[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3636 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 3636
To promote a national communications infrastructure to encourage
deployment of advanced communications services through competition, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 22, 1993
Mr. Markey (for himself, Mr. Fields of Texas, Mr. Boucher, Mr. Oxley,
Mr. Hall of Texas, Mr. Moorhead, Mr. Bryant, Mr. Barton of Texas, Mr.
Lehman, Mr. Hastert, Mr. Richardson, Mr. Gillmor, and Ms. Schenk)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
February 10, 1994
Additional sponsors: Mr. Moakley, Mr. Studds, Mr. Frank of
Massachusetts, Mr. Levy, Mr. Meehan, Mr. Olver, Mr. Franks of
Connecticut, Mr. Machtley, Mr. Blute, and Mr. McHugh
_______________________________________________________________________
A BILL
To promote a national communications infrastructure to encourage
deployment of advanced communications services through competition, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Communications Competition
and Information Infrastructure Act of 1993''.
TITLE I--TELECOMMUNICATIONS INFRASTRUCTURE AND COMPETITION
SEC. 101. POLICY; DEFINITIONS.
(a) Policy.--Section 1 of the Communications Act of 1934 (47 U.S.C.
151) is amended--
(1) by inserting ``(a)'' after ``Section 1.''; and
(2) by adding at the end thereof the following new
subsection:
``(b) The purposes described in subsection (a), as they relate to
common carrier services, include--
``(1) to preserve and enhance universal telecommunications
service at affordable rates;
``(2) to encourage the continued development and deployment
of advanced and reliable capabilities and services in
telecommunications networks;
``(3) to ensure that the costs of such networks and
services are allocated equitably among users and are
constrained by competition whenever possible;
``(4) to ensure a seamless and open nationwide
telecommunications network through joint planning,
coordination, and service arrangements between and among
carriers; and
``(5) to ensure that common carriers' networks function at
a high standard of quality in delivering advances in network
capabilities and services.''.
(b) Definitions.--Section 3 of such Act (47 U.S.C. 153) is amended
by adding at the end thereof the following new subsections:
``(hh) `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.
``(ii) `Equal access' means to afford, to any person seeking to
provide an information service or a competing telecommunications
service, reasonable and nondiscriminatory access--
``(1) to databases, signaling systems, poles, ducts,
conduits, and rights-of-way owned or controlled by a local
exchange carrier, or other facilities or information (including
customer numbers) integral to the transmission, routing, or
other provision of telephone exchange services;
``(2) that is at least equal in type and quality to the
access which the carrier affords to itself or to any other
person; and
``(3) that is sufficient to ensure the full
interoperability of the equipment and facilities of the carrier
and of the person seeking such access.
``(jj) `Open platform service' means a switched, end-to-end digital
telecommunications service, subject to title II of this Act, which (1)
provides subscribers with sufficient network capability to access
multimedia information services, (2) is widely available throughout
each State, (3) is provided based on accepted standards, and (4) is
available to all customers on a single line basis upon reasonable
request.
``(kk) `Local exchange carrier' means any person that is engaged in
the provision of telephone exchange service or telephone exchange
access service.
``(ll) `Telephone exchange access service' means the offering of
telephone exchange services or facilities for the purpose of the
origination or termination of interexchange telecommunications services
to or from an exchange area.
``(mm) `Telecommunications' means the transmission, between or
among points specified by the customer, of information of the
customer's choosing, without change in the form or content of the
information as sent and received, by means of an electromagnetic
transmission medium, including all instrumentalities, facilities,
apparatus, and services (including the collection, storage, forwarding,
switching, and delivery of such information) essential to such
transmission.
``(nn) `Telecommunications service' means the offering, on a common
carrier or other basis, of telecommunications facilities, or of
telecommunications by means of such facilities. Such term does not
include an information service.''.
SEC. 102. EQUAL ACCESS AND NETWORK FUNCTIONALITY AND QUALITY.
(a) Amendment.--Section 201 of the Communications Act of 1934 (47
U.S.C. 201) is amended by adding at the end thereof the following new
subsections:
``(c) Equal Access.--
``(1) Openness and accessibility obligations.--
``(A) Common carrier obligations.--The duty of a
common carrier under subsection (a) to furnish
communications service includes the duty to furnish
that service in accordance with such regulations with
respect to the openness and accessibility of common
carrier networks as the Commission may prescribe as
necessary or desirable in the public interest pursuant
to this subsection.
