I
104TH CONGRESS
1ST SESSION
H. R. 1555
To promote competition and reduce regulation in order to secure lower prices
and higher quality services for American telecommunications consumers
and encourage the rapid deployment of new telecommunications tech-
nologies.
IN THE HOUSE OF REPRESENTATIVES
MAY 3, 1995
Mr. BLILEY (for himself, Mr. DINGELL, Mr. FIELDS of Texas, Mr. MOOR-
HEAD, Mr. OXLEY, Mr. BILIRAKIS, Mr. SCHAEFER, Mr. BARTON of
Texas, Mr. HASTERT, Mr. STEARNS, Mr. PAXON, Mr. GILLMOR, Mr.
KLUG, Mr. GREENWOOD, Mr. CRAPO, Mr. FRISA, Mr. WHITE, Mr.
COBURN, Mr. TAUZIN, Mr. HALL of Texas, Mr. BOUCHER, Mr. MANTON,
Mr. TOWNS, Ms. ESHOO, and Mrs. LINCOLN) 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 subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To promote competition and reduce regulation in order to
secure lower prices and higher quality services for Amer-
ican telecommunications consumers and encourage the
rapid deployment of new telecommunications tech-
nologies.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Communications Act of 1995’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—DEVELOPMENT OF COMPETITIVE
TELECOMMUNICATIONS MARKETS
Sec. 101. Establishment of part II of title II.
‘‘PART II—DEVELOPMENT OF COMPETITIVE MARKETS
‘‘Sec. 241. Interconnection.
‘‘Sec. 242. Equal access and interconnection to the local loop for compet-
ing providers.
‘‘Sec. 243. Preemption.
‘‘Sec. 244. Statements of terms and conditions for access and interconnec-
tion.
‘‘Sec. 245. Bell operating company entry into interLATA services.
‘‘Sec. 246. Universal service.
‘‘Sec. 247. Pricing flexibility and abolition of rate-of-return regulation.
‘‘Sec. 248. Network functionality and accessibility.
‘‘Sec. 249. Illegal changes in subscriber carrier selections.
‘‘Sec. 250. Study.
‘‘Sec. 251. Territorial exemption.
Sec. 102. Competition in manufacturing, information services, and alarm serv-
ices.
‘‘PART III—SPECIAL AND TEMPORARY PROVISIONS
‘‘Sec. 271. Manufacturing by Bell operating companies.
‘‘Sec. 272. Electronic publishing by Bell operating companies.
‘‘Sec. 273. Alarm monitoring and telemessaging services by Bell operating
companies.
Sec. 103. Forbearance from regulation.
‘‘Sec. 229. Forbearance from regulation.
Sec. 104. Privacy of customer information.
‘‘Sec. 222. Privacy of customer proprietary network information.
Sec. 105. Pole attachments.
Sec. 106. Preemption of franchising authority regulation of telecommunications
services.
Sec. 107. Mobile service access to long distance carriers.
TITLE II—CABLE COMMUNICATIONS COMPETITIVENESS
Sec. 201. Cable service provided by telephone companies.
‘‘PART V—VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE
COMPANIES
‘‘Sec. 651. Definitions.
‘‘Sec. 652. Separate video programming affiliate.
‘‘Sec. 653. Establishment of video platform.
‘‘Sec. 654. Authority to prohibit cross-subsidization.
‘‘Sec. 655. Prohibition on buy outs.
‘‘Sec. 656. Applicability of parts I through IV.
‘‘Sec. 657. Rural area exemption.
Sec. 202. Competition from cable systems.
Sec. 203. Competitive availability of navigation devices.
‘‘Sec. 713. Competitive availability of navigation devices.
Sec. 204. Video programming accessibility.
Sec. 205. Technical amendments.
TITLE III—BROADCAST COMMUNICATIONS COMPETITIVENESS
Sec. 301. Broadcaster spectrum flexibility.
‘‘Sec. 336. Broadcast spectrum flexibility.
Sec. 302. Term of licenses.
Sec. 303. Broadcast license renewal procedures.
Sec. 304. Exclusive Federal jurisdiction over direct broadcast satellite service.
Sec. 305. Automated ship distress and safety systems.
Sec. 306. Restrictions on over-the-air reception devices.
Sec. 307. DBS signal security.
TITLE IV—EFFECT ON OTHER LAWS
Sec. 401. Relationship to other laws.
Sec. 402. Preemption of local taxation with respect to direct-to-home satellite
services.
TITLE V—DEFINITIONS
Sec. 501. Definitions.
TITLE 
I—DEVELOPMENT 
OF
COMPETITIVE TELECOMMUN-
ICATIONS MARKETS
SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.
(a) AMENDMENT.—Title II of the Communications
Act of 1934 is amended by inserting after section 229 (47
U.S.C. 229) the following new part:
‘‘PART II—DEVELOPMENT OF COMPETITIVE
MARKETS
‘‘SEC. 241. INTERCONNECTION.
‘‘The duty of a common carrier under section 201(a)
includes the duty to interconnect with the facilities and
equipment of other providers of telecommunications serv-
ices and information services.
‘‘SEC. 242. EQUAL ACCESS AND INTERCONNECTION TO THE
LOCAL LOOP FOR COMPETING PROVIDERS.
‘‘(a) 
OPENNESS
AND
ACCESSIBILITY
OBLIGA-
TIONS.—The duty under section 201(a) of a local ex-
change carrier includes the following duties:
‘‘(1) INTERCONNECTION.—The duty to provide,
in accordance with subsection (b), equal access to
and interconnection with the facilities of the car-
rier’s networks to any other carrier or person offer-
ing (or seeking to offer) telecommunications services
or information services reasonably requesting such
equal access and interconnection, so that such net-
works are fully interoperable with such telecommuni-
cations services and information services.
‘‘(2) UNBUNDLING OF NETWORK ELEMENTS.—
The duty to offer unbundled services, elements, fea-
tures, functions, and capabilities whenever tech-
nically feasible and economically reasonable, at just,
reasonable, and nondiscriminatory prices and in ac-
cordance with subsection (b)(4).
‘‘(3) RESALE.—The duty not to prohibit, and
not to impose unreasonable or discriminatory condi-
tions or limitations on, the resale, on a bundled or
unbundled basis, of services, elements, features,
functions, and capabilities in conjunction with the
furnishing of a telecommunications service or an in-
formation service.
‘‘(4) NUMBER PORTABILITY.—The duty to pro-
vide, to the extent technically feasible and economi-
cally reasonable, number portability in accordance
with requirements prescribed by the Commission.
‘‘(5) DIALING PARITY.—The duty to provide, in
accordance with subsection (c), dialing parity to
competing providers of telephone exchange service
and telephone toll service.
‘‘(6) ACCESS TO RIGHTS OF WAY.—The duty to
afford access to the poles, ducts, conduits, and
rights of way of such carrier to competing providers
of telecommunications services in accordance with
section 224(d).
‘‘(7) NETWORK
FUNCTIONALITY
AND
ACCES-
SIBILITY.—The duty not to install network features,
functions, or capabilities that do not comply with the
standards established pursuant to section 248.
‘‘(8) GOOD FAITH NEGOTIATION.—The duty to
negotiate, under the supervision of State commis-
sions, the particular terms and conditions of agree-
ments to fulfill the duties described in paragraphs
(1) through (7).
‘‘(b) 
INTERCONNECTION, 
COMPENSATION, 
AND
EQUAL ACCESS.—
‘‘(1) INTERCONNECTION.—A local exchange
carrier shall provide access to and interconnection
with the facilities of the carrier’s network at any
technically feasible and economically reasonable
point within the carrier’s network on just and rea-
sonable terms and conditions, to any other carrier or
person offering (or seeking to offer) telecommuni-
cations services or information services requesting
such access.
‘‘(2) INTERCARRIER COMPENSATION BETWEEN
FACILITIES-BASED CARRIERS.—
‘‘(A) IN GENERAL.—For the purposes of
paragraph (1), the terms and conditions for
interconnection of the network of a competing
provider of telephone exchange service shall not
be considered to be just and reasonable un-
less—
‘‘(i) such terms and conditions provide
for the mutual and reciprocal recovery by
each carrier of costs associated with the
termination on such carrier’s network of
calls that originate on the network of the
other carrier;
‘‘(ii) such terms and conditions deter-
mine such costs on the basis of a reason-
able approximation of the additional costs
of terminating such calls; and
‘‘(iii) the recovery of costs permitted
by such terms and conditions are reason-
able in relation to the prices for termi-
nation of calls that would prevail in a com-
petitive market.
‘‘(B) RULES
OF
CONSTRUCTION.—This
paragraph shall not be construed—
‘‘(i) to preclude arrangements that af-
ford such mutual recovery of costs through
the offsetting of reciprocal obligations, in-
cluding arrangements that waive mutual
recovery (such as bill-and-keep arrange-
ments); or
‘‘(ii) to authorize the Commission or
any State commission to engage in any
rate regulation proceeding to establish with
particularity the additional costs of termi-
nating calls, or to require carriers to main-
tain records with respect to the additional
costs of terminating calls.
‘‘(3) EQUAL ACCESS.—A local exchange carrier
shall afford, to any other carrier or person offering
(or seeking to offer) a telecommunications service or
an information service, reasonable and nondiscrim-
inatory access on an unbundled basis—
‘‘(A) to databases, signaling systems,
poles, ducts, conduits, and rights-of-way owned
or controlled by a local exchange carrier, or
other facilities, functions, or information (in-
cluding subscriber numbers) integral to the effi-
cient transmission, routing, or other provision
of telephone exchange services or exchange ac-
cess;
‘‘(B) that is at least equal in type, quality,
and price to the access which the carrier affords
to itself or to any other person; and
‘‘(C) that is sufficient to ensure the full
interoperability of the equipment and facilities
of the carrier and of the person seeking such
access.
‘‘(4) COMMISSION ACTION REQUIRED.—
‘‘(A) IN
GENERAL.—Within 15 months
after the date of enactment of this part, the
Commission shall complete all actions necessary
(including any reconsideration) to establish reg-
ulations to implement the requirements of this
section. The Commission shall establish such
regulations after consultation with the Joint
Board established pursuant to section 246.
‘‘(B) 
COLLOCATION.—Such 
regulations
shall provide for actual collocation of equipment
necessary for interconnection for telecommuni-
cations services at the premises of a local ex-
change carrier, except that the regulations shall
provide for virtual collocation where the local
exchange carrier demonstrates that actual col-
location is not practical for technical reasons or
because of space limitations.
‘‘(C) USER
PAYMENT
OF
UNBUNDLING
COSTS.—Such regulations shall require that the
costs that a carrier incurs in offering unbundled
services, elements, features, functions, and ca-
pabilities shall be borne by the users of such
services, elements, features, functions, and ca-
pabilities.
‘‘(D) IMPUTED
CHARGES
TO
CARRIER.—
Such regulations shall require the carrier, to
the extent it provides a telecommunications
service or an information service, to impute
such access and interconnection charges to it-
self.
‘‘(c) NUMBER PORTABILITY AND DIALING PARITY.—
‘‘(1) AVAILABILITY.—A local exchange carrier
shall ensure that—
‘‘(A) number portability shall be available
on request in accordance with subsection (a)(4);
and
‘‘(B) dialing parity shall be available upon
request, except that, in the case of a Bell oper-
ating company, such company shall ensure that
dialing parity for intraLATA telephone toll
service shall be available not later than the date
such 
company 
is 
authorized 
to 
provide
interLATA services.
‘‘(2) NUMBER ADMINISTRATION.—The Commis-
sion shall designate an impartial entity to administer
telecommunications numbering and to make such
numbers available on an equitable basis. The Com-
mission shall have exclusive jurisdiction over those
portions of the North American Numbering Plan
that pertain to the United States. Nothing in this
paragraph shall preclude the Commission from dele-
gating to State commissions or other entities any
portion of such jurisdiction.
‘‘(d) MODIFICATIONS AND WAIVERS.—The Commis-
sion may modify or waive the requirements of this section
for any local exchange carrier (or class or category of such
carriers) that has, in the aggregate nationwide, fewer than
500,000 access lines installed, to the extent that the Com-
mission determines that compliance with such require-
ments (without such modification) would be unduly eco-
nomically burdensome, technologically infeasible, or other-
wise not in the public interest.
‘‘(e) AVOIDANCE OF REDUNDANT REGULATIONS.—
Nothing in this section shall be construed to prohibit the
Commission from enforcing regulations prescribed prior to
the date of enactment of this part in fulfilling the require-
ments of this section, to the extent that such regulations
are consistent with the provisions of this section.
‘‘SEC. 243. PREEMPTION.
‘‘(a) REMOVAL OF BARRIERS TO ENTRY.—Except as
provided in subsection (b) of this section, no State or local
statute, regulation, or other legal requirement shall—
‘‘(1) effectively prohibit any carrier or other
person from entering the business of providing inter-
state or intrastate telecommunications services or in-
formation services; or
‘‘(2) effectively prohibit any carrier or other
person providing interstate or intrastate tele-
communications services or information services
from exercising the access and interconnection rights
provided under this part.
‘‘(b) STATE AND LOCAL AUTHORITY.—Nothing in
this section shall affect the ability of State or local officials
to impose, on a nondiscriminatory basis, requirements nec-
essary to preserve and advance universal service, protect
the public safety and welfare, ensure the continued quality
of telecommunications services, ensure that a provider’s
business practices are consistent with consumer protection
laws and regulations, and ensure just and reasonable
rates, provided that such requirements do not effectively
prohibit any carrier or person from providing interstate
or intrastate telecommunications services or information
services.
‘‘(c) CONSTRUCTION PERMITS.—Subsection (a) shall
not be construed to prohibit a local government from re-
quiring a person or carrier to obtain ordinary and usual
construction or similar permits for its operations if—
‘‘(1) such permit is required without regard to
the nature of the business; and
‘‘(2) requiring such permit does not effectively
prohibit any person or carrier from providing any
interstate or intrastate telecommunications service
or information service.
‘‘(d) EXCEPTION.—In the case of commercial mobile
services, the provisions of section 332(c)(3) shall apply in
lieu of the provisions of this section.
‘‘(e) 
PARITY
OF
FRANCHISE
AND
OTHER
CHARGES.—Notwithstanding section 2(b), no local gov-
ernment may impose or collect any franchise, license, per-
mit, or right-of-way fee or any assessment, rental, or any
other charge or equivalent thereof as a condition for oper-
ating in the locality or for obtaining access to, occupying,
or crossing public rights-of-way from any provider of tele-
communications services that distinguishes between or
among providers of telecommunications services, including
the local exchange carrier. For purposes of this subsection,
a franchise, license, permit, or right-of-way fee or an as-
sessment, rental, or any other charge or equivalent thereof
does not include any imposition of general applicability
which does not distinguish between or among providers of
telecommunications services, or any tax.
‘‘SEC. 244. STATEMENTS OF TERMS AND CONDITIONS FOR
ACCESS AND INTERCONNECTION.
‘‘(a) IN GENERAL.—Within 18 months after the date
of enactment of this part, and from time to time there-
after, a local exchange carrier shall prepare and file with
a State commission statements of the terms and condi-
tions that such carrier generally offers within that State
with respect to the services or elements provided to comply
with the equal access and interconnection requirements of
section 242 and the regulations thereunder. Any such
statement pertaining to the charges for interstate services
or elements shall be filed with the Commission.
