST IMMUNITY FOR LOCAL EXCHANGE CAR-
RIERS.
(a) INAPPLICABILITY OF ANTITRUST LAWS.—Noth-
ing contained in any Federal or State antitrust law shall
render unlawful any individual or concerted action taken
by a local exchange carrier, or its directors, officers,
agents, employees, affiliates, subsidiaries, joint ventures,
counsel or other persons purporting to act on behalf of
such carrier, pursuant to sections 228, 229, and 230 of
the Communications Act of 1934, including (but not lim-
ited to) lobbying before Congress or the Federal Commu-
nications Commission or communicating by any means
with other local exchange carriers.
(b) DEFINITIONS.—For purposes of this Act, the fol-
lowing terms are defined:
(1) The term ‘‘Federal antitrust laws’’ means
the Acts known as the Sherman Act (15 U.S.C. 1
et seq.), the Clayton Act (15 U.S.C. 12 et seq.), the
Robinson-Patman Act (15 U.S.C. 13 et seq.), the
Federal Trade Commission Act (15 U.S.C. 41 et
seq.), all subsequent amendments of such Acts, and
any and all other laws which have been or are here-
after enacted to regulate or prevent contracts, com-
binations, or conspiracies in restraint of trade or
monopolistic practices.
(2) The term ‘‘State antitrust laws’’ means all
laws enacted by States or territories within the Unit-
ed States or their political subdivisions which are
patterned after the Federal laws known as the Sher-
man Act (15 U.S.C. 1 et seq.), the Clayton Act (15
U.S.C. 12 et seq.), the Robinson-Patman Act (15
U.S.C. 13 et seq.), the Federal Trade Commission
Act (15 U.S.C. 41 et seq.), or any subsequent
amendments to such Acts, or any other State laws
which are not patterned after such Federal Acts or
amendments but which are designed to regulate or
prevent contracts, combinations, or conspiracies in
restraint of trade or monopolistic practices.
Æ