SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Telecommunications
Competition and Consumer Protection Act of 1998’’.
TITLE I—SLAMMING
SEC. 101. IMPROVED PROTECTION FOR CONSUMERS.
(a) CONSUMER PROTECTION PRACTICES.—Section
258 of the Communications Act of 1934 (47 U.S.C. 258)
is amended to read as follows:
‘‘SEC. 258. ILLEGAL CHANGES IN SUBSCRIBER SELECTIONS
OF CARRIERS.
‘‘(a) ALTERNATIVE MODES OF REGULATION.—
‘‘(1) 
INDUSTRY/COMMISSION
CODE.—Within
180 days after the date of enactment of the Tele-
communications Competition and Consumer Protec-
tion Act of 1998, the Commission, after consulting
with the Federal Trade Commission and representa-
tives of telecommunications carriers providing tele-
phone toll service and telephone exchange service,
State commissions, and consumers, and considering
any proposals developed by such representatives,
shall prescribe, after notice and public comment and
in accordance with subsection (b), a Code of Sub-
scriber Protection Practices (hereinafter in this sec-
tion referred as the ‘Code’) governing changes in a
subscriber’s selection of a provider of telephone ex-
change service or telephone toll service.
‘‘(2) 
OBLIGATION
TO
COMPLY.—No 
tele-
communications carrier (including a reseller of tele-
communications services) shall submit or execute a
change in a subscriber’s selection of a provider of
telephone exchange service or telephone toll service
except in accordance with—
‘‘(A) the Code, if such carrier elects to
comply with the Code in accordance with sub-
section (b)(2); or
‘‘(B) the requirements of subsection (c),
if—
‘‘(i) the carrier does not elect to com-
ply with the Code under subsection (b)(2);
or
‘‘(ii) such election is revoked or with-
drawn.
‘‘(b) MINIMUM PROVISIONS OF THE CODE.—
‘‘(1) SUBSCRIBER
PROTECTION
PRACTICES.—
The Code required by subsection (a)(1) shall include
provisions addressing the following:
‘‘(A) IN GENERAL.—A telecommunications
carrier (including a reseller of telecommuni-
cations services) electing to comply with the
Code shall submit or execute a change in a sub-
scriber’s selection of a provider of telephone ex-
change service or telephone toll service only in
accordance with the provisions of the Code.
‘‘(B) NEGATIVE OPTION.—A telecommuni-
cations carrier shall not use negative option
marketing.
‘‘(C) 
VERIFICATION.—A 
telecommuni-
cations carrier that submits the change to an
executing carrier, or that is both a submitting
and an executing carrier, shall verify the sub-
scriber’s selection of the carrier in accordance
with procedures specified in the Code.
‘‘(D) UNFAIR AND DECEPTIVE ACTS AND
PRACTICES.—No telecommunications carrier,
nor any person acting on behalf of any such
carrier, shall engage in any unfair or deceptive
acts or practices in connection with the solicita-
tion of a change in a subscriber’s selection of
a telecommunications carrier.
‘‘(E) NOTIFICATION AND RIGHTS.—A tele-
communications carrier shall provide timely and
accurate notification to the subscriber in ac-
cordance with procedures specified in the Code.
‘‘(F) SLAMMING
LIABILITY
AND
REM-
EDIES.—
‘‘(i) REQUIRED REIMBURSEMENT AND
CREDIT.—A 
telecommunications 
carrier
that has improperly changed the subscrib-
er’s selection of a telecommunications car-
rier without authorization, shall at a mini-
mum—
‘‘(I) reimburse the subscriber for
the fees associated with switching the
subscriber back to their original car-
rier; and
‘‘(II) provide a credit for any
telecommunications charges incurred
by the subscriber during the period,
not to exceed 30 days, while that sub-
scriber was improperly presubscribed.
