Telecommunications Act of 1996
S.652
One Hundred Fourth Congress of the United States of
America
AT THE SECOND SESSION Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act 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 technologies.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES.
(a) SHORT TITLE- This Act may be cited as the `Telecommunications Act of 1996'.
(b) REFERENCES- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Communications Act of 1934 (47 U.S.C. 151 et seq.).
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
- Sec. 1. Short title; references.
- Sec. 2. Table of contents.
- Sec. 3. Definitions.
- TITLE I--TELECOMMUNICATION SERVICES
- SUBTITLE A--TELECOMMUNICATIONS SERVICES
- Sec. 101. Establishment of part II of title II. `PART II--DEVELOPMENT OF COMPETITIVE MARKETS
- Sec. 102. Eligible telecommunications carriers.
- Sec. 103. Exempt telecommunications companies.
- Sec. 104. Nondiscrimination principle.
- SUBTITLE B--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
- Sec. 151. Bell operating company provisions. `PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
- TITLE II--BROADCAST SERVICES
- Sec. 201. Broadcast spectrum flexibility.
- Sec. 202. Broadcast ownership.
- Sec. 203. Term of licenses.
- Sec. 204. Broadcast license renewal procedures.
- Sec. 205. Direct broadcast satellite service.
- Sec. 206. Automated ship distress and safety systems.
- Sec. 207. Restrictions on over-the-air reception devices.
- TITLE III--CABLE SERVICES
- Sec. 301. Cable Act reform.
- Sec. 302. Cable service provided by telephone companies. `PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE COMPANIES
- Sec. 303. Preemption of franchising authority regulation of telecommunications services.
- Sec. 304. Competitive availability of navigation devices.
- Sec. 305. Video programming accessibility.
- TITLE IV--REGULATORY REFORM
- Sec. 401. Regulatory forbearance.
- Sec. 402. Biennial review of regulations; regulatory relief.
- Sec. 403. Elimination of unnecessary Commission regulations and functions.
- TITLE V--OBSCENITY AND VIOLENCE
- SUBTITLE A--OBSCENE, HARASSING, AND WRONGFUL UTILIZATION OF TELECOMMUNICATIONS FACILITIES
- Sec. 501. Short title.
- Sec. 502. Obscene or harassing use of telecommunications facilities under the Communications Act of 1934.
- Sec. 503. Obscene programming on cable television.
- Sec. 504. Scrambling of cable channels for nonsubscribers.
- Sec. 505. Scrambling of sexually explicit adult video service programming.
- Sec. 506. Cable operator refusal to carry certain programs.
- Sec. 507. Clarification of current laws regarding communication of obscene materials through the use of computers.
- Sec. 508. Coercion and enticement of minors.
- Sec. 509. Online family empowerment.
- SUBTITLE B--VIOLENCE
- SUBTITLE C--JUDICIAL REVIEW
- Sec. 561. Expedited review.
- TITLE VI--EFFECT ON OTHER LAWS
- Sec. 601. Applicability of consent decrees and other law.
- Sec. 602. Preemption of local taxation with respect to direct-to-home services.
- TITLE VII--MISCELLANEOUS PROVISIONS
- Sec. 701. Prevention of unfair billing practices for information or services provided over toll-free telephone calls.
- Sec. 702. Privacy of customer information.
- Sec. 703. Pole attachments.
- Sec. 704. Facilities siting; radio frequency emission standards.
- Sec. 705. Mobile services direct access to long distance carriers.
- Sec. 706. Advanced telecommunications incentives.
- Sec. 707. Telecommunications Development Fund.
- Sec. 708. National Education Technology Funding Corporation.
- Sec. 709. Report on the use of advanced telecommunications services for medical purposes.
- Sec. 710. Authorization of appropriations.
SEC. 3. DEFINITIONS.
(a) ADDITIONAL DEFINITIONS- Section 3 (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) comparable 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';
and
(2) by adding at the end thereof the following:
`(33) AFFILIATE- The term `affiliate' means a person that
(directly or indirectly) owns or controls, is owned or
controlled by, or is under common ownership or control with,
another person. For purposes of this paragraph, the term `own'
means to own an equity interest (or the equivalent thereof) of
more than 10 percent.
`(34) AT&T CONSENT DECREE- The term `AT&T Consent Decree'
means the order entered August 24, 1982, in the antitrust
action styled United States v. Western Electric, Civil Action
No. 82-0192, in the United States District Court for the
District of Columbia, and includes any judgment or order with
respect to such action entered on or after August 24, 1982.
`(35) BELL OPERATING COMPANY- The term `Bell operating
company'--
`(A) means any of the following companies: Bell Telephone
Company of Nevada, Illinois Bell Telephone Company, Indiana
Bell Telephone Company, Incorporated, Michigan Bell
Telephone Company, New England Telephone and Telegraph
Company, New Jersey Bell Telephone Company, New York
Telephone Company, U S West Communications Company, South
Central Bell Telephone Company, Southern Bell Telephone and
Telegraph Company, Southwestern Bell Telephone Company, The
Bell Telephone Company of Pennsylvania, The Chesapeake and
Potomac Telephone Company, The Chesapeake and Potomac
Telephone Company of Maryland, The Chesapeake and Potomac
Telephone Company of Virginia, The Chesapeake and Potomac
Telephone Company of West Virginia, The Diamond State
Telephone Company, The Ohio Bell Telephone Company, The
Pacific Telephone and Telegraph Company, or Wisconsin
Telephone Company; and
`(B) includes any successor or assign of any such company
that provides wireline telephone exchange service; but
`(C) does not include an affiliate of any such company,
other than an affiliate described in subparagraph (A) or (B).
`(36) CABLE SERVICE- The term `cable service' has the meaning
given such term in section 602.
`(37) CABLE SYSTEM- The term `cable system' has the meaning
given such term in section 602.
`(38) CUSTOMER PREMISES EQUIPMENT- The term `customer
premises equipment' means equipment employed on the premises of
a person (other than a carrier) to originate, route, or
terminate telecommunications.
`(39) DIALING PARITY- The term `dialing parity' means that a
person that is not an affiliate 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 telecommunications to the
telecommunications services provider of the customer's
designation from among 2 or more telecommunications services
providers (including such local exchange carrier).
`(40) EXCHANGE ACCESS- The term `exchange access' means the
offering of access to telephone exchange services or facilities
for the purpose of the origination or termination of telephone
toll services.
`(41) INFORMATION SERVICE- The term `information 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 between 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 before the date of enactment of the
Telecommunications Act of 1996 by a Bell operating company
such that no exchange area includes points within more than
1 metropolitan statistical area, consolidated metropolitan
statistical area, or State, except as expressly permitted
under the AT&T Consent Decree; or
`(B) established or modified by a Bell operating company
after such date of enactment and approved by the Commission.
`(44) LOCAL EXCHANGE CARRIER- The term `local exchange
carrier' means any person that is engaged 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
provision of a commercial mobile service under section 332(c),
except to the extent that the Commission finds that such
service should be included in the definition of such term.
`(45) NETWORK ELEMENT- The term `network element' means a
facility or equipment used in the provision of a
telecommunications service. Such term also includes features,
functions, and capabilities that are provided by means of such
facility or equipment, including subscriber numbers, databases,
signaling systems, and information sufficient for billing and
collection or used in the transmission, routing, or other
provision of a telecommunications service.
`(46) NUMBER PORTABILITY- The term `number portability' means
the ability of users of telecommunications services to retain,
at the same location, existing telecommunications numbers
without impairment of quality, reliability, or convenience when
switching from one telecommunications carrier to another.
`(47) RURAL TELEPHONE COMPANY- The term `rural telephone
company' means a local exchange carrier operating entity to the
extent that such entity--
`(A) provides common carrier service to any local
exchange carrier study area that does not include either--
`(i) any incorporated place of 10,000 inhabitants or
more, or any part thereof, based on the most recently
available population statistics of the Bureau of the
Census; or
`(ii) any territory, incorporated or unincorporated,
included in an urbanized area, as defined by the Bureau
of the Census as of August 10, 1993;
`(B) provides telephone exchange service, including
exchange access, to fewer than 50,000 access lines;
`(C) provides telephone exchange service to any local
exchange carrier study area with fewer than 100,000 access
lines; or
`(D) has less than 15 percent of its access lines in
communities of more than 50,000 on the date of enactment of
the Telecommunications Act of 1996.
`(48) TELECOMMUNICATIONS- The term `telecommunications' means
the transmission, between or among points specified by the
user, of information of the user's choosing, without change in
the form or content of the information as sent and received.
`(49) TELECOMMUNICATIONS CARRIER- The term
`telecommunications carrier' means any provider of
telecommunications services, except that such term does not
include aggregators of telecommunications services (as defined
in section 226). A telecommunications carrier shall be treated
as a common carrier under this Act only to the extent that it
is engaged in providing telecommunications services, except
that the Commission shall determine whether the provision of
fixed and mobile satellite service shall be treated as common
carriage.
`(50) TELECOMMUNICATIONS EQUIPMENT- The term
`telecommunications equipment' means equipment, other than
customer premises equipment, used by a carrier to provide
telecommunications services, and includes software integral to
such equipment (including upgrades).
`(51) TELECOMMUNICATIONS SERVICE- The term
`telecommunications service' means the offering of
telecommunications for a fee directly to the public, or to such
classes of users as to be effectively available directly to the
public, regardless of the facilities used.'.
(b) COMMON TERMINOLOGY- Except as otherwise provided in this Act,
the terms used in this Act have the meanings provided in section 3
of the Communications Act of 1934 (47 U.S.C. 153), as amended by
this section.
(c) STYLISTIC CONSISTENCY- Section 3 (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 paragraphs (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 (ff) as
paragraphs (1) through (32);
(5) by indenting such paragraphs 2 em spaces;
(6) by inserting after the designation of each such paragraph--
(A) a heading, in a form consistent with the form of the
heading of this subsection, consisting 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';
(7) by changing the first letter of each defined term in such
paragraphs from a capital to a lower case letter (except for
`United States', `State', `State commission', and `Great Lakes
Agreement'); and
(8) by reordering such paragraphs and the additional
paragraphs added by subsection (a) in alphabetical order based
on the headings of such paragraphs and renumbering such
paragraphs as so reordered.