``(B) Additional obligations of local exchange
carriers.--The duty under such subsection of a local
exchange carrier includes the duty--
``(i) to provide, in accordance with the
regulations prescribed under paragraph (2),
equal access to and interconnection with the
facilities of the carrier's networks to any
other carrier or person providing
telecommunications services reasonably
requesting such equal access and
interconnection, so that the networks are fully
interoperable; and
``(ii) to offer unbundled features,
functions, and capabilities in accordance with
requirements prescribed by the Commission
pursuant to this subsection and other laws.
``(2) Equal access and interconnection regulations.--
``(A) Regulations required.--The Commission shall,
within 1 year after the date of enactment of this
subsection, establish regulations that provide
reasonable and nondiscriminatory equal access to and
interconnection with the facilities of a local exchange
carrier's network at any technically feasible and
economically reasonable point within the carrier's
network on reasonable terms and conditions, to any
other carrier or person providing telecommunications
services requesting such access. The Commission shall
establish such regulations after consultation with the
Joint Board established pursuant to subparagraph (D).
Such regulations shall provide for actual collocation
of equipment necessary for interconnection at the
premises of a local exchange carrier, except that the
regulations shall provide for virtual collocation where
the local exchange carrier demonstrates that actual
collocation is not practical for technical reasons or
because of space limitations.
``(B) Compensation.--The Commission shall establish
rules, within 1 year after the date of enactment of
this subsection, for the just and reasonable
compensation to the exchange carrier providing such
interconnection and equal access pursuant to
subparagraph (A).
``(C) Exemptions and modifications.--
Notwithstanding any other provision of this subsection,
a local exchange carrier in a rural area shall not be
required to provide equal access and interconnection to
another local exchange carrier. The Commission may
modify the requirements of this paragraph for any local
exchange carrier that has, in the aggregate nationwide,
fewer than 500,000 subscriber lines installed, to the
extent that the Commission determines that compliance
with such requirements would be unduly economically
burdensome, technologically infeasible, or otherwise
not in the public interest.
``(D) Joint board on equal access and
interconnection standards.--Within 30 days after the
date of enactment of this subsection, the Commission
shall convene a Federal-State Joint Board under section
410(c) for the purpose of preparing a recommended
decision for the Commission with respect to the equal
access and interconnection regulations required by this
paragraph.
``(E) Enforcement of existing regulations.--Nothing
in this section shall be construed to prohibit the
Commission from enforcing regulations prescribed prior
to the date of enactment of this section in fulfilling
the requirements of this subsection to the extent that
such regulations are consistent with the provisions of
this subsection.
``(3) State preemption.--Notwithstanding section 2(b), no
State or local government may, after one year after the date of
enactment of this subsection--
``(A) effectively prohibit any provider of any
telecommunication services from providing that or any
other such service, or impose any restrictions on entry
into the business of providing any such service that is
inconsistent with this subsection or any other
provision of this Act, or any regulation thereunder;
``(B) prohibit any carrier or other person
providing telecommunications services from exercising
the access and interconnection rights provided under
this subsection; or
``(C) impose any limitation on the exercise of such
rights that is inconsistent with this subsection or the
regulations prescribed under this subsection.
``(4) Tariffs.--
``(A) Generally.--A local exchange carrier shall,
within 18 months after the date of enactment of this
subsection, prepare and file tariffs in accordance with
this Act with respect to the services or elements
offered to comply with the equal access and
interconnection regulations required under this
subsection. The costs that a carrier incurs in
providing such services or elements of exchange
services shall be borne solely by the users of the
features and functions comprising such services or
which uses or includes such service element. The
Commission shall review such tariffs to ensure that--
``(i) the charges for such services or
elements of exchange services are cost-based;
and
``(ii) the terms and conditions contained
in such tariffs do not bundle together any
separable elements, features, or functions.
