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 re-
sult in material financial harm to a provider of
alarm monitoring services.
‘‘(b) EXPEDITED CONSIDERATION OF COMPLAINTS.—
The procedures established under subsection (a)(3) shall en-
sure that the Commission will make a final determination
with respect to any complaint described in such subsection
within 120 days after receipt of the complaint. If the com-
plaint contains an appropriate showing that the alleged
violation occurred, as determined by the Commission in ac-
cordance with such regulations, the Commission shall, with-
in 60 days after receipt of the complaint, issue a cease and
desist order to prevent the Bell operating company and its
affiliates from continuing to engage in such violation pend-
ing 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 oper-
ating company may commence providing alarm monitoring
services pursuant to title I of the Antitrust and Commu-
nication Reform Act of 1994.
‘‘(e) DEFINITIONS.—
‘‘(1) IN GENERAL.—As used in this section, the
terms ‘Bell operating company’, ‘affiliate’, and
‘alarm monitoring services’ have the meanings pro-
vided in section 106 of the Antitrust and Commu-
nication Reform Act of 1994.
‘‘(2) AFFILIATE.—The term ‘affiliate’ means a
person that (directly or indirectly) owns or controls,
is owned or controlled by, or is under common owner-
ship or control with, another person. For purposes of
this paragraph, to own refers to owning an equity in-
terest (or the equivalent thereof) of more than 10 per-
cent.’’.
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 thereof 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 affiliates’
basic telephone service.
‘‘(2) PERMITTED ACTIVITIES OF SEPARATED AF-
FILIATE.—Nothing in this section shall prohibit a
separated affiliate or electronic publishing joint ven-
ture from engaging in the provision of electronic pub-
lishing or any other lawful service in any area.
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this
section shall prohibit a Bell operating company or af-
filiate from engaging in the provision of any lawful
service other than electronic publishing in any area
or from engaging in the provision of electronic pub-
lishing 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 company
and from any affiliate and that record in accordance
with generally accepted accounting principles 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 as-
sets of the Bell operating company;
‘‘(3) prepare financial statements that are not
consolidated with those of the Bell operating company
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 re-
quired by regulations of the Securities and Exchange;
‘‘(5) after 1 year from the effective date of this
section, not hire as corporate officers sales and mar-
keting management personnel whose responsibilities
at the separated affiliate or electronic publishing joint
venture will include the geographic area where the
Bell operating company provides basic telephone serv-
ice, or network operations personnel whose respon-
sibilities at the separated affiliate or electronic pub-
lishing joint venture would require dealing directly
with the Bell operating company, any person who
was employed by the Bell operating company during
the year preceding their date of hire, provided that
this requirement shall not apply to persons subject to
a collective bargaining agreement that gives such per-
sons rights to be employed by a separated affiliate or
electronic publishing joint venture of the Bell operat-
ing company;
‘‘(6) not provide any wireline telephone exchange
service in any telephone exchange area where a Bell
operating company with which it is under common
ownership or control provides basic telephone ex-
change service except on a resale basis;
‘‘(7) not use the name, trademarks, or service
marks of an existing Bell operating company except
for names 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 com-
pliance review—
‘‘(A) which is conducted by an independent
entity which is subject to professional, legal, and
ethical obligations for the purpose of determining
compliance during the preceding calendar year
with any provision of this section that imposes
a requirement on such separated affiliate or elec-
tronic 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 sub-
ject to reasonable safeguards to protect any propri-
etary information contained in such report from
being used for purposes other than to enforce or pur-
sue remedies under this section.