(d) CONFORMING AMENDMENTS- The Act 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'.
TITLE I--TELECOMMUNICATION SERVICES
SUBTITLE A--TELECOMMUNICATIONS SERVICES
SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.
(a) AMENDMENT- Title II is amended by inserting after section 229
(47 U.S.C. 229) the following new part:
`PART II--DEVELOPMENT OF COMPETITIVE MARKETS
`SEC. 251. INTERCONNECTION.
`(a) GENERAL DUTY OF TELECOMMUNICATIONS CARRIERS- Each
telecommunications carrier has the duty--
`(1) to interconnect directly or indirectly with the
facilities and equipment of other telecommunications carriers;
and
`(2) not to install network features, functions, or
capabilities that do not comply with the guidelines and
standards established pursuant to section 255 or 256.
`(b) OBLIGATIONS OF ALL LOCAL EXCHANGE CARRIERS- Each local
exchange carrier has the following duties:
`(1) RESALE- The duty not to prohibit, and not to impose
unreasonable or discriminatory conditions or limitations on,
the resale of its telecommunications services.
`(2) NUMBER PORTABILITY- The duty to provide, to the extent
technically feasible, number portability in accordance with
requirements prescribed by the Commission.
`(3) DIALING PARITY- The duty to provide dialing parity to
competing providers of telephone exchange service and telephone
toll service, and the duty to permit all such providers to have
nondiscriminatory access to telephone numbers, operator
services, directory assistance, and directory listing, with no
unreasonable dialing delays.
`(4) 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 on rates,
terms, and conditions that are consistent with section 224.
`(5) RECIPROCAL COMPENSATION- The duty to establish
reciprocal compensation arrangements for the transport and
termination of telecommunications.
`(c) ADDITIONAL OBLIGATIONS OF INCUMBENT LOCAL EXCHANGE CARRIERS-
In addition to the duties contained in subsection (b), each
incumbent local exchange carrier has the following duties:
`(1) DUTY TO NEGOTIATE- The duty to negotiate in good faith
in accordance with section 252 the particular terms and
conditions of agreements to fulfill the duties described in
paragraphs (1) through (5) of subsection (b) and this
subsection. The requesting telecommunications carrier also has
the duty to negotiate in good faith the terms and conditions of
such agreements.
`(2) INTERCONNECTION- The duty to provide, for the facilities
and equipment of any requesting telecommunications carrier,
interconnection with the local exchange carrier's network--
`(A) for the transmission and routing of telephone
exchange service and exchange access;
`(B) at any technically feasible point within the
carrier's network;
`(C) that is at least equal in quality to that provided
by the local exchange carrier to itself or to any
subsidiary, affiliate, or any other party to which the
carrier provides interconnection; and
`(D) on rates, terms, and conditions that are just,
reasonable, and nondiscriminatory, in accordance with the
terms and conditions of the agreement and the requirements
of this section and section 252.
`(3) UNBUNDLED ACCESS- The duty to provide, to any requesting
telecommunications carrier for the provision of a
telecommunications service, nondiscriminatory access to network
elements on an unbundled basis at any technically feasible
point on rates, terms, and conditions that are just,
reasonable, and nondiscriminatory in accordance with the terms
and conditions of the agreement and the requirements of this
section and section 252. An incumbent local exchange carrier
shall provide such unbundled network elements in a manner that
allows requesting carriers to combine such elements in order to
provide such telecommunications service.
`(4) RESALE- The duty--
`(A) to offer for resale at wholesale rates any
telecommunications service that the carrier provides at
retail to subscribers who are not telecommunications
carriers; and
`(B) not to prohibit, and not to impose unreasonable or
discriminatory conditions or limitations on, the resale of
such telecommunications service, except that a State
commission may, consistent with regulations prescribed by
the Commission under this section, prohibit a reseller that
obtains at wholesale rates a telecommunications service
that is available at retail only to a category of
subscribers from offering such service to a different
category of subscribers.
`(5) NOTICE OF CHANGES- The duty to provide reasonable public
notice of changes in the information necessary for the
transmission and routing of services using that local exchange
carrier's facilities or networks, as well as of any other
changes that would affect the interoperability of those
facilities and networks.
`(6) COLLOCATION- The duty to provide, on rates, terms, and
conditions that are just, reasonable, and nondiscriminatory,
for physical collocation of equipment necessary for
interconnection or access to unbundled network elements at the
premises of the local exchange carrier, except that the carrier
may provide for virtual collocation if the local exchange
carrier demonstrates to the State commission that physical
collocation is not practical for technical reasons or because
of space limitations.
`(d) IMPLEMENTATION-
`(1) IN GENERAL- Within 6 months after the date of enactment
of the Telecommunications Act of 1996, the Commission shall
complete all actions necessary to establish regulations to
implement the requirements of this section.
`(2) ACCESS STANDARDS- In determining what network elements
should be made available for purposes of subsection (c)(3), the
Commission shall consider, at a minimum, whether--
`(A) access to such network elements as are proprietary
in nature is necessary; and
`(B) the failure to provide access to such network
elements would impair the ability of the telecommunications
carrier seeking access to provide the services that it
seeks to offer.
`(3) PRESERVATION OF STATE ACCESS REGULATIONS- In prescribing
and enforcing regulations to implement the requirements of this
section, the Commission shall not preclude the enforcement of
any regulation, order, or policy of a State commission that--
`(A) establishes access and interconnection obligations
of local exchange carriers;
`(B) is consistent with the requirements of this section;
and
`(C) does not substantially prevent implementation of the
requirements of this section and the purposes of this part.
`(e) NUMBERING ADMINISTRATION-
`(1) COMMISSION AUTHORITY AND JURISDICTION- The Commission
shall create or designate one or more impartial entities to
administer telecommunications numbering and to make such
numbers available on an equitable basis. The Commission 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
delegating to State commissions or other entities all or any
portion of such jurisdiction.
`(2) COSTS- The cost of establishing telecommunications
numbering administration arrangements and number portability
shall be borne by all telecommunications carriers on a
competitively neutral basis as determined by the Commission.
`(f) EXEMPTIONS, SUSPENSIONS, AND MODIFICATIONS-
`(1) EXEMPTION FOR CERTAIN RURAL TELEPHONE COMPANIES-
`(A) EXEMPTION- Subsection (c) of this section shall not
apply to a rural telephone company until (i) such company
has received a bona fide request for interconnection,
services, or network elements, and (ii) the State
commission determines (under subparagraph (B)) that such
request is not unduly economically burdensome, is
technically feasible, and is consistent with section 254
(other than subsections (b)(7) and (c)(1)(D) thereof).
`(B) STATE TERMINATION OF EXEMPTION AND IMPLEMENTATION
SCHEDULE- The party making a bona fide request of a rural
telephone company for interconnection, services, or network
elements shall submit a notice of its request to the State
commission. The State commission shall conduct an inquiry
for the purpose of determining whether to terminate the
exemption under subparagraph (A). Within 120 days after the
State commission receives notice of the request, the State
commission shall terminate the exemption if the request is
not unduly economically burdensome, is technically
feasible, and is consistent with section 254 (other than
subsections (b)(7) and (c)(1)(D) thereof). Upon termination
of the exemption, a State commission shall establish an
implementation schedule for compliance with the request
that is consistent in time and manner with Commission
regulations.
`(C) LIMITATION ON EXEMPTION- The exemption provided by
this paragraph shall not apply with respect to a request
under subsection (c) from a cable operator providing video
programming, and seeking to provide any telecommunications
service, in the area in which the rural telephone company
provides video programming. The limitation contained in
this subparagraph shall not apply to a rural telephone
company that is providing video programming on the date of
enactment of the Telecommunications Act of 1996.
`(2) SUSPENSIONS AND MODIFICATIONS FOR RURAL CARRIERS- A
local exchange carrier with fewer than 2 percent of the
Nation's subscriber lines installed in the aggregate nationwide
may petition a State commission for a suspension or
modification of the application of a requirement or
requirements of subsection (b) or (c) to telephone exchange
service facilities specified in such petition. The State
commission shall grant such petition to the extent that, and
for such duration as, the State commission determines that such
suspension or modification--
`(A) is necessary--
`(i) to avoid a significant adverse economic impact
on users of telecommunications services generally;
`(ii) to avoid imposing a requirement that is unduly
economically burdensome; or
`(iii) to avoid imposing a requirement that is
technically infeasible; and
`(B) is consistent with the public interest,
convenience, and necessity.
The State commission shall act upon any petition filed under
this paragraph within 180 days after receiving such petition.
Pending such action, the State commission may suspend
enforcement of the requirement or requirements to which the
petition applies with respect to the petitioning carrier or
carriers.
`(g) CONTINUED ENFORCEMENT OF EXCHANGE ACCESS AND INTERCONNECTION
REQUIREMENTS- On and after the date of enactment of the
Telecommunications Act of 1996, each local exchange carrier, to the
extent that it provides wireline services, shall provide exchange
access, information access, and exchange services for such access
to interexchange carriers and information service providers in
accordance with the same equal access and nondiscriminatory
interconnection restrictions and obligations (including receipt of
compensation) that apply to such carrier on the date immediately
preceding the date of enactment of the Telecommunications Act of
1996 under any court order, consent decree, or regulation, order,
or policy of the Commission, until such restrictions and
obligations are explicitly superseded by regulations prescribed by
the Commission after such date of enactment. During the period
beginning on such date of enactment and until such restrictions and
obligations are so superseded, such restrictions and obligations
shall be enforceable in the same manner as regulations of the
Commission.
`(h) DEFINITION OF INCUMBENT LOCAL EXCHANGE CARRIER-
`(1) DEFINITION- For purposes of this section, the term
`incumbent local exchange carrier' means, with respect to an
area, the local exchange carrier that--
`(A) on the date of enactment of the Telecommunications
Act of 1996, provided telephone exchange service in such
area; and
`(B)(i) on such date of enactment, was deemed to be a
member of the exchange carrier association pursuant to
section 69.601(b) of the Commission's regulations (47
C.F.R. 69.601(b)); or
`(ii) is a person or entity that, on or after such date
of enactment, became a successor or assign of a member
described in clause (i).