``(B) Supporting information.--A local exchange
carrier shall submit supporting information with its
tariffs for equal access and interconnection that is
sufficient to enable the Commission and the public to
determine the relationship between the proposed charges
and the costs of providing such services or elements of
exchange services. The submission of such information
shall be pursuant to rules adopted by the Commission to
ensure that similarly situated carriers provide such
information in a uniform fashion.
``(5) Pricing flexibility.--(A) Within 270 days after the
date of enactment of this subsection, the Commission, by
regulation, shall establish criteria for determining--
``(i) whether a telecommunications service or
provider of such service has become, or is reasonably
certain imminently to become, subject to competition,
either within a geographic area or within a class or
category of service;
``(ii) whether such competition will effectively
prevent rates for such service that are unjust or
unreasonable or that are unjustly or unreasonably
discriminatory; and
``(iii) appropriate flexible pricing procedures
that can be used in lieu of the filing of tariff
schedules, or in lieu of other pricing procedures
established by the Commission, and that are consistent
with the public interest, convenience, and necessity.
``(B) The Commission, with respect to rates for interstate
or foreign communications, and State commissions, with respect
to rates for intrastate communications, shall, upon
application--
``(i) render determinations in accordance with the
criteria established under clauses (i) and (ii) of
subparagraph (A) concerning the services or providers
that are the subject of such application; and
``(ii) upon a proper showing, establish an
appropriate flexible pricing procedure consistent with
the criteria established under clause (iii) of such
subparagraph.
The Commission shall approve or reject any such application
within 180 days after its submission.
``(6) Joint board to preserve universal service.--
``(A) Establishment; functions.--Within 30 days
after the date of enactment of this subsection, the
Commission shall convene a Federal-State Joint Board
under section 410(c) for the purpose of recommending
actions to the Commission and State commissions for the
preservation of universal service. As a part of
preparing such recommendations, the Joint Board shall
survey providers of telephone exchange service and
consult with State commissions in order to determine
the pecuniary difference between the cost of providing
universal service and the prices determined to be
appropriate for such service. In making such
recommendations, the Joint Board shall base policies
for the preservation of universal service on the
following principles:
``(i) A plan adopted by the Commission and
the States should ensure the continued
viability of universal service by maintaining
quality services at affordable prices.
``(ii) Such plan should define the nature
and extent of the services encompassed within
carriers' universal service obligations and
should seek to promote access to advanced
telecommunications services for all Americans
by including advanced telecommunications
services in the definition of universal
service, while maintaining affordable rates.
``(iii) Such plan should establish specific
and predictable mechanisms to provide adequate
and sustainable support for universal service.
``(iv) All providers of telecommunications
services should make an equitable and
nondiscriminatory contribution to preservation
of universal service.
``(B) Report; commission response.--The Joint Board
convened pursuant to subparagraph (A) shall report its
recommendations within 270 days after the date of
enactment of this subsection. The Commission shall
complete any proceeding to implement such
recommendations within one year after such date of
enactment. A State may adopt regulations to implement
the Joint Board's recommendations, except that such
regulations shall not, after 18 months after such date
of enactment, be inconsistent with regulations
prescribed by the Commission to implement such
recommendations.
``(7) Resale.--The resale or sharing of telephone exchange
service (or unbundled elements of such service) in conjunction
with the furnishing of a telecommunications service or any
information service shall not be prohibited nor subject to
unreasonable conditions by the carrier, the Commission, or any
State.
``(8) Review of standards and requirements.--At least once
every three years, the Commission shall--
``(A) conduct a proceeding in which interested
parties shall have an opportunity to comment on whether
the standards and requirements established by or under
this subsection have opened the networks of carriers to
reasonable and nondiscriminatory access by providers of
telecommunications services and information services;
``(B) review the definition of universal service
and evaluate the extent to which universal service has
been protected and access to advanced services has been
facilitated pursuant to this subsection and the plans
and regulations thereunder; and
``(C) submit to the Congress a report containing a
statement of the Commission's findings pursuant to such
proceeding, and including an identification of any
defects or delays observed in attaining the objectives
of this subsection and a plan for correcting such
defects and delays.
``(9) Study of rural phone service.--No later than 1 year
after the date of enactment of this subsection, the Commission
shall initiate an inquiry to examine the effects of competition
in the provision of telephone exchange access and telephone
exchange service on the availability and rates for telephone
exchange access and telephone exchange service furnished by
rural exchange carriers.