‘‘(b) REVIEW.—
‘‘(1) STATE
COMMISSION
REVIEW.—A State
commission to which a statement is submitted under
subsection (a) shall review such statement in accord-
ance with State law. A State commission may not
approve such statement unless such statement com-
plies with section 242 and the regulations there-
under. Except as provided in section 243, nothing in
this section shall prohibit a State commission from
establishing or enforcing other requirements of State
law in its review of such statement.
‘‘(2) FCC REVIEW.—The Commission shall re-
view such statements to ensure that—
‘‘SEC. 
245. 
BELL 
OPERATING 
COMPANY 
ENTRY 
INTO
INTERLATA SERVICES.
‘‘(a) VERIFICATION OF ACCESS AND INTERCONNEC-
TION COMPLIANCE.—At any time after 18 months after
the date of enactment of this part, a Bell operating com-
pany may provide to the Commission verification by such
company with respect to one or more States that such
company is in compliance with the requirements of this
part. Such verification shall contain the following:
‘‘(1) CERTIFICATION.—A certification by each
State commission of such State or States that such
carrier is in compliance with the standards described
in subsection (b), except as provided in subsection
(c)(2).
‘‘(2) AGREEMENT OR STATEMENT.—For each
such State, either of the following:
‘‘(A) PRESENCE OF A FACILITIES-BASED
COMPETITOR.—An agreement that has been ap-
proved under section 243 specifying the terms
and conditions under which the Bell operating
company is providing access and interconnec-
tion to its network in accordance with section
242 for the network of a competing provider of
telephone exchange service.
‘‘(B) FAILURE TO REQUEST ACCESS.—If
no such provider has requested such access and
interconnection before the date which is 3
months before the date the company makes its
submission under this subsection, a statement
of the terms and conditions that the carrier
generally offers to provide such access and
interconnection that has been approved or per-
mitted to take effect by the State commission
under section 243.
‘‘(b) CERTIFICATION OF COMPLIANCE WITH PART
II.—For the purposes of subsection (a)(1), a Bell operat-
ing company shall submit to the Commission a certifi-
cation by a State commission of compliance with each of
the following conditions in such State:
‘‘(1) INTERCONNECTION.—The Bell operating
company provides access and interconnection in ac-
cordance with subsections (a)(1) and (b) of section
242 to any other carrier or person offering tele-
communications services requesting such access and
interconnection, and complies with the Commission
regulations pursuant to such section concerning such
access and interconnection.
‘‘(2) UNBUNDLING OF NETWORK ELEMENTS.—
The Bell operating company provides unbundled fea-
tures, functions, and capabilities in accordance with
subsection (a)(2) of section 242 and the regulations
prescribed by the Commission pursuant to such sec-
tion.
‘‘(3) RESALE AND SHARING.—Neither the Bell
operating company, nor any unit of State or local
government within the State, imposes any restric-
tions on resale or sharing of telephone exchange
service (or unbundled services, elements, features, or
functions of telephone exchange service) in violation
of section 242(a)(3).
‘‘(4) NUMBER PORTABILITY.—The Bell operat-
ing company provides number portability in compli-
ance with the Commission’s regulations pursuant to
subsections (a)(4) and (c) of section 242.
‘‘(5) DIALING
PARITY.—The Bell operating
company provides dialing parity in accordance with
subsections (a)(5) and (c) of section 242, and will,
not later than the effective date of its authority to
commence providing interLATA services, take such
actions as are necessary to provide dialing parity for
intraLATA telephone toll service in accordance with
such subsections.
‘‘(6) ACCESS
TO
CONDUITS
AND
RIGHTS
OF
WAY.—The poles, ducts, conduits, and rights of way
of such Bell operating company are available to com-
peting providers of telecommunications services in
accordance with the requirements of sections
242(a)(6) and 224(d).
‘‘(7) ELIMINATION
OF
FRANCHISE
LIMITA-
TIONS.—No unit of the State or local government in
such State or States imposes any prohibition or limi-
tation in violation of section 243.
‘‘(8) NETWORK
FUNCTIONALITY
AND
ACCES-
SIBILITY.—The Bell operating company will not in-
stall network features, functions, or capabilities that
do not comply with the standards established pursu-
ant to section 248.
‘‘(9) NEGOTIATION
OF
TERMS
AND
CONDI-
TIONS.—The Bell operating company has negotiated
in good faith, under the supervision of the State
commission, in accordance with the requirements of
section 242(a)(8) with any person requesting access
or interconnection.
‘‘(c) COMMISSION REVIEW.—
‘‘(1) REVIEW OF STATE DECISIONS AND CER-
TIFICATIONS.—The Commission shall review any
verification submitted by a Bell operating company
pursuant to subsection (a). The Commission may re-
quire such company to submit such additional infor-
mation as is necessary to validate any of the items
of such verification.
‘‘(2) DE NOVO REVIEW.—If—
‘‘(A) a State commission does not have the
jurisdiction or authority to make the certifi-
cation required by subsection (b);
‘‘(B) the State commission has failed to
act within 90 days after the date a request for
such certification is filed with such State com-
mission; or
‘‘(C) the State commission has sought to
impose a term or condition in violation of sec-
tion 243;
the local exchange carrier may request the Commis-
sion to certify the carrier’s compliance with the con-
ditions specified in subsection (b).
‘‘(3) TIME FOR DECISION; PUBLIC COMMENT.—
Unless such Bell operating company consents to a
longer period of time, the Commission shall approve,
disapprove, or approve with conditions such verifica-
tion within 90 days after the date of its submission.
During such 90 days, the Commission shall afford
interested persons an opportunity to present infor-
mation and evidence concerning such verification.
‘‘(4) STANDARD FOR DECISION.—The Commis-
sion shall not approve such verification unless the
Commission determines that—
‘‘(A) the Bell operating company meets
each of the conditions required to be certified
under subsection (b); and
‘‘(B) the agreement or statement submit-
ted under subsection (a)(2) complies with the
requirements of section 242 and the regulations
thereunder.
‘‘(d) ENFORCEMENT OF CONDITIONS.—
‘‘(1) COMMISSION AUTHORITY.—If at any time
after the approval of a verification under subsection
(c), the Commission determines that a Bell operat-
ing company has ceased to meet any of the condi-
tions required to be certified under subsection (b),
the Commission may, after notice and opportunity
for a hearing—
‘‘(A) issue an order to such company to
correct the deficiency;
‘‘(B) impose a penalty on such company
pursuant to title V; or
‘‘(C) suspend or revoke such approval.
‘‘(2) RECEIPT AND REVIEW OF COMPLAINTS.—
The Commission shall establish procedures for the
review of complaints concerning failures by Bell op-
erating companies to meet conditions required to be
certified under subsection (b). Unless the parties
otherwise agree, the Commission shall act on such
complaint within 90 days.
‘‘(3) STATE AUTHORITY.—The authority of the
Commission under this subsection shall not be con-
strued to preempt any State commission from taking
actions to enforce the conditions required to be cer-
tified under subsection (b).
‘‘(e) AUTHORITY TO PROVIDE INTERLATA SERV-
ICES.—
‘‘(1) PROHIBITION.—Except as provided in
paragraph (2) and subsection (f), a Bell operating
company may not provide interLATA services.
‘‘(2) 
AUTHORITY
SUBJECT
TO
CERTIFI-
CATION.—A Bell operating company may, in any
States to which its verification under subsection (a)
applies, provide interLATA services—
‘‘(A) during any period after the effective
date of the Commission’s approval of such ver-
ification pursuant to subsection (c), and
‘‘(B) until the approval of such verification
is suspended or revoked by the Commission
pursuant to subsection (c).
‘‘(f) EXCEPTIONS FOR INCIDENTAL SERVICES.—Sub-
section (e) shall not prohibit a Bell operating company,
at any time after the date of the enactment of this part,
from providing interLATA services for the purpose of—
‘‘(1)(A) providing audio programming, video
programming, or other programming services to sub-
scribers to such services of such company;
‘‘(B) providing the capability for interaction by
such subscribers to select or respond to such audio
programming, video programming, or other pro-
gramming services; or
‘‘(C) providing to distributors audio program-
ming or video programming that such company owns
or controls, or is licensed by the copyright owner of
such programming (or by an assignee of such owner)
to distribute;
‘‘(2) providing a telecommunications service,
using the transmission facilities of a cable system
that is an affiliate of such company, between local
access and transport areas within a cable system
franchise area in which such company is not, on the
date of the enactment of this Act, a provider of
wireline telephone exchange service;
‘‘(3) providing commercial mobile services in ac-
cordance with section 332(c) of this Act and with
the regulations prescribed by the Commission pursu-
ant to paragraph (7) of such section;
‘‘(4) providing a service that permits a cus-
tomer that is located in one local access and trans-
port area to retrieve stored information from, or file
information for storage in, information storage fa-
cilities of such company that are located in another
local access and transport area;
‘‘(5) providing signaling information used in
connection with the provision of telephone exchange
services to a local exchange carrier that, together
with any affiliated local exchange carriers, has ag-
gregate annual revenues of less than $100,000,000;
or
‘‘(6) providing network control signaling infor-
mation to, and receiving such signaling information
from, common carriers offering interLATA services
at any location within the area in which such Bell
operating company provides telephone exchange
services or exchange access.
‘‘(g) FORBEARANCE.—The Commission may not,
pursuant to section 229, forbear from applying any provi-
sion of this section or any regulation thereunder until at
least 5 years after the date of enactment of this part.
‘‘(h) SUNSET.—The provisions of this section shall
cease to apply in any local exchange market, defined by
geographic area and class or category of service, that the
Commission determines has become subject to full and
open competition.
‘‘(i) DEFINITIONS.—As used in this section—
‘‘(1) AUDIO PROGRAMMING.—The term ‘audio
programming’ means programming provided by, or
generally considered comparable to programming
provided by, a radio broadcast station.
‘‘(2) VIDEO PROGRAMMING.—The term ‘video
programming’ has the meaning provided in section
602.
‘‘(3) 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 this Act.
‘‘SEC. 246. UNIVERSAL SERVICE.
‘‘(a) JOINT BOARD TO PRESERVE UNIVERSAL SERV-
ICE.—Within 30 days after the date of enactment of this
part, the Commission shall convene a Federal-State Joint
Board under section 410(c) for the purpose of rec-
ommending actions to the Commission and State commis-
sions for the preservation of universal service in further-
ance of the purposes set forth in section 1 of this Act.
In addition to the members required under section 410(c),
one member of the Joint Board shall be a State-appointed
utility consumer advocate nominated by a national organi-
zation of State utility consumer advocates.
‘‘(b) PRINCIPLES.—The Joint Board shall base poli-
cies for the preservation of universal service on the follow-
ing principles:
‘‘(1) JUST AND REASONABLE RATES.—A plan
adopted by the Commission and the States should
ensure the continued viability of universal service by
maintaining quality services at just and reasonable
rates.
‘‘(2) DEFINITIONS
OF
INCLUDED
SERVICES;
COMPARABILITY
IN
URBAN
AND
RURAL
AREAS.—
Such plan should recommend a definition of the na-
ture and extent of the services encompassed within
carriers’ universal service obligations. Such plan
should seek to promote access to advanced tele-
communications services and capabilities, and to
promote reasonably comparable services for the gen-
eral public in urban and rural areas, while maintain-
ing just and reasonable rates.
‘‘(3) ADEQUATE
AND
SUSTAINABLE
SUPPORT
MECHANISMS.—Such plan should recommend spe-
cific and predictable mechanisms to provide ade-
quate and sustainable support for universal service.
‘‘(4) EQUITABLE
AND
NONDISCRIMINATORY
CONTRIBUTIONS.—All providers of telecommuni-
cations services should make an equitable and non-
discriminatory contribution to the preservation of
universal service.
‘‘(5) EDUCATIONAL
ACCESS
TO
ADVANCED
TELECOMMUNICATIONS
SERVICES.—To the extent
that a common carrier establishes advanced tele-
communications services, such plan should include
recommendations to ensure access to advanced tele-
communications services for students in elementary
and secondary schools.
‘‘(6) ADDITIONAL
PRINCIPLES.—Such other
principles as the Board determines are necessary
and appropriate for the protection of the public in-
terest, convenience, and necessity and consistent
with the purposes of this Act.
‘‘(c) DEFINITION OF UNIVERSAL SERVICE.—In rec-
ommending a definition of the nature and extent of the
services encompassed within carriers’ universal service ob-
ligations under subsection (b)(2), the Joint Board shall
consider the extent to which—
‘‘(1) a telecommunications service has, through
the operation of market choices by customers, been
subscribed to by a substantial majority of residential
customers;
‘‘(2) such service or capability is essential to
public health, public safety, or the public interest;
‘‘(3) such service has been deployed in the pub-
lic switched telecommunications network; and
‘‘(4) inclusion of such service within carriers’
universal service obligations is otherwise consistent
with the public interest, convenience, and necessity.
The Joint Board may, from time to time, recommend to
the Commission modifications in the definition proposed
under subsection (b).
‘‘(d) REPORT; COMMISSION RESPONSE.—The Joint
Board convened pursuant to subsection (a) shall report
its recommendations within 270 days after the date of en-
actment of this part. The Commission shall complete any
proceeding to act upon such recommendations and to com-
ply with the principles set forth in subsection (b) within
one year after such date of enactment.
‘‘(e) STATE AUTHORITY.—Nothing in this section
shall be construed to restrict the authority of any State
to adopt regulations imposing universal service obligations
on the provisions of intrastate telecommunications serv-
ices.
‘‘(f) SUNSET.—The Joint Board established by this
section shall cease to exist 5 years after the date of enact-
ment of this part.
‘‘SEC. 247. PRICING FLEXIBILITY AND ABOLITION OF RATE-
OF-RETURN REGULATION.
‘‘(a) PRICING FLEXIBILITY.—
‘‘(1) COMMISSION CRITERIA.—Within 270 days
after the date of enactment of this part, the Com-
mission shall complete all actions necessary (includ-
ing any reconsideration) to establish—
‘‘(A) criteria for determining whether a
telecommunications service or provider of such
service has become, or is substantially certain
to become, subject to competition, either within
a geographic area or within a class or category
of service; and
‘‘(B) appropriate flexible pricing proce-
dures that afford a regulated provider of a serv-
ice described in subparagraph (A) the oppor-
tunity to respond fairly to such competition and
that are consistent with the protection of sub-
scribers and the public interest, convenience,
and necessity.
‘‘(2) STATE SELECTION.—A State commission
may utilize the flexible pricing procedures or proce-
dures (established under paragraph (1)(B)) that are
appropriate in light of the criteria established under
paragraph (1)(A).
‘‘(3) 
DETERMINATIONS.—The 
Commission,
with respect to rates for interstate or foreign com-
munications, and State commissions, with respect to
rates for intrastate communications, shall, upon ap-
plication—
‘‘(A) render determinations in accordance
with the criteria established under paragraph
(1)(A) concerning the services or providers that
are the subject of such application; and
‘‘(B) upon a proper showing, implement
appropriate flexible pricing procedures consist-
ent with paragraphs (1)(B) and (2) with re-
spect to such services or providers.
The Commission and such State commission shall
approve or reject any such application within 180
days after the date of its submission.
‘‘(b) ABOLITION
OF
RATE-OF-RETURN
REGULA-
TION.—Notwithstanding any other provision of law, to the
extent that a carrier has complied with sections 242 and
244 of this part, the Commission, with respect to rates
for interstate or foreign communications, and State com-
missions, with respect to rates for intrastate communica-
tions, shall not require rate-of-return regulation.