`(2) TREATMENT OF COMPARABLE CARRIERS AS INCUMBENTS- The
Commission may, by rule, provide for the treatment of a local
exchange carrier (or class or category thereof) as an incumbent
local exchange carrier for purposes of this section if--
`(A) such carrier occupies a position in the market for
telephone exchange service within an area that is
comparable to the position occupied by a carrier described
in paragraph (1);
`(B) such carrier has substantially replaced an incumbent
local exchange carrier described in paragraph (1); and
`(C) such treatment is consistent with the public
interest, convenience, and necessity and the purposes of
this section.
`(i) SAVINGS PROVISION- Nothing in this section shall be
construed to limit or otherwise affect the Commission's authority
under section 201.
`SEC. 252. PROCEDURES FOR NEGOTIATION, ARBITRATION, AND APPROVAL OF AGREEMENTS.
`(a) AGREEMENTS ARRIVED AT THROUGH NEGOTIATION-
`(1) VOLUNTARY NEGOTIATIONS- Upon receiving a request for
interconnection, services, or network elements pursuant to
section 251, an incumbent local exchange carrier may negotiate
and enter into a binding agreement with the requesting
telecommunications carrier or carriers without regard to the
standards set forth in subsections (b) and (c) of section 251.
The agreement shall include a detailed schedule of itemized
charges for interconnection and each service or network element
included in the agreement. The agreement, including any
interconnection agreement negotiated before the date of
enactment of the Telecommunications Act of 1996, shall be
submitted to the State commission under subsection (e) of this
section.
`(2) MEDIATION- Any party negotiating an agreement under this
section may, at any point in the negotiation, ask a State
commission to participate in the negotiation and to mediate any
differences arising in the course of the negotiation.
`(b) AGREEMENTS ARRIVED AT THROUGH COMPULSORY ARBITRATION-
`(1) ARBITRATION- During the period from the 135th to the
160th day (inclusive) after the date on which an incumbent
local exchange carrier receives a request for negotiation under
this section, the carrier or any other party to the negotiation
may petition a State commission to arbitrate any open issues.
`(2) DUTY OF PETITIONER-
`(A) A party that petitions a State commission under
paragraph (1) shall, at the same time as it submits the
petition, provide the State commission all relevant
documentation concerning--
`(i) the unresolved issues;
`(ii) the position of each of the parties with
respect to those issues; and
`(iii) any other issue discussed and resolved by the
parties.
`(B) A party petitioning a State commission under
paragraph (1) shall provide a copy of the petition and any
documentation to the other party or parties not later than
the day on which the State commission receives the petition.
`(3) OPPORTUNITY TO RESPOND- A non-petitioning party to a
negotiation under this section may respond to the other party's
petition and provide such additional information as it wishes
within 25 days after the State commission receives the petition.
`(4) ACTION BY STATE COMMISSION-
`(A) The State commission shall limit its consideration
of any petition under paragraph (1) (and any response
thereto) to the issues set forth in the petition and in the
response, if any, filed under paragraph (3).
`(B) The State commission may require the petitioning
party and the responding party to provide such information
as may be necessary for the State commission to reach a
decision on the unresolved issues. If any party refuses or
fails unreasonably to respond on a timely basis to any
reasonable request from the State commission, then the
State commission may proceed on the basis of the best
information available to it from whatever source derived.
`(C) The State commission shall resolve each issue set
forth in the petition and the response, if any, by imposing
appropriate conditions as required to implement subsection
(c) upon the parties to the agreement, and shall conclude
the resolution of any unresolved issues not later than 9
months after the date on which the local exchange carrier
received the request under this section.
`(5) REFUSAL TO NEGOTIATE- The refusal of any other party to
the negotiation to participate further in the negotiations, to
cooperate with the State commission in carrying out its
function as an arbitrator, or to continue to negotiate in good
faith in the presence, or with the assistance, of the State
commission shall be considered a failure to negotiate in good
faith.
`(c) STANDARDS FOR ARBITRATION- In resolving by arbitration under
subsection (b) any open issues and imposing conditions upon the
parties to the agreement, a State commission shall--
`(1) ensure that such resolution and conditions meet the
requirements of section 251, including the regulations
prescribed by the Commission pursuant to section 251;
`(2) establish any rates for interconnection, services, or
network elements according to subsection (d); and
`(3) provide a schedule for implementation of the terms and
conditions by the parties to the agreement.
`(d) PRICING STANDARDS-
`(1) INTERCONNECTION AND NETWORK ELEMENT CHARGES-
Determinations by a State commission of the just and reasonable
rate for the interconnection of facilities and equipment for
purposes of subsection (c)(2) of section 251, and the just and
reasonable rate for network elements for purposes of subsection
(c)(3) of such section--
`(A) shall be--
`(i) based on the cost (determined without reference
to a rate-of-return or other rate-based proceeding) of
providing the interconnection or network element
(whichever is applicable), and
`(ii) nondiscriminatory, and
`(B) may include a reasonable profit.
`(2) CHARGES FOR TRANSPORT AND TERMINATION OF TRAFFIC-
`(A) IN GENERAL- For the purposes of compliance by an
incumbent local exchange carrier with section 251(b)(5), a
State commission shall not consider the terms and
conditions for reciprocal compensation to be just and
reasonable unless--
`(i) such terms and conditions provide for the mutual
and reciprocal recovery by each carrier of costs
associated with the transport and termination on each
carrier's network facilities of calls that originate on
the network facilities of the other carrier; and
`(ii) such terms and conditions determine such costs
on the basis of a reasonable approximation of the
additional costs of terminating such calls.
`(B) RULES OF CONSTRUCTION- This paragraph shall not be
construed--
`(i) to preclude arrangements that afford the mutual
recovery of costs through the offsetting of reciprocal
obligations, including arrangements that waive mutual
recovery (such as bill-and-keep arrangements); 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
transporting or terminating calls, or to require
carriers to maintain records with respect to the
additional costs of such calls.
`(3) WHOLESALE PRICES FOR TELECOMMUNICATIONS SERVICES- For
the purposes of section 251(c)(4), a State commission shall
determine wholesale rates on the basis of retail rates charged
to subscribers for the telecommunications service requested,
excluding the portion thereof attributable to any marketing,
billing, collection, and other costs that will be avoided by
the local exchange carrier.
`(e) APPROVAL BY STATE COMMISSION-
`(1) APPROVAL REQUIRED- Any interconnection agreement adopted
by negotiation or arbitration shall be submitted for approval
to the State commission. A State commission to which an
agreement is submitted shall approve or reject the agreement,
with written findings as to any deficiencies.
`(2) GROUNDS FOR REJECTION- The State commission may only
reject--
`(A) an agreement (or any portion thereof) adopted by
negotiation under subsection (a) if it finds that--
`(i) the agreement (or portion thereof) discriminates
against a telecommunications carrier not a party to the
agreement; or
`(ii) the implementation of such agreement or portion
is not consistent with the public interest,
convenience, and necessity; or
`(B) an agreement (or any portion thereof) adopted by
arbitration under subsection (b) if it finds that the
agreement does not meet the requirements of section 251,
including the regulations prescribed by the Commission
pursuant to section 251, or the standards set forth in
subsection (d) of this section.
`(3) PRESERVATION OF AUTHORITY- Notwithstanding paragraph
(2), but subject to section 253, nothing in this section shall
prohibit a State commission from establishing or enforcing
other requirements of State law in its review of an agreement,
including requiring compliance with intrastate
telecommunications service quality standards or requirements.
`(4) SCHEDULE FOR DECISION- If the State commission does not
act to approve or reject the agreement within 90 days after
submission by the parties of an agreement adopted by
negotiation under subsection (a), or within 30 days after
submission by the parties of an agreement adopted by
arbitration under subsection (b), the agreement shall be deemed
approved. No State court shall have jurisdiction to review the
action of a State commission in approving or rejecting an
agreement under this section.
`(5) COMMISSION TO ACT IF STATE WILL NOT ACT- If a State
commission fails to act to carry out its responsibility under
this section in any proceeding or other matter under this
section, then the Commission shall issue an order preempting
the State commission's jurisdiction of that proceeding or
matter within 90 days after being notified (or taking notice)
of such failure, and shall assume the responsibility of the
State commission under this section with respect to the
proceeding or matter and act for the State commission.
`(6) REVIEW OF STATE COMMISSION ACTIONS- In a case in which a
State fails to act as described in paragraph (5), the
proceeding by the Commission under such paragraph and any
judicial review of the Commission's actions shall be the
exclusive remedies for a State commission's failure to act. In
any case in which a State commission makes a determination
under this section, any party aggrieved by such determination
may bring an action in an appropriate Federal district court to
determine whether the agreement or statement meets the
requirements of section 251 and this section.
`(f) STATEMENTS OF GENERALLY AVAILABLE TERMS-
`(1) IN GENERAL- A Bell operating company may prepare and
file with a State commission a statement of the terms and
conditions that such company generally offers within that State
to comply with the requirements of section 251 and the
regulations thereunder and the standards applicable under this
section.
`(2) STATE COMMISSION REVIEW- A State commission may not
approve such statement unless such statement complies with
subsection (d) of this section and section 251 and the
regulations thereunder. Except as provided in section 253,
nothing in this section shall prohibit a State commission from
establishing or enforcing other requirements of State law in
its review of such statement, including requiring compliance
with intrastate telecommunications service quality standards or
requirements.
`(3) SCHEDULE FOR REVIEW- The State commission to which a
statement is submitted shall, not later than 60 days after the
date of such submission--
`(A) complete the review of such statement under
paragraph (2) (including any reconsideration thereof),
unless the submitting carrier agrees to an extension of the
period for such review; or
`(B) permit such statement to take effect.
`(4) AUTHORITY TO CONTINUE REVIEW- Paragraph (3) shall not
preclude the State commission from continuing to review a
statement that has been permitted to take effect under
subparagraph (B) of such paragraph or from approving or
disapproving such statement under paragraph (2).