``(d) Network Functionality and Quality.--
``(1) Functionality and reliability obligations.--The duty
of a common carrier under subsection (a) to furnish
communications service includes the duty to furnish that
service in accordance with such regulations of functionality
and reliability as the Commission may prescribe as necessary or
desirable in the public interest pursuant to this subsection.
``(2) Coordinated planning for interoperability and other
purposes.--The Commission shall establish--
``(A) procedures for the conduct of coordinated
network planning by common carriers and other providers
of telecommunications or information services, subject
to Commission supervision, for the effective and
efficient interconnection and interoperability of
public and private networks; and
``(B) procedures for the development, subject to
Commission supervision, of--
``(i) standards for the interconnection and
interoperability of such networks;
``(ii) standards for the design of such
networks that promote access to network
capabilities and services by individuals with
disabilities; and
``(iii) standards to ensure that the design
of such networks does not impede access to
information services by subscribers to
telephone exchange service furnished by a rural
exchange carrier.
``(3) Open platform service.--
``(A) Study.--No later than 90 days after the
enactment of this subsection, the Commission shall
initiate an inquiry to consider the rules and policies
necessary to make open platform service available to
all subscribers at reasonable rates based on the
reasonably identifiable costs of providing such
services, utilizing existing facilities to the maximum
extent feasible and economically practicable. The
inquiry required under this paragraph shall be
completed within 120 days after initiation.
``(B) Regulations.--On the basis of the results of
the inquiry required under subparagraph (A), the
Commission shall prescribe and make effective such
regulations as are necessary to implement the inquiry's
conclusions. Such regulations may require a local
exchange carrier to file, in the appropriate
jurisdiction, tariffs for the origination and
termination of open platform service as soon as such
service is economically and technically feasible. In
establishing any such regulations, the Commission shall
take into account the proximate and long-term
deployment plans of local exchange carriers, and may
establish a procedure to delay for a reasonable period
of time any requirement of open platform service if a
petition from a local exchange carrier demonstrates
that compliance with such requirement would
significantly delay the deployment of a more advanced
technology. Any such regulations shall provide for the
allocation of all costs of facilities jointly used to
provide open platform service and telephone exchange
service. Nothing in this subsection shall be construed
to limit a State's authority to continue to regulate
any services subject to State jurisdiction under this
Act.
``(C) Continuing oversight.--Commencing not later
than 2 years after the date of enactment of this
subsection, the Commission shall conduct an inquiry on
the progress of open platform service deployment. The
Commission shall submit a report to the Congress on the
results of such inquiry within 90 days after the
commencement of such inquiry and annually thereafter
for the succeeding 5 years.
``(4) Accessibility regulations.--
``(A) Regulations.--The Commission shall, within 1
year after enactment of this section, prescribe such
regulations as are necessary to ensure that advances in
network services deployed by local exchange carriers
shall be accessible and usable by individuals with
disabilities, including individuals with functional
limitations of hearing, vision, movement, manipulation,
speech and interpretation of information, unless the
cost of making the services accessible and usable would
result in an undue burden or adverse competitive
impact. Such regulations shall seek to permit the use
of both standard and special equipment, and seek to
minimize the need of individuals to acquire additional
devices beyond those used by the general public to
obtain such access.
``(B) Compatibility.--Such regulations shall
require that whenever an undue burden or adverse
competitive impact would result from the requirements
in subparagraph (A), the local exchange carrier that
deploys the network service shall ensure that the
network service in question is compatible with existing
peripheral devices or specialized customer premises
equipment commonly used by persons with disabilities to
achieve access, unless doing so would result in an
undue burden or adverse competitive impact.
``(C) Undue burden.--The term `undue burden' means
significant difficulty or expense. In determining
whether the activity necessary to comply with the
requirements of this paragraph would result in an undue
burden, the factors to be considered include:
``(i) The nature and cost of the activity.
``(ii) The impact on the operation of the
facility involved in the deployment of the
network service.
``(iii) The financial resources of the
local exchange carrier.
``(iv) The type of operations of the local
exchange carrier.