‘‘(ii) PROCEDURES.—The Code shall
prescribe procedures by which—
‘‘(I) a subscriber may make an
allegation of a violation under clause
(i);
‘‘(II) the telecommunications car-
rier may rebut such allegation;
‘‘(III) the subscriber may, with-
out undue delay, burden, or expense,
challenge the rebuttal; and
‘‘(IV) resolve any administrative
review of such an allegation within 75
days after receipt of an appeal.
‘‘(G) RECORDKEEPING.—A telecommuni-
cations carrier shall make and maintain a
record of the verification process and shall pro-
vide a copy to the subscriber immediately upon
request.
‘‘(H) QUALITY CONTROL.—A telecommuni-
cations carrier shall institute a quality control
program to prevent inadvertent changes in a
subscriber’s selection of a carrier.
‘‘(I) 
INDEPENDENT
AUDITS.—A 
tele-
communications carrier shall provide the Com-
mission with an independent audit regarding its
compliance with the Code at intervals pre-
scribed by the Code. The Commission may re-
quire a telecommunications carrier to provide
an independent audit on a more frequent basis
if there is evidence that such telecommuni-
cations carrier is violating the Code.
‘‘(2) ELECTION
BY
CARRIERS.—Each tele-
communications carrier electing to comply with the
Code shall file with the Commission within 20 days
after the adoption of the Code, or within 20 days
after commencing operations as a telecommuni-
cations carrier, a statement electing the Code to gov-
ern such carrier’s submission or execution of a
change in a customer’s selection of a provider of
telephone exchange service or telephone toll service.
Such election by a carrier may not be revoked or
withdrawn unless the Commission finds that there is
good cause therefor, including a determination that
the carrier has failed to adhere in good faith to the
applicable provisions of the Code, and that the rev-
ocation or withdrawal is in the public interest. Any
telecommunications carrier that fails to elect to com-
ply with the Code shall be deemed to have elected
to be governed by the subsection (c) and the Com-
mission’s regulations thereunder.
‘‘(c) REGULATIONS OF CARRIERS NOT COMPLYING
WITH CODE.—
‘‘(1) IN GENERAL.—A telecommunications car-
rier (including a reseller of telecommunications serv-
ices) that has not elected to comply with the Code
under subsection (b), or as to which the election has
been withdrawn or revoked, shall not submit or exe-
cute a change in a subscriber’s selection of a pro-
vider of telephone exchange service or telephone toll
service except in accordance with this subsection and
such verification procedures as the Commission shall
prescribe.
‘‘(2) VERIFICATION.—
‘‘(A) IN GENERAL.—In order to verify a
subscriber’s selection of a telephone exchange
service or telephone toll service provider under
this subsection, the telecommunications carrier
submitting the change to an executing carrier
shall, at a minimum, require the subscriber—
‘‘(i) to affirm that the subscriber is
authorized to select the provider of that
service for the telephone number in ques-
tion;
‘‘(ii) to acknowledge the type of serv-
ice to be changed as a result of the selec-
tion;
‘‘(iii) to affirm the subscriber’s intent
to select the provider as the provider of
that service;
‘‘(iv) to acknowledge that the selection
of the provider will result in a change in
providers of that service; and
‘‘(v) to provide such other information
as the Commission considers appropriate
for the protection of the subscriber.
‘‘(B) ADDITIONAL
REQUIREMENTS.—The
procedures prescribed by the Commission to
verify a subscriber’s selection of a provider
shall—
‘‘(i) preclude the use of negative op-
tion marketing;
‘‘(ii) provide for a complete copy of
verification of a change in telephone ex-
change service or telephone toll service pro-
vider in oral, written, or electronic form;
‘‘(iii) require the retention of such
verification in such manner and form and
for such time as the Commission considers
appropriate;
‘‘(iv) mandate that verification occur
in the same language as that in which the
change was solicited; and
‘‘(v) provide for verification to be
made available to a subscriber on request.