`(5) DUTY TO NEGOTIATE NOT AFFECTED- The submission or
approval of a statement under this subsection shall not relieve
a Bell operating company of its duty to negotiate the terms and
conditions of an agreement under section 251.
`(g) CONSOLIDATION OF STATE PROCEEDINGS- Where not inconsistent
with the requirements of this Act, a State commission may, to the
extent practical, consolidate proceedings under sections 214(e),
251(f), 253, and this section in order to reduce administrative
burdens on telecommunications carriers, other parties to the
proceedings, and the State commission in carrying out its
responsibilities under this Act.
`(h) FILING REQUIRED- A State commission shall make a copy of
each agreement approved under subsection (e) and each statement
approved under subsection (f) available for public inspection and
copying within 10 days after the agreement or statement is
approved. The State commission may charge a reasonable and
nondiscriminatory fee to the parties to the agreement or to the
party filing the statement to cover the costs of approving and
filing such agreement or statement.
`(i) AVAILABILITY TO OTHER TELECOMMUNICATIONS CARRIERS- A local
exchange carrier shall make available any interconnection, service,
or network element provided under an agreement approved under this
section to which it is a party to any other requesting
telecommunications carrier upon the same terms and conditions as
those provided in the agreement.
`(j) DEFINITION OF INCUMBENT LOCAL EXCHANGE CARRIER- For purposes
of this section, the term `incumbent local exchange carrier' has
the meaning provided in section 251(h).
`SEC. 253. REMOVAL OF BARRIERS TO ENTRY.
`(a) IN GENERAL- No State or local statute or regulation, or
other State or local legal requirement, may prohibit or have the
effect of prohibiting the ability of any entity to provide any
interstate or intrastate telecommunications service.
`(b) STATE REGULATORY AUTHORITY- Nothing in this section shall
affect the ability of a State to impose, on a competitively neutral
basis and consistent with section 254, requirements necessary to
preserve and advance universal service, protect the public safety
and welfare, ensure the continued quality of telecommunications
services, and safeguard the rights of consumers.
`(c) STATE AND LOCAL GOVERNMENT AUTHORITY- Nothing in this
section affects the authority of a State or local government to
manage the public rights-of-way or to require fair and reasonable
compensation from telecommunications providers, on a competitively
neutral and nondiscriminatory basis, for use of public
rights-of-way on a nondiscriminatory basis, if the compensation
required is publicly disclosed by such government.
`(d) PREEMPTION- If, after notice and an opportunity for public
comment, the Commission determines that a State or local government
has permitted or imposed any statute, regulation, or legal
requirement that violates subsection (a) or (b), the Commission
shall preempt the enforcement of such statute, regulation, or legal
requirement to the extent necessary to correct such violation or
inconsistency.
`(e) COMMERCIAL MOBILE SERVICE PROVIDERS- Nothing in this section
shall affect the application of section 332(c)(3) to commercial
mobile service providers.
`(f) RURAL MARKETS- It shall not be a violation of this section
for a State to require a telecommunications carrier that seeks to
provide telephone exchange service or exchange access in a service
area served by a rural telephone company to meet the requirements
in section 214(e)(1) for designation as an eligible
telecommunications carrier for that area before being permitted to
provide such service. This subsection shall not apply--
`(1) to a service area served by a rural telephone company
that has obtained an exemption, suspension, or modification of
section 251(c)(4) that effectively prevents a competitor from
meeting the requirements of section 214(e)(1); and
`(2) to a provider of commercial mobile services.
`SEC. 254. UNIVERSAL SERVICE.
`(a) PROCEDURES TO REVIEW UNIVERSAL SERVICE REQUIREMENTS-
`(1) FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE- Within
one month after the date of enactment of the Telecommunications
Act of 1996, the Commission shall institute and refer to a
Federal-State Joint Board under section 410(c) a proceeding to
recommend changes to any of its regulations in order to
implement sections 214(e) and this section, including the
definition of the services that are supported by Federal
universal service support mechanisms and a specific timetable
for completion of such recommendations. In addition to the
members of the Joint Board required under section 410(c), one
member of such Joint Board shall be a State-appointed utility
consumer advocate nominated by a national organization of State
utility consumer advocates. The Joint Board shall, after notice
and opportunity for public comment, make its recommendations to
the Commission 9 months after the date of enactment of the
Telecommunications Act of 1996.
`(2) COMMISSION ACTION- The Commission shall initiate a
single proceeding to implement the recommendations from the
Joint Board required by paragraph (1) and shall complete such
proceeding within 15 months after the date of enactment of the
Telecommunications Act of 1996. The rules established by such
proceeding shall include a definition of the services that are
supported by Federal universal service support mechanisms and a
specific timetable for implementation. Thereafter, the
Commission shall complete any proceeding to implement
subsequent recommendations from any Joint Board on universal
service within one year after receiving such recommendations.
`(b) UNIVERSAL SERVICE PRINCIPLES- The Joint Board and the
Commission shall base policies for the preservation and advancement
of universal service on the following principles:
`(1) QUALITY AND RATES- Quality services should be available
at just, reasonable, and affordable rates.
`(2) ACCESS TO ADVANCED SERVICES- Access to advanced
telecommunications and information services should be provided
in all regions of the Nation.
`(3) ACCESS IN RURAL AND HIGH COST AREAS- Consumers in all
regions of the Nation, including low-income consumers and those
in rural, insular, and high cost areas, should have access to
telecommunications and information services, including
interexchange services and advanced telecommunications and
information services, that are reasonably comparable to those
services provided in urban areas and that are available at
rates that are reasonably comparable to rates charged for
similar services in urban areas.
`(4) EQUITABLE AND NONDISCRIMINATORY CONTRIBUTIONS- All
providers of telecommunications services should make an
equitable and nondiscriminatory contribution to the
preservation and advancement of universal service.
`(5) SPECIFIC AND PREDICTABLE SUPPORT MECHANISMS- There
should be specific, predictable and sufficient Federal and
State mechanisms to preserve and advance universal service.
`(6) ACCESS TO ADVANCED TELECOMMUNICATIONS SERVICES FOR
SCHOOLS, HEALTH CARE, AND LIBRARIES- Elementary and secondary
schools and classrooms, health care providers, and libraries
should have access to advanced telecommunications services as
described in subsection (h).
`(7) ADDITIONAL PRINCIPLES- Such other principles as the
Joint Board and the Commission determine are necessary and
appropriate for the protection of the public interest,
convenience, and necessity and are consistent with this Act.
`(c) DEFINITION-
`(1) IN GENERAL- Universal service is an evolving level of
telecommunications services that the Commission shall establish
periodically under this section, taking into account advances
in telecommunications and information technologies and
services. The Joint Board in recommending, and the Commission
in establishing, the definition of the services that are
supported by Federal universal service support mechanisms shall
consider the extent to which such telecommunications services--
`(A) are essential to education, public health, or public
safety;
`(B) have, through the operation of market choices by
customers, been subscribed to by a substantial majority of
residential customers;
`(C) are being deployed in public telecommunications
networks by telecommunications carriers; and
`(D) are consistent with the public interest,
convenience, and necessity.
`(2) ALTERATIONS AND MODIFICATIONS- The Joint Board may, from
time to time, recommend to the Commission modifications in the
definition of the services that are supported by Federal
universal service support mechanisms.
`(3) SPECIAL SERVICES- In addition to the services included
in the definition of universal service under paragraph (1), the
Commission may designate additional services for such support
mechanisms for schools, libraries, and health care providers
for the purposes of subsection (h).
`(d) TELECOMMUNICATIONS CARRIER CONTRIBUTION- Every
telecommunications carrier that provides interstate
telecommunications services shall contribute, on an equitable and
nondiscriminatory basis, to the specific, predictable, and
sufficient mechanisms established by the Commission to preserve and
advance universal service. The Commission may exempt a carrier or
class of carriers from this requirement if the carrier's
telecommunications activities are limited to such an extent that
the level of such carrier's contribution to the preservation and
advancement of universal service would be de minimis. Any other
provider of interstate telecommunications may be required to
contribute to the preservation and advancement of universal service
if the public interest so requires.
`(e) UNIVERSAL SERVICE SUPPORT- After the date on which
Commission regulations implementing this section take effect, only
an eligible telecommunications carrier designated under section
214(e) shall be eligible to receive specific Federal universal
service support. A carrier that receives such support shall use
that support only for the provision, maintenance, and upgrading of
facilities and services for which the support is intended. Any
such support should be explicit and sufficient to achieve the
purposes of this section.
`(f) STATE AUTHORITY- A State may adopt regulations not
inconsistent with the Commission's rules to preserve and advance
universal service. Every telecommunications carrier that provides
intrastate telecommunications services shall contribute, on an
equitable and nondiscriminatory basis, in a manner determined by
the State to the preservation and advancement of universal service
in that State. A State may adopt regulations to provide for
additional definitions and standards to preserve and advance
universal service within that State only to the extent that such
regulations adopt additional specific, predictable, and sufficient
mechanisms to support such definitions or standards that do not
rely on or burden Federal universal service support mechanisms.
`(g) INTEREXCHANGE AND INTERSTATE SERVICES- Within 6 months after
the date of enactment of the Telecommunications Act of 1996, the
Commission shall adopt rules to require that the rates charged by
providers of interexchange telecommunications services to
subscribers in rural and high cost areas shall be no higher than
the rates charged by each such provider to its subscribers in urban
areas. Such rules shall also require that a provider of interstate
interexchange telecommunications services shall provide such
services to its subscribers in each State at rates no higher than
the rates charged to its subscribers in any other State.
`(h) TELECOMMUNICATIONS SERVICES FOR CERTAIN PROVIDERS-
`(1) IN GENERAL-
`(A) HEALTH CARE PROVIDERS FOR RURAL AREAS- A
telecommunications carrier shall, upon receiving a bona
fide request, provide telecommunications services which are
necessary for the provision of health care services in a
State, including instruction relating to such services, to
any public or nonprofit health care provider that serves
persons who reside in rural areas in that State at rates
that are reasonably comparable to rates charged for similar
services in urban areas in that State. A telecommunications
carrier providing service under this paragraph shall be
entitled to have an amount equal to the difference, if any,
between the rates for services provided to health care
providers for rural areas in a State and the rates for
similar services provided to other customers in comparable
rural areas in that State treated as a service obligation
as a part of its obligation to participate in the
mechanisms to preserve and advance universal service.