``(D) Adverse competitive impact.--In determining
whether the activity necessary to comply with the
requirements of this paragraph would result in adverse
competitive impact, the following factors shall be
considered:
``(i) whether such activity would raise the
cost of the network service in question beyond
the level at which there would be sufficient
consumer demand by the general population to
make the network service profitable; and
``(ii) whether such activity would, with
respect to the network service in question, put
the local exchange carrier at a competitive
disadvantage. This factor may be considered so
long as competing network service providers are
not held to the same obligation with respect to
access by persons with disabilities.
``(E) Effective date.--The regulations required by
this paragraph shall become effective 18 months after
the date of enactment of this subsection.
``(5) Quality rules.--(A) The Commission shall designate or
otherwise establish network reliability and quality performance
measures or benchmarks for common carriers for the purpose of
ensuring the continued maintenance and evolution of common
carrier facilities and service. Not later than 180 days after
the date of enactment of this subsection, the Commission shall
initiate a rulemaking proceeding to establish performance
measures or benchmarks for maintaining common carrier network
quality.
``(B) Such rules and regulations shall include--
``(i) quantitative network reliability and service
quality performance measures or benchmarks;
``(ii) procedures to monitor and evaluate common
carrier efforts to increase network reliability and
service quality; and
``(iii) procedures to resolve network reliability
and service quality complaints.
``(C) Throughout the process of developing network
reliability and service quality performance measures or
benchmarks, as required by subparagraph (A), the Commission
shall coordinate and consult with service and equipment
providers and users and State regulatory bodies to ensure their
concerns and interests are given full consideration in such
process.
``(6) Rural exemption.--The Commission may modify, or grant
exemptions from, the requirements of this subsection in the
case of a common carrier providing telecommunications services
in a rural area.''.
(b) Conforming Amendment.--Section 2(b) of the Communications Act
of 1934 (47 U.S.C.152(b)) is amended by inserting ``201(c) and (d),''
after ``Except as provided in sections''.
SEC. 103. DISCRIMINATORY INTERCONNECTION.
Section 208 of the Communications Act of 1934 is amended by adding
at the end thereof the following new subsection:
``(c) Expedited Review of Certain Complaints.--The Commission shall
issue a final order with respect to any complaint arising from alleged
violations of the rules and orders prescribed pursuant to section
201(c) within 180 days after such complaint is filed.''.
SEC. 104. EXPEDITED LICENSING OF NEW TECHNOLOGIES AND SERVICES.
Section 7 of the Communications Act of 1934 (47 U.S.C. 157) is
amended by adding at the end thereof the following new subsection:
``(c) Licensing of New Technologies.--
``(1) Expedited rulemaking.--Within 24 months after making
a determination under subsection (b) that a technology or
service related to the furnishing of telecommunications
services is in the public interest, the Commission shall, with
respect to any such service requiring a license or other
authorization from the Commission, adopt and make effective
rules for--
``(A) the provision of such technology or service;
and
``(B) the filing of applications for the licenses
or authorizations necessary to offer such technology or
service to the public, and shall act on any such
application within 24 months after it is filed.
``(2) Review of applications.--Any application filed by a
carrier under this subsection for the construction or extension
of a line shall also be subject to section 214 and to any
necessary approval by the appropriate State commissions.''.
SEC. 105. NEW OR EXTENDED LINES.
Section 214 of the Communications Act of 1934 is amended by adding
at the end the following new subsection:
``(e) Any application filed under this section by a provider of
telephone exchange service for authority to construct or extend a line
shall address the means by which such construction or extension will
meet the network access needs of individuals with disabilities.''.
TITLE II--COMMUNICATIONS COMPETITIVENESS
SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.
(a) General Requirement.--
(1) Amendment.--Section 613(b) of the Communications Act of
1934 (47 U.S.C. 533(b)) is amended to read as follows:
``(b)(1) Subject to the requirements of part V and the other
provisions of this title, any common carrier subject in whole or in
part to title II of this Act may, either through its own facilities or
through an affiliate owned by, operated by, controlled by, or under
common control with the common carrier, provide video programming
directly to subscribers in its telephone service area.