‘‘(c) TERMINATION OF PRICE REGULATION.—Not-
withstanding any other provision of law, to the extent that
a carrier has complied with sections 242 and 244 of this
part, the Commission, with respect to rates for interstate
or foreign communications, and State commissions, with
respect to rates for intrastate communications, shall not
regulate prices for services that are determined, in accord-
ance with the criteria established under subsection
(a)(1)(A), to be subject to competition that effectively pre-
vents rates for such services that are unjust or unreason-
able or unjustly or unreasonably discriminatory.
‘‘(d) ABILITY TO CONTINUE AFFORDABLE VOICE-
GRADE SERVICE.—Notwithstanding subsections (a), (b),
and (c), each State commission shall permit residential
subscribers to continue to receive only basic voice-grade
local telephone service equivalent to the service generally
available to residential subscribers on the date of enact-
ment of this part, at just, reasonable, and affordable rates.
Determinations concerning the affordability of rates for
such services shall, for a period of 3 years after the effec-
tive date of any flexible pricing procedure established
under this section, be based on the rates generally avail-
able to residential subscribers on such date of enactment
and the pricing rules established by the State commission.
‘‘(e) EXCEPTION.—In the case of commercial mobile
services, the provisions of section 332(c)(1) shall apply in
lieu of the provisions of this section.
‘‘(f) AVOIDANCE OF REDUNDANT REGULATIONS.—
Nothing in this section shall be construed to prohibit the
Commission or a State commission from enforcing regula-
tions prescribed prior to the date of enactment of this part
in fulfilling the requirements of this section, to the extent
that such regulations are consistent with the provisions
of this section.
‘‘SEC. 248. NETWORK FUNCTIONALITY AND ACCESSIBILITY.
‘‘(a) FUNCTIONALITY
AND
ACCESSIBILITY.—The
duty of a common carrier under section 201(a) to furnish
communications service includes the duty to furnish that
service in accordance with the standards established pur-
suant to this section.
‘‘(b) COORDINATION
FOR INTEROPERABILITY
AND
ACCESSIBILITY.—The Commission shall establish—
‘‘(1) procedures for the conduct of coordinated
network planning by common carriers and other pro-
viders of telecommunications services or information
services, subject to Commission supervision, for the
effective and efficient interconnection and interoper-
ability of public and private networks; and
‘‘(2) procedures for Commission oversight of
the development by appropriate industry standards-
setting organizations of—
‘‘(A) standards for the interconnection and
interoperability of such networks;
‘‘(B) standards that promote access to net-
work capabilities and services by individuals
with disabilities; and
‘‘(C) standards that promote access to in-
formation services by subscribers to telephone
exchange service furnished by a rural telephone
company.
‘‘(c) ACCESSIBILITY FOR INDIVIDUALS WITH DIS-
ABILITIES.—
‘‘(1) ACCESSIBILITY.—Within 1 year after the
date of enactment of this section, the Commission
shall prescribe such regulations as are necessary to
ensure that advances in network services deployed by
local exchange carriers shall be accessible and usable
by individuals with disabilities, including individuals
with functional limitations of hearing, vision, move-
ment, manipulation, speech, and interpretation of in-
formation, unless the cost of making the services ac-
cessible and usable would result in an undue burden
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 ac-
cess. Throughout the process of developing such reg-
ulations, the Commission shall coordinate and con-
sult with representatives of individuals with disabil-
ities and interested equipment and service providers
to ensure their concerns and interests are given full
consideration in such process.
‘‘(2) COMPATIBILITY.—Such regulations shall
require that whenever an undue burden or adverse
competitive impact would result from the require-
ments in paragraph (1), the local exchange carrier
that deploys the network service shall ensure that
the network service in question is compatible with
existing peripheral devices or specialized customer
premises equipment commonly used by persons with
disabilities to achieve access, unless doing so would
result in an undue burden or adverse competitive im-
pact.
‘‘(3) UNDUE BURDEN.—The term ‘undue bur-
den’ means significant difficulty or expense. In de-
termining whether the activity necessary to comply
with the requirements of this subsection would result
in an undue burden, the factors to be considered in-
clude the following:
‘‘(A) The nature and cost of the activity.
‘‘(B) The impact on the operation of the
facility involved in the deployment of the net-
work service.
‘‘(C) The financial resources of the local
exchange carrier.
‘‘(D) The type of operations of the local
exchange carrier.
‘‘(4) ADVERSE COMPETITIVE IMPACT.—In de-
termining whether the activity necessary to comply
with the requirements of this subsection would result
in adverse competitive impact, the following factors
shall be considered:
‘‘(A) Whether such activity would raise the
cost of the network service in question beyond
the level at which there would be sufficient
consumer demand by the general population to
make the network service profitable.
‘‘(B) Whether such activity would, with re-
spect to the network service in question, put the
local exchange carrier at a competitive dis-
advantage. This factor may be considered so
long as competing network service providers are
not held to the same obligation with respect to
access by persons with disabilities.
‘‘(5) EFFECTIVE
DATE.—The regulations re-
quired by this subsection shall become effective 18
months after the date of enactment of this part.
‘‘SEC. 249. ILLEGAL CHANGES IN SUBSCRIBER CARRIER SE-
LECTIONS.
‘‘No common carrier shall submit or execute a change
in a subscriber’s selection of a provider of telephone ex-
change service or telephone toll service except in accord-
ance with such verification procedures as the Commission
shall prescribe. Nothing in this section shall preclude any
State commission from enforcing such procedures with re-
spect to intrastate services.
‘‘SEC. 250. STUDY.
‘‘At least once every three years, the Commission
shall conduct a study that—
‘‘(1) reviews the definition of, and the adequacy
of support for, universal service, and evaluates the
extent to which universal service has been protected
and access to advanced services has been facilitated
pursuant to this part and the plans and regulations
thereunder;
‘‘(2) evaluates the extent to which access to ad-
vanced telecommunications services for students in
elementary and secondary school classrooms has
been attained pursuant to section 246(b)(5); and
‘‘(3) determines whether the regulations estab-
lished under section 248(c) have ensured that ad-
vances in network services by providers of tele-
communications services and information services
are accessible and usable by individuals with disabil-
ities.
‘‘SEC. 251. TERRITORIAL EXEMPTION.
‘‘Until 5 years after the date of enactment of this
part, the provisions of this part shall not apply to any local
exchange carrier in any United States territory if (1) the
local exchange carrier is owned by the government of such
territory, and (2) on the date of enactment of this Act,
the number of households subscribing to telephone service
is less than 85 percent of the total households located in
such territory.’’.
(b) CONSOLIDATED RULEMAKING PROCEEDING.—
The Commission shall conduct a single consolidated rule-
making proceeding to prescribe or amend regulations nec-
essary to implement the requirements of—
(1) part II of title II of the Communications
Act of 1934 as added by subsection (a) of this sec-
tion;
(2) section 222 as amended by section 104 of
this Act; and
(3) section 224 as amended by section 105 of
this Act.
(c) DESIGNATION OF PART I.—Title II of the Act
is further amended by inserting before the heading of sec-
tion 201 the following new heading:
‘‘PART I—REGULATION OF DOMINANT COMMON
CARRIERS’’.
(d) CONFORMING AMENDMENTS.
(1) FEDERAL-STATE
JURISDICTION.—Section
2(b) of the Communications Act of 1934 (47 U.S.C.
152(b)) is amended by inserting ‘‘part II of title II,’’
after ‘‘227, inclusive,’’.
(2) FORFEITURES.—Sections 503(b)(1) and
504(b) of such Act (47 U.S.C. 503(b)) are each
amended by inserting ‘‘part I of’’ before ‘‘title II’’.
SEC. 103. COMPETITION IN MANUFACTURING, INFORMA-
TION SERVICES, AND ALARM SERVICES.
(a) COMPETITION
IN MANUFACTURING, INFORMA-
TION SERVICES, AND ALARM SERVICES..—Title II of the
Act is amended by adding at the end of part II (as added
by section 101) the following new part:
‘‘PART III—SPECIAL AND TEMPORARY
PROVISIONS
‘‘SEC. 271. MANUFACTURING BY BELL OPERATING COMPA-
NIES.
‘‘(a) ACCESS AND INTERCONNECTION.—It shall be
unlawful for a Bell operating company, directly or through
an affiliate, to manufacture or provide telecommunications
equipment, or to manufacture customer premises equip-
ment, until the Commission has approved under section
245(c) verifications that such Bell operating company, and
each Bell operating company with which it is affiliated,
are in compliance with the access and interconnection re-
quirements of part II of this title.
‘‘(b) COLLABORATION.—Nothing in this section
(other than subsection (f)) shall be construed to limit or
restrict the ability of a Bell operating company and its
affiliates to engage in close collaboration with any manu-
facturer of customer premises equipment or telecommuni-
cations equipment during the design and development of
hardware, software, or combinations thereof related to
such equipment.
‘‘(c) 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.
‘‘(d) INFORMATION REQUIREMENTS.—
‘‘(1) INFORMATION ON PROTOCOLS AND TECH-
NICAL REQUIREMENTS.—Each Bell operating com-
pany shall, in accordance with regulations prescribed
by the Commission, maintain and file with the Com-
mission full and complete information with respect
to the protocols and technical requirements for con-
nection with and use of its telephone exchange serv-
ice 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) DISCLOSURE TO AFFILIATES.—A Bell op-
erating company shall not disclose to any of its af-
filiates any information required to be filed under
paragraph (1) unless that information is filed
promptly, as required by regulation by the Commis-
sion.
‘‘(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 affili-
ate.
‘‘(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) ADMINISTRATION AND ENFORCEMENT AUTHOR-
ITY.—For the purposes of administering and enforcing the
provisions of this section and the regulations prescribed
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 enforcing the provisions of this title
with respect to any common carrier subject to this Act.
‘‘(f) ANTITRUST LAWS.—Nothing in this section shall
be construed to modify, impair, or supersede the applica-
bility of any of the antitrust laws.
‘‘(g) DEFINITION.—As used in this section, the term
‘manufacturing’ has the same meaning as such term has
under the Modification of Final Judgment.
‘‘SEC. 272. ELECTRONIC PUBLISHING BY BELL OPERATING
COMPANIES.
‘‘(a) LIMITATIONS.—No Bell operating company or
any affiliate may engage in the provision of electronic pub-
lishing that is disseminated by means of such Bell operat-
ing company’s or any of its affiliates’ basic telephone serv-
ice, except that nothing in this section shall prohibit a sep-
arated affiliate or electronic publishing joint venture oper-
ated in accordance with this section from engaging in the
provision of electronic publishing.
‘‘(b) SEPARATED AFFILIATE OR ELECTRONIC PUB-
LISHING JOINT VENTURE REQUIREMENTS.—A separated
affiliate or electronic publishing joint venture shall be op-
erated independently from the Bell operating company.
Such separated affiliate or joint venture and the Bell oper-
ating company with which it is affiliated shall—
‘‘(1) maintain separate books, records, and ac-
counts and prepare separate financial statements;
‘‘(2) not incur debt in a manner that would per-
mit a creditor of the separated affiliate or joint ven-
ture upon default to have recourse to the assets of
the Bell operating company;
‘‘(3) carry out transactions (A) in a manner
consistent with such independence, (B) pursuant to
written contracts or tariffs that are filed with the
Commission and made publicly available, and (C) in
a manner that is auditable in accordance with gen-
erally accepted auditing standards;
‘‘(4) value any assets that are transferred di-
rectly or indirectly from the Bell operating company
to a separated affiliate or joint venture, and record
any transactions by which such assets are trans-
ferred, in accordance with such regulations as may
be prescribed by the Commission or a State commis-
sion to prevent improper cross subsidies;
‘‘(5) between a separated affiliate and a Bell
operating company—
‘‘(A) have no officers, directors, and em-
ployees in common after the effective date of
this section; and
‘‘(B) own no property in common;
‘‘(6) not use for the marketing of any product
or service of the separated affiliate or joint venture,
the name, trademarks, or service marks of an exist-
ing Bell operating company except for names, trade-
marks, or service marks that are or were used in
common with the entity that owns or controls the
Bell operating company;
‘‘(7) not permit the Bell operating company—
‘‘(A) to perform hiring or training of per-
sonnel on behalf of a separated affiliate;
‘‘(B) to perform the purchasing, installa-
tion, or maintenance of equipment on behalf of
a separated affiliate, except for telephone serv-
ice that it provides under tariff or contract sub-
ject to the provisions of this section; or
‘‘(C) to perform research and development
on behalf of a separated affiliate;
‘‘(8) each have performed annually a compli-
ance review—
‘‘(A) that is conducted by an independent
entity for the purpose of determining compli-
ance during the preceding calendar year with
any provision of this section; and
‘‘(B) the results of which are maintained
by the separated affiliate or joint venture and
the Bell operating company 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) JOINT MARKETING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2)—
‘‘(A) a Bell operating company shall not
carry out any promotion, marketing, sales, or
advertising for or in conjunction with a sepa-
rated affiliate; and
‘‘(B) a Bell operating company shall not
carry out any promotion, marketing, sales, or
advertising for or in conjunction with an affili-
ate that is related to the provision of electronic
publishing.
‘‘(2) PERMISSIBLE JOINT ACTIVITIES.—
‘‘(A) JOINT TELEMARKETING.—A Bell op-
erating 
company 
may 
provide 
inbound
telemarketing or referral services related to the
provision of electronic publishing for a sepa-
rated affiliate, electronic publishing joint ven-
ture, affiliate, or unaffiliated electronic pub-
lisher, provided that if such services are pro-
vided to a separated affiliate, electronic publish-
ing joint venture, or affiliate, such services shall
be made available to all electronic publishers on
request, on nondiscriminatory terms.
‘‘(B) TEAMING
ARRANGEMENTS.—A Bell
operating company may engage in nondiscrim-
inatory teaming or business arrangements to
engage in electronic publishing with any sepa-
rated affiliate or with any other electronic pub-
lisher if (i) the Bell operating company only
provides facilities, services, and basic telephone
service information as authorized by this sec-
tion, and (ii) the Bell operating company does
not own such teaming or business arrangement.
‘‘(C) 
ELECTRONIC
PUBLISHING
JOINT
VENTURES.—A Bell operating company or affil-
iate may participate on a nonexclusive basis in
electronic publishing joint ventures with entities
that are not any Bell operating company, affili-
ate, or separated affiliate to provide electronic
publishing services, if the Bell operating com-
pany or affiliate has not more than a 50 per-
cent direct or indirect equity interest (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
publishing joint venture. Officers and employees
of a Bell operating company or affiliate partici-
pating in an electronic publishing joint venture
may not have more than 50 percent of the vot-
ing control over the electronic publishing joint
venture. In the case of joint ventures with
small, local electronic publishers, the Commis-
sion 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 op-
erating company participating in an electronic
publishing joint venture may provide promotion,
marketing, sales, or advertising personnel and
services to such joint venture.
‘‘(d) 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)(7)
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.
‘‘(e) SEPARATED AFFILIATE REPORTING REQUIRE-
MENT.—Any separated affiliate under this section shall
file with the Commission annual reports in a form sub-
stantially equivalent to the Form 10–K required by regula-
tions of the Securities and Exchange Commission.
‘‘(f) EFFECTIVE DATES.—
‘‘(1) TRANSITION.—Any electronic publishing
service being offered to the public by a Bell operat-
ing 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.
‘‘(2) SUNSET.—The provisions of this section
shall not apply to conduct occurring after June 30,
2000.