`(B) EDUCATIONAL PROVIDERS AND LIBRARIES- All
telecommunications carriers serving a geographic area
shall, upon a bona fide request for any of its services
that are within the definition of universal service under
subsection (c)(3), provide such services to elementary
schools, secondary schools, and libraries for educational
purposes at rates less than the amounts charged for similar
services to other parties. The discount shall be an amount
that the Commission, with respect to interstate services,
and the States, with respect to intrastate services,
determine is appropriate and necessary to ensure affordable
access to and use of such services by such entities. A
telecommunications carrier providing service under this
paragraph shall--
`(i) have an amount equal to the amount of the
discount treated as an offset to its obligation to
contribute to the mechanisms to preserve and advance
universal service, or
`(ii) notwithstanding the provisions of subsection
(e) of this section, receive reimbursement utilizing
the support mechanisms to preserve and advance
universal service.
`(2) ADVANCED SERVICES- The Commission shall establish
competitively neutral rules--
`(A) to enhance, to the extent technically feasible and
economically reasonable, access to advanced
telecommunications and information services for all public
and nonprofit elementary and secondary school classrooms,
health care providers, and libraries; and
`(B) to define the circumstances under which a
telecommunications carrier may be required to connect its
network to such public institutional telecommunications
users.
`(3) TERMS AND CONDITIONS- Telecommunications services and
network capacity provided to a public institutional
telecommunications user under this subsection may not be sold,
resold, or otherwise transferred by such user in consideration
for money or any other thing of value.
`(4) ELIGIBILITY OF USERS- No entity listed in this
subsection shall be entitled to preferential rates or treatment
as required by this subsection, if such entity operates as a
for-profit business, is a school described in paragraph (5)(A)
with an endowment of more than $50,000,000, or is a library not
eligible for participation in State-based plans for funds under
title III of the Library Services and Construction Act (20
U.S.C. 335c et seq.).
`(5) DEFINITIONS- For purposes of this subsection:
`(A) ELEMENTARY AND SECONDARY SCHOOLS- The term
`elementary and secondary schools' means elementary schools
and secondary schools, as defined in paragraphs (14) and
(25), respectively, of section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801).
`(B) HEALTH CARE PROVIDER- The term `health care
provider' means--
`(i) post-secondary educational institutions offering
health care instruction, teaching hospitals, and
medical schools;
`(ii) community health centers or health centers
providing health care to migrants;
`(iii) local health departments or agencies;
`(iv) community mental health centers;
`(v) not-for-profit hospitals;
`(vi) rural health clinics; and
`(vii) consortia of health care providers consisting
of one or more entities described in clauses (i)
through (vi).
`(C) PUBLIC INSTITUTIONAL TELECOMMUNICATIONS USER- The
term `public institutional telecommunications user' means
an elementary or secondary school, a library, or a health
care provider as those terms are defined in this paragraph.
`(i) CONSUMER PROTECTION- The Commission and the States should
ensure that universal service is available at rates that are just,
reasonable, and affordable.
`(j) LIFELINE ASSISTANCE- Nothing in this section shall affect
the collection, distribution, or administration of the Lifeline
Assistance Program provided for by the Commission under regulations
set forth in section 69.117 of title 47, Code of Federal
Regulations, and other related sections of such title.
`(k) SUBSIDY OF COMPETITIVE SERVICES PROHIBITED- A
telecommunications carrier may not use services that are not
competitive to subsidize services that are subject to competition.
The Commission, with respect to interstate services, and the
States, with respect to intrastate services, shall establish any
necessary cost allocation rules, accounting safeguards, and
guidelines to ensure that services included in the definition of
universal service bear no more than a reasonable share of the joint
and common costs of facilities used to provide those services.
`SEC. 255. ACCESS BY PERSONS WITH DISABILITIES.
`(a) DEFINITIONS- As used in this section--
`(1) DISABILITY- The term `disability' has the meaning given
to it by section 3(2)(A) of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12102(2)(A)).
`(2) READILY ACHIEVABLE- The term `readily achievable' has
the meaning given to it by section 301(9) of that Act (42
U.S.C. 12181(9)).
`(b) MANUFACTURING- A manufacturer of telecommunications
equipment or customer premises equipment shall ensure that the
equipment is designed, developed, and fabricated to be accessible
to and usable by individuals with disabilities, if readily
achievable.
`(c) TELECOMMUNICATIONS SERVICES- A provider of
telecommunications service shall ensure that the service is
accessible to and usable by individuals with disabilities, if
readily achievable.
`(d) COMPATIBILITY- Whenever the requirements of subsections (b)
and (c) are not readily achievable, such a manufacturer or provider
shall ensure that the equipment or service is compatible with
existing peripheral devices or specialized customer premises
equipment commonly used by individuals with disabilities to achieve
access, if readily achievable.
`(e) GUIDELINES- Within 18 months after the date of enactment of
the Telecommunications Act of 1996, the Architectural and
Transportation Barriers Compliance Board shall develop guidelines
for accessibility of telecommunications equipment and customer
premises equipment in conjunction with the Commission. The Board
shall review and update the guidelines periodically.
`(f) NO ADDITIONAL PRIVATE RIGHTS AUTHORIZED- Nothing in this
section shall be construed to authorize any private right of action
to enforce any requirement of this section or any regulation
thereunder. The Commission shall have exclusive jurisdiction with
respect to any complaint under this section.
`SEC. 256. COORDINATION FOR INTERCONNECTIVITY.
`(a) PURPOSE- It is the purpose of this section--
`(1) to promote nondiscriminatory accessibility by the
broadest number of users and vendors of communications products
and services to public telecommunications networks used to
provide telecommunications service through--
`(A) coordinated public telecommunications network
planning and design by telecommunications carriers and
other providers of telecommunications service; and
`(B) public telecommunications network interconnectivity,
and interconnectivity of devices with such networks used to
provide telecommunications service; and
`(2) to ensure the ability of users and information providers
to seamlessly and transparently transmit and receive
information between and across telecommunications networks.
`(b) COMMISSION FUNCTIONS- In carrying out the purposes of this
section, the Commission--
`(1) shall establish procedures for Commission oversight of
coordinated network planning by telecommunications carriers and
other providers of telecommunications service for the effective
and efficient interconnection of public telecommunications
networks used to provide telecommunications service; and
`(2) may participate, in a manner consistent with its
authority and practice prior to the date of enactment of this
section, in the development by appropriate industry
standards-setting organizations of public telecommunications
network interconnectivity standards that promote access to--
`(A) public telecommunications networks used to provide
telecommunications service;
`(B) network capabilities and services by individuals
with disabilities; and
`(C) information services by subscribers of rural
telephone companies.
`(c) COMMISSION'S AUTHORITY- Nothing in this section shall be
construed as expanding or limiting any authority that the
Commission may have under law in effect before the date of
enactment of the Telecommunications Act of 1996.
`(d) DEFINITION- As used in this section, the term `public
telecommunications network interconnectivity' means the ability of
two or more public telecommunications networks used to provide
telecommunications service to communicate and exchange information
without degeneration, and to interact in concert with one another.
`SEC. 257. MARKET ENTRY BARRIERS PROCEEDING.
`(a) ELIMINATION OF BARRIERS- Within 15 months after the date of
enactment of the Telecommunications Act of 1996, the Commission
shall complete a proceeding for the purpose of identifying and
eliminating, by regulations pursuant to its authority under this
Act (other than this section), market entry barriers for
entrepreneurs and other small businesses in the provision and
ownership of telecommunications services and information services,
or in the provision of parts or services to providers of
telecommunications services and information services.
`(b) NATIONAL POLICY- In carrying out subsection (a), the
Commission shall seek to promote the policies and purposes of this
Act favoring diversity of media voices, vigorous economic
competition, technological advancement, and promotion of the public
interest, convenience, and necessity.
`(c) PERIODIC REVIEW- Every 3 years following the completion of
the proceeding required by subsection (a), the Commission shall
review and report to Congress on--
`(1) any regulations prescribed to eliminate barriers within
its jurisdiction that are identified under subsection (a) and
that can be prescribed consistent with the public interest,
convenience, and necessity; and
`(2) the statutory barriers identified under subsection (a)
that the Commission recommends be eliminated, consistent with
the public interest, convenience, and necessity.
`SEC. 258. ILLEGAL CHANGES IN SUBSCRIBER CARRIER SELECTIONS.
`(a) PROHIBITION- No telecommunications carrier shall submit or
execute a change in a subscriber's selection of a provider of
telephone exchange service or telephone toll service except in
accordance with such verification procedures as the Commission
shall prescribe. Nothing in this section shall preclude any State
commission from enforcing such procedures with respect to
intrastate services.
`(b) LIABILITY FOR CHARGES- Any telecommunications carrier that
violates the verification procedures described in subsection (a)
and that collects charges for telephone exchange service or
telephone toll service from a subscriber shall be liable to the
carrier previously selected by the subscriber in an amount equal to
all charges paid by such subscriber after such violation, in
accordance with such procedures as the Commission may prescribe.
The remedies provided by this subsection are in addition to any
other remedies available by law.
`SEC. 259. INFRASTRUCTURE SHARING.
`(a) REGULATIONS REQUIRED- The Commission shall prescribe, within
one year after the date of enactment of the Telecommunications Act
of 1996, regulations that require incumbent local exchange carriers
(as defined in section 251(h)) to make available to any qualifying
carrier such public switched network infrastructure, technology,
information, and telecommunications facilities and functions as may
be requested by such qualifying carrier for the purpose of enabling
such qualifying carrier to provide telecommunications services, or
to provide access to information services, in the service area in
which such qualifying carrier has requested and obtained
designation as an eligible telecommunications carrier under section
214(e).