‘‘(C) NOTICE TO SUBSCRIBER.—Whenever
a telecommunication carrier submits a change
in a subscriber’s selection of a provider of tele-
phone exchange service or telephone toll service,
such telecommunications carrier shall clearly
notify the subscriber in writing, not more than
15 days after the change is submitted to the
executing carrier—
‘‘(i) of the subscriber’s new carrier;
and
‘‘(ii) that the subscriber may request
information regarding the date on which
the change was agreed to and the name of
the individual who authorized the change.
‘‘(3) LIABILITY FOR VIOLATIONS.—
‘‘(A) NOTIFICATION
OF
CHANGE.—The
first bill issued after the effective date of a
change in a subscriber’s provider of telephone
exchange service or telephone toll service by the
executing carrier for such change shall—
‘‘(i) prominently disclose the change
in provider and the effective date of such
change;
‘‘(ii) contain the name and toll-free
number of any telecommunications carrier
for such new service; and
‘‘(iii) direct the subscriber to contact
the executing carrier if the subscriber be-
lieves that such change was not authorized
and that the change was made in violation
of this subsection, and contain the toll-free
number by which to make such contact.
‘‘(B) AUTOMATIC SWITCH-BACK OF SERV-
ICE AND CREDIT TO CONSUMER OF CHARGES.—
‘‘(i) OBLIGATIONS
OF
EXECUTING
CARRIER.—If a subscriber of telephone ex-
change service or telephone toll service
makes an allegation, orally or in writing, to
the executing carrier that a violation of
this subsection has occurred with respect
to such subscriber—
‘‘(I) the executing carrier shall,
without charge to the subscriber, exe-
cute an immediate change in the pro-
vider of the telephone service that is
the subject of the allegation to restore
the previous provider of such service
for the subscriber;
‘‘(II) the executing carrier shall
provide an immediate credit to the
subscriber’s account for any charges
for executing the original change of
service provider;
‘‘(III) if the executing carrier
conducts billing for the carrier that is
the subject of the allegation, the exe-
cuting carrier shall provide an imme-
diate credit to the subscriber’s ac-
count for such service, in an amount
equal to any charges for the telephone
service that is the subject of the alle-
gation incurred during the period—
‘‘(aa) beginning upon the
date of the change of service that
is the subject of the allegation;
and
‘‘(bb) ending on the earlier
of the date that the subscriber is
restored to the previous provider,
or 30 days after the date the bill
described in subparagraph (A) is
issued; and
‘‘(IV) the executing carrier shall
recover the costs of executing the
change in provider to restore the pre-
vious provider, and any credits pro-
vided under subclause (II) and (III),
by recourse to the provider that is the
subject of the allegation.
‘‘(ii) OBLIGATIONS OF CARRIERS NOT
BILLING
THROUGH
EXECUTING
CAR-
RIERS.—If a subscriber of telephone ex-
change service or telephone toll service
transmits, orally or in writing, to any car-
rier that does not use an executing carrier
to conduct billing an allegation that a vio-
lation of this subsection has occurred with
respect to such subscriber, the carrier shall
provide an immediate credit to the sub-
scriber’s account for such service, and the
subscriber shall, except as provided in sub-
paragraph (C)(iii), be discharged from li-
ability, for an amount equal to any charges
for the telephone service that is the subject
of the allegation incurred during the pe-
riod—
‘‘(I) beginning upon the date of
the change of service that is the sub-
ject of the allegation; and
‘‘(II) ending on the earlier of the
date that the subscriber is restored to
the previous provider, or 30 days after
the date the bill described in para-
graph (1) is issued.
‘‘(iii) TIME
LIMITATION.—This sub-
paragraph shall apply only to allegations
made by subscribers before the expiration
of the 1-year period that begins on the
issuance of the bill described in subpara-
graph (A).