‘‘(g) DEFINITION OF ELECTRONIC PUBLISHING.—
‘‘(1) IN GENERAL.—The term ‘electronic pub-
lishing’ means the dissemination, provision, publica-
tion, or sale to an unaffiliated entity or person, of
any one or more of the following: news (including
sports); business or financial reports; editorials, col-
umns, or features; advertising; photos or images of
a type used in publishing; archival material of a type
used in publishing legal notices; or other like or
similar information.
‘‘(2) EXCEPTIONS.—The term ‘electronic pub-
lishing’ shall not include the following services:
‘‘(A) Information access, as that term is
defined by the Modification of Final Judgment.
‘‘(B) The transmission of information as a
common carrier.
‘‘(C) 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.
‘‘(D) Voice storage and retrieval services,
including voice messaging and electronic mail
services.
‘‘(E) Data processing or transaction proc-
essing services that do not involve the genera-
tion or alteration of the content of information.
‘‘(F) Electronic billing or advertising of a
Bell 
operating 
company’s 
regulated 
tele-
communications services.
‘‘(G) Language translation or data format
conversion.
‘‘(H) The provision of information nec-
essary for the management, control, or oper-
ation of a telephone company telecommuni-
cations system.
‘‘(I) The provision of directory assistance
that provides names, addresses, and telephone
numbers and does not include advertising.
‘‘(J) Caller identification services.
‘‘(K) Repair and provisioning databases
and credit card and billing validation for tele-
phone company operations.
‘‘(L) 911–E and other emergency assist-
ance databases.
‘‘(M) Any other network service of a type
that is like or similar to these network services
and that does not involve the generation or al-
teration of the content of information.
‘‘(N) Any upgrades to these network serv-
ices that do not involve the generation or alter-
ation of the content of information.
‘‘(O) Video programming or full motion
video entertainment on demand.
‘‘(h) ADDITIONAL 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
wireline telephone exchange service provided by a
Bell operating company in a telephone exchange
area, except that such term does not include—
‘‘(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.
‘‘(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 serv-
ice.
‘‘(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) The term ‘electronic publishing joint ven-
ture’ means a joint venture owned by a Bell operat-
ing company or affiliate that engages in the provi-
sion of electronic publishing which is disseminated
by means of such Bell operating company’s or any
of its affiliates’ basic telephone service.
‘‘(6) The term ‘entity’ means any organization,
and includes corporations, partnerships, sole propri-
etorships, associations, and joint ventures.
‘‘(7) The term ‘inbound telemarketing’ means
the marketing of property, goods, or services by tele-
phone to a customer or potential customer who initi-
ated the call.
‘‘(8) The term ‘own’ with respect to an entity
means to have a direct or indirect equity interest (or
the equivalent thereof) of more than 10 percent of
an entity, or the right to more than 10 percent of
the gross revenues of an entity under a revenue
sharing or royalty agreement.
‘‘(9) The term ‘separated affiliate’ means a cor-
poration under common ownership or control with a
Bell operating company that does not own or control
a Bell operating company and is not owned or con-
trolled by a Bell operating company and that en-
gages in the provision of electronic publishing which
is disseminated by means of such Bell operating
company’s or any of its affiliates’ basic telephone
service.
‘‘(10) The term ‘Bell operating company’ has
the meaning provided in section 3, except that such
term includes any entity or corporation that is
owned or controlled by such a company (as so de-
fined) but does not include an electronic publishing
joint venture owned by such an entity or corpora-
tion.
‘‘SEC. 273. ALARM MONITORING AND TELEMESSAGING
SERVICES BY BELL OPERATING COMPANIES.
‘‘(a) DELAYED ENTRY INTO ALARM MONITORING.—
‘‘(1) PROHIBITION.—No Bell operating com-
pany or affiliate thereof shall engage in the provision
of alarm monitoring services before July 1, 2000.
‘‘(2) EXISTING
ACTIVITIES.—Paragraph (1)
shall not apply to any provision of alarm monitoring
services in which a Bell operating company or affili-
ate is lawfully engaged on the date of enactment of
this part.
‘‘(b) NONDISCRIMINATION.—A common carrier en-
gaged in the provision of alarm monitoring services or
telemessaging services shall—
‘‘(1) provide nonaffiliated entities, upon reason-
able request, with the network services it provides to
its own alarm monitoring or telemessaging oper-
ations, on nondiscriminatory terms and conditions;
and
‘‘(2) not subsidize its alarm monitoring services
or its telemessaging services with revenues from tele-
phone exchange service.
‘‘(c) 
EXPEDITED
CONSIDERATION
OF
COM-
PLAINTS.—The Commission shall establish procedures for
the receipt and review of complaints concerning violations
of subsection (b) or the regulations thereunder that result
in material financial harm to a provider of alarm monitor-
ing service or telemessaging service. Such procedures shall
ensure that the Commission will make a final determina-
tion with respect to any such complaint within 120 days
after receipt of the complaint. If the complaint contains
an appropriate showing that the alleged violation occurred,
as determined by the Commission in accordance with such
regulations, the Commission shall, within 60 days after
receipt of the complaint, order the common carrier and
its affiliates to cease engaging in such violation pending
such final determination.
‘‘(d) DEFINITIONS.—As used in this section:
‘‘(1) ALARM MONITORING SERVICE.—The term
‘alarm monitoring service’ means a service that uses
a device located at a residence, place of business, or
other fixed premises—
‘‘(A) to receive signals from other devices
located 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.
‘‘(2) TELEMESSAGING
SERVICES.—The term
‘telemessaging services’ means voice mail and voice
storage and retrieval services provided over tele-
phone lines for telemessaging customers and any live
operator services used to answer, record, transcribe,
and relay messages (other than telecommunications
relay services) from incoming telephone calls on be-
half of the telemessaging customers (other than any
service incidental to directory assistance).’’.
SEC. 103. FORBEARANCE FROM REGULATION.
Title II of the Communications Act of 1934 is
amended by inserting after section 228 (47 U.S.C. 228)
the following new section:
‘‘SEC. 229. FORBEARANCE FROM REGULATION.
‘‘(a) AUTHORITY
TO FORBEAR.—The Commission
shall forbear from applying any provision of this part or
part II (other than sections 201, 202, 208, 243, and 247),
or any regulation thereunder, to a common carrier or serv-
ice, or class of carriers or services, in any or some of its
or their geographic markets, if the Commission determines
that—
‘‘(1) enforcement of such provision or regula-
tion is not necessary to ensure that the charges,
practices, classifications, or regulations by, for, or in
connection with that carrier or service are just and
reasonable and are not unjustly or unreasonably dis-
criminatory;
‘‘(2) enforcement of such regulation or provi-
sion is not necessary for the protection of consum-
ers; and
‘‘(3) forbearance from applying such provision
or regulation is consistent with the public interest.
‘‘(b) COMPETITIVE EFFECT TO BE WEIGHED.—In
making the determination under subsection (a)(3), the
Commission shall consider whether forbearance from en-
forcing the provision or regulation will promote competi-
tive market conditions, including the extent to which such
forbearance will enhance competition among providers of
telecommunications services. If the Commission deter-
mines that such forbearance will promote competition
among providers of telecommunications services, that de-
termination may be the basis for a Commission finding
that forbearance is in the public interest.’’.
SEC. 104. PRIVACY OF CUSTOMER INFORMATION.
(a) PRIVACY OF CUSTOMER PROPRIETARY NETWORK
INFORMATION.—Title II of the Communications Act of
1934 is amended by inserting after section 221 (47 U.S.C.
221) the following new section:
‘‘SEC. 222. PRIVACY OF CUSTOMER PROPRIETARY NET-
WORK INFORMATION.
‘‘(a) SUBSCRIBER LIST INFORMATION.—Notwith-
standing subsections (b), (c), and (d), a carrier that pro-
vides subscriber list information to any affiliated or unaf-
filiated service provider or person shall provide subscriber
list information on a timely and unbundled basis, under
nondiscriminatory and reasonable rates, terms, and condi-
tions, to any person upon request.
‘‘(b) PRIVACY REQUIREMENTS FOR COMMON CAR-
RIERS.—A carrier—
‘‘(1) shall not, except as required by law or with
the approval of the customer to which the informa-
tion relates—
‘‘(A) use customer proprietary network in-
formation in the provision of any service except
to the extent necessary (i) in the provision of
common carrier services, (ii) in the provision of
a service necessary to or used in the provision
of common carrier services, including the pub-
lishing of directories, or (iii) to continue to pro-
vide a particular information service that the
carrier provided as of May 1, 1995, to persons
who were customers of such service on that
date;
‘‘(B) use customer proprietary network in-
formation in the identification or solicitation of
potential customers for any service other than
the telephone exchange service or telephone toll
service from which such information is derived;
‘‘(C) use customer proprietary network in-
formation in the provision of customer premises
equipment; or
‘‘(D) disclose customer proprietary net-
work information to any person except to the
extent necessary to permit such person to pro-
vide services or products that are used in and
necessary to the provision by such carrier of the
services described in subparagraph (A);
‘‘(2) shall disclose customer proprietary net-
work information, upon affirmative written request
by the customer, to any person designated by the
customer;
‘‘(3) shall, whenever such carrier provides any
aggregate information, notify the Commission of the
availability of such aggregate information and shall
provide such aggregate information on reasonable
terms and conditions to any other service or equip-
ment provider upon reasonable request therefor; and
‘‘(4) except for disclosures permitted by para-
graph (1)(D), shall not unreasonably discriminate
between affiliated and unaffiliated service or equip-
ment providers in providing access to, or in the use
and disclosure of, individual and aggregate informa-
tion made available consistent with this subsection.
‘‘(c) RULE OF CONSTRUCTION.—This section shall
not be construed to prohibit the use or disclosure of cus-
tomer proprietary network information as necessary—
‘‘(1) to render, bill, and collect for the services
identified in subparagraph (A);
‘‘(2) to render, bill, and collect for any other
service that the customer has requested;
‘‘(3) to protect the rights or property of the
carrier;
‘‘(4) to protect users of any of those services
and other carriers from fraudulent, abusive, or un-
lawful use of or subscription to such service; or
‘‘(5) to provide any inbound telemarketing, re-
ferral, or administrative services to the customer for
the duration of the call if such call was initiated by
the customer and the customer approves of the use
of such information to provide such service.
‘‘(d) EXEMPTION
PERMITTED.—The Commission
may, by rule, exempt from the requirements of subsection
(b) carriers that have, together with any affiliated carriers,
in the aggregate nationwide, fewer than 500,000 access
lines installed if the Commission determines that such ex-
emption is in the public interest or if compliance with the
requirements would impose an undue economic burden on
the carrier.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) CUSTOMER
PROPRIETARY
NETWORK
IN-
FORMATION.—The term ‘customer proprietary net-
work information’ means—
‘‘(A) information which relates to the
quantity, technical configuration, type, destina-
tion, and amount of use of telephone exchange
service or telephone toll service subscribed to by
any customer of a carrier, and is made available
to the carrier by the customer solely by virtue
of the carrier-customer relationship;
‘‘(B) information contained in the bills per-
taining to telephone exchange service or tele-
phone toll service received by a customer of a
carrier; and
‘‘(C) such other information concerning the
customer as is available to the local exchange
carrier by virtue of the customer’s use of the
carrier’s telephone exchange service or tele-
phone toll services, and specified as within the
definition of such term by such rules as the
Commission shall prescribe consistent with the
public interest;
except that such term does not include subscriber
list information.
‘‘(2) SUBSCRIBER
LIST
INFORMATION.—The
term ‘subscriber list information’ means any infor-
mation—
‘‘(A) identifying the listed names of sub-
scribers of a carrier and such subscribers’ tele-
phone numbers, addresses, or primary advertis-
ing classifications, or any combination of such
listed names, numbers, addresses, or classifica-
tions; and
‘‘(B) that the carrier or an affiliate has
published or accepted for future publication.’’.
‘‘(3) AGGREGATE
INFORMATION.—The term
‘aggregate information’ means collective data that
relates to a group or category of services or cus-
tomers, from which individual customer identities
and characteristics have been removed.’’.
(b) CONVERGING COMMUNICATIONS TECHNOLOGIES
AND CONSUMER PRIVACY.—
(1) COMMISSION
EXAMINATION.—Within one
year after the date of enactment of this Act, the
Commission shall commence a proceeding—
(A) to examine the impact of the integra-
tion into interconnected communications net-
works of wireless telephone, cable, satellite, and
other technologies on the privacy rights and
remedies of the consumers of those tech-
nologies;
(B) to examine the impact that the
globalization of such integrated communications
networks has on the international dissemination
of consumer information and the privacy rights
and remedies to protect consumers;
(C) to propose changes in the Commis-
sion’s regulations to ensure that the effect on
consumer privacy rights is considered in the in-
troduction of new telecommunications services
and that the protection of such privacy rights
is incorporated as necessary in the design of
such services or the rules regulating such serv-
ices;
(D) to propose changes in the Commis-
sion’s regulations as necessary to correct any
defects identified pursuant to subparagraph (A)
in such rights and remedies; and
(E) to prepare recommendations to the
Congress for any legislative changes required to
correct such defects.
(2) SUBJECTS FOR EXAMINATION.—In conduct-
ing the examination required by paragraph (1), the
Commission shall determine whether consumers are
able, and, if not, the methods by which consumers
may be enabled—
(A) to have knowledge that consumer in-
formation is being collected about them through
their utilization of various communications
technologies;
(B) to have notice that such information
could be used, or is intended to be used, by the
entity collecting the data for reasons unrelated
to the original communications, or that such in-
formation could be sold (or is intended to be
sold) to other companies or entities; and
(C) to stop the reuse or sale of that infor-
mation.
(3) SCHEDULE FOR COMMISSION RESPONSES.—
The Commission shall, within 18 months after the
date of enactment of this Act—
(A) complete any rulemaking required to
revise Commission regulations to correct defects
in such regulations identified pursuant to para-
graph (1); and
(B) submit to the Congress a report con-
taining the recommendations required by para-
graph (1)(C).
SEC. 105. POLE ATTACHMENTS.
Section 224 of the Communications Act of 1934 (47
U.S.C. 244) is amended—
(1) in subsection (a)(4)—
(A) by inserting after ‘‘system’’ the follow-
ing: ‘‘or a provider of telecommunications serv-
ice’’; and
(B) by inserting after ‘‘utility’’ the follow-
ing: ‘‘, which attachment may be used by such
cable television system to provide cable service
or any other service,’’;
(2) by redesignating paragraphs (1) and (2) of
subsection (b) as paragraphs (2) and (3), respec-
tively;
(3) by inserting before paragraph (2) of sub-
section (b) (as so redesignated) the following:
‘‘(b)(1) A utility shall provide a cable television sys-
tem or other provider of telecommunications services with
nondiscriminatory access to any pole, duct, conduit, or
right-of-way owned or controlled by the utility.’’;
(4) in subsection (c)(2)(B), by striking ‘‘cable
television services’’ and inserting ‘‘the services of-
fered via such attachments’’;
(5) by redesignating subsection (d)(2) as sub-
section (d)(4); and
(6) by striking subsection (d)(1) and inserting
the following:
‘‘(d)(1) For purposes of subsection (b) of this section,
the Commission shall, no later than 1 year after the date
of enactment of the Communication Act of 1995, prescribe
regulations for ensuring that utilities charge just and rea-
sonable and nondiscriminatory rates for pole attachments
provided to all providers of telecommunications services,
including such attachments used by cable television sys-
tems to provide telecommunications services (as defined
in section 3 of this Act). Such regulations shall—
‘‘(A) apportion the cost of the entire pole, duct,
conduit, or right-of-way according to the percentage
of usable space required for each entity, and
‘‘(B) allow for reasonable terms and conditions
relating to health, safety, and the provision of reli-
able utility service.