`(b) TERMS AND CONDITIONS OF REGULATIONS- The regulations
prescribed by the Commission pursuant to this section shall--
`(1) not require a local exchange carrier to which this
section applies to take any action that is economically
unreasonable or that is contrary to the public interest;
`(2) permit, but shall not require, the joint ownership or
operation of public switched network infrastructure and
services by or among such local exchange carrier and a
qualifying carrier;
`(3) ensure that such local exchange carrier will not be
treated by the Commission or any State as a common carrier for
hire or as offering common carrier services with respect to any
infrastructure, technology, information, facilities, or
functions made available to a qualifying carrier in accordance
with regulations issued pursuant to this section;
`(4) ensure that such local exchange carrier makes such
infrastructure, technology, information, facilities, or
functions available to a qualifying carrier on just and
reasonable terms and conditions that permit such qualifying
carrier to fully benefit from the economies of scale and scope
of such local exchange carrier, as determined in accordance
with guidelines prescribed by the Commission in regulations
issued pursuant to this section;
`(5) establish conditions that promote cooperation between
local exchange carriers to which this section applies and
qualifying carriers;
`(6) not require a local exchange carrier to which this
section applies to engage in any infrastructure sharing
agreement for any services or access which are to be provided
or offered to consumers by the qualifying carrier in such local
exchange carrier's telephone exchange area; and
`(7) require that such local exchange carrier file with the
Commission or State for public inspection, any tariffs,
contracts, or other arrangements showing the rates, terms, and
conditions under which such carrier is making available public
switched network infrastructure and functions under this section.
`(c) INFORMATION CONCERNING DEPLOYMENT OF NEW SERVICES AND
EQUIPMENT- A local exchange carrier to which this section applies
that has entered into an infrastructure sharing agreement under
this section shall provide to each party to such agreement timely
information on the planned deployment of telecommunications
services and equipment, including any software or upgrades of
software integral to the use or operation of such
telecommunications equipment.
`(d) DEFINITION- For purposes of this section, the term
`qualifying carrier' means a telecommunications carrier that--
`(1) lacks economies of scale or scope, as determined in
accordance with regulations prescribed by the Commission
pursuant to this section; and
`(2) offers telephone exchange service, exchange access, and
any other service that is included in universal service, to all
consumers without preference throughout the service area for
which such carrier has been designated as an eligible
telecommunications carrier under section 214(e).
`SEC. 260. PROVISION OF TELEMESSAGING SERVICE.
`(a) NONDISCRIMINATION SAFEGUARDS- Any local exchange carrier
subject to the requirements of section 251(c) that provides
telemessaging service--
`(1) shall not subsidize its telemessaging service directly
or indirectly from its telephone exchange service or its
exchange access; and
`(2) shall not prefer or discriminate in favor of its
telemessaging service operations in its provision of
telecommunications services.
`(b) EXPEDITED CONSIDERATION OF COMPLAINTS- The Commission shall
establish procedures for the receipt and review of complaints
concerning violations of subsection (a) or the regulations
thereunder that result in material financial harm to a provider of
telemessaging service. Such procedures shall ensure that the
Commission will make a final determination 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, the Commission shall, within 60 days after
receipt of the complaint, order the local exchange carrier and any
affiliates to cease engaging in such violation pending such final
determination.
`(c) DEFINITION- As used in this section, the term `telemessaging
service' means voice mail and voice storage and retrieval services,
any live operator services used to record, transcribe, or relay
messages (other than telecommunications relay services), and any
ancillary services offered in combination with these services.
`SEC. 261. EFFECT ON OTHER REQUIREMENTS.
`(a) COMMISSION REGULATIONS- Nothing in this part shall be
construed to prohibit the Commission from enforcing regulations
prescribed prior to the date of enactment of the Telecommunications
Act of 1996 in fulfilling the requirements of this part, to the
extent that such regulations are not inconsistent with the
provisions of this part.
`(b) EXISTING STATE REGULATIONS- Nothing in this part shall be
construed to prohibit any State commission from enforcing
regulations prescribed prior to the date of enactment of the
Telecommunications Act of 1996, or from prescribing regulations
after such date of enactment, in fulfilling the requirements of
this part, if such regulations are not inconsistent with the
provisions of this part.
`(c) ADDITIONAL STATE REQUIREMENTS- Nothing in this part
precludes a State from imposing requirements on a
telecommunications carrier for intrastate services that are
necessary to further competition in the provision of telephone
exchange service or exchange access, as long as the State's
requirements are not inconsistent with this part or the
Commission's regulations to implement this part.'.
(b) DESIGNATION OF PART I- Title II of the Act is further amended
by inserting before the heading of section 201 the following new
heading:
`PART I--COMMON CARRIER REGULATION'.
(c) STYLISTIC CONSISTENCY- The Act is amended so that--
(1) the designation and heading of each title of the Act
shall be in the form and typeface of the designation and
heading of this title of this Act; and
(2) the designation and heading of each part of each title of
the Act shall be in the form and typeface of the designation
and heading of part I of title II of the Act, as amended by
subsection (a).
SEC. 102. ELIGIBLE TELECOMMUNICATIONS CARRIERS.
(a) IN GENERAL- Section 214 (47 U.S.C. 214) is amended by adding
at the end thereof the following new subsection:
`(e) PROVISION OF UNIVERSAL SERVICE-
`(1) ELIGIBLE TELECOMMUNICATIONS CARRIERS- A common carrier
designated as an eligible telecommunications carrier under
paragraph (2) or (3) shall be eligible to receive universal
service support in accordance with section 254 and shall,
throughout the service area for which the designation is
received--
`(A) offer the services that are supported by Federal
universal service support mechanisms under section 254(c),
either using its own facilities or a combination of its own
facilities and resale of another carrier's services
(including the services offered by another eligible
telecommunications carrier); and
`(B) advertise the availability of such services and the
charges therefor using media of general distribution.
`(2) DESIGNATION OF ELIGIBLE TELECOMMUNICATIONS CARRIERS- A
State commission shall upon its own motion or upon request
designate a common carrier that meets the requirements of
paragraph (1) as an eligible telecommunications carrier for a
service area designated by the State commission. Upon request
and consistent with the public interest, convenience, and
necessity, the State commission may, in the case of an area
served by a rural telephone company, and shall, in the case of
all other areas, designate more than one common carrier as an
eligible telecommunications carrier for a service area
designated by the State commission, so long as each additional
requesting carrier meets the requirements of paragraph (1).
Before designating an additional eligible telecommunications
carrier for an area served by a rural telephone company, the
State commission shall find that the designation is in the
public interest.
`(3) DESIGNATION OF ELIGIBLE TELECOMMUNICATIONS CARRIERS FOR
UNSERVED AREAS- If no common carrier will provide the services
that are supported by Federal universal service support
mechanisms under section 254(c) to an unserved community or any
portion thereof that requests such service, the Commission,
with respect to interstate services, or a State commission,
with respect to intrastate services, shall determine which
common carrier or carriers are best able to provide such
service to the requesting unserved community or portion thereof
and shall order such carrier or carriers to provide such
service for that unserved community or portion thereof. Any
carrier or carriers ordered to provide such service under this
paragraph shall meet the requirements of paragraph (1) and
shall be designated as an eligible telecommunications carrier
for that community or portion thereof.
`(4) RELINQUISHMENT OF UNIVERSAL SERVICE- A State commission
shall permit an eligible telecommunications carrier to
relinquish its designation as such a carrier in any area served
by more than one eligible telecommunications carrier. An
eligible telecommunications carrier that seeks to relinquish
its eligible telecommunications carrier designation for an area
served by more than one eligible telecommunications carrier
shall give advance notice to the State commission of such
relinquishment. Prior to permitting a telecommunications
carrier designated as an eligible telecommunications carrier to
cease providing universal service in an area served by more
than one eligible telecommunications carrier, the State
commission shall require the remaining eligible
telecommunications carrier or carriers to ensure that all
customers served by the relinquishing carrier will continue to
be served, and shall require sufficient notice to permit the
purchase or construction of adequate facilities by any
remaining eligible telecommunications carrier. The State
commission shall establish a time, not to exceed one year after
the State commission approves such relinquishment under this
paragraph, within which such purchase or construction shall be
completed.
`(5) SERVICE AREA DEFINED- The term `service area' means a
geographic area established by a State commission for the
purpose of determining universal service obligations and
support mechanisms. In the case of an area served by a rural
telephone company, `service area' means such company's `study
area' unless and until the Commission and the States, after
taking into account recommendations of a Federal-State Joint
Board instituted under section 410(c), establish a different
definition of service area for such company.'.
SEC. 103. EXEMPT TELECOMMUNICATIONS COMPANIES.
The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 and
following) is amended by redesignating sections 34 and 35 as
sections 35 and 36, respectively, and by inserting the following
new section after section 33:
`SEC. 34. EXEMPT TELECOMMUNICATIONS COMPANIES.
`(a) DEFINITIONS- For purposes of this section--
`(1) EXEMPT TELECOMMUNICATIONS COMPANY- The term `exempt
telecommunications company' means any person determined by the
Federal Communications Commission to be engaged directly or
indirectly, wherever located, through one or more affiliates
(as defined in section 2(a)(11)(B)), and exclusively in the
business of providing---
`(A) telecommunications services;
`(B) information services;
`(C) other services or products subject to the
jurisdiction of the Federal Communications Commission; or
`(D) products or services that are related or incidental
to the provision of a product or service described in
subparagraph (A), (B), or (C).
No person shall be deemed to be an exempt telecommunications
company under this section unless such person has applied to
the Federal Communications Commission for a determination under
this paragraph. A person applying in good faith for such a
determination shall be deemed an exempt telecommunications
company under this section, with all of the exemptions provided
by this section, until the Federal Communications Commission
makes such determination. The Federal Communications Commission
shall make such determination within 60 days of its receipt of
any such application filed after the enactment of this section
and shall notify the Commission whenever a determination is
made under this paragraph that any person is an exempt
telecommunications company. Not later than 12 months after the
date of enactment of this section, the Federal Communications
Commission shall promulgate rules implementing the provisions
of this paragraph which shall be applicable to applications
filed under this paragraph after the effective date of such
rules.