``(2) Subject to the requirements of part V and the other
provisions of this title, any common carrier subject in whole or in
part to title II of this Act may provide channels of communications or
pole, line, or conduit space, or other rental arrangements, to any
entity which is directly or indirectly owned by, operated by,
controlled by, or under common control with such common carrier, if
such facilities or arrangements are to be used for, or in connection
with, the provision of video programming directly to subscribers in its
telephone service area.''.
(2) Conforming amendment.--Section 602 of the
Communications Act of 1934 (47 U.S.C. 531) is amended--
(A) by redesignating paragraphs (18) and (19) as
paragraphs (19 and (20) respectively; and
(B) by inserting after paragraph (17) the following
new paragraph:
``(18) the term `telephone service area' when used in
connection with a common carrier subject in whole or in part to
title II of this Act means the area within which such carrier
provides telephone exchange service as of November 20, 1993,
but if any common carrier after such date transfers its
exchange service facilities to another common carrier, the area
to which such facilities provide telephone exchange service
shall be treated as part of the telephone service area of the
acquiring common carrier and not of the selling common carrier.
(b) Provisions for Regulation of Cable Service Provided by
Telephone Companies.--Title VI of the Communications Act of 1934 (47
U.S.C. 521 et seq.) is amended by adding at the end the following new
part:
``PART V--CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES
``SEC. 651. DEFINITIONS.
``For purposes of this part--
``(1) the term `affiliated video programming' means any
video programming which is (A) owned or controlled by, or under
common control with, a common carrier, and (B) provided by the
common carrier or an affiliate directly to subscribers in its
telephone service area;
``(2) the term `control' means--
``(A) an ownership interest in which an entity has
the right to vote more than 50 percent of the
outstanding common stock or other ownership interest;
or
``(B) actual working control, as defined in the
order of the Commission entitled ``Implementation of
Sections 11 and 13 of the Cable Television Consumer
Protection and Competitive Act of 1992--Horizontal and
Vertical Ownership Limits, Cross-Ownership Limitations,
and Anti-Trafficking Provisions'', MM Docket 92-264,
adopted September 23, 1993, if no single entity
directly or indirectly has the right to vote more than
50 percent of the outstanding common stock or other
ownership interest;
``(3) the term `video platform' has the same meaning as the
term `basic platform' in the order of the Commission entitled
`Telephone Company-Cable Television Cross-Ownership Rules,
Sections 63.54-63.58', CC Docket No. 87-266, adopted July 16,
1992; and
``(4) the term `rural area' means a geographic area that
does not include either--
``(A) any incorporated or unincorporated place of
10,000 inhabitants or more, or any part thereof; or
``(B) any territory, incorporated or
unincorporated, included in an urbanized area.
``SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.
``(a) In General.--Except as provided in subsection (d) of this
section, a common carrier subject to title II of this Act shall not
provide video programming directly to subscribers in its telephone
service area unless such video programming is provided through a video
programming affiliate that is separate from such carrier.
``(b) Books and Marketing.--
``(1) In general.--A video programming affiliate of a
common carrier shall--
``(A) maintain books, records, and accounts
separate from such carrier which identify all
transactions with such carrier;
``(B) carry out directly (or through any
nonaffiliate) its own promotion, except that
institutional advertising carried out by such carrier
shall be permitted so long as each party bears its pro
rata share of the costs; and
``(C) not own real or personal property in common
with such carrier.
``(2) Inbound telemarketing.--Notwithstanding paragraph
(1)(B), a common carrier may provide inbound telemarketing or
referral services related to the provision of video programming
by a video programming affiliate of such carrier. If such
services are provided to a video programming affiliate, such
services shall be made available to any video programmer or
cable operator on request, on nondiscriminatory terms, at
compensatory prices, and subject to regulations of the
Commission to ensure that the carrier's method of providing
telemarketing or referral and its price structure do not
competitively disadvantage any video programmer or cable
operator, regardless of size, including those which do not use
the carrier's telemarketing services.
``(3) Joint telemarketing.--Notwithstanding paragraph
(1)(B), a common carrier may petition the Commission for
permission to market video programming directly, upon showing
that a cable operator or other entity directly or indirectly
provides telecommunications services and markets such services
jointly with video programming services. The common carrier
shall specify the geographic region covered by the petition.