‘‘(2) An entity that obtains an attachment to a pole,
conduit, or right-of-way shall not be required to bear any
of the costs of rearranging or replacing its attachment,
if such rearrangement or replacement is required as a re-
sult of an additional attachment or the modification of an
existing attachment sought by any other entity (including
the owner of such pole, conduct, or right-of-way).
‘‘(3) Whenever the owner of a conduit or right-of-way
has made such conduit or right-of-way accessible, the
owner shall provide written notification of such action to
any entity that has obtained an attachment to such con-
duit or right-of-way so that such entity may have a reason-
able opportunity to add to or modify its existing attach-
ment. Any entity that adds to or modifies its existing at-
tachment after receiving such notification shall bear an
equitable share of the costs incurred by the owner in mak-
ing such conduit or right-of-way accessible.’’.
SEC. 106. PREEMPTION OF FRANCHISING AUTHORITY REG-
ULATION OF TELECOMMUNICATIONS SERV-
ICES.
(a) 
TELECOMMUNICATIONS
SERVICES.—Section
621(b) of the Communications Act of 1934 (47 U.S.C.
541(c)) is amended by adding at the end thereof the fol-
lowing new paragraph:
‘‘(3)(A) To the extent that a cable operator or affili-
ate thereof is engaged in the provision of telecommuni-
cations services—
‘‘(i) such cable operator or affiliate shall not be
required to obtain a franchise under this title; and
‘‘(ii) the provisions of this title shall not apply
to such cable operator or affiliate.
‘‘(B) A franchising authority may not impose any re-
quirement that has the purpose or effect of prohibiting,
limiting, restricting, or conditioning the provision of a tele-
communications service by a cable operator or an affiliate
thereof.
‘‘(C) A franchising authority may not order a cable
operator or affiliate thereof—
‘‘(i) to discontinue the provision of a tele-
communications service, or
‘‘(ii) to discontinue the operation of a cable sys-
tem, to the extent such cable system is used for the
provision of a telecommunications service, by reason
of the failure of such cable operator or affiliate
thereof to obtain a franchise or franchise renewal
under this title with respect to the provision of such
telecommunications service.
‘‘(D) A franchising authority may not require a cable
operator to provide any telecommunications service or fa-
cilities as a condition of the initial grant of a franchise
or a franchise renewal.’’.
(b) FRANCHISE FEES.—Section 622(b) of the Com-
munications Act of 1934 (47 U.S.C. 542(b)) is amended
by inserting ‘‘to provide cable services’’ immediately before
the period at the end of the first sentence thereof.
SEC. 107. MOBILE SERVICE ACCESS TO LONG DISTANCE
CARRIERS.
(a) AMENDMENT.—Section 332(c) of the Commu-
nications Act of 1934 (47 U.S.C. 332(c)) is amended by
adding at the end the following new paragraph:
‘‘(7) MOBILE
SERVICES
ACCESS.—(A) The
Commission shall prescribe regulations to afford
subscribers of two-way switched voice commercial
mobile radio services access to a provider of tele-
phone toll service of the subscriber’s choice, except
to the extent that such provider is engaged in the
provision of a mobile satellite service. The Commis-
sion may exempt carriers or classes of carriers from
the requirements of such regulations to the extent
the Commission determines such exemption is con-
sistent with the public interest, convenience, and ne-
cessity. For purposes of this paragraph, ‘access’
shall mean access to a provider of telephone toll
service through the use of carrier identification
codes assigned to each such provider.
‘‘(B) The regulations prescribed by the Com-
mission pursuant to subparagraph (A) shall super-
sede any inconsistent requirements imposed by the
Modification of Final Judgment or any order in
United States v. AT&T Corp. and McCaw Cellular
Communications, Inc., Civil Action No. 94–01555
(United States District Court, District of Colum-
bia).’’.
(b) EFFECTIVE DATE CONFORMING AMENDMENT.—
Section 6002(c)(2)(B) of the Omnibus Budget Reconcili-
ation Act of 1993 is amended by striking ‘‘section
332(c)(6)’’ and inserting ‘‘paragraphs (6) and (7) of sec-
tion 332(c)’’.
TITLE II—CABLE COMMUNICA-
TIONS COMPETITIVENESS
SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COM-
PANIES.
(a) GENERAL REQUIREMENT.—
(1) AMENDMENT.—Section 613(b) of the Com-
munications Act of 1934 (47 U.S.C. 533(b)) is
amended to read as follows:
‘‘(b)(1) Subject to the requirements of part V and
the other provisions of this title, any common carrier sub-
ject in whole or in part to title II of this Act may, either
through its own facilities or through an affiliate, provide
video programming directly to subscribers in its telephone
service area.
‘‘(2) Subject to the requirements of part V and the
other provisions of this title, any common carrier subject
in whole or in part to title II of this Act may provide chan-
nels of communications or pole, line, or conduit space, or
(B) by redesignating paragraphs (18) and
(19) as paragraphs (19) and (20) respectively;
and
(C) by inserting after paragraph (17) the
following new paragraph:
‘‘(18) the term ‘telephone service area’ when
used in connection with a common carrier subject in
whole or in part to title II of this Act means the
area within which such carrier provides telephone ex-
change service as of May 1, 1995, but if any com-
mon carrier after such date transfers its exchange
service facilities to another common carrier, the area
to which such facilities provide telephone exchange
service shall be treated as part of the telephone serv-
ice area of the acquiring common carrier and not of
the selling common carrier;’’.
(b) PROVISIONS FOR REGULATION OF CABLE SERV-
ICE PROVIDED BY TELEPHONE COMPANIES.—Title VI of
the Communications Act of 1934 (47 U.S.C. 521 et seq.)
is amended by adding at the end the following new part:
‘‘PART V—VIDEO PROGRAMMING SERVICES
PROVIDED BY TELEPHONE COMPANIES
‘‘SEC. 651. DEFINITIONS.
‘‘For purposes of this part—
‘‘(1) the term ‘control’ means—
‘‘(A) an ownership interest in which an en-
tity has the right to vote more than 50 percent
of the outstanding common stock or other own-
ership interest; or
‘‘(B) if no single entity directly or indi-
rectly has the right to vote more than 50 per-
cent of the outstanding common stock or other
ownership interest, actual working control, in
whatever manner exercised, as defined by the
Commission by regulation on the basis of rel-
evant factors and circumstances, which shall in-
clude partnership and direct ownership inter-
ests, voting stock interests, the interests of offi-
cers and directors, and the aggregation of vot-
ing interests; and
‘‘(2) the term ‘rural area’ means a geographic
area that does not include either—
‘‘(A) any incorporated or unincorporated
place of 10,000 inhabitants or more, or any
part thereof; or
‘‘(B) any territory, incorporated or unin-
corporated, included in an urbanized area, as
defined by the Bureau of the Census.
‘‘SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.
‘‘(a) IN GENERAL.—Except as provided in subsection
(d) of this section, a common carrier subject to title II
of this Act shall not provide video programming directly
to subscribers in its telephone service area unless such
video programming is provided through a video program-
ming affiliate that is separate from such carrier.
‘‘(b) BOOKS AND MARKETING.—
‘‘(1) IN GENERAL.—A video programming affili-
ate of a common carrier shall—
‘‘(A) maintain books, records, and ac-
counts separate from such carrier which iden-
tify all transactions with such carrier;
‘‘(B) carry out directly (or through any
nonaffiliated person) its own promotion, except
that institutional advertising carried out by
such carrier shall be permitted so long as each
party bears its pro rata share of the costs; and
‘‘(C) not own real or personal property in
common with such carrier.
‘‘(2) INBOUND
TELEMARKETING
AND
REFER-
RAL.—Notwithstanding paragraph (1)(B), a com-
mon carrier may provide telemarketing or referral
services in response to the call of a customer or po-
tential customer related to the provision of video
programming by a video programming affiliate of
such carrier. If such services are provided to a video
programming affiliate, such services shall be made
available to any video programmer or cable operator
on request, on nondiscriminatory terms, at just and
reasonable prices, and subject to regulations of the
Commission to ensure that the carrier’s method of
providing telemarketing or referral and its price
structure do not competitively disadvantage any
video programmer or cable operator, regardless of
size, including those which do not use the carrier’s
telemarketing services.
‘‘(3) 
JOINT
MARKETING.—Notwithstanding
paragraph (1)(B), a common carrier may market
video programming directly upon a showing to the
Commission that a cable operator or other entity di-
rectly or indirectly provides telecommunications serv-
ices within the telephone service area of the common
carrier, and markets such telecommunications serv-
ices jointly with video programming services. The
common carrier shall specify the geographic region
covered by the showing. The Commission shall ap-
prove or disapprove such showing within 60 days
after the date of its submission.
‘‘(c) BUSINESS TRANSACTIONS WITH CARRIER.—
Any contract, agreement, arrangement, or other manner
of conducting business, between a common carrier and its
video programming affiliate, providing for—
‘‘(1) the sale, exchange, or leasing of property
between such affiliate and such carrier,
‘‘(2) the furnishing of goods or services between
such affiliate and such carrier, or
‘‘(3) the transfer to or use by such affiliate for
its benefit of any asset or resource of such carrier,
shall be on a fully compensatory and auditable basis, shall
be without cost to the telephone service ratepayers of the
carrier, shall be filed with the Commission, and shall be
in compliance with regulations established by the Commis-
sion that will enable the Commission to assess the compli-
ance of any transaction.
‘‘(d) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive any of the requirements of this section
for small telephone companies or telephone compa-
nies serving rural areas, if the Commission deter-
mines, after notice and comment, that—
‘‘(A) such waiver will not affect the ability
of the Commission to ensure that all video pro-
gramming activity is carried out without any
support from telephone ratepayers;
‘‘(B) the interests of telephone ratepayers
and cable subscribers will not be harmed if such
waiver is granted;
‘‘(C) such waiver will not adversely affect
the ability of persons to obtain access to the
video platform of such carrier; and
‘‘(D) such waiver otherwise is in the public
interest.
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘(3) CONTINUED APPLICABILITY OF SECTION
656.—In the case of a common carrier that obtains
a waiver under this subsection, any requirement that
section 656 applies to a video programming affiliate
shall instead apply to such carrier.
‘‘(e) SUNSET OF REQUIREMENTS.—The provisions of
this section shall cease to be effective on July 1, 2000.
‘‘SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.
‘‘(a) VIDEO PLATFORM.—
‘‘(1) IN GENERAL.—Any common carrier sub-
ject to title II of this Act, and that provides video
programming directly to subscribers in its telephone
service area, shall establish a video platform. This
paragraph shall not apply to any carrier to the ex-
tent that it provides video programming directly to
subscribers in its telephone service area solely
through a cable system acquired in accordance with
section 655(b).
‘‘(2) IDENTIFICATION
OF
DEMAND
FOR
CAR-
RIAGE.—Any common carrier subject to the require-
ments of paragraph (1) shall, prior to establishing a
video platform, submit a notice to the Commission
of its intention to establish channel capacity for the
provision of video programming to meet the bona
fide demand for such capacity. Such notice shall—
‘‘(A) be in such form and contain informa-
tion concerning the geographic area intended to
be served and such information as the Commis-
sion may require by regulations pursuant to
subsection (b);
‘‘(B) specify the methods by which any en-
tity seeking to use such channel capacity should
submit to such carrier a specification of its
channel capacity requirements; and
‘‘(C) specify the procedures by which such
carrier will determine (in accordance with the
Commission’s 
regulations 
under 
subsection
(b)(1)(B)) whether such requests for capacity
are bona fide.
existing or additional video programming pro-
viders;
‘‘(C) if at any time the number of channels
required for bona fide requests for carriage may
reasonably be expected soon to exceed the exist-
ing capacity of such video platform, imme-
diately notify the Commission of such expecta-
tion and of the manner and date by which such
carrier will provide sufficient capacity to meet
such excess demand; and
‘‘(D) construct such additional capacity as
may be necessary to meet such excess demand.
‘‘(5) DISPUTE RESOLUTION.—The Commission
shall have the authority to resolve disputes under
this section and the regulations prescribed there-
under. Any such dispute shall be resolved within 180
days after notice of such dispute is submitted to the
Commission. At that time or subsequently in a sepa-
rate damages proceeding, the Commission may
award damages sustained in consequence of any vio-
lation of this section to any person denied carriage,
or require carriage, or both. Any aggrieved party
may seek any other remedy available under this Act.
‘‘(b) COMMISSION ACTIONS.—
‘‘(1) IN GENERAL.—Within 15 months after the
date of the enactment of this section, the Commis-
sion shall complete all actions necessary (including
any reconsideration) to prescribe regulations that—
‘‘(A) consistent with the requirements of
section 656, prohibit a common carrier from
discriminating among video programming pro-
viders with regard to carriage on its video plat-
form, and ensure that the rates, terms, and
conditions for such carriage are just, reason-
able, and nondiscriminatory;
‘‘(B) prescribe definitions and criteria for
the purposes of determining whether a request
shall be considered a bona fide request for pur-
poses of this section;
‘‘(C) permit a common carrier to carry on
only one channel any video programming service
that is offered by more than one video program-
ming provider (including the common carrier’s
video programming affiliate), provided that sub-
scribers have ready and immediate access to
any such video programming service;
‘‘(D) establish a requirement that video
platforms contain a suitable margin of unused
channel capacity to meet reasonable growth in
bona fide demand for such capacity;
‘‘(E) extend to the distribution of video
programming over video platforms the Commis-
sion’s regulations concerning network non-
duplication (47 C.F.R. 76.92 et seq.) and syn-
dicated exclusivity (47 C.F.R. 76.151 et seq.);
‘‘(F) require the video platform to provide
service, 
transmission, 
interconnection, 
and
interoperability for unaffiliated or independent
video programming providers that is equivalent
to that provided to the common carrier’s video
programming affiliate, except that the video
platform shall not discriminate between analog
and digital video programming offered by such
unaffiliated or independent video programming
providers;
‘‘(G)(i) prohibit a common carrier from
discriminating among video programming pro-
viders with regard to material or information
provided by the common carrier to subscribers
for the purposes of selecting programming on
the video platform, or in the way such material
or information is presented to subscribers;
‘‘(ii) require a common carrier to ensure
that video programming providers or copyright
holders (or both) are able suitably and uniquely
to identify their programming services to sub-
scribers; and
‘‘(iii) if such identification is transmitted
as part of the programming signal, require the
carrier to transmit such identification without
change or alteration; and
‘‘(H) prohibit a common carrier from ex-
cluding areas from its video platform service
area on the basis of the ethnicity, race, or in-
come of the residents of that area, and provide
for public comments on the adequacy of the
proposed service area on the basis of the stand-
ards set forth under this subparagraph.
‘‘(2) APPLICABILITY TO OTHER HIGH CAPACITY
SYSTEMS.—The Commission shall apply the require-
ments of this section, in lieu of the requirements of
section 612, to any cable operator of a cable system
that has installed a switched, broadband video pro-
gramming delivery system, except that the Commis-
sion shall not apply the requirements of the regula-
tions prescribed pursuant to subsection (b)(1)(D) or
any other requirement that the Commission deter-
mines is inappropriate.
‘‘(c) REGULATORY STREAMLINING.—With respect to
the establishment and operation of a video platform, the
requirements of this section shall apply in lieu of, and not
in addition to, the requirements of title II.