‘‘(C) PROCEDURE
FOR
CARRIER
REM-
EDY.—
‘‘(i) IN GENERAL.—The Commission
shall, by rule, establish a procedure for
rendering determinations with respect to
violations of this subsection. Such proce-
dure shall permit such determinations to
be made upon the filing of (I) a complaint
by a telecommunications carrier that was
providing telephone exchange service or
telephone toll service to a subscriber before
the occurrence of an alleged violation, and
seeking damages under clause (ii), or (II)
a complaint by a telecommunications car-
rier that was providing services after the
alleged violation, and seeking a reinstate-
ment of charges under clause (iii). Either
such complaint shall be filed not later than
6 months after the date on which any sub-
scriber whose allegation is included in the
complaint submitted an allegation of the
violation to the executing carrier under
subparagraph (B)(ii). Either such com-
plaint may seek determinations under this
paragraph with respect to multiple alleged
violations in accordance with such proce-
dures as the Commission shall establish in
the rules prescribed under this subpara-
graph.
‘‘(ii) DETERMINATION OF VIOLATION
AND
REMEDIES.—In a proceeding under
this subparagraph, if the Commission de-
termines that a violation of this subsection
has occurred, other than an inadvertent or
unintentional violation, the Commission
shall award damages—
‘‘(I) to the telecommunications
carrier filing the complaint, in an
amount equal to the sum of (aa) the
gross amount of charges that the car-
rier would have received from the sub-
scriber during the violation, and (bb)
$500 per violation; and
‘‘(II) to the subscriber that was
subjected to the violation, in the
amount of $500.
‘‘(iii) DETERMINATION OF NO VIOLA-
TION.—If the Commission determines that
a violation of this subsection has not oc-
curred, the Commission shall order that
any credit provided to the subscriber under
subparagraph (B)(ii) be reversed, or that
the carrier may resubmit a bill for the
amount of the credit to the subscriber not-
withstanding any discharge under subpara-
graph (B)(ii).
‘‘(iv) SPEEDY RESOLUTION OF COM-
PLAINTS.—The 
procedure 
established
under this subparagraph shall provide for
a determination of each complaint filed
under the procedure not later than 6
months after filing.
‘‘(D) MAINTENANCE OF INFORMATION.—
‘‘(i) IN GENERAL.—The Commission
shall, by rule, require each executing car-
rier to maintain information regarding
each alleged violation of this subsection of
which the carrier has been notified.
‘‘(ii) CONTENTS.—The information
required to be maintained pursuant to this
paragraph shall include, for each alleged
violation of this subsection, the effective
date of the change of service involved in
the alleged violation, the name of the pro-
vider of the service to which the change
was made, the name, address, and tele-
phone number of the subscriber who was
subject to the alleged violation, and the
amount of any credit provided under sub-
paragraph (B)(ii).
‘‘(iii) FORM.—The Commission shall
prescribe one or more computer data for-
mats for the maintenance of information
under this paragraph, which shall be de-
signed to facilitate submission and com-
pilation pursuant to this subparagraph.
‘‘(iv) MONTHLY REPORTS.—Each exe-
cuting carrier shall, on not less than a
monthly basis, submit the information
maintained pursuant to this subparagraph
to the Commission.
‘‘(v) ACCESS TO INFORMATION.—The
Commission shall make the information
submitted pursuant to clause (iv) available
upon request to any telecommunications
carrier. Any telecommunications carrier ob-
taining access to such information shall
use such information exclusively for the
purposes of investigating, filing, or resolv-
ing complaints under this section.
‘‘(4) CIVIL
PENALTIES.—Unless the Commis-
sion determines that there are mitigating cir-
cumstances, violation of this subsection is punishable
by a forfeiture of not less than $40,000 for the first
offense, and not less than $150,000 for each subse-
quent offense.
‘‘(5) RECOVERY OF FORFEITURES.—The Com-
mission may take such action as may be necessary—
‘‘(A) to collect any forfeitures it imposes
under this subsection; and
‘‘(B) on behalf of any subscriber, to collect
any damages awarded the subscriber under this
subsection.
‘‘(d) APPLICATION TO WIRELESS.—This section does
not apply to a provider of commercial mobile service.