`(2) OTHER TERMS- For purposes of this section, the terms
`telecommunications services' and `information services' shall
have the same meanings as provided in the Communications Act of
1934.
`(b) STATE CONSENT FOR SALE OF EXISTING RATE-BASED FACILITIES- If
a rate or charge for the sale of electric energy or natural gas
(other than any portion of a rate or charge which represents
recovery of the cost of a wholesale rate or charge) for, or in
connection with, assets of a public utility company that is an
associate company or affiliate of a registered holding company was
in effect under the laws of any State as of December 19, 1995, the
public utility company owning such assets may not sell such assets
to an exempt telecommunications company that is an associate
company or affiliate unless State commissions having jurisdiction
over such public utility company approve such sale. Nothing in
this subsection shall preempt the otherwise applicable authority of
any State to approve or disapprove the sale of such assets. The
approval of the Commission under this Act shall not be required for
the sale of assets as provided in this subsection.
`(c) OWNERSHIP OF ETCS BY EXEMPT HOLDING COMPANIES-
Notwithstanding any provision of this Act, a holding company that
is exempt under section 3 of this Act shall be permitted, without
condition or limitation under this Act, to acquire and maintain an
interest in the business of one or more exempt telecommunications
companies.
`(d) OWNERSHIP OF ETCS BY REGISTERED HOLDING COMPANIES-
Notwithstanding any provision of this Act, a registered holding
company shall be permitted (without the need to apply for, or
receive, approval from the Commission, and otherwise without
condition under this Act) to acquire and hold the securities, or an
interest in the business, of one or more exempt telecommunications
companies.
`(e) FINANCING AND OTHER RELATIONSHIPS BETWEEN ETCS AND
REGISTERED HOLDING COMPANIES- The relationship between an exempt
telecommunications company and a registered holding company, its
affiliates and associate companies, shall remain subject to the
jurisdiction of the Commission under this Act:
Provided, That--
`(1) section 11 of this Act shall not prohibit the ownership
of an interest in the business of one or more exempt
telecommunications companies by a registered holding company
(regardless of activities engaged in or where facilities owned
or operated by such exempt telecommunications companies are
located), and such ownership by a registered holding company
shall be deemed consistent with the operation of an integrated
public utility system;
`(2) the ownership of an interest in the business of one or
more exempt telecommunications companies by a registered
holding company (regardless of activities engaged in or where
facilities owned or operated by such exempt telecommunications
companies are located) shall be considered as reasonably
incidental, or economically necessary or appropriate, to the
operations of an integrated public utility system;
`(3) the Commission shall have no jurisdiction under this Act
over, and there shall be no restriction or approval required
under this Act with respect to (A) the issue or sale of a
security by a registered holding company for purposes of
financing the acquisition of an exempt telecommunications
company, or (B) the guarantee of a security of an exempt
telecommunications company by a registered holding company; and
`(4) except for costs that should be fairly and equitably
allocated among companies that are associate companies of a
registered holding company, the Commission shall have no
jurisdiction under this Act over the sales, service, and
construction contracts between an exempt telecommunications
company and a registered holding company, its affiliates and
associate companies.
`(f) REPORTING OBLIGATIONS CONCERNING INVESTMENTS AND ACTIVITIES
OF REGISTERED PUBLIC-UTILITY HOLDING COMPANY SYSTEMS-
`(1) OBLIGATIONS TO REPORT INFORMATION- Any registered
holding company or subsidiary thereof that acquires or holds
the securities, or an interest in the business, of an exempt
telecommunications company shall file with the Commission such
information as the Commission, by rule, may prescribe
concerning--
`(A) investments and activities by the registered holding
company, or any subsidiary thereof, with respect to exempt
telecommunications companies, and
`(B) any activities of an exempt telecommunications
company within the holding company system,
that are reasonably likely to have a material impact on the
financial or operational condition of the holding company system.
`(2) AUTHORITY TO REQUIRE ADDITIONAL INFORMATION- If, based
on reports provided to the Commission pursuant to paragraph (1)
of this subsection or other available information, the
Commission reasonably concludes that it has concerns regarding
the financial or operational condition of any registered
holding company or any subsidiary thereof (including an exempt
telecommunications company), the Commission may require such
registered holding company to make additional reports and
provide additional information.
`(3) AUTHORITY TO LIMIT DISCLOSURE OF INFORMATION-
Notwithstanding any other provision of law, the Commission
shall not be compelled to disclose any information required to
be reported under this subsection. Nothing in this subsection
shall authorize the Commission to withhold the information from
Congress, or prevent the Commission from complying with a
request for information from any other Federal or State
department or agency requesting the information for purposes
within the scope of its jurisdiction. For purposes of section
552 of title 5, United States Code, this subsection shall be
considered a statute described in subsection (b)(3)(B) of such
section 552.
`(g) ASSUMPTION OF LIABILITIES- Any public utility company that
is an associate company, or an affiliate, of a registered holding
company and that is subject to the jurisdiction of a State
commission with respect to its retail electric or gas rates shall
not issue any security for the purpose of financing the
acquisition, ownership, or operation of an exempt
telecommunications company. Any public utility company that is an
associate company, or an affiliate, of a registered holding company
and that is subject to the jurisdiction of a State commission with
respect to its retail electric or gas rates shall not assume any
obligation or liability as guarantor, endorser, surety, or
otherwise by the public utility company in respect of any security
of an exempt telecommunications company.
`(h) PLEDGING OR MORTGAGING OF ASSETS- Any public utility company
that is an associate company, or affiliate, of a registered holding
company and that is subject to the jurisdiction of a State
commission with respect to its retail electric or gas rates shall
not pledge, mortgage, or otherwise use as collateral any assets of
the public utility company or assets of any subsidiary company
thereof for the benefit of an exempt telecommunications company.
`(i) PROTECTION AGAINST ABUSIVE AFFILIATE TRANSACTIONS- A public
utility company may enter into a contract to purchase services or
products described in subsection (a)(1) from an exempt
telecommunications company that is an affiliate or associate
company of the public utility company only if--
`(1) every State commission having jurisdiction over the
retail rates of such public utility company approves such
contract; or
`(2) such public utility company is not subject to State
commission retail rate regulation and the purchased services or
products--
`(A) would not be resold to any affiliate or associate
company; or
`(B) would be resold to an affiliate or associate company
and every State commission having jurisdiction over the
retail rates of such affiliate or associate company makes
the determination required by subparagraph (A).
The requirements of this subsection shall not apply in any case in
which the State or the State commission concerned publishes a
notice that the State or State commission waives its authority
under this subsection.
`(j) NONPREEMPTION OF RATE AUTHORITY- Nothing in this Act shall
preclude the Federal Energy Regulatory Commission or a State
commission from exercising its jurisdiction under otherwise
applicable law to determine whether a public utility company may
recover in rates the costs of products or services purchased from
or sold to an associate company or affiliate that is an exempt
telecommunications company, regardless of whether such costs are
incurred through the direct or indirect purchase or sale of
products or services from such associate company or affiliate.
`(k) RECIPROCAL ARRANGEMENTS PROHIBITED- Reciprocal arrangements
among companies that are not affiliates or associate companies of
each other that are entered into in order to avoid the provisions
of this section are prohibited.
`(l) BOOKS AND RECORDS- (1) Upon written order of a State
commission, a State commission may examine the books, accounts,
memoranda, contracts, and records of--
`(A) a public utility company subject to its regulatory
authority under State law;
`(B) any exempt telecommunications company selling products
or services to such public utility company or to an associate
company of such public utility company; and
`(C) any associate company or affiliate of an exempt
telecommunications company which sells products or services to
a public utility company referred to in subparagraph (A),
wherever located, if such examination is required for the effective
discharge of the State commission's regulatory responsibilities
affecting the provision of electric or gas service in connection
with the activities of such exempt telecommunications company.
`(2) Where a State commission issues an order pursuant to
paragraph (1), the State commission shall not publicly disclose
trade secrets or sensitive commercial information.
`(3) Any United States district court located in the State in
which the State commission referred to in paragraph (1) is located
shall have jurisdiction to enforce compliance with this subsection.
`(4) Nothing in this section shall--
`(A) preempt applicable State law concerning the provision of
records and other information; or
`(B) in any way limit rights to obtain records and other
information under Federal law, contracts, or otherwise.
`(m) INDEPENDENT AUDIT AUTHORITY FOR STATE COMMISSIONS-
`(1) STATE MAY ORDER AUDIT- Any State commission with
jurisdiction over a public utility company that--
`(A) is an associate company of a registered holding
company; and
`(B) transacts business, directly or indirectly, with a
subsidiary company, an affiliate or an associate company
that is an exempt telecommunications company,
may order an independent audit to be performed, no more
frequently than on an annual basis, of all matters deemed
relevant by the selected auditor that reasonably relate to
retail rates: Provided , That such
matters relate, directly or indirectly, to transactions or
transfers between the public utility company subject to its
jurisdiction and such exempt telecommunications company.
`(2) SELECTION OF FIRM TO CONDUCT AUDIT- (A) If a State
commission orders an audit in accordance with paragraph (1),
the public utility company and the State commission shall
jointly select, within 60 days, a firm to perform the audit.
The firm selected to perform the audit shall possess
demonstrated qualifications relating to--
`(i) competency, including adequate technical training
and professional proficiency in each discipline necessary
to carry out the audit; and
`(ii) independence and objectivity, including that the
firm be free from personal or external impairments to
independence, and should assume an independent position
with the State commission and auditee, making certain that
the audit is based upon an impartial consideration of all
pertinent facts and responsible opinions.
`(B) The public utility company and the exempt
telecommunications company shall cooperate fully with all
reasonable requests necessary to perform the audit and the
public utility company shall bear all costs of having the audit
performed.
`(3) AVAILABILITY OF AUDITOR'S REPORT- The auditor's report
shall be provided to the State commission not later than 6
months after the selection of the auditor, and provided to the
public utility company not later than 60 days thereafter.