‘‘(d) COMMISSION INQUIRY.—The Commission shall
conduct a study of whether it is in the public interest to
extend the requirements of subsection (a) to any other
cable operators in lieu of the requirements of section 612.
The Commission shall submit to the Congress a report on
the results of such study not later than 2 years after the
date of enactment of this section.
‘‘SEC. 654. AUTHORITY TO PROHIBIT CROSS-SUBSIDIZA-
TION.
‘‘Nothing in this part shall prohibit a State commis-
sion that regulates the rates for telephone exchange serv-
ice or exchange access based on the cost of providing such
service or access from—
‘‘(1) prescribing regulations to prohibit a com-
mon carrier from engaging in any practice that re-
sults in the inclusion in rates for telephone exchange
service or exchange access of any operating ex-
penses, costs, depreciation charges, capital invest-
ments, or other expenses directly associated with the
provision of competing video programming services
by the common carrier or affiliate; or
‘‘(2) ensuring such competing video program-
ming services bear a reasonable share of the joint
and common costs of facilities used to provide tele-
phone exchange service or exchange access and com-
peting video programming services.
‘‘SEC. 655. PROHIBITION ON BUY OUTS.
‘‘(a) GENERAL PROHIBITION.—No common carrier
that provides telephone exchange service, and no entity
owned by or under common ownership or control with such
carrier, may purchase or otherwise obtain control over any
cable system that is located within its telephone service
area and is owned by an unaffiliated person.
‘‘(b) EXCEPTIONS.—Notwithstanding subsection (a),
a common carrier may—
‘‘(1) obtain a controlling interest in, or form a
joint venture or other partnership with, a cable sys-
tem that serves a rural area;
‘‘(2) obtain, in addition to any interest, joint
venture, or partnership obtained or formed pursuant
to paragraph (1), a controlling interest in, or form
a joint venture or other partnership with, any cable
system or systems if—
‘‘(A) such systems in the aggregate serve
less than 10 percent of the households in the
telephone service area of such carrier; and
‘‘(B) no such system serves a franchise
area with more than 35,000 inhabitants, except
that a common carrier may obtain such interest
or form such joint venture or other partnership
with a cable system that serves a franchise area
with more than 35,000 but not more than
50,000 inhabitants if such system is not affili-
ated with any other system whose franchise
area is contiguous to the franchise area of the
acquired system;
‘‘(3) obtain, with the concurrence of the cable
operator on the rates, terms, and conditions, the use
of that part of the transmission facilities of such a
cable system extending from the last multi-user ter-
minal to the premises of the end user, if such use
is reasonably limited in scope and duration, as deter-
mined by the Commission; or
‘‘(4) obtain a controlling interest in, or form a
joint venture or other partnership with, or provide
financing to, a cable system (hereinafter in this
paragraph referred to as ‘the subject cable system’),
if—
‘‘(A) the subject cable system operates in
a television market that is not in the top 25
markets, and that has more than 1 cable sys-
tem operator, and the subject cable system is
not the largest cable system in such television
market;
‘‘(B) the subject cable system and the larg-
est cable system in such television market held
on May 1, 1995, cable television franchises
from the largest municipality in the television
market and the boundaries of such franchises
were identical on such date;
‘‘(C) the subject cable system is not owned
by or under common ownership or control of
any one of the 50 largest cable system opera-
tors as existed on May 1, 1995; and
‘‘(D) the largest system in the television
market is owned by or under common owner-
ship or control of any one of the 10 largest
cable system operators as existed on May 1,
1995.
‘‘(c) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive the restrictions in subsection (a) of this
section only upon a showing by the applicant that—
‘‘(A) because of the nature of the market
served by the cable system concerned—
‘‘(i) the incumbent cable operator
would be subjected to undue economic dis-
tress by the enforcement of such sub-
section; or
‘‘(ii) the cable system would not be
economically viable if such subsection were
enforced; and
‘‘(B) the local franchising authority ap-
proves of such waiver.
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘SEC. 656. APPLICABILITY OF PARTS I THROUGH IV.
‘‘(a) IN GENERAL.—Any provision that applies to a
cable operator under—
‘‘(1) sections 613, 616, 617, 628, 631, 632,
and 634 of this title, shall apply,
‘‘(2) sections 611, 612, 614, and 615 of this
title, and section 325 of title III, shall apply in ac-
cordance with the regulations prescribed under sub-
section (b), and
‘‘(3) parts III and IV (other than sections 628,
631, 632, and 634) of this title shall not apply,
to any video programming affiliate established by a com-
mon carrier in accordance with the requirements of this
part.
‘‘(b) IMPLEMENTATION.—
‘‘(1) COMMISSION
ACTION.—The Commission
shall prescribe regulations to ensure that a common
carrier in the operation of its video platform shall
provide (A) capacity, services, facilities, and equip-
ment for public, educational, and governmental use,
(B) capacity for commercial use, (C) carriage of
commercial and non-commercial broadcast television
stations, and (D) an opportunity for commercial
broadcast stations to choose between mandatory car-
riage and reimbursement for retransmission of the
signal of such station. In prescribing such regula-
tions, the Commission shall, to the extent possible,
impose obligations that are no greater or lesser than
the obligations contained in the provisions described
in subsection (a)(2) of this section.
‘‘(2) FEES.—A video programming affiliate of
any common carrier that establishes a video plat-
form under this part, and any multichannel video
programming distributor offering a competing serv-
ice using such video platform (as determined in ac-
cordance with regulations of the Commission), shall
be subject to the payment of fees imposed by a local
franchising authority, in lieu of the fees required
under section 622. The rate at which such fees are
imposed shall not exceed the rate at which franchise
fees are imposed on any cable operator transmitting
video programming in the same service area.
‘‘SEC. 657. RURAL AREA EXEMPTION.
‘‘The provisions of sections 652, 653, and 655 shall
not apply to video programming provided in a rural area
by a common carrier that provides telephone exchange
service in the same area.’’.
SEC. 202. COMPETITION FROM CABLE SYSTEMS.
(a) DEFINITION
OF
CABLE
SERVICE.—Section
602(6)(B) of the Communications Act of 1934 (47 U.S.C.
522(6)(B)) is amended by inserting ‘‘or use’’ after ‘‘the
selection’’.
(b) CLUSTERING.—Section 613 of the Communica-
tions Act of 1934 (47 U.S.C. 533) is amended by adding
at the end the following new subsection:
‘‘(i) ACQUISITION OF CABLE SYSTEMS.—The Com-
mission may not require divestiture of, or restrict or pre-
vent the acquisition of, an ownership interest in a cable
system by any person based in whole or in part on the
geographic location of such cable system.’’.
(c) EQUIPMENT.—Section 623(a) of the Communica-
tions Act of 1934 (47 U.S.C. 543(a)) is amended—
(1) by redesignating paragraphs (3) through
(6) as paragraphs (4) through (7), respectively; and
(2) by inserting after paragraph (2) the follow-
ing new paragraph:
‘‘(3) EQUIPMENT.—If the Commission finds
that a cable system is subject to effective competi-
tion under subparagraph (D) of subsection (l)(1),
the rates for equipment, installations, and connec-
tions for additional television receivers (other than
equipment, installations, and connections furnished
by such system to subscribers who receive only a
rate regulated basic service tier) shall not be subject
to regulation by the Commission or by a State or
franchising authority. If the Commission finds that
a cable system is subject to effective competition
under subparagraph (A), (B), or (C) of subsection
(l)(1), the rates for any equipment, installations, and
connections furnished by such system to any sub-
scriber shall not be subject to regulation by the
Commission, or by a State or franchising authority.
No Federal agency, State, or franchising authority
may establish the price or rate for the installation,
sale, or lease of any equipment furnished to any sub-
scriber by a cable system solely in connection with
video programming offered on a per channel or per
program basis.’’.
(d) LIMITATION ON BASIC TIER RATE INCREASES;
SCOPE OF REVIEW.—Section 623(a) of the Communica-
tions Act of 1934 (47 U.S.C. 543(a)) is further amended
by adding at the end the following new paragraph:
‘‘(8) LIMITATION
ON
BASIC
TIER
RATE
IN-
CREASES; SCOPE OF REVIEW.—A cable operator may
not increase its basic service tier rate more than
once every 6 months. Such increase may be imple-
mented, using any reasonable billing or proration
method, 30 days after providing notice to subscrib-
ers and the appropriate regulatory authority. The
rate resulting from such increase shall be deemed
reasonable and shall not be subject to reduction or
refund if the franchising authority or the Commis-
sion, as appropriate, does not complete its review
and issue a final order within 90 days after imple-
mentation of such increase. The review by the fran-
chising authority or the Commission of any future
increase in such rate shall be limited to the incre-
mental change in such rate effected by such in-
crease.’’.
(e) NATIONAL INFORMATION INFRASTRUCTURE DE-
VELOPMENT.—Section 623(a) of the Communications Act
of 1934 (47 U.S.C. 543) is further amended by adding
at the end the following new paragraph:
‘‘(9) NATIONAL
INFORMATION
INFRASTRUC-
TURE.—
‘‘(A) PURPOSE.—It is the purpose of this
paragraph to—
‘‘(i) promote the development of the
National Information Infrastructure;
‘‘(ii) enhance the competitiveness of
the National Information Infrastructure by
ensuring that cable operators have incen-
tives comparable to other industries to de-
velop such infrastructure; and
‘‘(iii) encourage the rapid deployment
of digital technology necessary to the de-
velopment of the National Information In-
frastructure.
‘‘(B) 
AGGREGATION
OF
EQUIPMENT
COSTS.—The Commission shall allow cable op-
erators, pursuant to any rules promulgated
under subsection (b)(3), to aggregate, on a
franchise, system, regional, or company level,
their equipment costs into broad categories,
such as converter boxes, regardless of the vary-
ing levels of functionality of the equipment
within each such broad category. Such aggrega-
tion shall not be permitted with respect to
equipment used by subscribers who receive only
a rate regulated service tier.
‘‘(C) REVISION
TO
COMMISSION
RULES;
FORMS.—Within 90 days of the date of enact-
ment of this paragraph, the Commission shall
issue revisions to the appropriate rules and
forms necessary to implement subparagraph
(B).’’.
(f) COMPLAINT THRESHOLD; SCOPE OF COMMISSION
REVIEW.—Section 623(c) of the Communications Act of
1934 (47 U.S.C. 543(c)) is amended—
(1) by striking paragraph (3) and inserting the
following:
‘‘(3) REVIEW OF COMPLAINTS.—
‘‘(A) COMPLAINT THRESHOLD.—The Com-
mission shall have the authority to review any
increase in the rates for cable programming
services implemented after the date of enact-
ment of the Communications Act of 1995 only
if, within 90 days after such increase becomes
effective, at least 10 subscribers to such serv-
ices or 5 percent of the subscribers to such
services, whichever is greater, file separate, in-
dividual complaints against such increase with
the Commission in accordance with the require-
ments established under paragraph (1)(B).
‘‘(B) TIME PERIOD FOR COMMISSION RE-
VIEW.—The Commission shall complete its re-
view of any such increase and issue a final
order within 90 days after it receives the num-
ber of complaints required by subparagraph
(A).
‘‘(4) TREATMENT
OF
PENDING
CABLE
PRO-
GRAMMING
SERVICES
COMPLAINTS.—Upon enact-
ment of the Communications Act of 1995, the Com-
mission shall suspend the processing of all pending
cable programming services rate complaints. These
pending complaints shall be counted by the Commis-
sion toward the complaint threshold specified in
paragraph (3)(A). Parties shall have an additional
90 days from the date of enactment of such Act to
file complaints about prior increases in cable pro-
gramming services rates if such rate increases were
already subject to a valid, pending complaint on the
date of enactment. At the expiration of such 90-day
period, the Commission shall dismiss all pending
cable programming services rate cases for which the
complaint threshold has not been met, and may re-
sume its review of those pending cable programming
services rate cases for which the complaint threshold
has been met, which review shall be completed with-
in 180 days after the date of the Communications
Act of 1995.
‘‘(5) SCOPE OF COMMISSION REVIEW.—A cable
programming services rate shall be deemed not un-
reasonable and shall not be subject to reduction or
refund if—
‘‘(A) such rate was not the subject of a
pending complaint at the time of enactment of
the Communications Act of 1995;
‘‘(B) such rate was the subject of a com-
plaint that was dismissed pursuant to para-
graph (4);
‘‘(C) such rate resulted from an increase
for which the complaint threshold specified in
paragraph (3)(A) has not been met;
‘‘(D) the Commission does not complete its
review and issue a final order in the time period
specified in paragraph (3)(B) or (4); or
‘‘(E) the Commission issues an order find-
ing such rate to be not unreasonable.
The review by the Commission of any future in-
crease in such rate shall be limited to the incremen-
tal change in such rate effected by such increase.’’;
(2) in paragraph (1)(B) by striking ‘‘obtain
Commission consideration and resolution of whether
the rate in question is unreasonable’’ and inserting
‘‘be counted toward the complaint threshold speci-
fied in paragraph (3)(A)’’; and
(3) in paragraph (1)(C) by striking ‘‘such com-
plaint’’ and inserting in lieu thereof ‘‘the first com-
plaint’’.
(g) UNIFORM RATE STRUCTURE.—Section 623(d) of
the Communications Act of 1934 (47 U.S.C. 543(d)) is
amended to read as follows:
‘‘(d) UNIFORM RATE STRUCTURE.—A cable operator
shall have a uniform rate structure throughout its fran-
chise area for the provision of cable services that are regu-
lated by the Commission or the franchising authority.
Bulk discounts to multiple dwelling units shall not be sub-
ject to this requirement.’’.
(h) EFFECTIVE COMPETITION.—Section 623(l)(1) of
the Communications Act of 1934 (47 U.S.C. 543(l)(1))
is amended—
(1) in subparagraph (B)(ii)—
100
(A) by inserting ‘‘all’’ before ‘‘multichannel
video programming distributors’’; and
(B) by striking ‘‘or’’ at the end thereof;
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(D) with respect to cable programming
services and subscriber equipment, installations,
and connections for additional television receiv-
ers (other than equipment, installations, and
connections furnished to subscribers who receive
only a rate regulated basic service tier)—
‘‘(i) a common carrier has been au-
thorized by the Commission to construct
facilities to provide video dialtone service
in a cable operator’s franchise area;
‘‘(ii) a common carrier has been au-
thorized by the Commission or pursuant to
a franchise to provide video programming
directly to subscribers in the franchise
area; or
‘‘(iii) the Commission has completed
all actions necessary (including any recon-
sideration) to prescribe regulations pursu-
101
ant to section 653(b)(1) relating to video
platforms.’’.
(i) RELIEF FOR CABLE OPERATORS.—Section 623 of
the Communications Act of 1934 (47 U.S.C. 543) is
amended by adding at the end the following new sub-
section:
‘‘(m) SMALL CABLE OPERATORS.—
‘‘(1) SMALL
CABLE
OPERATOR
RELIEF.—A
small cable operator shall not be subject to sub-
sections (a), (b), (c), or (d) in any franchise area
with respect to the provision of cable programming
services, or a basic service tier where such tier was
the only tier offered in such area on December 31,
1994.
‘‘(2) DEFINITION
OF
SMALL
CABLE
OPERA-
TOR.—For purposes of this subsection, ‘small cable
operator’ means a cable operator that—
‘‘(A) directly or through an affiliate, serves
in the aggregate fewer than 1 percent of all
cable subscribers in the United States; and
‘‘(B) is not affiliated with any entity or en-
tities whose gross annual revenues in the aggre-
gate exceed $250,000,000.’’.