Any such petition shall be granted or denied within 180 days.
``(c) Business Transactions With Carrier Subject to Regulation.--
Any contract, agreement, arrangement, or other manner of conducting
business, between a common carrier and its video programming affiliate,
providing for--
``(1) the sale, exchange, or leasing of property between
such affiliate and such carrier;
``(2) the furnishing of goods or services between such
affiliate and such carrier; or
``(3) the transfer to or use by such affiliate for its
benefit of any asset or resource of such carrier,
shall be pursuant to regulation prescribed by the Commission, shall be
on a fully compensatory and auditable basis, shall be without cost to
the telephone service ratepayers of the carrier, shall be filed with
the Commission, and shall be in compliance with rules established by
the Commission which will be sufficient to enable the Commission to
assess the compliance of any transaction.
``(d) Waiver.--
``(1) Criteria for waiver.--The Commission may waive any of
the requirements of this section for small or rural telephone
companies, and may, beginning 5 years after the date of
enactment of this section, waive such requirements for any
common carrier, if the Commission determines, after notice and
comment, that--
``(A) such waiver will not affect the ability of
the Commission to ensure that all video programming
activity is carried out without any support from
telephone ratepayers;
``(B) the interests of telephone ratepayers or
cable subscribers will not be harmed if such waiver is
granted; and
``(C) such waiver otherwise is in the public
interest.
``(2) Deadline for action.--The Commission shall act to
approve or disapprove a waiver application within 180 days
after the date it is filed.
``SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.
``(a) Common Carrier Obligations.--Any common carrier subject to
title II of this Act and that provides, through a video programming
affiliate, video programming directly to subscribers in its telephone
service area, shall establish a video platform. The Commission,
together with the States, shall establish regulations to prohibit a
carrier from discriminating in favor of its video programming affiliate
in providing access to such platform or with regard to rates, terms,
and conditions for access to such platform. The Commission shall take
final action on any application under section 214 seeking authority to
establish a video platform within one year after the date such
application is filed.
``(b) Commission Study.--The Commission shall conduct a study of
whether it is in the public interest to extend the requirements of
subsection (a) to cable operators in lieu of the requirements of
section 612. The Commission shall submit to the Congress a report on
the results of such study not later than 2 years after the date of
enactment of this section.
``SEC. 654. PROVISION OF AFFILIATED VIDEO PROGRAMMING.
``(a) Limitation.--A common carrier which provides, through its
video programming affiliate, affiliated video programming directly to
subscribers in its telephone service area, shall make available such
capacity as is requested by unaffiliated video program providers upon
reasonable notice. A common carrier shall not be required under this
subsection to provide more than 75 percent of the equipped capacity of
its video platform to unaffiliated video program providers.
``(b) Evaluation by Commission.--The Commission shall, not later
than 2 years after the date of enactment of this part, evaluate the
effect of subsection (a) on the video programming marketplace and, on
the basis of that evaluation, make recommendations to Congress
concerning appropriate modifications, if any, to subsection (a).
``(c) Broadcast Signal Carriage Excluded.--The carriage of local
broadcast signals pursuant to section 614 shall not constitute the
provision of affiliated video programming for purposes of subsection
(a).
``(d) Termination.--Subsection (a) shall cease to be effective five
years after the date of enactment of this part.
``SEC. 655. PROHIBITION OF CROSS-SUBSIDIZATION.
``(a) Common Carrier Prohibitions.--The Commission shall prescribe
regulations to prohibit a common carrier from engaging in any practice
that results in the inclusion in rates for telephone exchange service
of any operating expenses, costs, depreciation charges, capital
investments, or other expenses associated with the provision of video
programming by the common carrier or its video programming affiliate.
``(b) Cable Operator Prohibitions.--The Commission shall prescribe
regulations to prohibit a cable operator from engaging in any practice
that results in the inclusion in rates for cable service of any
operating expenses, costs, depreciation charges, capital investments,
or other expenses associated with the provision of telecommunications
service by the cable operator or its telecommunications service
affiliate.
``SEC. 656. PROHIBITION ON BUYOUTS.