‘‘(c) BELL OPERATING COMPANY REQUIREMENTS.—A
Bell operating company under common ownership or con-
trol 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-
‘‘(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 com-
pliance review—
‘‘(A) which is conducted by an independent
entity which is subject to professional, legal, and
ethical obligations for the purpose of determining
compliance during the preceding calendar year
with any provision of this section that imposes
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 authority;
‘‘(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 sub-
ject to reasonable safeguards to protect any propri-
etary information contained in such report from
being used for purposes other than to enforce or pur-
sue 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, in-
cluding a separated affiliate, for use with or in con-
nection with the provision of electronic publishing
that is disseminated by means of such Bell operating
company’s or any of its affiliates’ basic telephone
service, provide to all other electronic publishers the
same type of facilities and services on request, on the
same terms and conditions or as required by the
Commission or a State, and unbundled and individ-
ually tariffed to the smallest extent that is technically
feasible and economically reasonable to provide;
‘‘(12) provide network access and interconnec-
tions for basic telephone service to electronic publish-
ers at any technically feasible and economically rea-
sonable point within the Bell operating company’s
network and at just and reasonable rates that are
tariffed (so long as rates for such services are subject
to regulation) and that are not higher on a per-unit
basis than those charged for such services to any other
electronic publisher or any separated affiliate engaged
in electronic publishing;
‘‘(13) if prices for network access and inter-
connection for basic telephone service are no longer
subject to regulation, provide electronic publishers
such services on the same terms and conditions as a
separated affiliate receives such services;
‘‘(14) if any basic telephone service used by elec-
tronic publishers ceases to require a tariff, provide
electronic publishers with such service on the same
terms and conditions as a separated affiliate receives
such service;
‘‘(15) provide reasonable advance notification at
the same time and on the same terms to all affected
electronic publishers of information if such informa-
tion is within any one or more of the following cat-
egories:
‘‘(A) such information is necessary for the
transmission or routing of information by an
interconnected electronic publisher;
‘‘(B) such information is necessary to en-
sure the interoperability of an electronic publish-
er’s and the Bell operating company’s networks;
or
‘‘(C) such information concerns changes in
basic telephone service network design and tech-
nical standards which may affect the provision
of electronic publishing;
‘‘(16) not directly or indirectly provide anything
of monetary value to a separated affiliate unless in
exchange for consideration at least equal to the great-
er of its net book cost or fair market value, except the
investment by an affiliate of dividends or profits de-
rived 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 separated
affiliate, except for telephone service that it provides
under tariff or contract subject to the provisions 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 oper-
ating 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 affili-
ates’ basic telephone service that is not made available by
the Bell operating company or affiliate to all electronic pub-
lishers on the same terms and conditions.
‘‘(e) COMPLIANCE WITH SAFEGUARDS.—No Bell oper-
ating 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 DIVIDENDS.—
Nothing in this section shall prohibit an affiliate from in-
vesting 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 operating
company may provide inbound telemarketing or refer-
ral services related to the provision of electronic pub-
lishing for a separated affiliate, electronic publishing
joint venture, affiliate, or unaffiliated electronic pub-
lisher, provided that if such services are provided to
a separated affiliate, electronic publishing joint ven-
ture, or affiliate, such services shall be made available
to all electronic publishers on request, on nondiscrim-
inatory 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 electronic pub-
lishers regardless of size, including those which do not
use the Bell operating company’s telemarketing serv-
ices.
‘‘(2) TEAMING ARRANGEMENTS.—A Bell operat-
ing 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 authorized
by this section and provided that the Bell operating
company does not own such teaming or business ar-
rangement.
‘‘(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 electronic pub-
lishing joint venture. Officers and employees of a Bell
operating company or affiliate participating in an
electronic publishing joint venture may not have more
than 50 percent of the voting control over the elec-
tronic 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 affiliate to have a larger
equity interest, revenue share, or voting control but
not to exceed 80 percent. A Bell operating company
participating in an electronic publishing joint ven-
ture may provide promotion, marketing, sales, or ad-
vertising personnel and services to such joint venture.
‘‘(i) TRANSACTIONS RELATED TO THE PROVISION OF
ELECTRONIC PUBLISHING BETWEEN A TELEPHONE OPER-
ATING 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 generally
accepted accounting principles; and
‘‘(C) pursuant to written contracts or tariffs
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 electronic
publishing from a Bell operating company to an affil-
iate shall be valued at the greater of net book cost or
fair market value. Any transfer of assets related 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 operat-
ing company shall not provide directly or indirectly
to a separated affiliate any facilities, services, or
basic telephone service information related to the pro-
vision of electronic publishing which 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 com-
mercial 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;
‘‘(B) auditable in accordance with generally
accepted accounting principles; and
‘‘(C) pursuant to written contracts or tariffs
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 electronic
publishing from a Bell operating company to any af-
filiate as described in subsection (i) and then trans-
ferred to a separated affiliate shall be valued at the
greater of net book cost or fair market value. Any
transfer of assets related to the provision of electronic
publishing from a separated affiliate to any affiliate
and then transferred to the Bell operating company
as described in subsection (i) shall be valued at the
lesser of net book cost or fair market value.
‘‘(3) PROHIBITION
OF
EVASIONS.—An affiliate
shall not provide directly or indirectly to a separated
affiliate any facilities, services, or basic telephone
service information related to the provision of elec-
tronic publishing which are not made available to un-
affiliated companies on the same terms and condi-
tions.
‘‘(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 com-
mon with any entity whose principal business is pub-
lishing 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 disseminated
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
cease to apply to a Bell operating company or its affiliate
or separated affiliate in any telephone exchange area on
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 (47 U.S.C. 207), and such Bell operating com-