(j) TECHNICAL STANDARDS.—Section 624(e) of the
Communications Act of 1934 (47 U.S.C. 544(e)) is
102
amended by striking the last two sentences and inserting
the following: ‘‘No State or franchising authority may pro-
hibit, condition, or restrict a cable system’s use of any type
of subscriber equipment or any transmission technology.’’.
(k) CABLE SECURITY SYSTEMS.—Section 624A(b)(2)
of the Communications Act of 1934 (47 U.S.C.
544a(b)(2)) is amended to read as follows:
‘‘(2) CABLE SECURITY SYSTEMS.—No federal
agency, State, or franchising authority may prohibit
or limit a cable operator’s use of any security system
(including scrambling, encryption, traps, and inter-
diction), except that the Commission may prohibit or
limit the use of any such system solely with respect
to the delivery of a basic service tier that, as of Jan-
uary 1, 1995, contained only the signals and pro-
gramming specified in section 623(b)(7)(A), unless
the use of such system is necessary to prevent the
unauthorized reception of such tier.’’.
(l) RETIERING OF BASIC TIER SERVICES.—Section
625(d) of the Communications Act of 1934 (47 U.S.C.
543(d)) is amended by adding at the end the following
new sentence: ‘‘Any signals or services carried on the basic
service tier but not required under section 623(b)(7)(A)
may be moved from the basic service tier at the operator’s
sole discretion, except to the extent that the removal of
103
such a signal or service from the basic service tier is pro-
hibited by contract. The movement of such signals or serv-
ices to an unregulated package of services shall not subject
such package to regulation.’’.
(m) SUBSCRIBER NOTICE.—Section 632 of the Com-
munications Act of 1934 (47 U.S.C. 552) is amended—
(1) by redesignating subsection (c) as sub-
section (d); and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) SUBSCRIBER NOTICE.—A cable operator may
provide notice of service and rate changes to subscribers
using any reasonable written means at its sole discretion.
Notwithstanding section 623(b)(6) or any other provision
of this Act, a cable operator shall not be required to pro-
vide prior notice of any rate change that is the result of
a regulatory fee, franchise fee, or any other fee, tax, as-
sessment, or charge of any kind imposed by any Federal
agency, State, or franchising authority on the transaction
between the operators and subscriber.’’.
SEC. 203. COMPETITIVE AVAILABILITY OF NAVIGATION DE-
VICES.
Title VII of the Communications Act of 1934 is
amended by adding at the end the following new section:
104
‘‘SEC. 713. COMPETITIVE AVAILABILITY OF NAVIGATION
DEVICES.
‘‘(a) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘telecommunications subscription
service’ means the provision directly to subscribers
of video, voice, or data services for which a sub-
scriber charge is made.
‘‘(2) The term ‘telecommunications system’ or a
‘telecommunications system operator’ means a pro-
vider of telecommunications subscription service.
‘‘(b) COMPETITIVE CONSUMER AVAILABILITY
OF
CUSTOMER
PREMISES
EQUIPMENT.—The Commission
shall adopt regulations to assure competitive availability,
to consumers of telecommunications subscription services,
of converter boxes, interactive communications devices,
and other customer premises equipment from manufactur-
ers, retailers, and other vendors not affiliated with any
telecommunications system operator. Such regulations
shall take into account the needs of owners and distribu-
tors of video programming and information services to en-
sure system and signal security and prevent theft of serv-
ice. Such regulations shall not prohibit any telecommuni-
cations system operator from also offering devices and
customer premises equipment to consumers, provided that
the system operator’s charges to consumers for such de-
vices and equipment are separately stated and not bundled
105
with or subsidized by charges for any telecommunications
subscription service.
‘‘(c) WAIVER FOR NEW NETWORK SERVICES.—The
Commission may waive a regulation adopted pursuant to
subsection (b) for a limited time upon an appropriate
showing by a telecommunications system operator that
such waiver is necessary to the introduction of a new tele-
communications subscription service.
‘‘(d) SUNSET.—The regulations adopted pursuant to
this section shall be terminated when the Commission de-
termines that there exists a fully competitive market for
the acquisition of converter boxes, interactive communica-
tions devices, and other customer premises equipment.’’.
SEC. 204. VIDEO PROGRAMMING ACCESSIBILITY.
(a) COMMISSION INQUIRY.—Within 180 days after
the date of enactment of this section, the Federal Commu-
nications Commission shall complete an inquiry to ascer-
tain the level at which video programming is closed cap-
tioned. Such inquiry shall examine the extent to which ex-
isting or previously published programming is closed cap-
tioned, the size of the video programming provider or pro-
gramming owner providing closed captioning, the size of
the market served, the relative audience shares achieved,
or any other related factors. The Commission shall submit
to the Congress a report on the results of such inquiry.
106
(b) ACCOUNTABILITY CRITERIA.—Within 18 months
after the date of enactment, the Commission shall pre-
scribe such regulations as are necessary to implement this
section. Such regulations shall ensure that—
(1) video programming first published or exhib-
ited after the effective date of such regulations is
fully accessible through the provision of closed cap-
tions, except as provided in subsection (d); and
(2) video programming providers or owners
maximize the accessibility of video programming
first published or exhibited prior to the effective date
of such regulations through the provision of closed
captions, except as provided in subsection (d).
(c) DEADLINES FOR CAPTIONING.—Such regulations
shall include an appropriate schedule of deadlines for the
provision of closed captioning of video programming.
(d) 
EXEMPTIONS.—Notwithstanding 
subsection
(b)—
(1) the Commission may exempt by regulation
programs, classes of programs, or services for which
the Commission has determined that the provision of
closed captioning would be economically burdensome
to the provider or owner of such programming;
(2) a provider of video programming or the
owner of any program carried by the provider shall
107
not be obligated to supply closed captions if such ac-
tion would be inconsistent with contracts in effect on
the date of enactment of this Act, except that noth-
ing in this section shall be construed to relieve a
video programming provider of its obligations to pro-
vide services required by Federal law; and
(3) a provider of video programming or pro-
gram owner may petition the Commission for an ex-
emption from the requirements of this section, and
the Commission may grant such petition upon a
showing that the requirements contained in this sec-
tion would result in an undue burden.
(e) UNDUE BURDEN.—The term ‘undue burden’
means significant difficulty or expense. In determining
whether the closed captions necessary to comply with the
requirements of this paragraph would result in an undue
economic burden, the factors to be considered include—
(1) the nature and cost of the closed captions
for the programming;
(2) the impact on the operation of the provider
or program owner;
(3) the financial resources of the provider or
program owner; and
(4) the type of operations of the provider or
program owner.
108
(f) VIDEO
DESCRIPTIONS
INQUIRY.—Within 6
months after the date of enactment of this Act, the Com-
mission shall commence an inquiry to examine the use of
video descriptions on video programming in order to en-
sure the accessibility of video programming to persons
with visual impairments, and report to Congress on its
findings. The Commission’s report shall assess appro-
priate methods and schedules for phasing video descrip-
tions into the marketplace, technical and quality standards
for video descriptions, a definition of programming for
which video descriptions would apply, and other technical
and legal issues that the Commission deems appropriate.
Following the completion of such inquiry, the Commission
may adopt regulation it deems necessary to promote the
accessibility of video programming to persons with visual
impairments.
(g) VIDEO DESCRIPTION.—For purposes of this sec-
tion, ‘‘video description’’ means the insertion of audio nar-
rated descriptions of a television program’s key visual ele-
ments into natural pauses between the program’s dia-
logue.
SEC. 205. TECHNICAL AMENDMENTS.
(a) RETRANSMISSION.—Section 325(b)(2)(D) of the
Communications Act of 1934 (47 U.S.C. 325(b)(2)(D))
is amended to read as follows:
109
‘‘(D) retransmission by a cable operator or
other multichannel video programming distributor of
the signal of a superstation if (i) the customers
served by the cable operator or other multichannel
video programming distributor reside outside the
originating station’s television market, as defined by
the 
Commission 
for 
purposes 
of 
section
614(h)(1)(C); (ii) such signal was obtained from a
satellite carrier or terrestrial microwave common
carrier; and (iii) and the origination station was a
superstation on May 1, 1991.’’.
(b) 
MARKET
DETERMINATIONS.—Section
614(h)(1)(C)(i) of the Communications Act of 1934 (47
U.S.C. 534(h)(1)(C)(i)) is amended by striking out ‘‘in the
manner provided in section 73.3555(d)(3)(i) of title 47,
Code of Federal Regulations, as in effect on May 1,
1991,’’ and inserting ‘‘by the Commission by regulation
or order using, where available, commercial publications
which delineate television markets based on viewing
patterns,’’.
110
TITLE III—BROADCAST COMMU-
NICATIONS 
COMPETITIVE-
NESS
SEC. 301. BROADCASTER SPECTRUM FLEXIBILITY.
Title III of the Communications Act of 1934 is
amended by inserting after section 335 (47 U.S.C. 335)
the following new section:
‘‘SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.
‘‘(a) COMMISSION ACTION.—If the Commission de-
termines to issue additional licenses for advanced tele-
vision services, the Commission shall—
‘‘(1) limit the initial eligibility for such licenses
to persons that, as of the date of such issuance, are
licensed to operate a television broadcast station or
hold a permit to construct such a station (or both);
and
‘‘(2) adopt regulations that allow such licensees
or permittees to offer such ancillary or supple-
mentary services on designated frequencies as may
be consistent with the public interest, convenience,
and necessity.
‘‘(b) CONTENTS OF REGULATIONS.—In prescribing
the regulations required by subsection (a), the Commission
shall—
111
‘‘(1) only permit such licensee or permittee to
offer ancillary or supplementary services if the use
of a designated frequency for such services is con-
sistent with the technology or method designated by
the Commission for the provision of advanced tele-
vision services;
‘‘(2) limit the broadcasting of ancillary or sup-
plementary services on designated frequencies so as
to avoid derogation of any advanced television serv-
ices, including high definition television broadcasts,
that the Commission may require using such fre-
quencies;
‘‘(3) apply to any other ancillary or supple-
mentary service such of the Commission’s regula-
tions as are applicable to the offering of analogous
services by any other person;
‘‘(4) adopt such technical and other require-
ments as may be necessary or appropriate to assure
the quality of the signal used to provide advanced
television services, and may adopt regulations that
stipulate the minimum number of hours per day that
such signal must be transmitted; and
‘‘(5) prescribe such other regulations as may be
necessary for the protection of the public interest,
convenience, and necessity.
112
‘‘(c) RECOVERY OF LICENSE.—
‘‘(1) CONDITIONS REQUIRED.—If the Commis-
sion grants a license for advanced television services
to a person that, as of the date of such issuance, is
licensed to operate a television broadcast station or
holds a permit to construct such a station (or both),
the Commission shall, as a condition of such license,
require that, upon a determination by the Commis-
sion pursuant to the regulations prescribed under
paragraph (2), either the additional license or the
original license held by the licensee be surrendered
to the Commission in accordance with such regula-
tions for reallocation or reassignment (or both) pur-
suant to Commission regulation.
‘‘(2) CRITERIA.—The Commission shall pre-
scribe criteria for rendering determinations concern-
ing license surrender pursuant to license conditions
required by paragraph (1). Such criteria shall—
‘‘(A) require such determinations to be
based on whether the substantial majority of
the public have obtained television receivers
that are capable of receiving advanced television
services; and
‘‘(B) not require the cessation of the
broadcasting under either the original or addi-
113
tional license if such cessation would render the
television receivers of a substantial portion of
the public useless, or otherwise cause undue
burdens on the owners of such television receiv-
ers.
‘‘(d) FEES.—
‘‘(1) SERVICES TO WHICH FEES APPLY.—If the
regulations prescribed pursuant to subsection (a)
permit a licensee to offer ancillary or supplementary
services on a designated frequency—
‘‘(A) for which the payment of a subscrip-
tion fee is required in order to receive such
services, or
‘‘(B) for which the licensee directly or indi-
rectly receives compensation from a third party
in return for transmitting material furnished by
such third party (other than commercial adver-
tisements used to support broadcasting for
which a subscription fee is not required),
the Commission shall establish a program to assess
and collect from the licensee for such designated fre-
quency an annual fee or other schedule or method
of payment that promotes the objectives described in
subparagraphs (A) and (B) of paragraph (2).
114
‘‘(2) COLLECTION OF FEES.—The program re-
quired by paragraph (1) shall—
‘‘(A) be designed (i) to recover for the pub-
lic a portion of the value of the public spectrum
resource made available for such commercial
use, and (ii) to avoid unjust enrichment
through the method employed to permit such
uses of that resource;
‘‘(B) recover for the public an amount
that, to the extent feasible, equals but does not
exceed (over the term of the license) the
amount that would have been recovered had
such services been licensed pursuant to the pro-
visions of section 309(j) of this Act and the
Commission’s regulations thereunder; and
‘‘(C) be adjusted by the Commission from
time to time in order to continue to comply with
the requirements of this paragraph.
‘‘(3) TREATMENT OF REVENUES.—
‘‘(A) GENERAL RULE.—Except as provided
in subparagraph (B), all proceeds obtained pur-
suant to the regulations required by this sub-
section shall be deposited in the Treasury in ac-
cordance with chapter 33 of title 31, United
States Code.
115
‘‘(B) RETENTION
OF
REVENUES.—Not-
withstanding subparagraph (A), the salaries
and expenses account of the Commission shall
retain as an offsetting collection such sums as
may be necessary from such proceeds for the
costs of developing and implementing the pro-
gram required by this section and regulating
and supervising advanced television services.
Such offsetting collections shall be available for
obligation subject to the terms and conditions
of the receiving appropriations account, and
shall be deposited in such accounts on a quar-
terly basis.
‘‘(4) REPORT.—Within 5 years after the date of
the enactment of this section, the Commission shall
report to the Congress on the implementation of the
program required by this subsection, and shall annu-
ally thereafter advise the Congress on the amounts
collected pursuant to such program.
‘‘(e) EVALUATION.—Within 10 years after the date
the Commission first issues additional licenses for ad-
vanced television services, the Commission shall conduct
an evaluation of the advanced television services program.
Such evaluation shall include—
116
‘‘(1) an assessment of the willingness of con-
sumers to purchase the television receivers necessary
to receive broadcasts of advanced television services;
‘‘(2) an assessment of alternative uses, includ-
ing public safety use, of the frequencies used for
such broadcasts; and
‘‘(3) the extent to which the Commission has
been or will be able to reduce the amount of spec-
trum assigned to licensees in order to issue addi-
tional licenses for the provision of advanced tele-
vision services.
‘‘(f) DEFINITIONS.—As used in this section:
‘‘(1) ADVANCED
TELEVISION
SERVICES.—The
term ‘advanced television services’ means television
services provided using digital or other advanced
technology to enhance audio quality and video reso-
lution, as further defined in the opinion, report, and
order of the Commission entitled ‘Advanced Tele-
vision Systems and Their Impact Upon the Existing
Television Broadcast Service’, MM Docket 87–268,
adopted September 17, 1992, and successor proceed-
ings.
‘‘(2) DESIGNATED
FREQUENCIES.—The term
‘designated frequency’ means each of the frequencies
117
designated by the Commission for licenses for ad-
vanced television services.