`(n) APPLICABILITY OF TELECOMMUNICATIONS REGULATION- Nothing in
this section shall affect the authority of the Federal
Communications Commission under the Communications Act of 1934, or
the authority of State commissions under State laws concerning the
provision of telecommunications services, to regulate the
activities of an exempt telecommunications company.'.
SEC. 104. NONDISCRIMINATION PRINCIPLE.
Section 1 (47 U.S.C. 151) is amended by inserting after `to all
the people of the United States' the following: `, without
discrimination on the basis of race, color, religion, national
origin, or sex,'.
SUBTITLE B--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
SEC. 151. BELL OPERATING COMPANY PROVISIONS.
(a) ESTABLISHMENT OF PART III OF TITLE II- Title II is amended by
adding at the end of part II (as added by section 101) the
following new part:
`PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
`SEC. 271. BELL OPERATING COMPANY ENTRY INTO INTERLATA SERVICES.
`(a) GENERAL LIMITATION- Neither a Bell operating company, nor
any affiliate of a Bell operating company, may provide interLATA
services except as provided in this section.
`(b) INTERLATA SERVICES TO WHICH THIS SECTION APPLIES-
`(1) IN-REGION SERVICES- A Bell operating company, or any
affiliate of that Bell operating company, may provide interLATA
services originating in any of its in-region States (as defined
in subsection (i)) if the Commission approves the application
of such company for such State under subsection (d)(3).
`(2) OUT-OF-REGION SERVICES- A Bell operating company, or any
affiliate of that Bell operating company, may provide interLATA
services originating outside its in-region States after the
date of enactment of the Telecommunications Act of 1996,
subject to subsection (j).
`(3) INCIDENTAL INTERLATA SERVICES- A Bell operating company,
or any affiliate of a Bell operating company, may provide
incidental interLATA services (as defined in subsection (g))
originating in any State after the date of enactment of the
Telecommunications Act of 1996.
`(4) TERMINATION- Nothing in this section prohibits a Bell
operating company or any of its affiliates from providing
termination for interLATA services, subject to subsection (j).
`(c) REQUIREMENTS FOR PROVIDING CERTAIN IN-REGION INTERLATA
SERVICES-
`(1) AGREEMENT OR STATEMENT- A Bell operating company meets
the requirements of this paragraph if it meets the requirements
of subparagraph (A) or subparagraph (B) of this paragraph for
each State for which the authorization is sought.
`(A) PRESENCE OF A FACILITIES-BASED COMPETITOR- A Bell
operating company meets the requirements of this
subparagraph if it has entered into one or more binding
agreements that have been approved under section 252
specifying the terms and conditions under which the Bell
operating company is providing access and interconnection
to its network facilities for the network facilities of one
or more unaffiliated competing providers of telephone
exchange service (as defined in section 3(47)(A), but
excluding exchange access) to residential and business
subscribers. For the purpose of this subparagraph, such
telephone exchange service may be offered by such competing
providers either exclusively over their own telephone
exchange service facilities or predominantly over their own
telephone exchange service facilities in combination with
the resale of the telecommunications services of another
carrier. For the purpose of this subparagraph, services
provided pursuant to subpart K of part 22 of the
Commission's regulations (47 C.F.R. 22.901 et seq.) shall
not be considered to be telephone exchange services.
`(B) FAILURE TO REQUEST ACCESS- A Bell operating company
meets the requirements of this subparagraph if, after 10
months after the date of enactment of the
Telecommunications Act of 1996, no such provider has
requested the access and interconnection described in
subparagraph (A) before the date which is 3 months before
the date the company makes its application under subsection
(d)(1), and a statement of the terms and conditions that
the company generally offers to provide such access and
interconnection has been approved or permitted to take
effect by the State commission under section 252(f). For
purposes of this subparagraph, a Bell operating company
shall be considered not to have received any request for
access and interconnection if the State commission of such
State certifies that the only provider or providers making
such a request have (i) failed to negotiate in good faith
as required by section 252, or (ii) violated the terms of
an agreement approved under section 252 by the provider's
failure to comply, within a reasonable period of time, with
the implementation schedule contained in such agreement.
`(2) SPECIFIC INTERCONNECTION REQUIREMENTS-
`(A) AGREEMENT REQUIRED- A Bell operating company meets
the requirements of this paragraph if, within the State for
which the authorization is sought--
`(i)(I) such company is providing access and
interconnection pursuant to one or more agreements
described in paragraph (1)(A), or
`(II) such company is generally offering access and
interconnection pursuant to a statement described in
paragraph (1)(B), and
`(ii) such access and interconnection meets the
requirements of subparagraph (B) of this paragraph.
`(B) COMPETITIVE CHECKLIST- Access or interconnection
provided or generally offered by a Bell operating company
to other telecommunications carriers meets the requirements
of this subparagraph if such access and interconnection
includes each of the following:
`(i) Interconnection in accordance with the
requirements of sections 251(c)(2) and 252(d)(1).
`(ii) Nondiscriminatory access to network elements in
accordance with the requirements of sections 251(c)(3)
and 252(d)(1).
`(iii) Nondiscriminatory access to the poles, ducts,
conduits, and rights-of-way owned or controlled by the
Bell operating company at just and reasonable rates in
accordance with the requirements of section 224.
`(iv) Local loop transmission from the central office
to the customer's premises, unbundled from local
switching or other services.
`(v) Local transport from the trunk side of a
wireline local exchange carrier switch unbundled from
switching or other services.
`(vi) Local switching unbundled from transport, local
loop transmission, or other services.
`(vii) Nondiscriminatory access to--
`(I) 911 and E911 services;
`(II) directory assistance services to allow the other carrier's
customers to obtain telephone numbers; and
`(III) operator call completion services.
`(viii) White pages directory listings for customers
of the other carrier's telephone exchange service.
`(ix) Until the date by which telecommunications
numbering administration guidelines, plan, or rules are
established, nondiscriminatory access to telephone
numbers for assignment to the other carrier's telephone
exchange service customers. After that date, compliance
with such guidelines, plan, or rules.
`(x) Nondiscriminatory access to databases and
associated signaling necessary for call routing and
completion.
`(xi) Until the date by which the Commission issues
regulations pursuant to section 251 to require number
portability, interim telecommunications number
portability through remote call forwarding, direct
inward dialing trunks, or other comparable
arrangements, with as little impairment of functioning,
quality, reliability, and convenience as possible.
After that date, full compliance with such regulations.
`(xii) Nondiscriminatory access to such services or
information as are necessary to allow the requesting
carrier to implement local dialing parity in accordance
with the requirements of section 251(b)(3).
`(xiii) Reciprocal compensation arrangements in
accordance with the requirements of section 252(d)(2).
`(xiv) Telecommunications services are available for
resale in accordance with the requirements of sections
251(c)(4) and 252(d)(3).
`(d) ADMINISTRATIVE PROVISIONS-
`(1) APPLICATION TO COMMISSION- On and after the date of
enactment of the Telecommunications Act of 1996, a Bell
operating company or its affiliate may apply to the Commission
for authorization to provide interLATA services originating in
any in-region State. The application shall identify each State
for which the authorization is sought.
`(2) CONSULTATION-
`(A) CONSULTATION WITH THE ATTORNEY GENERAL- The
Commission shall notify the Attorney General promptly of
any application under paragraph (1). Before making any
determination under this subsection, the Commission shall
consult with the Attorney General, and if the Attorney
General submits any comments in writing, such comments
shall be included in the record of the Commission's
decision. In consulting with and submitting comments to the
Commission under this paragraph, the Attorney General shall
provide to the Commission an evaluation of the application
using any standard the Attorney General considers
appropriate. The Commission shall give substantial weight
to the Attorney General's evaluation, but such evaluation
shall not have any preclusive effect on any Commission
decision under paragraph (3).
`(B) CONSULTATION WITH STATE COMMISSIONS- Before making
any determination under this subsection, the Commission
shall consult with the State commission of any State that
is the subject of the application in order to verify the
compliance of the Bell operating company with the
requirements of subsection (c).
`(3) DETERMINATION- Not later than 90 days after receiving an
application under paragraph (1), the Commission shall issue a
written determination approving or denying the authorization
requested in the application for each State. The Commission
shall not approve the authorization requested in an application
submitted under paragraph (1) unless it finds that--
`(A) the petitioning Bell operating company has met the
requirements of subsection (c)(1) and--
`(i) with respect to access and interconnection
provided pursuant to subsection (c)(1)(A), has fully
implemented the competitive checklist in subsection
(c)(2)(B); or
`(ii) with respect to access and interconnection
generally offered pursuant to a statement under
subsection (c)(1)(B), such statement offers all of the
items included in the competitive checklist in
subsection (c)(2)(B);
`(B) the requested authorization will be carried out in
accordance with the requirements of section s272; and
`(C) the requested authorization is consistent with the
public interest, convenience, and necessity.
The Commission shall state the basis for its approval or denial
of the application.
`(4) LIMITATION ON COMMISSION- The Commission may not, by
rule or otherwise, limit or extend the terms used in the
competitive checklist set forth in subsection (c)(2)(B).
`(5) PUBLICATION- Not later than 10 days after issuing a
determination under paragraph (3), the Commission shall publish
in the Federal Register a brief description of the determination.
`(6) ENFORCEMENT OF CONDITIONS-
`(A) COMMISSION AUTHORITY- If at any time after the
approval of an application under paragraph (3), the
Commission determines that a Bell operating company has
ceased to meet any of the conditions required for such
approval, the Commission may, after notice and opportunity
for a hearing--
`(i) issue an order to such company to correct the
deficiency;
`(ii) impose a penalty on such company pursuant to
title V; or
`(iii) suspend or revoke such approval.
`(B) RECEIPT AND REVIEW OF COMPLAINTS- The Commission
shall establish procedures for the review of complaints
concerning failures by Bell operating companies to meet
conditions required for approval under paragraph (3).
Unless the parties otherwise agree, the Commission shall
act on such complaint within 90 days.
`(e) LIMITATIONS-
`(1) JOINT MARKETING OF LOCAL AND LONG DISTANCE SERVICES-
Until a Bell operating company is authorized pursuant to