‘‘(e) COMMISSION REQUIREMENTS.—
‘‘(1) SEMIANNUAL REPORTS.—Every 6 months,
the Commission shall compile and publish a report
ranking telecommunications carriers by the percent-
age of verified complaints, excluding those generated
by the carrier’s unaffiliated resellers, compared to
the number of the carrier’s changes in a subscriber’s
selection of a provider of telephone exchange service
and telephone toll service.
‘‘(2) INVESTIGATION.—If a telecommunications
carrier is listed among the 5 worst performers based
upon the percentage of verified complaints, excluding
those generated by the carrier’s unaffiliated resell-
ers, compared to its number of carrier selection
changes in the semiannual reports 3 times in succes-
sion, the Commission shall investigate the carrier’s
practices regarding subscribers’ selections of provid-
ers of telephone exchange service and telephone toll
service. If the Commission finds that the carrier is
misrepresenting adherence to the Code or is willfully
and repeatedly changing subscribers’ selections of
providers, it shall find such carrier to be in violation
of this section and shall fine the carrier up to
$1,000,000.
‘‘(3) CODE REVIEW.—Every 2 years, the Com-
mission shall review the Code to ensure its require-
ments adequately protect subscribers from improper
changes in a subscriber’s selection of a provider of
telephone exchange service and telephone toll service.
‘‘(f) ACTIONS BY STATES.—
‘‘(1) IN GENERAL.—Whenever an attorney gen-
eral of any State has reason to believe that the in-
terests of the residents of that State have been or
are being threatened or adversely affected because
any person has violated the Code or subsection (c),
or any rule or regulation prescribed by the Commis-
sion under subsection (c), the State may bring a
civil action on behalf of its residents in an appro-
priate district court of the United States to enjoin
such violation, to enforce compliance with such
Code, subsection, rule, or regulation, to obtain dam-
ages on behalf of their residents, or to obtain such
further and other relief as the court may deem ap-
propriate.
‘‘(2) NOTICE.—The State shall serve prior writ-
ten notice of any civil action under paragraph (1)
upon the Commission and provide the Commission
with a copy of its complaint, except that if it is not
feasible for the State to provide such prior notice,
the State shall serve such notice immediately upon
instituting such action. Upon receiving a notice re-
specting a civil action, the Commission shall have
the right (A) to intervene in such action, (B) upon
so intervening, to be heard on all matters arising
therein, and (C) to file petitions for appeal.
‘‘(3) VENUE.—Any civil action brought under
this section in a district court of the United States
may be brought in the district wherein the defendant
is found or is an inhabitant or transacts business or
wherein the violation occurred or is occurring, and
process in such cases may be served in any district
in which the defendant is an inhabitant or wherever
the defendant may be found.
‘‘(4) INVESTIGATORY
POWERS.—For purposes
of bringing any civil action under this section, noth-
ing in this Act shall prevent the attorney general
from exercising the powers conferred on the attorney
general by the laws of such State to conduct inves-
tigations or to administer oaths or affirmations or to
compel the attendance of witnesses or the production
of documentary and other evidence.
‘‘(5) EFFECT
ON
STATE
COURT
PROCEED-
INGS.—Nothing contained in this subsection shall
prohibit an authorized State official from proceeding
in State court on the basis of an alleged violation of
any general civil or criminal statute of such State.
‘‘(6) LIMITATION.—Whenever the Commission
has instituted a civil action for violation of this sec-
tion or any rule or regulation thereunder, no State
may, during the pendency of such action instituted
by the Commission, subsequently institute a civil ac-
tion against any defendant named in the Commis-
sion’s complaint for violation of any rule as alleged
in the Commission’s complaint.
‘‘(7) ACTIONS BY OTHER STATE OFFICIALS.—In
addition to actions brought by an attorney general
of a State under paragraph (1), such an action may
be brought by officers of such State who are author-
ized by the State to bring actions in such State for
protection of consumers.