``(a) General Prohibition.--No common carrier that provides
telephone exchange service, nor any entity owned by or under common
ownership or control with such carrier, may purchase or otherwise
obtain control over any cable system that is located within its
telephone service area and is owned by an unaffiliated person.
``(b) Exceptions.--Notwithstanding subsection (a), a common carrier
may--
``(1) obtain a controlling interest in, or form a joint
venture or other partnership with, a cable system that serves a
rural area;
``(2) obtain a controlling interest in, or form a joint
venture or other partnership with, a cable system or systems,
if such systems in the aggregate serve less than 10 percent of
the households in the telephone service area of such carrier
and its affiliated common carriers; or
``(3) acquire the use of that part of the transmission
facilities of such a cable system extending from the last
multi-user terminal to the premises of the end user if such use
is reasonably limited in scope and duration.
``(c) Waiver.--
``(1) Criteria for waiver.--The Commission may waive the
restrictions in subsection (a) of this section only upon a
showing by the applicant that--
``(A) because of the nature of the market served by
the cable system concerned--
``(i) the incumbent cable operator would be
subjected to undue economic distress by the
enforcement of such subsection; or
``(ii) the cable system would not be
economically viable if such subsection were
enforced; and
``(B) the local franchising authority approves of
such waiver.
``(2) Deadline for action.--The Commission shall act to
approve or disapprove a waiver application within 180 days
after the date it is filed.
``SEC. 657. PENALTIES.
``If the Commission finds that any common carrier has knowingly
violated any provision of this part, the Commission shall assess such
fines and penalties as it deems appropriate pursuant to title V of this
Act.
``SEC. 658. CONSUMER PROTECTION.
``(a) Joint Board Required.--The Commission shall, within 30 days
after the date of enactment of this part, convene a Federal-State Joint
Board under the provisions of section 410(c) for the purpose of
establishing the practices, classifications, and regulations as may be
necessary to ensure proper jurisdictional separation and allocation of
the costs of establishing and providing a video platform and
allocations of those costs between regulated and unregulated services,
including affiliated video programming. The Board shall issue its
recommendations to the Commission within 270 days after the date of
enactment of this part.
``(b) Commission Regulations Required.--The Commission, with
respect to interstate switched access service, and the States, with
respect to telephone exchange service and intrastate interexchange
service, shall, within one year after the date of the enactment of this
part, establish such rules and regulations as may be necessary to
implement section 655.
``(c) No Effect on Carrier Regulation Authority.--Nothing in this
section shall be construed to limit or supersede the authority of any
State or the Commission with respect to the allocation of costs
associated with intrastate or interstate communication services.
``SEC. 659. APPLICABILITY OF FRANCHISE AND OTHER REQUIREMENTS.
``(a) In General.--Except as provided in subsection (b)--
``(1) the provisions of part II and sections 628, 631 and
632 of this title, and section 325 of title III, shall apply,
and
``(2) the provisions of parts III and IV (other than
sections 628, 631, and 632) of this title shall not apply,
to any video platform established by a common carrier in accordance
with the requirements of this part.
``(b) Implementation of Requirements.--
``(1) Regulations.--The Commission shall prescribe
regulations to ensure that a video programming affiliate of a
common carrier shall establish a video platform under this part
that provides (A) capacity for public, educational, and
governmental use, (B) capacity for commercial use, (C) carriage
of commercial and non-commercial broadcast television stations,
and (D) an opportunity for commercial broadcast stations to
choose between mandatory carriage and reimbursement for
retransmission of the signal of such station. In prescribing
such regulations, the Commission shall impose obligations that
are no greater or lesser than the obligations contained in the
provisions described in subsection (a)(1) of this section.
``(2) Fees.--A video programming affiliate of any common
carrier that establishes a video platform under this part shall
be subject to the payment of fees imposed by a local
franchising authority, in lieu of the fees required under
section 622. The rate at which such fees are imposed shall not
exceed the rate at which franchise fees are imposed on any
cable operator transmitting video programming in the same
service area.
``SEC. 660. RURAL AREA EXEMPTION.
``The provisions of sections 652, 653, 654, and 656 shall not apply
to video programming provided in a rural area by a common carrier that
provides telephone exchange service in the same area.''.
<all>
HR 3636 SC----2
HR 3636 SC----3
HR 3636 SC----4