‘‘(3) HIGH DEFINITION TELEVISION.—The term
‘high definition television’ refers to systems that
offer approximately twice the vertical and horizontal
resolution of receivers generally available on the date
of enactment of this section, as further defined in
the proceedings described in paragraph (1) of this
subsection.’’.
SEC. 302. TERM OF LICENSES.
Section 307(c) of the Communications Act of 1934
(47 U.S.C. 307(c)) is amended to read as follows:
‘‘(c) TERMS OF LICENSES.—
‘‘(1) INITIAL AND RENEWAL LICENSES.—Each
license granted for the operation of a broadcasting
station shall be for a term of not to exceed seven
years. Upon application therefor, a renewal of such
license may be granted from time to time for a term
of not to exceed seven years from the date of expira-
tion of the preceding license, if the Commission finds
that public interest, convenience, and necessity
would be served thereby. Consistent with the fore-
going provisions of this subsection, the Commission
may by rule prescribe the period or periods for
which licenses shall be granted and renewed for par-
118
ticular classes of stations, but the Commission may
not adopt or follow any rule which would preclude it,
in any case involving a station of a particular class,
from granting or renewing a license for a shorter pe-
riod than that prescribed for stations of such class
if, in its judgment, public interest, convenience, or
necessity would be served by such action.
‘‘(2) MATERIALS IN APPLICATION.—In order to
expedite action on applications for renewal of broad-
casting station licenses and in order to avoid need-
less expense to applicants for such renewals, the
Commission shall not require any such applicant to
file any information which previously has been fur-
nished to the Commission or which is not directly
material to the considerations that affect the grant-
ing or denial of such application, but the Commis-
sion may require any new or additional facts it
deems necessary to make its findings.
‘‘(3) CONTINUATION
PENDING
DECISION.—
Pending any hearing and final decision on such an
application and the disposition of any petition for re-
hearing pursuant to section 405, the Commission
shall continue such license in effect.’’.
119
SEC. 303. BROADCAST LICENSE RENEWAL PROCEDURES.
(a) AMENDMENT.—Section 309 of the Communica-
tions Act of 1934 (47 U.S.C. 309) is amended by adding
at the end thereof the following new subsection:
‘‘(k) 
BROADCAST
STATION
RENEWAL
PROCE-
DURES.—
‘‘(1) STANDARDS
FOR
RENEWAL.—If the li-
censee of a broadcast station submits an application
to the Commission for renewal of such license, the
Commission shall grant the application if it finds,
with respect to that station, during the preceding
term of its license—
‘‘(A) the station has served the public in-
terest, convenience, and necessity;
‘‘(B) there have been no serious violations
by the licensee of this Act or the rules and reg-
ulations of the Commission; and
‘‘(C) there have been no other violations by
the licensee of this Act or the rules and regula-
tions of the Commission which, taken together,
would constitute a pattern of abuse.
‘‘(2) CONSEQUENCE
OF
FAILURE
TO
MEET
STANDARD.—If any licensee of a broadcast station
fails to meet the requirements of this subsection, the
Commission may deny the application for renewal in
accordance with paragraph (3), or grant such appli-
120
cation on terms and conditions as are appropriate,
including renewal for a term less than the maximum
otherwise permitted.
‘‘(3) STANDARDS FOR DENIAL.—If the Commis-
sion determines, after notice and opportunity for a
hearing as provided in subsection (e), that a licensee
has failed to meet the requirements specified in
paragraph (1) and that no mitigating factors justify
the imposition of lesser sanctions, the Commission
shall—
‘‘(A) issue an order denying the renewal
application filed by such licensee under section
308; and
‘‘(B) only thereafter accept and consider
such applications for a construction permit as
may be filed under section 308 specifying the
channel or broadcasting facilities of the former
licensee.
‘‘(4) COMPETITOR
CONSIDERATION
PROHIB-
ITED.—In making the determinations specified in
paragraph (1) or (2), the Commission shall not con-
sider whether the public interest, convenience, and
necessity might be served by the grant of a license
to a person other than the renewal applicant.’’.
121
(b) CONFORMING AMENDMENT.—Section 309(d) of
the Communications Act of 1934 (47 U.S.C. 309(d)) is
amended by inserting after ‘‘with subsection (a)’’ each
place such term appears the following: ‘‘(or subsection (k)
in the case of renewal of any broadcast station license)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to any application for renewal filed
on or after May 31, 1995.
SEC. 304. EXCLUSIVE FEDERAL JURISDICTION OVER DI-
RECT BROADCAST SATELLITE SERVICE.
Section 303 of the Communications Act of 1934 (47
U.S.C. 303) is amended by adding at the end thereof the
following new subsection:
‘‘(v) Have exclusive jurisdiction over the regulation
of the direct broadcast satellite service.’’.
SEC. 305. AUTOMATED SHIP DISTRESS AND SAFETY SYS-
TEMS.
Notwithstanding any provision of the Communica-
tions Act of 1934, a ship documented under the laws of
the United States operating in accordance with the Global
Maritime Distress and Safety System provisions of the
Safety of Life at Sea Convention shall not be required to
be equipped with a radio station operated by one or more
radio officers or operators.
122
SEC. 306. RESTRICTIONS ON OVER-THE-AIR RECEPTION DE-
VICES.
Within 180 days after the enactment of this Act, the
Commission shall, pursuant to section 303, promulgate
regulations to prohibit restrictions that inhibit a viewer’s
ability to receive video programming services through sig-
nal receiving devices designed for off-the-air reception of
television broadcast signals.
SEC. 307. DBS SIGNAL SECURITY.
Section 705(e)(4) of the Communications Act of
1934 (47 U.S.C. 605(e)) is amended by inserting after
‘‘satellite cable programming’’ the following: ‘‘or program-
ming of a licensee in the direct broadcast satellite service’’.
TITLE IV—EFFECT ON OTHER
LAWS
SEC. 401. RELATIONSHIP TO OTHER LAWS.
(a) MODIFICATION OF FINAL JUDGMENT.—Parts II
and III of title II of the Communications Act of 1934 (as
added by this Act) shall supersede the Modification of
Final Judgment, except that such part 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,
123
(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,
124
(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.—Nothing in this Act shall be
construed to modify, impair, or supersede the applicability
of any of the antitrust laws.
(c) FEDERAL, STATE, AND LOCAL LAW.—(1) Except
as provided in paragraph (2), parts II and III of title II
of the Communications Act of 1934 shall not be construed
to modify, impair, or supersede Federal, State, or local
law unless expressly so provided in such part.
(2) Parts II and III of title II of the Communications
Act of 1934 shall supersede State and local law to the
extent that such law would impair or prevent the operation
of such part.
(d) TERMINATION.—The provisions of the GTE con-
sent decree shall cease to be effective on the date of enact-
ment of this Act. For purposes of this subsection, the term
‘‘GTE consent decree’’ means the order entered on De-
cember 21, 1984 (as restated on January 11, 1985), in
125
United States v. GTE Corporation, Civil Action No. 83–
1298, in the United States District Court for the District
of Columbia, and includes any judgment or order with re-
spect to such action entered on or after December 21,
1984.
(e) INAPPLICABILITY
OF
FINAL
JUDGMENT
TO
WIRELESS SUCCESSORS.—No person shall be subject to
the provisions of the Modification of Final Judgment by
reason of having acquired wireless exchange assets or op-
erations previously owned by a Bell operating company or
an affiliate of a Bell operating company.
(f) ANTITRUST LAWS.—As used in this section, the
term ‘‘antitrust laws’’ has the meaning given it in sub-
section (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.), com-
monly 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.
SEC. 402. PREEMPTION OF LOCAL TAXATION WITH RE-
SPECT TO DBS SERVICES.
(a) PREEMPTION.—A provider of direct-to-home sat-
ellite service, or its agent or representative for the sale
or distribution of direct-to-home satellite services, shall be
126
exempt from the collection or remittance, or both, of any
tax or fee, as defined by subsection (b)(4), imposed by any
local taxing jurisdiction with respect to the provision of
direct broadcast satellite services. Nothing in this section
shall be construed to exempt from collection or remittance
any tax or fee on the sale of equipment.
(b) DEFINITIONS.—For the purposes of this sec-
tion—
(1) DIRECT BROADCAST SATELLITE SERVICE.—
The term ‘‘direct-to-home satellite service’’ means
the transmission or broadcasting by satellite of pro-
gramming directly to the subscribers’ premises with-
out the use of ground receiving or distribution equip-
ment, except at the subscribers’ premises or in the
uplink process to the satellite.
(2) DIRECT-TO-HOME SATELLITE SERVICE PRO-
VIDER.—For purposes of this section, a ‘‘provider of
direct-to-home satellite service’’ means a person who
transmits or broadcasts direct-to-home satellite serv-
ices.
(3) LOCAL TAXING JURISDICTION.—The term
‘‘local taxing jurisdiction’’ means any municipality,
city, county, township, parish, transportation dis-
trict, or assessment jurisdiction, or any other local
127
jurisdiction with the authority to impose a tax or
fee.
(4) TAX OR FEE.—The terms ‘‘tax’’ and ‘‘fee’’
mean any local sales tax, local use tax, local intangi-
ble tax, local income tax, business license tax, utility
tax, privilege tax, gross receipts tax, excise tax, fran-
chise fees, local telecommunications tax, or any other
tax, license, or fee that is imposed for the privilege
of doing business, regulating, or raising revenue for
a local taxing jurisdiction.
(c) EFFECTIVE DATE.—This section shall be effective
as of June 1, 1994.
TITLE V—DEFINITIONS
SEC. 501. DEFINITIONS.
(a) ADDITIONAL DEFINITIONS.—Section 3 of the Act
(47 U.S.C. 153) is amended—
(1) in subsection (r)—
(A) by inserting ‘‘(A)’’ after ‘‘means’’; and
(B) by inserting before the period at the
end the following: ‘‘, or (B) service provided
through a system of switches, transmission
equipment, or other facilities (or combination
thereof) by which a subscriber can originate
and terminate a telecommunications service
128
within a State but which does not result in the
subscriber incurring a telephone toll charge’’;
(2) by indenting such paragraphs 2 em spaces;
and
(3) by adding at the end thereof the following:
‘‘(35) AFFILIATE.—The term ‘affiliate’, when
used in relation to any person or entity, means an-
other person or entity who owns or controls, is
owned or controlled by, or is under common owner-
ship or control with, such person or entity.
‘‘(36) 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
129
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 that provides telephone exchange serv-
ice.
‘‘(37) CABLE SYSTEM.—The term ‘cable sys-
tem’ has the meaning given such term in section
602(7) of this Act.
‘‘(38) 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.
‘‘(39) DIALING PARITY.—The term ‘dialing par-
ity’ means that a person that is not an affiliated en-
terprise of a local exchange carrier is able to provide
telecommunications services in such a manner that
customers have the ability to route automatically,
without the use of any access code, their tele-
communications to the telecommunications services
130
provider of the customer’s designation from among
2 or more telecommunications services providers (in-
cluding such local exchange carrier).
‘‘(40) EXCHANGE
ACCESS.—The term ‘ex-
change access’ means the offering of telephone ex-
change services or facilities for the purpose of the
origination or termination of interLATA services.
‘‘(41) INFORMATION SERVICE.—The term ‘in-
formation service’ means the offering of a capability
for generating, acquiring, storing, transforming,
processing, retrieving, utilizing, or making available
information via telecommunications, and includes
electronic publishing, but does not include any use
of any such capability for the management, control,
or operation of a telecommunications system or the
management of a telecommunications service.
‘‘(42) 
INTERLATA 
SERVICE.—The 
term
‘interLATA service’ means telecommunications be-
tween a point located in a local access and transport
area and a point located outside such area.
‘‘(43) LOCAL ACCESS AND TRANSPORT AREA.—
The term ‘local access and transport area’ or
‘LATA’ means a contiguous geographic area—
‘‘(A) established by a Bell operating com-
pany such that no exchange area includes
131
points within more than 1 metropolitan statis-
tical area, consolidated metropolitan statistical
area, or State, except as expressly permitted
under the Modification of Final Judgment be-
fore the date of the enactment of this Act; or
‘‘(B) established or modified by a Bell op-
erating company after the date of enactment of
this paragraph and approved by the Commis-
sion.
‘‘(44) LOCAL EXCHANGE CARRIER.—The term
‘local exchange carrier’ means any person that is en-
gaged in the provision of telephone exchange service
or exchange access. Such term does not include a
person insofar as such person is engaged in the pro-
vision of a commercial mobile service under section
332(c), except to the extent that the Commission
finds that such service as provided by such person
in a State is a replacement for a substantial portion
of the wireline telephone exchange service within
such State.
‘‘(45) 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
132
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.
‘‘(46) NUMBER PORTABILITY.—The term ‘num-
ber portability’ means the ability of users of tele-
communications services to retain existing tele-
communications numbers without impairment of
quality, reliability, or convenience when switching
from one provider of telecommunications services to
another, as long as such user continues to be located
within the same exchange area.
‘‘(47) TELECOMMUNICATIONS.—The term ‘tele-
communications’ means the transmission, between or
among points specified by the subscriber, of informa-
tion of the subscriber’s choosing, without change in
the form or content of the information as sent and
received, by means of an electromagnetic trans-
mission medium, including all instrumentalities, fa-
cilities, apparatus, and services (including the collec-
tion, storage, forwarding, switching, and delivery of
such information) essential to such transmission.
‘‘(48) TELECOMMUNICATIONS
EQUIPMENT.—
The term ‘telecommunications equipment’ means
equipment, other than customer premises equipment,
used by a carrier to provide telecommunications
133
services, and includes software integral to such
equipment (including upgrades).
‘‘(49) TELECOMMUNICATIONS
SERVICE.—The
term ‘telecommunications service’ means the offer-
ing, on a common carrier basis, of telecommuni-
cations facilities, or of telecommunications by means
of such facilities. Such term does not include an in-
formation service.’’.
(b) STYLISTIC CONSISTENCY.—Section 3 of the Com-
munications Act of 1934 (47 U.S.C. 153) is amended—
(1) in subsections (e) and (n), by redesignating
clauses (1), (2) and (3), as clauses (A), (B), and
(C), respectively;
(2) in subsection (w), by redesignating para-
graphs (1) through (5) as subparagraphs (A)
through (E), respectively;
(3) in subsections (y) and (z), by redesignating
paragraphs (1) and (2) as subparagraphs (A) and
(B), respectively;
(4) by redesignating subsections (a) through
(hh) as paragraphs (1) through (34);
(5) by indenting such paragraphs 2 em spaces;
(6) by inserting after the designation of each
such paragraph—
134
(A) a heading, in a form consistent with
the form of the heading of this subsection, con-
sisting of the term defined by such paragraph,
or the first term so defined if such paragraph
defines more than one term; and
(B) the words ‘‘The term’’; and
(7) by changing the first letter of each defined
term in such paragraphs from a capital to a lower
case letter; and
(8) by recording such paragraphs and the addi-
tional paragraphs added by subsection (a) in alpha-
betical order based on the headings of such para-
graphs and renumbering such paragraphs as so reor-
dered.
(c) CONFORMING AMENDMENTS.—The Communica-
tions Act of 1934 is amended—
(1) in section 225(a)(1), by striking ‘‘section
3(h)’’ and inserting ‘‘section 3’’;
(2) in section 332(d), by striking ‘‘section 3(n)’’
each place it appears and inserting ‘‘section 3’’; and
(3) 
in 
sections 
621(d)(3), 
636(d), 
and
637(a)(2), by striking ‘‘section 3(v)’’ and inserting
‘‘section 3’’.
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