‘‘(g) STATE LAW NOT PREEMPTED.—
‘‘(1) IN GENERAL.—Nothing in this section or
in the regulations prescribed under this section shall
preempt any State law that imposes requirements,
regulations, damages, costs, or penalties on changes
in a subscriber’s selection of a provider of telephone
exchange service or telephone toll service that—
‘‘(A) are less restrictive than those im-
posed under this section; or
‘‘(B) are not inconsistent with those im-
posed under this section, and were enacted
prior to the date of enactment of the Tele-
communications Competition and Consumer
Protection Act of 1998.
‘‘(2) EFFECT
ON
STATE
COURT
PROCEED-
INGS.—Except as provided in subsection (f)(6),
nothing contained in this section shall be construed
to prohibit an authorized State official from proceed-
ing in State court on the basis of an alleged viola-
tion of any general civil or criminal statute of such
State or any specific civil or criminal statute of such
State not preempted by this section.
‘‘(h) RULES OF CONSTRUCTION.—
‘‘(1) CHANGE INCLUDES INITIAL SELECTION.—
For purposes of this section, the initiation of tele-
phone toll service to a subscriber by a telecommuni-
cations carrier shall be treated as achange in selec-
tion of a provider of telephone toll service.
‘‘(2) ACTION BY UNAFFILIATED RESELLER NOT
IMPUTED TO CARRIER.—No telecommunications car-
rier may be found in violation of this section solely
on the basis of a violation of this section by an unaf-
filiated reseller of that carrier’s services or facilities.
‘‘(i) DEFINITIONS.—For purposes of this section:
‘‘(1) 
SUBSCRIBER.—The 
term 
‘subscriber’
means the person named on the billing statement or
account, or any other person authorized to make
changes in the providers of telephone exchange serv-
ice or telephone toll service.
‘‘(2) EXECUTING CARRIER.—The term ‘execut-
ing carrier’ means, with respect to any change in the
provider of local exchange service or telephone toll
service, the local exchange carrier that executed such
change.
‘‘(3) ATTORNEY GENERAL.—The term ‘attorney
general’ means the chief legal officer of a State.’’.
(b) NTIA STUDY OF THIRD-PARTY ADMINISTRA-
TION.—Within 180 days of enactment of this Act, the Na-
tional Telecommunications and Information Administra-
tion shall report to the Committee on Commerce of the
House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate on the
feasibility and desirability of establishing a neutral third-
party administration system to prevent illegal changes in
telephone subscriber carrier selections. The study shall in-
clude—
(1) an analysis of the cost of establishing a sin-
gle national or several independent databases or
clearinghouses to verify and submit changes in car-
rier selections;
(2) the additional cost to carriers, per change
in carrier selection, to fund the ongoing operation of
any or all such independent databases or clearing-
houses; and
(3) the advantages and disadvantages of utiliz-
ing independent databases or clearinghouses for veri-
fying and submitting carrier selection changes.
TITLE II—SPAMMING
SEC. 201. SENSE OF THE CONGRESS.
It is the sense of the Congress that—
(1) in order to avoid interference with the rapid
development and expansion of commerce over the
Internet, the Congress should decline to enact regu-
latory legislation with respect to unfair or intrusive
practices on the Internet that the private sector can,
given a sufficient opportunity, deter or prevent; and
(2) it is the responsibility of the private sector
to use that opportunity promptly to adopt, imple-
ment, and enforce measures to deter and prevent the
improper use of unsolicited commercial electronic
mail.
TITLE III—GWCS AUCTION
DEADLINE
SEC. 301. ELIMINATION OF ARBITRARY AUCTION DEAD-
LINE.
Section 309(j)(9) of the Communications Act of 1934
(47 U.S.C. 309(j)(9)) is amended by striking ‘‘, not later
than 5 years after the date of enactment of this sub-
section,’’.
TITLE IV—REINSTATEMENT OF
CERTAIN APPLICANTS
SEC. 401. REINSTATEMENT OF APPLICANTS AS TENTATIVE
SELECTEES.
(a) IN GENERAL.—Notwithstanding the order of the
Federal Communications Commission in the proceeding
described in subsection (b), the Commission shall—
(1) reinstate each applicant as a tentative se-
lectee under the covered rural service area licensing
proceeding; and
(2) permit each applicant to amend its applica-
tion, to the extent necessary to update factual infor-
mation and to comply with the rules of the Commis-
sion, at any time before the Commission’s final li-
censing action in the covered rural service area li-
censing proceeding.
(b) EXEMPTION FROM PETITIONS TO DENY.—For
purposes of the amended applications filed pursuant to
section 501(a)(2), the provisions of section 309(d)(1) of
the Communications Act of 1934 (47 U.S.C. 309(d)(1))
shall not apply.
(c) PROCEEDING.—The proceeding described in this
subsection is the proceeding of the Commission In re Ap-
plications 
of 
Cellwave 
Telephone 
Services 
L.P,
Futurewave General Partners L.P., and Great Western
Cellular Partners, 7 FCC Rcd No. 19 (1992).
SEC. 402. CONTINUATION OF LICENSE PROCEEDING; FEE
ASSESSMENT.
(a) AWARD OF LICENSES.—The Commission shall
award licenses under the covered rural service area licens-
ing proceeding within 90 days after the date of the enact-
ment of this title.
(b) SERVICE
REQUIREMENTS.—The Commission
shall provide that, as a condition of an applicant receiving
a license pursuant to the covered rural service area licens-
ing proceeding, the applicant shall provide cellular radio-
telephone service to subscribers in accordance with sec-
tions 22.946 and 22.947 of the Commission’s rules (47
CFR 22.946, 22.947); except that the time period applica-
ble under section 22.947 of the Commission’s rules (or
any successor rule) to the applicants identified in subpara-
graphs (A) and (B) of section 404(1) shall be 3 years rath-
er than 5 years and the waiver authority of the Commis-
sion shall apply to such 3-year period.
(c) CALCULATION OF LICENSE FEE.—
(1) FEE REQUIRED.—The Commission shall es-
tablish a fee for each of the licenses under the cov-
ered rural service area licensing proceeding. In de-
termining the amount of the fee, the Commission
shall consider—
(A) the average price paid per person
served in the Commission’s Cellular Unserved
Auction (Auction No. 12); and
(B) the settlement payments required to be
paid by the permittees pursuant to the consent
decree set forth in the Commission’s order, In
re the Tellesis Partners (7 FCC Rcd 3168
(1992)), multiplying such payments by two.
(2) NOTICE OF FEE.—Within 30 days after the
date an applicant files the amended application per-
mitted by section 501(a)(2), the Commission shall
notify each applicant of the fee established for the
license associated with its application.
(d) PAYMENT FOR LICENSES.—No later than May
31, 2000, each applicant shall pay to the Commission the
fee established pursuant to subsection (c) of this section
for the license granted under subsection (a).
(e) AUCTION AUTHORITY.—If, after the amendment
of an application pursuant to section 401(a)(2) of this
title, the Commission finds that the applicant is ineligible
for grant of a license to provide cellular radiotelephone
services for a rural service area or the applicant does not
meet the requirements under subsection (b) of this section,
the Commission shall grant the license for which the appli-
cant is the tentative selectee (pursuant to section
401(a)(1)) by competitive bidding pursuant to section
309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)).
SEC. 403. PROHIBITION OF TRANSFER.
During the 5-year period that begins on the date that
an applicant is granted any license pursuant to section
401, the Commission may not authorize the transfer or
assignment of that license under section 310 of the Com-
munications Act of 1934 (47 U.S.C. 310). Nothing in this
title may be construed to prohibit any applicant granted
a license pursuant to section 401 from contracting with
other licensees to improve cellular telephone service.
SEC. 404. DEFINITIONS.
For the purposes of this title, the following defini-
tions shall apply: