[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1822 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1822

 To foster the further development of the Nation's telecommunications 
  infrastructure and protection of the public interest, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 3 (legislative day, January 25), 1994

 Mr. Hollings (for himself, Mr. Danforth, Mr. Inouye, Mr. Stevens, Mr. 
 Exon, Mr. Pressler, Mr. Rockefeller, Mr. Burns, Mr. Robb, Mr. Gorton, 
 Mr. Dorgan, Mr. Kerrey, and Mr. Kerry) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To foster the further development of the Nation's telecommunications 
  infrastructure and protection of the public interest, 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 ``Communications Act of 1994''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) Congress has not passed a broad review of the 
        Communications Act of 1934 since that Act was originally 
        passed;
            (2) Congress must pass comprehensive communications 
        legislation to promote the development and growth of the 
        national information superhighway;
            (3) changes in the telecommunications marketplace have made 
        some of the provisions of the Communications Act of 1934 
        obsolete, unnecessary, or inimical to advances in 
        communications technologies and services;
            (4) for instance, competition has emerged in many services 
        that were previously thought to be natural monopolies, but the 
        Communications Act of 1934 requires all carriers to be 
        regulated as if they were monopolies;
            (5) as communications markets change, government must 
        ensure that the public interest, convenience and necessity is 
        preserved;
            (6) the public interest requires that universal telephone 
        service is protected and advanced, that new telecommunications 
        technologies are deployed rapidly and equitably, and that 
        access by schools, hospitals, public broadcasters, libraries, 
        other public entities, community newspapers, and broadcasters 
        in the smallest markets to advanced telecommunications services 
        is assisted;
            (7) access to basic telecommunications services is 
        fundamental to safety of life and participation in a democratic 
        society;
            (8) telecommunications networks make substantial use of 
        public rights of way in real property and in spectrum 
        frequencies, and carriers that make use of such public rights 
        of way have an obligation to provide preferential rates to 
        entities that provide significant public benefits;
            (9) advanced telecommunications services can enhance the 
        quality of life and promote economic development and 
        international competitiveness;
            (10) telecommunications infrastructure development is 
        particularly crucial to the continued economic development of 
        rural areas that may lack an adequate industrial or service 
        base for continued development;
            (11) advancements in the Nation's telecommunications 
        infrastructure will enhance the public welfare by helping to 
        speed the delivery of new services, such as distance learning, 
        remote medical sensing, and distribution of health information;
            (12) infrastructure advancement can be assisted by joint 
        planning and infrastructure sharing by all carriers providing 
        communications services;
            (13) increased competition in telecommunications services 
        can, if subject to appropriate safeguards, encourage 
        infrastructure development and have beneficial effects on the 
        price, universal availability, variety, and quality of 
        telecommunications services;
            (14) the emergence of competition in telecommunications 
        services has already contributed, and can be expected to 
        continue contributing, to the modernization of the 
        infrastructure;
            (15) competition in the long distance industry and the 
        communications equipment market has brought about lower prices 
        and higher quality services;
            (16) competition for local communications services has 
        already begun to benefit the public; competitive access 
        providers have deployed thousands of miles of optical fiber in 
        their local networks; local exchange carriers have been 
        prompted by competition to accelerate the installation of 
        optical fiber in their own networks;
            (17) electric utilities, satellite carriers, and others are 
        prepared to enter the local telephone market over the next few 
        years;
            (18) a diversity of telecommunications carriers enhances 
        network reliability by providing redundant capacity, thereby 
        lessening the impact of any network failure;
            (19) competition must proceed under rules that protect 
        consumers and are fair to all telecommunications carriers;
            (20) all telecommunications carriers, including competitors 
        to the telephone companies, should contribute to universal 
        service and should make their networks available for 
        interconnection by others;
            (21) removal of all State and local barriers to entry into 
        the telecommunications services market and provision of 
        national standards for interconnection are warranted after 
        mechanisms to protect universal service and rules are 
        established to ensure that competition develops fairly;
            (22) increasing the availability of interconnection and 
        interoperability among the facilities of telecommunications 
        carriers will help stimulate the development of fair 
        competition among providers;
            (23) the portability of telecommunications numbers will 
        eliminate a significant advantage held by traditional telephone 
        companies over competitors in the provision of 
        telecommunications services;
            (24) restrictions on resale and sharing of 
        telecommunications networks retard the growth of competition 
        and restrict the diversity of services available to the public;
            (25) additional regulatory measures are needed to allow 
        consumers in rural markets and noncompetitive markets the 
        opportunity to benefit from high-quality telecommunications 
        capabilities;
            (26) regulatory flexibility for existing providers of 
        telephone exchange service is necessary to allow them to 
        respond to competition;
            (27) the Federal Communications Commission (hereinafter 
        referred to as the ``Commission'') and the States must have the 
        flexibility to adjust their regulations to the market power of 
        each provider of telecommunications services;
            (28) the Commission should take steps to ensure network 
        reliability and the development of network standards;
            (29) access to switched, digital telecommunications service 
        for all segments of the population promotes the core First 
        Amendment goal of diverse information sources by enabling 
        individuals and organizations alike to publish and otherwise 
        make information available in electronic form;
            (30) the national welfare will be enhanced if community 
        newspapers and broadcasters in the smallest markets are 
        provided ease of entry into the operation of information 
        services disseminated through electronic means primarily to 
        customers in the localities served by such newspapers and 
        broadcasters at reasonable, nondiscriminatory rates to such 
        newspapers;
            (31) a clear national mandate is needed for full 
        participation in access to telecommunications networks and 
        services by individuals with disabilities;
            (32) the obligations of telecommunications carriers 
        includes the duty to furnish telecommunications services which 
        are designed to be fully accessible to individuals with 
        disabilities in accordance with such standards as the 
        Commission may prescribe;
            (33) permitting the Bell operating companies to enter the 
        manufacturing market will stimulate greater research and 
        development, create more jobs, and enhance our international 
        competitiveness;
            (34) the Bell operating companies should be permitted to 
        provide long distance service for cable television and for 
        cellular hands off immediately because there is little harm, if 
        any, that such entry could cause the public;
            (35) the Bell operating companies should not be permitted 
        to enter the market for other long distance services until they 
        have eliminated the barriers to competition and interconnection 
        and until the Bell operating company faces competition for 
        local telephone service;
            (36) safeguards are necessary to ensure that the Bell 
        operating companies do not abuse their market power over local 
        telephone service to discriminate against competitors in the 
        markets for electronic publishing, alarm, and other information 
        services;
            (37) amending the legal barriers to the provision of video 
        programming by telephone companies in their service areas will 
        encourage competition to existing cable television service 
        providers and encourage telephone companies to upgrade their 
        telecommunications facilities to enable them to deliver video 
        programming, as long as telephone companies are prohibited from 
        buying or combining with existing cable companies in their 
        telephone service areas;
            (38) as communications technologies and services 
        proliferate, consumers must be given the right to control 
        information concerning their use of those technologies and 
        services; and
            (39) as competition in the media increases, the Commission 
        should reexamine the need for national and local ownership 
        limits on broadcast stations, consistent with the need to 
        maintain diversity of information sources.

SEC. 3. EFFECT ON OTHER LAW.

    (a) Antitrust Laws.--Nothing in this Act shall be construed to 
modify, impair, or supersede the applicability of any antitrust law.
    (b) Federal, State, and Local Law.--(1) Except as provided in 
paragraph (2), this Act shall not be construed to modify, impair, or 
supersede Federal, State, or local law unless expressly so provided in 
this Act.
    (2) This Act shall supersede State and local law to the extent that 
such law would impair or prevent the operation of this Act.

        TITLE I--PROTECTION AND ADVANCEMENT OF UNIVERSAL SERVICE

SEC. 101. NATIONAL POLICY GOALS.

    Section 1 of the Communications Act of 1934 (47 U.S.C. 151) is 
amended by inserting ``(a)'' immediately before ``For the purpose of'' 
and by adding at the end the following new subsection:
    ``(b) the primary objective of United States national and 
international communications policy shall be to protect the public 
interest. The goals of United States national and international 
communications policy shall include the following:
            ``(1) To ensure that every person has access to basic 
        telecommunications at reasonable charges.
            ``(2) To promote the development and widespread 
        availability of new technologies.
            ``(3) To ensure that consumes have access to diverse 
        sources of information.
            ``(4) To allow each individual the opportunity to 
        contribute to the free flow of ideas and information through 
        telecommunications services.
            ``(5) To maximize the contribution of communications and 
        information technologies and services to economic welfare and 
        quality of life.
            ``(6) To protect each individual's right to control the use 
        of information concerning his or her use of telecommunications 
        services.
            ``(7) To promote democracy.''.

SEC. 102. UNIVERSAL SERVICE PROTECTION AND ADVANCEMENT.

    (a) In General.--Title II of the Communications Act of 1934 (47 
U.S.C. 201 et seq.) is amended by adding immediately after section 201 
the following new section:

``SEC. 201A. UNIVERSAL SERVICE PROTECTION AND ADVANCEMENT.

    ``(a) Duty to Contribute.--It shall be the duty of every common 
carrier engaged in intrastate, interstate, or foreign communication by 
wire or radio to contribute to the preservation and advancement of 
universal service. Such contributions can include monetary payment, 
certain service obligations, in-kind payment, or other forms of 
contribution as determined by the Commission and any State as set forth 
in subsections (b) and (c).
    ``(b) Responsibilities of the Commission.--(1) Within one year 
after the date of enactment of this section, the Commission, after 
receiving comment from the States, shall set forth minimum guidelines 
for the definition of universal service. Such guidelines shall ensure 
that--
            ``(A) universal service includes no less than voice grade 
        telephone exchange services at a charge that includes no more 
        than a reasonable share of the joint and common costs of 
        facilities used to provide such services; and
            ``(B) any other service that utilizes such facilities shall 
        bear a reasonable share of such costs.
The Commission shall periodically revise such guidelines.
    ``(2) Within two years after the date of enactment of this section, 
the Commission shall prescribe and implement regulations to provide 
that a charge be collected, or other action be taken, to ensure that 
providers of interstate telecommunications make a contribution to the 
protection and advancement of universal service on a competitively 
neutral basis. Any funds contributed under this section shall be 
distributed to each State.
    ``(c) Primary Responsibility.--(1) The Commission shall delegate to 
each State the primary responsibility for defining universal service 
and ensuring that universal service goals are met. Each State may 
impose a nondiscriminatory charge on intrastate telecommunications, or 
take other action, as the State finds necessary to protect and advance 
universal service.
    ``(2) In considering methods of protecting and advancing universal 
service, the State may consider assisting directly telecommunications 
carriers, assisting directly individuals and entities who cannot afford 
the cost of certain telecommunications services, assisting directly 
individuals or entities in purchasing or leasing equipment or 
programming, allowing carriers to compete for the right to obtain 
funding in exchange for providing certain services, and other options. 
To the extent that a State establishes a fund to support universal 
service, all provider of telecommunications services shall be eligible 
to receive payment from such fund.
    ``(3) If a State has not implemented procedures to carry out the 
objectives of paragraphs (1) and (2) within two years after the date of 
enactment of this section, or at any time thereafter fails to meet the 
objectives of such paragraphs, the Commission shall assume the primary 
responsibility to ensure that those objectives are met.''
    (b) Conforming Amendment.--Section 332(c)(1)(A) of the 
Communications Act of 1934 (47 U.S.C. 332(c)(1)(A)) is amended by 
inserting ``201A,'' immediately after ``section 201,''.

SEC. 103. PUBLIC ACCESS.

    (a) Amendment.--Section 202 of the Communications Act of 1934 (47 
U.S.C. 202) is amended by adding at the end the following new 
subsection:
    ``(d)(1) Notwithstanding subsections (a) through (c), it shall be 
the duty of all telecommunications carriers that use public rights of 
way to permit educational institutions, health-care institutions, local 
and State governments, public broadcast stations, public libraries, 
other public entities, community newspapers, and broadcasters in the 
smallest markets to obtain access to intrastate and interstate services 
provided by such carriers at preferential rates. Entities that obtain 
services under this provision may not resell such services, except to 
other entities that are eligible for preferential rates under this 
subsection.
    ``(2) Within one year after the date of enactment of this 
subsection, the Commission shall prescribe regulations to enforce the 
provisions of this subsection.''.
    (b) Rulemaking on Advanced Telecommunications Services.--The 
Commission shall commence a rulemaking proceeding for the purpose of 
prescribing regulations that--
            (1) enhance, to the extent feasible, the availability of 
        advanced telecommunications services to all public elementary 
        and secondary school classrooms, health care institutions, and 
        libraries; and
            (2) ensure that appropriate functional requirements or 
        performance standards, or both, including interoperability 
        standards, are established for telecommunications arrangements 
        that interconnect educational institutions, health care 
        institutions, and libraries with the public switched network.

                TITLE II--TELECOMMUNICATIONS INVESTMENT

SEC. 201. INFRASTRUCTURE INVESTMENT.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 229. INFRASTRUCTURE INVESTMENT.

    ``(a) Rural Markets and Noncompetitive Markets.--If State 
regulatory authorities fail to achieve the goal of ensuring that 
telecommunications carriers provide consumers in rural markets and 
noncompetitive markets with access to high quality, interoperable 
telecommunications network facilities and capabilities which--
            ``(1) provide subscribers with sufficient interactive bi-
        directional network capacity to allow access to information 
        services that provide a combination of voice, data, image, and 
        video; and
            ``(2) are widely available at reasonable nondiscriminatory 
        rates that are based on reasonably identifiable costs of 
        providing such services,
then the Commission may take any action necessary to achieve that goal.
    ``(b) Full Effectuation.--The Commission shall have the authority 
to preempt any State or local statute or regulation, or other State or 
local legal requirement, that prevents the full effectuation of the 
goal embodied in subsection (a).
    ``(c) State Regulatory Incentives.--The States are encouraged to 
implement regulatory incentives to promote the development of high 
quality telecommunications network facilities and capabilities. If 
regulatory incentives fail to result in the deployment of high quality 
telecommunications network facilities and capabilities in rural markets 
and noncompetitive markets, the States may adopt other methods to 
ensure that the goal of subsection (a) is achieved.
    ``(d) Network Standards and Planning.--
            ``(1) Network standards.--
                    ``(A) Interconnection and interoperability 
                standards.--The Commission shall encourage 
                telecommunications carriers and telecommunications 
                equipment manufacturers to develop standards to ensure 
                interconnection and interoperability of 
                telecommunications networks.
                    ``(B) Industry assistance.--The Commission shall, 
                when necessary, establish deadlines, create incentives, 
                or use other mechanisms to assist the industry to 
                develop and implement such standards.
                    ``(C) Commission authority to establish 
                standards.--The Commission may establish standards when 
                industry participants fail to reach agreement.
            ``(2) Network planning.--
                    ``(A) Regulations on joint coordinated action.--The 
                Commission shall prescribe regulations that permit 
                joint coordinated network planning, design, and 
                cooperative implementation among all telecommunications 
                carriers in the provision of public switched network 
                infrastructure and services.
                    ``(B) Procedures.--The Commission shall prescribe 
                regulations establishing procedures to ensure that--
                            ``(i) telecommunications carriers shall 
                        make available timely information to other such 
                        carriers and information service providers in 
                        the same geographic area about the deployment 
                        of telecommunications equipment, including 
                        software integral to such telecommunications 
                        equipment, including upgrades, that will affect 
                        a telecommunications carrier's or information 
                        service provider's ability to interconnect or 
                        interoperate in the same geographic area;
                            ``(ii) telecommunications carriers shall 
                        not be required to share information required 
                        under clause (i) with anyone, including 
                        carriers with whom they directly compete, 
                        except as may be necessary to meet the 
                        interconnection and interoperability 
                        requirements set forth in this paragraph; and
                            ``(iii) the recipient of any information 
                        described in clause (i) shall use it only for 
                        its own interconnection and interoperability.
            ``(3) Infrastructure sharing arrangements between or among 
        telecommunications carriers.--
                    ``(A) Regulations required.--The Commission shall 
                prescribe regulations that require a local exchange 
                carrier to share public switched network infrastructure 
                and function with requesting telecommunications 
                carriers lacking economies of scale or scope, as 
                defined in subparagraph (B).
                    ``(B) Definition.--For the purposes of this 
                paragraph, the term `telecommunications carrier lacking 
                economies of scale or scope' means any 
                telecommunications carrier which serves a geographic 
                area for which it lacks economies of scale or scope for 
                the particular required network function.
                    ``(C) Contents of regulations.--The regulations 
                governing such sharing between local exchange carriers 
                and telecommunications carriers shall--
                            ``(i) promote economically efficient 
                        decisionmaking by local exchange carriers and 
                        telecommunications carriers lacking economies 
                        of scale or scope;
                            ``(ii) not require any local exchange 
                        carrier or telecommunications carrier lacking 
                        economies of scale or scope to make any 
                        decision that is uneconomic or adverse to the 
                        public interest;
                            ``(iii) permit, but not require, joint 
                        ownership and operation of public switched 
                        network infrastructure and services by local 
                        exchange carriers and telecommunications 
                        carriers lacking economies of scale or scope;
                            ``(iv) ensure that fair and reasonable 
                        terms and conditions for and in connection with 
                        the business arrangement described in this 
                        paragraph are determined by local exchange 
                        carriers and telecommunications carriers 
                        lacking economies of scale or scope in 
                        accordance with general guidelines contained in 
                        the regulations prescribed pursuant to this 
                        paragraph:
                            ``(v) establish conditions that promote 
                        cooperation between local exchange carriers and 
                        telecommunications carriers lacking economies 
                        of scale or scope; and
                            ``(vi) ensure that all regulation rights 
                        and obligations for and in connection with the 
                        business arrangements described in this 
                        paragraph shall be determined exclusively in 
                        accordance with the regulations prescribed 
                        pursuant to his paragraph.
            ``(4) Disability access.--The Commission and the States 
        shall ensure that advances in network capabilities and 
        telecommunications service deployed by telecommunications 
        carries are designed to be accessible to individuals with 
        disabilities.
    ``(e) Annual Survey.--The Commission shall publish annually a 
survey of the deployment of technologies on a State-by-State basis.
    ``(f) Cost Allocation Regulations.--The Commission shall develop 
regulations, consistent with the need to protect universal service to 
allocate a local exchange carrier's costs of deploying of broadband 
telecommunications facilities between local exchange service and 
competitive services.''.

                      TITLE III--REGULATORY REFORM

SEC. 301. DEFINITIONS.

    Section 3 of the Communications Act of 1934 (49 U.S.C. 153) is 
amended by adding at the end the following new subsections:
    ``(hh) `Local exchange carrier' means a provider of telephone 
exchange service that the Commission determines that market power.
    ``(ii) `Telecommunications' means the transmission, between or 
among points specified by the user, or information of the user's 
choosing, without change in the reform or content of the information as 
sent and received, by means of electromagnetic transmission, with or 
without benefit of any closed transmission medium, including all 
instrumentalities facilities, apparatus, and services (including the 
receipt, switching, and delivery of such information) essential to such 
transmission.
    ``(jj) `Telecommunications service' means the offering for profit 
to the public or to such classes and eligible users as to be 
effectively available to a substantial portion of the public of--
            ``(1) telecommunications facilities that (A) are owned or 
        controlled by a provider of telephone exchange service or (B) 
        interconnect with the network of a provider of telephone 
        exchange service; or
            ``(2) telecommunications by means of such 
        telecommunications facilities.
Such term does not include information services.
    ``(kk) `Telecommunications carrier' means any provider of 
telecommunications services, except that such term does not include 
hotels, motels, hospitals, and other aggregators of telecommunications 
services as defined in section 226.
    ``(ll) `Telecommunications number portability' means the ability of 
users of telecommunications services to retain existing 
telecommunications numbers without impairment of quality, reliability, 
or convenience when switching from one telecommunications carrier to 
another.
    ``(mm) `Information service' means the offering of services over 
common carrier transmission facilities which employ computer processing 
applications that act on the format, content, code, protocol or similar 
aspects of the subscriber's transmitted information, provide the 
subscriber additional, different, or restructured information, or 
involve subscriber interaction with stored information.
    ``(nn) `Bell operating company' means any of the companies listed 
in appendix A of the Modification of Final Judgment, and includes any 
successor or assign of any such company, but does not include any 
affiliate of any such company.
    ``(oo) `Modification of Final Judgment' means the decree entered 
August 24, 1982, in United States v. Western Electric, Civil Action No. 
82-0192 (United States District Court, District of Columbia).''.

SEC. 302. REGULATORY REFORM.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 230. TELECOMMUNICATIONS COMPETITION.

    ``(a) Removal of Barriers to Entry.--Subject to the provisions of 
section 301 of this Act, at such time as the regulations required by 
section 201A of this Act have been implemented, or 2 years after the 
date of enactment of this section, whichever is earlier, no State or 
local statute or regulation, or other State or local legal requirement, 
shall prohibit or have the effect of prohibiting the ability of any 
entity to provide interstate or intrastate telecommunications services. 
No State or local governmental entity may unreasonably discriminate 
among telecommunications carriers.
    ``(b) Provision of Telecommunications Services by Other 
Utilities.--Notwithstanding any other provision of law and subject to 
the regulatory safeguards imposed by an appropriate regulatory agency, 
an electric, gas, water, or steam utility may provide 
telecommunications services.
    ``(c) Regulatory Authority.--Nothing in this section shall affect 
the ability of State or local officials to impose, on a competitively 
neutral basis, 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.
    ``(d) Obligations of Telecommunications Carriers.--To the extent 
that they provide telecommunications services, telecommunications 
carriers shall be deemed common carriers under this Act. The Commission 
shall prescribe regulations to require each telecommunications carrier, 
upon bona fide request, to provide to any telecommunications equipment 
manufacturer or any entity seeking to provide telecommunications 
services or information services, on reasonable terms and conditions--
            ``(1) interconnection to the carrier's telecommunications 
        facilities at any technically and economically feasible point 
        within the carrier's network;
            ``(2) nondiscriminatory access to any of the carrier's 
        telecommunications facilities and information necessary to the 
        transmission and routing of any telecommunications service or 
        information service and the interoperability of both carriers' 
        networks;
            ``(3) nondiscriminatory access, where technically and 
        economically feasible, to the poles, ducts, conduits, and 
        rights of way owned or controlled by the carrier, and 
        nondiscriminatory rates for such access;
            ``(4) nondiscriminatory access to the network functions of 
        the carrier's telecommunications network, which shall be 
        offered on an unbundled basis; and
            ``(5) telecommunications services and network functions 
        without any restrictions on the resale or sharing of those 
        services and functions.
The States may prescribe regulations implementing paragraphs (1) 
through (5) for intrastate services so long as such regulations are not 
inconsistent with those prescribed by the Commission.
    ``(e) Consumer Information.--As competition for telecommunications 
services develops, the Commission and State regulatory authorities 
shall take action to ensure that consumers are given the information 
necessary to make informed choices among their telecommunications 
alternatives.
    ``(f) Telecommunications Number Portability.--The Commission shall 
prescribe regulations to ensure that--
            ``(1) telecommunications number portability shall be 
        available, upon request, as soon as technically feasible; and
            ``(2) an impartial entity shall administer 
        telecommunications numbering and make such numbers available on 
        an equitable basis.
    ``(g) Reciprocal Compensation Agreements.--Telecommunications 
carriers shall compensate each other on a reciprocal and equivalent 
basis for termination of telecommunications services on each other's 
networks.
    ``(h) Regulatory Flexibility for Competitive Services.--
            ``(1) Regulatory flexibility.--In the event that a 
        telecommunications carrier does not have market power in any or 
        some of its telecommunications services in any or some of its 
        geographic markets, the Commission may streamline any 
        regulation or forbear from applying any provision of this title 
        (except for sections 201, 201A, 202, and 208) to such a 
        telecommunications carrier or service only if the Commission 
        determines that--
                    ``(A) full application of such regulation or 
                provision is unnecessary in order to ensure that the 
                charges, practices, classifications, or regulations for 
                or in connection with that service are just and 
                reasonable and are not unjustly or unreasonably 
                discriminatory;
                    ``(B) full application of such regulation or 
                provision is unnecessary to achieve the goals of this 
                Act; and
                    ``(C) such action is consistent with the public 
                interest and the protection of consumers.
        Any finding by the Commission under section 332 that a 
        provision of title II is inapplicable to a commercial mobile 
        service or a provider of commercial mobile services shall be 
        deemed also to be a determination under this paragraph that the 
        requirements of subparagraphs (A), (B), and (C) of this 
        paragraph are satisfied.
            ``(2) Pricing flexibility.--The Commission shall and the 
        States are encouraged to permit telecommunications carriers to 
        have pricing flexibility in service or geographic markets that 
        are found to be competitive. In implementing this subsection, 
        the Commission and the States shall ensure that rates for basic 
        telephone service and for services that are not competitive 
        remain just and reasonable and that universal service is 
        preserved and advanced.
    ``(i) Rules for Foreign Ownership.--The provisions of section 
310(b) shall not apply to any lawful foreign ownership in a 
telecommunications carrier prior to February 1, 1994, if that carrier 
was not regulated as a common carrier prior to the date of enactment of 
this section and is deemed to be a common carrier under this Act.''.

SEC. 303. IMPLEMENTING REGULATIONS.

    The Commission shall, within 12 months after the date of enactment 
of this Act, issue regulations to implement this title. Such 
regulations shall take effect within 6 months after their issuance, 
except that the Commission may extend such effective date for up to 24 
additional months for any small carrier providing telecommunications 
service in rural areas, upon a showing by the carrier that compliance 
would not be technically and economically feasible without additional 
time.

      TITLE IV--AUTHORIZED ACTIVITIES OF BELL OPERATING COMPANIES

  Subtitle A--Telecommunications Equipment Research and Manufacturing 
                              Competition

SEC. 401. SHORT TITLE.

    This subtitle may be cited as the ``Telecommunications Equipment 
Research and Manufacturing Competition Act of 1994''.

SEC. 402. FINDINGS.

    The Congress finds that the continued economic growth and the 
international competitiveness of American industry would be assisted by 
permitting the Bell operating companies, through their affiliates, to 
manufacture (including design, development, and fabrication) 
telecommunications equipment and customer premises equipment, and to 
engage in research with respect to such equipment.

SEC. 403. AMENDMENT TO COMMUNICATIONS ACT OF 1934.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 231. REGULATION OF MANUFACTURING BY BELL OPERATING COMPANIES.

    ``(a) Authorization.--Subject to the requirements of this section 
and the regulations prescribed thereunder, a Bell operating company, 
through an affiliate of that company, notwithstanding any restrictions 
or obligation imposed before the date of enactment of this section 
pursuant to the Modification of Final Judgment on the lines of business 
in which a Bell operating company may engage, may manufacture and 
provide telecommunications equipment and manufacture customer premises 
equipment, except that neither a Bell operating company nor any of its 
affiliates may engage in such manufacturing in conjunction with a Bell 
operating company not so affiliated or any of its affiliates.
    ``(b) Requirement for Separate Affiliate.--Any manufacturing or 
provision authorized under subsection (a) shall be conducted only 
through an affiliate (hereafter in this section referred to as a 
`manufacturing affiliate') that is separate from any Bell operating 
company.
    ``(c) Manufacturing Regulations.--The Commission shall prescribe 
regulations to ensure that--
            ``(1)(A) such manufacturing affiliate shall maintain books, 
        records, and accounts separate from its affiliated Bell 
        operating company, that identify all transactions between the 
        manufacturing affiliate and its affiliated Bell operating 
        company;
            ``(B) the Commission and the State commissions that 
        exercise regulatory authority over any Bell operating company 
        affiliated with such manufacturing affiliate shall have access 
        to the books, records, and accounts required to be prepared 
        under subparagraph (A); and
            ``(C) such manufacturing affiliate shall, even if it is not 
        a publicly held corporation, prepare financial statements which 
        are in compliance with Federal financial reporting requirements 
        for publicly held corporations, file such statements with the 
        Commission and the State commissions that exercise regulatory 
        authority over any Bell operating company affiliated with such 
        manufacturing affiliate, and make such statements available for 
        public inspection;
            ``(2) consistent with the provisions of this section, 
        neither a Bell operating company nor any of its 
        nonmanufacturing affiliates shall perform sales, advertising, 
        installation, production, or maintenance operations for a 
        manufacturing affiliate; except that institutional advertising, 
        of a type not related to specific telecommunications equipment, 
        carried out by the Bell operating company or its affiliates 
        shall be permitted if each party pays its pro rata share;
            ``(3)(A) such manufacturing affiliate shall conduct all of 
        its manufacturing within the United States and, except as 
        otherwise provided in this paragraph, all component parts of 
        customer premises equipment manufactured by such affiliate, and 
        all component parts of telecommunications equipment 
        manufactured by such affiliate, shall have been manufactured 
        within the United States;
            ``(B) such affiliate may use component parts manufactured 
        outside the United States if--
                    ``(i) such affiliate first makes a good faith 
                effort to obtain equivalent component parts 
                manufactured within the United States at reasonable 
                prices, terms, and conditions; and
                    ``(ii) for the aggregate of telecommunications 
                equipment and customer premises equipment manufactured 
                and sold in the United States by such affiliate in any 
                calendar year, the cost of the components manufactured 
                outside the United States contained in the equipment 
                does not exceed 40 percent of the sales revenue derived 
                from such equipment;
            ``(C) any such affiliate that uses component parts 
        manufactured outside the United States in the manufacture of 
        telecommunications equipment and customer premises equipment 
        within the United States shall--
                    ``(i) certify to the Commission that a good faith 
                effort was made to obtain equivalent parts manufactured 
                within the United States at reasonable prices, terms, 
                and conditions, which certification shall be filed on a 
                quarterly basis with the Commission and list component 
                parts, by type, manufactured outside the United States; 
                and
                    ``(ii) certify to the Commission on an annual basis 
                that for the aggregate of telecommunications equipment 
                and customer premises equipment manufactured and sold 
                in the United States by such affiliate in the previous 
                calendar year, the cost of the components manufactured 
                outside the United States contained in such equipment 
                did not exceed the percentage specified in subparagraph 
                (B)(ii) or adjusted in accordance with subparagraph 
                (G);
            ``(D)(i) if the Commission determines, after reviewing the 
        certification required in subparagraph (C)(i), that such 
        affiliate failed to make the good faith effort required in 
        subparagraph (B)(i) or, after reviewing the certification 
        required in subparagraph (C)(ii), that such affiliate has 
        exceeded the percentage specified in subparagraph (B)(ii), the 
        Commission may impose penalties or forfeitures as provided for 
        in title V of this Act; and
            ``(ii) any supplier claiming to be damaged because a 
        manufacturing affiliate failed to make the good faith effort 
        required in subparagraph (B)(i) may make complaint to the 
        Commission as provided for in section 208 of this Act, or may 
        bring suit for the recovery of actual damages for which such 
        supplier claims such affiliate may be liable under the 
        provisions of this Act in any district court of the United 
        States of competent jurisdiction;
            ``(E) the Commission, in consultation with the Secretary of 
        Commerce, shall, on an annual basis, determine the cost of 
        component parts manufactured outside the United States 
        contained in all telecommunications equipment and customer 
        premises equipment sold in the United States as a percentage of 
        the revenues from sales of such equipment in the previous 
        calendar year;
            ``(F) a manufacturing affiliate may use intellectual 
        property created outside the United States in the manufacture 
        of telecommunications equipment and customer premises equipment 
        in the United States; and
            ``(G) the Commission may not waive or alter the 
        requirements of this subsection, except that the Commission, on 
        an annual basis, shall adjust the percentage specified in 
        subparagraph (B)(ii) to the percentage determined by the 
        Commission, in consultation with the Secretary of Commerce, as 
        directed in subparagraph (E);
            ``(4) no more than 90 percent of the equity of such 
        manufacturing affiliate shall be owned by its affiliated Bell 
        operating company and any affiliates of that Bell operating 
        company;
            ``(5) any debt incurred by such manufacturing affiliate may 
        not be issued by its affiliates, and such manufacturing 
        affiliate shall be prohibited from incurring debt in a manner 
        that would permit a creditor, on default, to have recourse to 
        the assets of its affiliated Bell operating company's 
        telecommunications service business;
            ``(6) such manufacturing affiliate shall not be required to 
        operate separately from the other affiliates of its affiliated 
        Bell operating company;
            ``(7) if an affiliate of a Bell operating company becomes 
        affiliated with a manufacturing entity, such affiliate shall be 
        treated as a manufacturing affiliate of that Bell operating 
        company within the meaning of subsection (b) and shall comply 
        with the requirements of this section;
            ``(8) such manufacturing affiliate shall make available, 
        without discrimination or self-preference as to price, 
        delivery, terms, or conditions, to all regulated local 
        telephone exchange carriers, for use with the public 
        telecommunications network, any telecommunications equipment, 
        including software integral to such telecommunications 
        equipment, including upgrades, manufactured by such affiliate 
        so long as each such purchasing carrier--
                    ``(A) does not either manufacture 
                telecommunications equipment, or have a manufacturing 
                affiliate which manufactures telecommunications 
                equipment; or
                    ``(B) agrees to make available, to the Bell 
                operating company affiliated with such manufacturing 
                affiliate or any of the requested local exchange 
                telephone carrier affiliates of such Bell company, any 
                telecommunications equipment, including software 
                integral to such telecommunications equipment, 
                including upgrades, manufactured for use with the 
                public telecommunications network by such purchasing 
                carrier or by any entity or organization with which 
                such purchasing carrier is affiliated;
            ``(9)(A) such manufacturing affiliate shall not discontinue 
        or restrict sales to other regulated local telephone exchange 
        carriers of any telecommunications equipment, including 
        software integral to such telecommunications equipment, 
        including upgrades, that such affiliate manufactures for sale 
        as long as there is reasonable demand for the equipment by such 
        carriers; except that such sales may be discontinued or 
        restricted if such manufacturing affiliate demonstrates to the 
        Commission that it is not making a profit, under a marginal 
        cost standard implemented by the Commission, on the sale of 
        such equipment;
            ``(B) in reaching a determination as to the existence of 
        reasonable demand as referred to in subparagraph (A), the 
        Commission shall within 60 days consider--
                    ``(i) whether the continued manufacture of the 
                equipment will be profitable;
                    ``(ii) whether the equipment is functionally or 
                technologically obsolete;
                    ``(iii) whether the components necessary to 
                manufacture the equipment continue to be available;
                    ``(iv) whether alternatives to the equipment are 
                available in the market; and
                    ``(v) such other factors as the Commission deems 
                necessary and proper;
            ``(10) Bell operating companies shall, consistent with the 
        antitrust laws, engage in joint network planning and design 
        with other regulated local telephone exchange carriers 
        operating in the same area of interest; except that no 
        participant in such planning shall delay the introduction of 
        new technology or the deployment of facilities to provide 
        telecommunications services, and agreement with such other 
        carriers shall not be required as a prerequisite for such 
        introduction or deployment; and
            ``(11) Bell operating companies shall provide, to other 
        regulated local telephone exchange carriers operating in the 
        same area of interest, timely information on the planned 
        deployment of telecommunications equipment, including software 
        integral to such telecommunications equipment, including 
        upgrades.
    ``(d) Telephone Exchange Service Regulations.--
            ``(1) In general.--The Commission shall prescribe 
        regulations to require that each Bell operating company shall 
        maintain and file with the Commission full and complete 
        information with respect to the protocols and technical 
        requirements for connection with and use of its telephone 
        exchange service facilities. Such regulations shall require 
        each such Bell company to report promptly to the Commission any 
        material changes or planned changes to such protocols and 
        requirements, and the schedule for implementation of such 
        changes or planned changes.
            ``(2) Disclosure restriction.--A Bell operating company 
        shall not disclose to any of its affiliates any information 
        required to be filed under paragraph (1) unless that 
        information is immediately so filed.
            ``(3) Competitors' access to information.--The Commission 
        may prescribe such additional regulations under this subsection 
        as may be necessary to ensure that manufacturers in competition 
        with a Bell operating company's manufacturing affiliate have 
        ready and equal access to the information required for such 
        competition that such Bell company makes available to its 
        manufacturing affiliate.
    ``(e) Requirements for Bell Operating Companies With Manufacturing 
Affiliate.--The Commission shall prescribe regulations requiring that 
any Bell operating company which has an affiliate that engages in any 
manufacturing authorized by subsection (a) shall--
            ``(1) provide, to other manufacturers of telecommunications 
        equipment and customer premises equipment, opportunities to 
        sell such equipment to such Bell operating company which are 
        comparable to the opportunities which such company provides to 
        its affiliates;
            ``(2) not subsidize its manufacturing affiliate with 
        revenues from its regulated telecommunications services; and
            ``(3) only purchase equipment from its manufacturing 
        affiliate at the open market price.
    ``(f) Collaboration With Other Manufacturers.--A Bell operating 
company and its affiliates may engage in close collaboration with any 
manufacturer of customer premises equipment or telecommunications 
equipment during the design and development of hardware, software, or 
combinations thereof relating to such equipment, consistent with 
subsection (e)(2).
    ``(g) Additional Rules and Regulations.--The Commission may 
prescribe such additional rules and regulations as the Commission 
determines necessary to carry out the provisions of this section.
    ``(h) Administration and Enforcement.--
            ``(1) Commission authority.--For the purposes of 
        administering and enforcing the provisions of this section and 
        the regulations prescribed thereunder, the Commission shall 
        have the same authority, power, and functions with respect to 
        any Bell operating company as the Commission has in 
        administering and enforcing the provisions of this title with 
        respect to any common carrier subject to this Act.
            ``(2) Civil actions by injured carriers.--Any regulated 
        local telephone exchange carrier injured by an act or omission 
        of a Bell operating company or its manufacturing affiliate 
        which violates the requirements of paragraph (8) or (9) of 
        subsection (c), or the Commission's regulations implementing 
        such paragraphs, may initiate an action in a district court of 
        the United States to recover the full amount of damages 
        sustained in consequence of any such violation and obtain such 
        orders from the court as are necessary to terminate existing 
        violations and to prevent future violations; or such regulated 
        local telephone exchange carrier may seek relief from the 
        Commission pursuant to sections 206 through 209.
    ``(i) Effective Dates; Deadline.--The authority of the Commission 
to prescribe regulations to carry out this section is effective on the 
date of enactment of this section. The Commission shall prescribe such 
regulations within 180 days after such date of enactment, and the 
authority to engage in the manufacturing authorized in subsection (a) 
shall not take effect until regulations prescribed by the Commission 
under subsections (c), (d), and (e) are in effect.
    ``(j) Effect on Preexisting Manufacturing Authority.--Nothing in 
this section shall prohibit any Bell operating company from engaging, 
directly or through any affiliate, in any manufacturing activity in 
which any Bell operating company or affiliate was authorized to engage 
on the date of enactment of this section.
    ``(k) Annual Audit.--
            ``(1) In general.--A Bell operating company that 
        manufactures or provides telecommunications equipment or 
        manufactures customer premises equipment through an affiliate 
        shall obtain and pay for an annual audit conducted by an 
        independent auditor selected by and working at the direction of 
        the State commission of each State in which such Bell company 
        provides local exchange service, to determine whether such Bell 
        company has complied with this section and the regulations 
        promulgated under this section, and particularly whether such 
        Bell company has complied with the separate accounting 
        requirements under subsection (c)(1).
            ``(2) Submission of audit results.--The auditor described 
        in paragraph (1) shall submit the results of such audit to the 
        Commission and to the State commission of each State in which 
        such Bell company provides telephone exchange service. Any 
        party may submit comments on the final audit report.
            ``(3) Procedures applicable to audit.--The audit required 
        under paragraph (1) shall be conducted in accordance with 
        procedures established by regulation by the State commission of 
        the State in which such Bell company provides local exchange 
        service, including requirements that--
                    ``(A) the independent auditors performing such 
                audits are rotated to ensure their independence; and
                    ``(B) each audit submitted to the Commission and to 
                the State commission is certified by the auditor 
                responsible for conducting the audit.
            ``(4) Commission review.--The Commission shall periodically 
        review and analyze the audits submitted to it under this 
        subsection, and shall provide to the Congress every 2 years--
                    ``(A) a report of its findings on the compliance of 
                the Bell operating companies with this section and the 
                regulations promulgated thereunder; and
                    ``(B) an analysis of the impact of such regulations 
                on the affordability of local telephone exchange 
                service.
            ``(5) Access to accounts and records.--For purposes of 
        conducting audits and reviews under this subsection, an 
        independent auditor, the Commission, and the State commission 
        shall have access to the financial accounts and records of each 
        Bell operating company and those of its affiliates (including 
        affiliates described in paragraphs (6) and (7) of subsection 
        (c)) necessary to verify transactions conducted with such Bell 
        operating company that are relevant to the specific activities 
        permitted under this section and that are necessary to the 
        State's regulation of telephone rates. Each State commission 
        shall implement appropriate procedures to ensure the protection 
        of any proprietary information submitted to it under this 
        section.
    ``(l) Definitions.--As used in this section:
            ``(1) The term `affiliate' means any organization or entity 
        that, directly or indirectly, owns or controls, is owned or 
        controlled by, or is under common ownership with a Bell 
        operating company. Such term includes any organization or 
        entity (A) in which a Bell operating company and any of its 
        affiliates have an equity interest of greater than 10 percent, 
        or a management interest of greater than 10 percent, or (B) in 
        which a Bell operating company and any of its affiliates have 
        any other significant financial interest.
            ``(2) The term `Bell operating company' means those 
        companies listed in appendix A of the Modification of Final 
        Judgment, and includes any successor or assign of any such 
        company, but does not include any affiliate of any such 
        company.
            ``(3) The term `customer premises equipment' means 
        equipment employed on the premises of a person (other than a 
        carrier) to originate, route, or terminate telecommunications.
            ``(4) The term `manufacturing' has the same meaning as such 
        term has in the Modification of Final Judgment as interpreted 
        in United States v. Western Electric, Civil Action No. 82-0192 
        (United States District Court, District of Columbia) (filed 
        December 3, 1987).
            ``(5) The term `Modification of Final Judgment' means the 
        decree entered August 24, 1982, in United States v. Western 
        Electric, Civil Action No. 82-0192 (United States District 
        Court, District of Columbia).
            ``(6) 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, 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.
            ``(7) The term `telecommunications equipment' means 
        equipment, other than customer premises equipment, used by a 
        carrier to provide telecommunications services.
            ``(8) The term `telecommunications service' means the 
        offering for hire of telecommunications facilities, or of 
        telecommunications by means of such facilities.''.

SEC. 404. INCREASED PENALTY FOR RECORDKEEPING VIOLATIONS.

    Section 220(d) of the Communications Act of 1934 (47 U.S.C. 220(d)) 
is amended by striking ``$6,000`` and inserting in lieu thereof 
``$10,000''.

SEC. 405. APPLICATION OF ANTITRUST LAWS.

    Nothing in this subtitle shall be deemed to alter the application 
of Federal and State antitrust laws as interpreted by the respective 
courts.

 Subtitle B--Regulation of Alarm Services and Electronic Publishing by 
                        Bell Operating Companies

SEC. 451. REGULATION OF ENTRY INTO ALARM MONITORING SERVICES.

    (a) Amendment.--Title II of the Communications Act of 1934 (47 
U.S.C. 201 et seq.), as amended by this Act, is further amended by 
adding at the end the following new section:

``SEC. 232. REGULATION OF ENTRY INTO ALARM MONITORING SERVICES.

    ``(a) In General.--Except as provided in subsection (c), no Bell 
operating company, or any affiliate of that company, shall provide 
alarm monitoring services for the protection of life, safety, or 
property. A Bell operating company may transport alarm monitoring 
service signals but on a common carrier basis only.
    ``(b) Authority to Petition.--Beginning 5\1/2\ years from the date 
of enactment of this section, a Bell operating company or any affiliate 
of that company may petition the Commission to seek permission to 
provide alarm monitoring services for the protection of life, safety, 
or property.
    ``(c) Authority to Permit Bell Operating Companies to Provide 
Services.--Beginning 6 years from the date of enactment of this 
section, the Commission shall have the authority to permit a Bell 
operating company to provide alarm monitoring services for the 
protection of life, safety, or property; except that the Commission 
shall not grant such permission until--
            ``(1) the Department of Justice finds that there is no 
        substantial possibility that such Bell company or its 
        affiliates could use monopoly power to impede competition in 
        the market such Bell company seeks to enter; and
            ``(2) the Commission finds that the provision of alarm 
        monitoring services by the Bell operating company is in the 
        public interest and that the Commission has the capability to 
        effectively enforce any requirements, limitations, or 
        conditions placed upon the Bell operating company in the 
        provision of alarm monitoring services for the protection of 
        life, safety, or property, including the regulations it has 
        prescribed pursuant to subsection (d).
    ``(d) Regulations Required.--Not later than 6 years after the date 
of enactment of this section, the Commission shall prescribe 
regulations--
            ``(1) to establish such requirements, limitations, or 
        conditions as are (A) necessary and appropriate in the public 
        interest with respect to the provision of alarm monitoring 
        services by Bell operating companies and their affiliates, and 
        (B) effective at such time as a Bell operating company or any 
        of its affiliates is authorized to provide alarm monitoring 
        services;
            ``(2) to prohibit Bell operating companies and their 
        affiliates, at that or any earlier time after the date of 
        enactment of this section, from recording in any fashion the 
        occurrence or the contents of calls received by providers of 
        alarm monitoring services for the purposes of marketing such 
        services on behalf of the Bell operating company, any of its 
        affiliates, or any other entity; and
            ``(3) to establish procedures for the receipt and review of 
        complaints concerning violations by such companies of such 
        regulations, or of any other provision of this Act or the 
        regulations thereunder, that result in material financial harm 
        to a provider of alarm monitoring services.
    ``(e) Expedited Consideration of Complaints.--The procedures 
established under subsection (d)(3) shall ensure that the Commission 
will make a final determination with respect to any complaint described 
in such subsection within 120 days after receipt of the complaint. If 
the complaint contains an appropriate showing that the alleged 
violation occurred, as determined by the Commission in accordance with 
such regulations, the Commission shall, within 60 days after receipt of 
the complaint, issue a cease and desist order to prevent the Bell 
operating company and its affiliates from continuing to engage in such 
violation pending such final determination.
    ``(f) Remedies.--The Commission may use any remedy available under 
title V of this Act to terminate and punish violations described in 
subsection (d)(2). Such remedies may include, if the Commission 
determines that such violation was willful or repeated, ordering the 
Bell operating company to cease offering alarm monitoring services.
    ``(g) Definitions.--As used in this section:
            ``(1) the term `alarm monitoring services' means services 
        that detect threats to life, safety, or property, by burglary, 
        fire, vandalism, bodily injury, or other emergency, through the 
        use of devices that transmit signals to a central point in a 
        customer's residence, place of business, or other fixed 
        premises which--
                    ``(A) retransmits such signals to a remote 
                monitoring center by means of telephone exchange 
                service facilities, and
                    ``(B) serves to alert persons at the monitoring 
                center of the need to inform police, fire, rescue, or 
                other security or public safety personnel of the threat 
                at such premises.
        Such term does not include medical monitoring devices attached 
        to individuals for the automatic surveillance of ongoing 
        medical conditions.
            ``(2) The term `Bell operating company' has the meaning 
        given that term in section 233 of this Act.
            ``(3) 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, to own refers to owning an equity 
        interest (or equivalent thereof) of more than 50 percent.''.

SEC. 452. REGULATION OF ELECTRONIC PUBLISHING.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 233. REGULATION OF ELECTRONIC PUBLISHING.

    ``(a) In General.--(1) A Bell operating company and any affiliate 
shall not engage in the provision of electronic publishing that is 
disseminated by means of such Bell operating company's or any of its 
affiliates' basic telephone service.
    ``(2) Nothing in this section shall prohibit a separated affiliate 
or electronic publishing joint venture from engaging in the provision 
of electronic publishing or any other lawful service in any area.
    ``(3) Nothing in this section shall prohibit a Bell operating 
company or affiliate from engaging in the provision of any lawful 
service other than electronic publishing in any area or from engaging 
in the provision of electronic publishing that is not disseminated by 
means of such Bell operating company's or any of its affiliates' basic 
telephone service.
    ``(b) Separated Affiliate or Electronic Publishing Joint Venture 
Requirements.--A separated affiliate or electronic publishing joint 
venture shall--
            ``(1) maintain books, records, and accounts that are 
        separate from those of the Bell operating company and from any 
        affiliate and which record in accordance with generally 
        accepted accounting principles all transactions, whether direct 
        or indirect, with the Bell operating company;
            ``(2) not incur debt in a manner that would permit a 
        creditor upon default to have recourse to the assets of the 
        Bell operating company;
            ``(3) prepare financial statements that are not 
        consolidated with those of the Bell operating company or any 
        affiliate, provided that consolidated statements may also be 
        prepared;
            ``(4) file with the Commission annual reports in a form 
        substantially equivalent to the Form 10-K referenced at 17 CFR 
        249.310 as that section and form are in effect on the date of 
        enactment;
            ``(5) after 1 year from the effective date of this section, 
        not hire as corporate officers sales and marketing management 
        personnel whose responsibilities at the separated affiliate or 
        electronic publishing joint venture will include the geographic 
        area where the Bell operating company provides basic telephone 
        service, or network operations personnel whose responsibilities 
        at the separated affiliate or electronic publishing joint 
        venture would require dealing directly with the Bell operating 
        company, any person who was employed by the Bell operating 
        company during the year preceding their date of hire, provided 
        that this requirement shall not apply to persons subject to a 
        collective bargaining agreement that gives such persons rights 
        to be employed by a separated affiliate or electronic 
        publishing joint venture of the Bell operating company;
            ``(6) not provide any wireline telephone exchange service 
        in any telephone exchange area where a Bell operating company 
        with which it is under common ownership or control provides 
        basic telephone exchange service except on a resale basis;
            ``(7) not use the name, trademarks, or service marks of an 
        existing Bell operating company except for names or service 
        marks that are or were used in common with the entity that owns 
        or controls the Bell operating company;
            ``(8) have performed annually by March 31, or any other 
        date prescribed by the Commission, a compliance review which--
                    ``(A) must be conducted by an independent entity 
                which is subject to professional, legal, and ethical 
                obligations for the purpose of determining compliance 
                during the preceding calendar year with any provision 
                of this section that imposes a requirement on such 
                separated affiliate or electronic publishing joint 
                venture; and
                    ``(B) must be maintained by the separated affiliate 
                for a period of 5 years subject to review by any 
                unlawful authority; and
            ``(9) within 90 days of receiving a review described in 
        paragraph (8), file a report of such exceptions and any 
        corrective action with the Commission and allow any person to 
        inspect and copy such report subject to reasonable safeguards 
        to protect any proprietary information contained in such report 
        from being used for purposes other than to enforce or pursue 
        remedies under this section.
    ``(c) Bell Operating Company Requirements.--A Bell operating 
company under common ownership or control with a separated affiliate or 
electronic publishing joint venture shall--
            ``(1) not provide a separated affiliate any facilities, 
        services, or basic telephone service information unless it 
        makes such facilities, services, or information available to 
        unaffiliated entities upon request and on the same terms and 
        conditions;
            ``(2) carry out transactions with a separated affiliate in 
        a manner equivalent to the manner that unrelated parties would 
        carry out independent transactions and not based upon the 
        affiliation;
            ``(3) carry out transactions with a separated affiliate, 
        which involve the transfer of personnel, assets, or anything of 
        value, pursuant to written contracts or tariffs that are filed 
        with the Commission and made publicly available;
            ``(4) carry out transactions with a separated affiliate in 
        a manner that is auditable in accordance with generally 
        accepted accounting principles;
            ``(5) value any assets that are transferred to a separated 
        affiliate at the greater of net book cost or fair market value;
            ``(6) value any assets that are transferred to it by its 
        separated affiliate at the lesser of net book cost or fair 
        market value;
            ``(7) except for--
                    ``(A) instances where Commission or State 
                regulations permit in-arrears payment for tariffed 
                telecommunications services; or
                    ``(B) the investment by an affiliate of dividends 
                or profits derived from a Bell operating company,
        not provide debt or equity financing directly or indirectly to 
        a separated affiliate;
            ``(8) comply fully with all applicable Commission and State 
        cost allocation and other accounting rules;
            ``(9) have performed annually by March 31, or any other 
        date prescribed by the Commission, a compliance review which--
                    ``(A) must be conducted by an independent entity 
                which is subject to professional, legal, and ethical 
                obligations for the purpose of determining compliance 
                during the preceding calendar year with any provision 
                of this section that imposes a requirement on such Bell 
                operating company; and
                    ``(B) must be maintained by the Bell operating 
                company for a period of 5 years subject to review by 
                any lawful authority;
            ``(10) within 90 days of receiving a review described in 
        paragraph (9), file a report of such exceptions and any 
        corrective action with the Commission and allow any person to 
        inspect and copy such report subject to reasonable safeguards 
        to protect any proprietary information contained in such report 
        from being used for purposes other than to enforce or pursue 
        remedies under this section;
            ``(11) if it provides facilities or services for 
        telecommunication, transmission, billing and collection, or 
        physical collocation to any electronic publisher, including a 
        separated affiliate, for use with or in connection with the 
        provision of electronic publishing that is disseminated by 
        means of such Bell operating company's or any of its 
        affiliates' basic telephone service, provide to all other 
        electronic publishers the same type of facilities and services 
        on request, on the same terms and conditions or as required by 
        the Commission or a State, and unbundled and individually 
        tariffed to the same extent as provided to such publisher;
            ``(12) provide network access and interconnections for 
        basic telephone service to electronic publishers at prices that 
        are regulated so long as the prices for these services are 
        subject to regulation;
            ``(13) if prices for network access and interconnection for 
        basic telephone service are no longer subject to regulation, 
        provide electronic publishers such services on the same terms 
        and conditions as a separated affiliate receives such services;
            ``(14) if any basic telephone service used by electronic 
        publishers ceases to require a tariff, provide electronic 
        publishers with such service on the same terms and conditions 
        as a separated affiliate receives such service;
            ``(15) provide reasonable advance notification at the same 
        time and on the same terms to all affected electronic 
        publishers of information relating to changes in basic 
        telephone service network design and technical standards which 
        would affect the provision of electronic publishing;
            ``(16) not directly or indirectly provide anything of 
        monetary value to a separated affiliate unless in exchange for 
        consideration at least equal to the greater of its net book 
        cost or fair market value, except the investment by an 
        affiliate of dividends or profits derived from a Bell operating 
        company;
            ``(17) not discriminate in the presentation or provision of 
        any gateway for electronic publishing services or any 
        electronic directory of information services, which is provided 
        over such Bell operating company's basic telephone service;
            ``(18) have no directors, officers, or employees in common 
        with a separated affiliate;
            ``(19) not own any property in common with a separated 
        affiliate;
            ``(20) not perform hiring or training of personnel 
        performed on behalf of a separated affiliate;
            ``(21) not perform the purchasing, installation, or 
        maintenance of equipment on its behalf of a separated 
        affiliate, except for telephone service that it provides under 
        tariff or contract subject to the provisions of this section; 
        and
            ``(22) not perform research and development on behalf of a 
        separated affiliate.
    ``(d) Customer Proprietary Network Information.--A Bell operating 
company or any affiliate shall not provide to any electronic publisher, 
including a separated affiliate or electronic publishing joint venture, 
customer proprietary network information for use with or in connection 
with the provision of electronic publishing that is disseminated by 
means of such Bell operating company's or any of its affiliates' basic 
telephone service that is not made available by the Bell operating 
company or affiliate to all electronic publishers on the same terms and 
conditions.
    ``(e) Compliance With Safeguards.--A Bell operating company, 
affiliate or its separated affiliate is prohibited from acting in 
concert with another Bell operating company or any entity in order to 
knowingly and willfully violate or evade the requirements of this 
section.
    ``(f) Telephone Operating Company Dividends.--Nothing in this 
section shall prohibit an affiliate from investing dividends derived 
from a Bell operating company in its separated affiliate and 
subsections (i) and (j) of this section shall not apply to any such 
investment.
    ``(g) Joint Marketing, and so forth.--Except as provided in 
subsection (h)--
            ``(1) a Bell operating company shall not carry out any 
        promotion, marketing, sales, or advertising for or in 
        conjunction with a separated affiliate; and
            ``(2) a Bell operating company shall not carry out any 
        promotion, marketing, sales, or advertising or in conjunction 
        with an affiliate that is related to the provision of 
        electronic publishing.
    ``(h) Permissible Joint Activities.--
            ``(1) Joint Telemarketing.--A Bell operating company may 
        provide inbound telemarketing or referral services related to 
        the provision of electronic publishing for a separated 
        affiliate, electronic publishing joint venture, affiliate, or 
        unaffiliated electronic publisher, provided that if such 
        services are provided to a separated affiliate, electronic 
        publishing joint venture, or affiliate, such services shall be 
        made available to all electronic publishers on request, on 
        nondiscriminatory terms, at compensatory prices, and subject to 
        regulations of the Commission to ensure that the Bell operating 
        company's method of providing telemarketing or referral and its 
        price structure do not competitively disadvantage any 
        electronic publishers regardless of size, including those which 
        do not use the Bell operating company's telemarketing services.
            ``(2) Teaming Arrangements.--A Bell operating company may 
        engage in nondiscriminatory teaming or business arrangements to 
        engage in electronic publishing with any separated affiliate or 
        with any other electronic publisher provided that the Bell 
        operating company only provides facilities, services, and basic 
        telephone service information as authorized by this section and 
        provided that the Bell operating company own such teaming or 
        business arrangement.
            ``(3) Electronic publishing joint ventures.--A Bell 
        operating company or affiliate may participate on a 
        nonexclusive basis in electronic publishing joint ventures with 
        entities that are not any Bell operating company, affiliate, or 
        separated affiliate to provide electronic publishing services, 
        provided that the Bell operating company or affiliate has not 
        more than a 50 percent direct or indirect equity interest (or 
        the equivalent thereof) or the right to more than 50 percent of 
        the gross revenues under a revenue sharing or royalty agreement 
        in any electronic publishing joint venture. Officers and 
        employees of a Bell operating company or affiliate 
        participating in an electronic publishing joint venture may not 
        have more than 50 percent of the voting control over the 
        electronic publishing joint venture. In the case of joint 
        ventures with small, local electronic publishers, the 
        Commission for good cause shown may authorize the Bell 
        operating company or affiliate to have a larger equity 
        interest, revenue share, or voting control but not to exceed 80 
        percent. A Bell operating company participating in an 
        electronic publishing joint venture may provide promotion, 
        marketing, sales, or advertising personnel and services to such 
        joint venture.
    ``(i) Transactions Related to the Provision of Electronic 
Publishing Between a Telephone Operating Company and any Affiliate.--
            ``(1) Any provision of facilities, services, or basic 
        telephone service information or any transfer of assets, 
        personnel, or anything of commercial or competitive value from 
        a Bell operating company to any affiliate related to the 
        provision of electronic publishing shall be--
                    ``(A) recorded in the books and records of each 
                entity;
                    ``(B) auditable in accordance with generally 
                accepted accounting principles; and
                    ``(C) pursuant to written contracts or tariffs 
                filed with the Commission or a State and made publicly 
                available.
            ``(2) Any transfer of assets directly related to the 
        provision of electronic publishing from a Bell operating 
        company to an affiliate shall be valued at the greater of net 
        book cost or fair market value. Any transfer of assets related 
        to the provision of electronic publishing from an affiliate to 
        the Bell operating company shall be valued at the lesser of net 
        book cost or fair market value.
            ``(3) A Bell operating company shall not provide an 
        affiliate any facilities, services, or basic telephone service 
        information related to the provision of electronic publishing, 
        which such affiliate then directly or indirectly provides to a 
        separated affiliate, and which is not made available to 
        unaffiliated companies on the same terms and conditions.
    ``(j) Transactions Related to the Provision of Electronic 
Publishing Between an Affiliate and a Separated Affiliate.--
            ``(1) Any facilities, services, or basic telephone service 
        information provided or any assets, personnel, or anything of 
        commercial or competitive value transferred, from a Bell 
        operating company to any affiliate as described in subsection 
        (i) and then provided or transferred to a separated affiliate 
        shall be--
                    ``(A) recorded in the books and records of each 
                entity;
                    ``(B) auditable in accordance with generally 
                accepted accounting principles; and
                    ``(C) pursuant to written contracts or tariffs 
                filed with the Commission or a State and made publicly 
                available.
            ``(2) Any transfer of assets directly related to the 
        provision of electronic publishing from a Bell operating 
        company to any affiliate as described in subsection (i) and 
        then transferred to a separated affiliate shall be valued at 
        the greater of net book cost or fair market value. Any transfer 
        of assets related to the provision of electronic publishing 
        from a separated affiliate to any affiliate and then 
        transferred to the Bell operating company as described in 
        subsection (i) shall be valued at the lesser of net book cost 
        or fair market value.
            ``(3) An affiliate shall not provide a separated affiliate 
        any facilities, services, or basic telephone service 
        information related to the provision of electronic publishing, 
        which were provided to such affiliate directly of indirectly by 
        a Bell operating company, and which is not made available to 
        unaffiliated companies on the same terms and conditions.
    ``(k) Other Electronic Publishers.--Except as provided in 
subsection (h)(3)--
            ``(1) a bell operating company shall not have any officers, 
        employees, property, or facilities in common with any entity 
        whose principal business is publishing of which a part is 
        electronic publishing;
            ``(2) no officer or employee of a Bell operating company 
        shall serve as a director of any entity whose principal 
        business is publishing of which a part is electronic 
        publishing;
            ``(3) for the purposes of paragraphs (1) and (2), a Bell 
        operating company or an affiliate that owns an electronic 
        publishing joint venture shall not be deemed to be engaged in 
        the electronic publishing business solely because of such 
        ownership;
            ``(4) a Bell operating company shall not carry out--
                    ``(A) any marketing or sales for any entity that 
                engages in electronic publishing; or
                    ``(B) any hiring of personnel, purchasing, or 
                production, for any entity that engages in electronic 
                publishing; and
            ``(5) the Bell operating company shall not provide any 
        facilities, services, or basic telephone service information to 
        any entity that engages in electronic publishing, for use with 
        or in connection with the provision of electronic publishing 
        that is disseminated by means of such Bell operating company's 
        or any of its affiliates' basic telephone service, unless, 
        equivalent facilities, services, or information are made 
        available on equivalent terms and conditions to all.
    ``(l) Transition.--Any electronic publishing service being offered 
to the public by a Bell operating company or affiliate on the date of 
enactment of this section shall have one year from such date of 
enactment to comply with the requirements of this section.
    ``(m) Sunset.--The provisions of this section shall cease to apply 
to a Bell operating company or its affiliate or separated affiliate in 
any telephone exchange area on June 30, 2000.
    ``(n) Private Right of Action.--
            ``(1) Any person claiming that any act or practice of any 
        Bell operating company, affiliate, or separated affiliate 
        constitutes a violation of this section may file a complaint 
        with the Commission or bring suit as provided in section 207 of 
        this Act, and such Bell operating company, affiliate, or 
        separated affiliate shall be liable as provided in section 206 
        of this Act: Provided, however, That damages may not be awarded 
        for a violation that is discovered by a compliance review as 
        required by subsection (b)(8) or (c)(9) of this section and 
        corrected within 90 days.
            ``(2) In addition to the provisions of paragraph (1), any 
        person claiming that any act or practice of any Bell operating 
        company, affiliate, or separated affiliate constitutes a 
        violation of this section may make application to the 
        Commission for an order to cease and desist such violation or 
        may make application in any district court of the United States 
        of competent jurisdiction for an order enjoining such acts or 
        practices or for an order compelling compliance with such 
        requirement.
    ``(o) Antitrust Laws.--Nothing in this section shall be construed 
to modify, impair, or supersede the applicability of any of the 
antitrust laws.
    ``(p) Definitions.--As used in this section:
            ``(1) The term `affiliate' means any entity that, directly 
        or indirectly, owns or controls, is owned or controlled by, or 
        is under common ownership or control with, a Bell operating 
        company. Such term shall not include a separated affiliate.
            ``(2) the term `basic telephone service' means wireline 
        telephone exchange service provided by a Bell operating company 
        in a telephone exchange area, except--
                    ``(A) a competitive wireline telephone exchange 
                service provided in a telephone exchange area where 
                another entity provides a wireline telephone exchange 
                service that was provided on January 1, 1984; and
                    ``(B) wireless telephone exchange service provided 
                by an affiliate that is required by the Commission to 
                be a corporate entity separate from the Bell operating 
                company.
            ``(3) The term `basic telephone service information' means 
        network and customer information of a Bell operating company 
        and other information acquired by a Bell operating company as a 
        result of its engaging in the provision of basic telephone 
        service.
            ``(4) The term `control' has the meaning that it has in 17 
        CFR 240.12b-2, the regulations promulgated by the Securities 
        and Exchange Commission pursuant to the Securities Exchange Act 
        of 1934 (15 U.S.C. 78a et seq.) or any successor provision to 
        such section.
            ``(5) The term `customer proprietary network information' 
        means--
                    ``(A) information which--
                            ``(i) relates to the quantity, technical 
                        configuration, type, destination, and amount of 
                        use of telephone exchange service or 
                        interexchange telephone service subscribed to 
                        by any customer of a Bell operating company, 
                        and
                            ``(ii) is available to the Bell operating 
                        company by virtue of the telephone company-
                        customer relationship; and
                    ``(B) information contained in the bills for 
                telephone exchange service or interexchange telephone 
                service received by a customer of a Bell operating 
                company.
            ``(6)(A) The term `electronic publishing' means the 
        dissemination, provision, publication, or sale by a provider or 
        publisher to an unaffiliated entity or person using a Bell 
        operating company's local exchange facility of any information 
        which the provider or publisher has or has caused to be 
        originated, authored, compiled, collected, or edited or in 
        which the provider or publisher has direct or indirect 
        financial or proprietary interest, including but not limited to 
        the following:
                    ``(i) News or entertainment.
                    ``(ii) Business, financial, legal, consumer, or 
                credit material.
                    ``(iii) Editorials.
                    ``(iv) Columns.
                    ``(v) Sports reporting.
                    ``(vi) Features.
                    ``(vi) Advertising.
                    ``(viii) Photos or images.
                    ``(ix) Archival or research material.
                    ``(x) Legal notices or public records.
                    ``(xi) Scientific, educational, instructional, 
                technical, professional, trade, or other literary 
                materials.
                    ``(xii) Other like or similar information.
            ``(B) The term `electronic publishing' shall not include 
        the following network services:
                    ``(i) Information access as that term is defined by 
                the Modification of Final Judgment.
                    ``(ii) The transmission of information as a common 
                carrier.
                    ``(iii) The transmission of information as part of 
                a gateway to an information service that does not 
                involve the generation or alteration of the content of 
                information, including data transmission, address 
                translation, protocol conversion, billing management, 
                introductory information content, and navigational 
                systems that enable users to access electronic 
                publishing services, which do not affect the 
                presentation of such electronic publishing services to 
                users.
                    ``(iv) Voice storage and retrieval services, 
                including voice messaging and electronic mail services.
                    ``(v) Level 2 gateway services as those services 
                are defined by the Commission's Second Report and 
                Order, Recommendation to Congress and Second Further 
                Notice of Proposed Rulemaking in CC Docket No. 87-266 
                dated August 14, 1992.
                    ``(vi) Data processing services that do not involve 
                the generation or alteration of the content of 
                information.
                    ``(vii) Transaction processing systems that do not 
                involve the generation or alteration of the content of 
                information.
                    ``(viii) Electronic billing or advertising of a 
                Bell operating company's regulated telecommunications 
                services.
                    ``(ix) Language translation.
                    ``(x) Conversion of data from one format to 
                another.
                    ``(xi) The provision of information necessary for 
                the management, control, or operation of a telephone 
                company telecommunications system.
                    ``(xii) The provision of directory assistance that 
                provides names, addresses, and telephone numbers and 
                does not include advertising.
                    ``(xiii) Caller identification services.
                    ``(xiv) Repair and provisioning databases for 
                telephone company operations.
                    ``(xv) Credit card and billing validation for 
                telephone company operations.
                    ``(xvi) 911-E and other emergency assistance 
                databases.
                    ``(xvii) Any other network service of a type that 
                is like or similar to these network services and that 
                does not involve the generation or alteration of the 
                content of information.
                    ``(xviii) Any upgrades to these network services 
                that do not involve the generation or alteration of the 
                content of information.
            ``(C) The term `electronic publishing' also shall not 
        include--
                    ``(i) full motion video entertainment on demand; 
                and
                    ``(ii) video programming as defined in section 602 
                of this Act.
            ``(7) The term `electronic publishing joint venture' means 
        a joint venture owned by a Bell operating company or affiliate 
        that engages in the provision of electronic publishing which is 
        disseminated by means of such Bell operating company's or any 
        of its affiliates' basic telephone service.
            ``(8) The term `entity' means any organization, and 
        includes corporations, partnerships, sole proprietorships, 
        associations, and joint ventures.
            ``(9) The term `inbound telemarketing' means the marketing 
        of property, goods, or services by telephone to a customer or 
        potential customer who initiated the call.
            ``(10) The term `own' with respect to an entity means to 
        have a direct or indirect equity interest (or the equivalent 
        thereof) of more than 10 percent of an entity, or the right to 
        more than 10 percent of the gross revenues of an entity under a 
        revenue sharing or royalty agreement.
            ``(11) The term `separated affiliate' means a corporation 
        under common ownership or control with a Bell operating company 
        that does not own or control a Bell operating company and is 
        not owned or controlled by a Bell operating company and that 
        engages in the provision of electronic publishing which is 
        disseminated by means of such Bell operating company's or any 
        of its affiliates' basic telephone service.
            ``(12) The term `Bell operating company' means the 
        corporations subject to the Modification of Final Judgment and 
        listed in Appendix A thereof, or any entity owned or controlled 
        by such corporation, or any successor or assign of such 
        corporation, but does not include an electronic publishing 
        joint venture owned by such corporation or entity.''.

                    Subtitle C--Information Services

SEC. 491. PROVISION OF INFORMATION SERVICES.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 234. PROVISION OF INFORMATION SERVICES.

    ``(a) Provision of Gateway Services.--Unless expressly provided 
elsewhere in this Act, and Bell operating company or affiliate thereof 
that offers a gateway service shall make such service available 
concurrently to all of its subscribers under nondiscriminatory rates, 
terms, and conditions, and shall offer gateway service functions to all 
providers of information services on nondiscriminatory rates, terms, 
and conditions.
    ``(b) Prevention of Cross-Subsidies.--In addition to regulations on 
cross-subsidization that are prescribed under other provisions of this 
Act, the Commission shall prescribe cost allocation regulations to 
prevent any Bell operating company or affiliate that offers services 
that have market power from using revenues from such services to 
subsidize competitive information services.
    ``(c) Restriction on State Regulation.--Notwithstanding section 
2(b) of this Act, a State may not regulate the rates, terms, or 
conditions for the offering of information services, except as provided 
in title VI.
    ``(d) Definitions.--As used in this section:
            ``(1) The term `Bell operating company' has the meaning 
        given that term under section 231.
            ``(2) The term `gateway service' means an information 
        service that, at the request of the provider of an electronic 
        publishing service or other information service, provides a 
        subscriber with access to such electronic publishing service or 
        other information service, utilizing the following functions: 
        data transmission, address translation, billing information, 
        protocol conversion, and introductory information content.
            ``(3) The term `affiliate' has the meaning given that term 
        under section 236 of this Act.''.

           Subtitle D--InterLATA Telecommunications Services

SEC. 481. INTERLATA TELECOMMUNICATIONS SERVICES.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 235. INTERLATA TELECOMMUNICATIONS SERVICES.

    ``(a) Authority.--Notwithstanding any restriction or obligation 
imposed before the date of enactment of this section pursuant to 
section II(D) of the Modification of Final Judgment, a Bell operating 
company may engage in the provision of interLATA telecommunications 
services subject to the requirements of this section and any 
regulations prescribed thereunder. No Bell operating company or 
affiliate of a Bell operating company shall engage in the provision of 
interLATA telecommunications services, except as provided in this 
section.
    ``(b) Currently Authorized Activities.--Subsection (a) shall not 
prohibit a Bell operating company from engaging, at any time after the 
date of enactment of this section, in any activity as authorized by an 
order entered by the United States District Court for the District of 
Columbia pursuant to section VIII(C) of the Modification of Final 
Judgment if such order was entered on or before such date of enactment.
    ``(c) Petition for Authority.--
            ``(1) In general.--A Bell operating company or its 
        affiliate may petition the Commission for authority to provide 
        interLATA telecommunications services. The petition shall 
        describe with particularity the nature and scope of each 
        proposed interLATA telecommunications service, and of each 
        product market or service market, and each geographic market, 
        for which authorization is sought.
            ``(2) Required showing for in-market services.--The 
        Commission may, after consultation with the Attorney General, 
        and on the record after opportunity for a hearing in which the 
        public has an opportunity to participate, grant a petition for 
        authority to offer an interLATA telecommunications service to 
        be originated, terminated, or otherwise provided in any area in 
        which the petitioner or its affiliate provides telephone 
        exchange or exchange access services, only if--
                    ``(A) the showing required by paragraph (3) is 
                made;
                    ``(B) all the regulations required by section 230 
                have been prescribed by the Commission, and each 
                relevant State certifies and the Commission finds that 
                the petitioning Bell operating company or its affiliate 
                is providing telephone exchange and exchange access 
                service in the relevant telephone exchange or exchange 
                access market in full compliance with such regulations; 
                and
                    ``(C) the Commission finds, after receiving factual 
                evidence submitted by the State, that there is actual 
                and demonstrable competition to the Bell operating 
                company's telephone exchange and exchange access 
                services in each relevant area, based on the 
                requirement that actual and demonstrable competition 
                exists when telephone exchange and exchange access 
                services--
                            ``(i) are available from at least one 
                        provider that is unaffiliated with the 
                        petitioning Bell operating company or its 
                        affiliates;
                            ``(ii) offered predominantly over 
                        facilities not owned or controlled by the Bell 
                        operating company or its affiliates and are 
                        comparable in geographic range, function, 
                        quality, and price to the service offered by 
                        the petitioning Bell operating company or its 
                        affiliate; and
                            ``(iii) subscribed to by a significant 
                        number of persons in each relevant area.
            ``(3) Required showing for out-of-market services.--The 
        Commission may, after consultation with the Attorney General, 
        and on the record after opportunity for a hearing in which the 
        public has an opportunity to participate, grant authority to a 
        petitioning Bell operating company or its affiliate to provide 
        interLATA telecommunications services not described in 
        paragraph (2), upon a showing by the petitioner that there is 
        no substantial possibility that the Bell operating company or 
        its affiliates could use market power in a telephone exchange 
        and exchange access service market to impede competition in the 
        interLATA telecommunications services market that the 
        petitioner seeks to enter.
            ``(4) Interlata telecommunications service safeguards.--
                    ``(A) Separate subsidiary; fulfillment of certain 
                requests.--Other than interLATA services authorized by 
                an order entered by the United States District Court 
                for the District of Columbia pursuant to section 
                VIII(C) of the Modification of Final Judgment before 
                the date of the enactment of this section, a Bell 
                operating company or an affiliate thereof providing 
                interLATA services authorized under this subsection 
                shall do so through a separate subsidiary as specified 
                in section 236. Such separate subsidiary shall--
                            ``(i) fulfill any requests from an 
                        unaffiliated entity for exchange access service 
                        within a period no longer than that in which it 
                        provides such exchange access service to itself 
                        or to its affiliates;
                            ``(ii) fulfill any such requests with 
                        exchange access service of a quality that meets 
                        or exceeds the quality of exchange access 
                        services provided by the Bell operating company 
                        or its affiliates to itself or its affiliate; 
                        and
                            ``(iii) provide exchange access at rates to 
                        all interLATA carrier at rates that are not 
                        unreasonably discriminatory.
                    ``(B) Commission action on complaints.--With 
                respect to any complaint brought under section 208 
                alleging a violation of this section or the regulations 
                implementing it, the Commission shall issue a final 
                order within 1 year after such complaint is filed.
    ``(d) Additional Interlata Authority Associated With Cable 
Television Service.--
            ``(1) Authority.--Notwithstanding subsection (c), a Bell 
        operating company or its affiliate may--
                    ``(A) own and operate receive-only antennas, 
                satellite master antenna television facilities, and 
                satellite earth stations, solely for the purpose of 
                providing cable service;
                    ``(B) own and operate interLATA distribution 
                facilities solely for the purpose of providing cable 
                service; and
                    ``(C) engage in interLATA telecommunications 
                service for the purpose of one-way transmission of 
                video and audio programming solely for cable service.
            ``(2) Restriction.--A Bell operating company may own and 
        operate the antennas, stations, and facilities described in 
        paragraph (1)(A) and (B) only through one or more affiliates 
        that are totally separate from the Bell operating company's 
        local exchange company.
    ``(e) Additional Authority to Provide Interlata Services Relating 
To Cellular Mobile Radio Services.--
            ``(1) Authority.--A Bell operating company or its cellular 
        affiliate may provide the interLATA services authorized under 
        this section solely as necessary to provide cellular mobile 
        radio services.
            ``(2) Intersystem handoff.--A Bell operating company or its 
        cellular affiliate may provide intersystem handoff, across LATA 
        boundaries, of cellular mobile radio transmissions between 
        adjacent cellular systems, including the provision of such 
        transmission facilities as are necessary to allow the 
        continuation of calls in progress without interruption or 
        degradation of service due to the movement of the mobile 
        telephone unit or the characteristics of radio propagation.
            ``(3) Automatic call delviery.--A Bell operating company or 
        its cellular affiliate may provide the routing of cellular 
        transmissions between its cellular system and a cellular system 
        located in another LATA, for purposes of completing a call to 
        one of its out-of-region cellular customers.
            ``(4) Use of leased facilities.--Facilities necessary for 
        intersystem handoff across LATA boundaries or interLATA routing 
        of cellular transmissions, as permitted under paragraphs (2) 
        and (3), shall be leased by a Bell operating company or its 
        cellular affiliate from a carrier (other than a Bell operating 
        company or its affiliate) authorized to provide interLATA 
        telecommunications.
            ``(5) Equal access and presubscription.--Notwithstanding 
        any restriction or obligation imposed pursuant to the 
        Modification of Final Judgment before the date of enactment of 
        this section, the Commission shall prescribe uniform equal 
        access and long distance presubscription requirements for 
        providers of all cellular and two-way wireless services.
    ``(d) Definitions.--As used in this section:
            ``(1) The term `LATA' means the local access and transport 
        areas as defined in United States v. Western Electric Co., 569 
        F.Supp. 990 (United States District Court, District of 
        Columbia) and subsequent judicial orders relating thereto.
            ``(2) the term `cable service' has the meaning given that 
        term under section 602.''.

SEC. 482. JURISDICTION.

    Section 2(b) of the Communications Act of 1934 (47 U.S.C. 153) is 
amended by striking ``section 332'' and inserting in lieu thereof 
``sections 229, 230, 234, 235, 237, and 332''.

    TITLE V--REGULATORY PARITY BETWEEN TELEPHONE AND CABLE COMPANIES

SEC. 501. OWNERSHIP AND CONTROL OF CABLE TELEVISION SYSTEMS AND 
              TELEPHONE COMPANIES.

    Section 613(b) of the Communications Act of 1934 (47 U.S.C. 533(b)) 
is amended to read as follows:
    ``(b)(1)(A) No local exchange carrier, subject in whole or in part 
to title II of this Act, nor any affiliate of such carrier, owned by, 
operated by, controlled by, or under common control with such carrier, 
may--
            ``(i) purchase or otherwise acquire, directly or 
        indirectly, more than a 5 percent financial interest, any 
        management interest, or any other interest, in any cable system 
        that is providing service within the carrier's telephone 
        exchange service area and is owned by an unaffiliated person; 
        or
            ``(ii) enter into any joint venture or partnership with a 
        cable operator to provide video programming to subscribers 
        within such telephone exchange service area.
    ``(B) A local exchange carrier shall not provide video programming 
directly to subscribers in its telephone exchange service area unless--
            ``(i) such video programming is provided through a separate 
        subsidiary as set forth in section 236; and
            ``(ii) the Commission finds that the local exchange carrier 
        offers service in full compliance with the regulations 
        prescribed under section 230 in the geographic area in which it 
        seeks to provide video programming.
    ``(C) A local exchange carrier that provides video programming 
directly to subscribers is a cable operator as defined in section 602.
    ``(D) a local exchange carrier shall not engage in practices 
prohibited by the Commission or by a State (including but not limited 
to the improper assignment of costs) that subsidize directly or 
indirectly its video programming operations.
    ``(E) Subparagraphs (A) and (B) shall not apply to a local exchange 
carrier to the extent that such carrier provides telephone exchange 
service in an area to which an exemption applies under section 63.58 of 
title 47, Code of Federal Regulations (as in effect on the date of 
enactment of the Communications Act of 1994).
    ``(F) Upon a showing that a local exchange carrier has no market 
power in its telephone service area, the Commission shall exempt the 
carrier from the provisions of subparagraphs (B) and (D).
    ``(2)(A) A cable operator shall not provide telecommunications 
services directly to subscribers in its cable service area unless such 
telecommunications services are provided through a separate subsidiary.
    ``(B) No cable operator, nor any affiliate of such cable operator, 
owned by, operated by, controlled by, or under common ownership with 
such cable operator, may--
            ``(i) purchase or otherwise acquire, directly or 
        indirectly, more than a 5 percent financial interest, any 
        management interest, or any other interest, in any local 
        exchange carrier that is providing local exchange service 
        within the cable operator's service area; or
            ``(ii) enter into any joint venture or partnership with 
        such local exchange carrier, unless--
                    ``(I) the joint venture or partnership advances the 
                objectives of local competition by promoting or 
                increasing telecommunications competition over 
                facilities separate from the local exchange carrier's 
                facilities in the local exchange carrier's service 
                area; and
                    ``(II) the local exchange carrier's interest in 
                such competing telecommunications services provider 
                does not retard the competing provider's incentives to 
                compete.
    ``(C) A cable operator shall not engage in practices prohibited by 
the Commission or by a State (including but not limited to the improper 
assignment of costs) that subsidize directly or indirectly its 
telecommunications services.
    ``(D) Upon a showing that a cable operator has no market power in 
its cable service area, the Commission shall exempt the cable operator 
from the provisions of subparagraphs (A), (B), and (C).''.

SEC. 502. CONSUMER AND COMPETITIVE SAFEGUARDS.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC 236. CONSUMER AND COMPETITIVE SAFEGUARDS.

    ``(a) Separate Subsidiary.--
            ``(1) In general.--Any subsidiary required by section 235 
        or 613(b)(1) shall, at a minimum, be separated from a local 
        exchange carrier, in accordance with the requirements of this 
        subsection and the regulations prescribed by the Commission to 
        carry out this subsection.
            ``(2)  Transaction requirements.--Any transaction between 
        such a subsidiary and any local exchange carrier and any other 
        affiliate of the carrier shall not be based upon any preference 
        or discrimination in favor of the subsidiary arising out of the 
        subsidiary's affiliation with the carrier.
            ``(3) Separate operation and property.--A subsidiary 
        required by this subsection may not enter into any joint 
        venture activities or partnership with a local exchange carrier 
        or any affiliate of such carrier.
            ``(4) Separate commercial activities.--A subsidiary 
        required by this subsection shall carry out its marketing and 
        sales directly and separate from any local exchange carrier or 
        its affiliate.
            ``(5) Books, records, and accounts.--Any subsidiary 
        required by this subsection shall maintain books, records, and 
        accounts in a manner prescribed by the Commission which shall 
        be separate from the books, records, and accounts maintained by 
        any local exchange carrier or any affiliates of such carrier.
            ``(6) Provision of services and information.--A local 
        exchange carrier may not provide any services or information to 
        a subsidiary required by this subsection unless such services 
        or information are made available to others on the same terms 
        and conditions.
            ``(7) Prevention of cross-subsidies.--Any local exchange 
        carrier required to maintain a subsidiary under this subsection 
        shall establish and administer, in accordance with the 
        requirements of this subsection and the regulations prescribed 
        thereunder, a cost allocation system that prohibits any cost of 
        providing competitive services from being subsidized by revenue 
        from telephone exchange services. The cost allocation system 
        shall employ a formula that ensures that--
                    ``(A) the rates for telephone exchange services are 
                no greater than they would have been in the absence of 
                such investment in competitive services (taking into 
                account any decline in the real costs of providing such 
                telephone exchange services); and
                    ``(B) competitive services bear a reasonable share 
                of the joint and common costs of facilities used to 
                provide telephone exchange and competitive services.
            ``(8) Assets.--The Commission shall, by regulation, ensure 
        that the economic risks associated with the provision of 
        competitive services by a local exchange carrier or an 
        affiliate thereof (including any increases in the carrier's 
        cost of capital that occur as a result of the provision of such 
        services) are not borne by customers of telephone exchange 
        services in the event of a business loss or failure. 
        Investments or other expenditures assigned to competitive 
        services shall not be reassigned to telephone exchange service 
        or telephone exchange access service.
            ``(9) Debt.--Any local exchange carrier, which is required 
        to be or is structurally separate from an affiliate engaged in 
        the provision of telephone exchange services, shall not obtain 
        credit under any arrangement that would--
                    ``(A) permit a creditor, upon default, to have 
                recourse to the assets of the local exchange carrier; 
                or
                    ``(B) induce a creditor to rely on the tangible or 
                intangible assets of the local exchange carrier in 
                extending credit.
    ``(b) Definitions.--As used in this section, the term `affiliate' 
means any organization or entity that, directly or indirectly, owns or 
controls, or is owned or controlled by, or is under common ownership or 
control with, a local exchange carrier. For purposes of this 
subsection, the terms `own', `owned', and `ownership' mean a direct or 
indirect equity interest (or equivalent thereof) of more than 5 percent 
of an organization or entity, or the right to more than 5 percent of 
the gross revenues of an organization or entity under a revenue sharing 
or royalty agreement, or any substantial management or financial 
interest.''.

              TITLE VI--CUSTOMER CONTROL OVER INFORMATION

SEC. 601. CUSTOMER INFORMATION PROTECTIONS.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 237. CUSTOMER INFORMATION REQUIREMENTS.

    ``(a) Customer Proprietary Network Information.--A local exchange 
carrier--
            ``(1) shall not, except as required by law or upon the 
        affirmative request of the customer to which the information 
        relates--
                    ``(A) use customer proprietary network information 
                in the providing of any service other than (i) 
                telephone exchange service or telephone toll service, 
                or (ii) a service necessary to or used in the provision 
                of telephone exchange service or telephone toll 
                service;
                    ``(B) use customer proprietary network information 
                in the identification or solicitation of potential 
                customers for any service other than the service from 
                which such information is derived;
                    ``(C) use such information in their provision of 
                customer premises equipment; or
                    ``(D) disclose such information to any affiliate of 
                such common carrier or any other person that is not an 
                employee of such carrier;
            ``(2) shall disclose such information, upon affirmative 
        written request by the customer, to any person designated by 
        the customer;
            ``(3) shall, whenever such common carrier provides any 
        aggregate information based on customer proprietary network 
        information or any data base or other compilation of customer 
        proprietary information to any personnel of such common 
        carrier, or any affiliate of such common carrier, that are 
        engaged in providing any service that is not necessary to the 
        provision of telephone exchange service, or that are engaged in 
        the provision of customer premises equipment, or to any other 
        person that is not an employee or affiliate of such carrier, 
        notify the Commission of the availability of such aggregate or 
        compiled information and shall provide such aggregate or 
        compiled information on reasonable terms and conditions to any 
        other service or equipment provider upon reasonable request 
        therefor; and
            ``(4) shall not discriminate between affiliated and 
        unaffiliated service or equipment providers in providing access 
        to, or in the use and disclosure of, individual and aggregate 
        or compiled information made available consistent with this 
        subsection.
    ``(b) Rule of Construction.--This section shall not be construed to 
prohibit the disclosure of customer proprietary network information as 
necessary--
            ``(1) to render, bill, and collect for telephone exchange 
        service or telephone toll service;
            ``(2) to render, bill, and collect for any other 
        telecommunications service that the customer has requested;
            ``(3) to protect the rights or property of the carrier; or
            ``(4) to protect users of any of those services and other 
        carriers from fraudulent, abusive, or unlawful use of or 
        subscription to such service.
    ``(c) Exemption Permitted.--The Commission may, by rule, exempt 
from the requirements of subsection (a) local exchange carriers that do 
not have 1,000,000 aggregate nationwide lines installed if the 
Commission determines that such exemption is in the public interest or 
if compliance with the requirements would impose an undue economic 
burden on the carrier.
    ``(d) Duty to Provide Subscriber List Information.--Notwithstanding 
subsections (a), (b), and (c), a local exchange carrier that provides 
subscriber list information to any affiliated or unaffiliated service 
provider or person shall provide subscriber list information on a 
timely and unbundled basis, under nondiscriminatory and reasonable 
rates, terms, and conditions, to any person upon reasonable request.
    ``(e) Automatic Number Identification Services.--
            ``(1) Contract requirements.--Any common carrier or 
        affiliate of a common carrier providing automatic number 
        identification services to any person shall provide such 
        services under a contract or tariff containing telephone 
        subscriber information requirements that comply with this 
        subsection. Such requirements shall--
                    ``(A) permit such person to use the telephone 
                number and billing information provided pursuant to the 
                automatic number identification service for billing and 
                collection, routing, screening, and completion of the 
                originating telephone subscriber's call or transaction, 
                or for services directly related to the originating 
                telephone subscriber's call or transaction;
                    ``(B) prohibit such person from reusing or selling 
                the telephone number or billing information provided 
                pursuant to the automatic number identification service 
                without first orally (i) notifying the originating 
                telephone subscriber and (ii) extending to such 
                subscriber the option to limit or prohibit such reuse 
                or sale; and
                    ``(C) prohibit such person from disclosing, except 
                as permitted by subparagraphs (A) and (B), any 
                information derived from the automatic number 
                identification service for any purpose other than--
                            ``(i) performing the services or 
                        transactions that are the subject of the 
                        originating telephone subscriber's call,
                            ``(ii) ensuring network performance, 
                        security, and the effectiveness of call 
                        delivery,
                            ``(iii) compiling, using, and disclosing 
                        aggregate information, and
                            ``(iv) complying with applicable law or 
                        legal process.
            ``(2) Exception for established customers.--The customer 
        information requirements imposed under paragraph (1) shall not 
        prevent a person to which automatic number identification 
        services are provided from using--
                            ``(A) the telephone number and billing 
                        information provided pursuant to such service, 
                        and
                            ``(B) any information derived from the 
                        automatic number identification service, or 
                        from the analysis of the characteristics of a 
                        telecommunications transmission,
        to offer, to any telephone subscriber with which such person 
        has an established customer relationship, a product or service 
        that is directly related to the products or service previously 
        acquired by that customer from such person.
            ``(3) Enforcement.--(A) Each common carrier shall receive 
        and transmit to the Commission complaints concerning violations 
        of the telephone subscriber information requirements imposed 
        under paragraph (1). Each common carrier shall submit to the 
        Commission, in such form as the Commission may require by 
        regulation, reports on actions taken by the carrier to comply 
        with this section.
            ``(B) The Commission may, by rule or order, direct the 
        termination of automatic number identification services to any 
        person who has violated the telephone subscriber information 
        requirements imposed under paragraph (1). For purposes of 
        section 503(b)(1)(B), violations of such requirements shall be 
        considered to be a violation of a provision of this Act.
            ``(4) Effective date.--(A) Except as provided in 
        subparagraph (B), the requirements of this subsection shall 
        apply to any automatic number identification service provided 
        on or after one year after the date of enactment of this 
        subsection.
            ``(B) In the case of any automatic number identification 
        service provided under a contract entered into, or tariff 
        taking effect, more than 90 days after the date of enactment of 
        this subsection, the requirements of this subsection shall 
        apply to any automatic number identification service provided 
        pursuant to such contract or tariff.
    ``(f) Definitions.--As used in this section:
            ``(1) The term `customer proprietary network information' 
        means--
                    ``(A) information which (i) relates to the 
                quantity, technical configuration, type, destination, 
                and amount of use of telephone exchange service or 
                interexchange telephone service subscribed to by any 
                customer of a telephone operating company, and (ii) is 
                available to the telephone operating company by virtue 
                of the telephone company-customer relationship;
                    ``(B) information contained in the bills for 
                telephone exchange service or interexchange telephone 
                service received by a customer of a telephone operating 
                company; and
                    ``(C) such other information concerning the 
                customer as is (i) available to the telephone operating 
                company by virtue of the customer's use of the 
                company's services, and (ii) specified as within the 
                definition of such term by such rules as the Commission 
                shall prescribe consistent with the public interest,
        except that such term does not include subscriber list 
        information.
            ``(2) The term `subscriber information' means any 
        information--
                    ``(A) identifying the names of subscribers of a 
                local exchange carrier and such subscribers' telephone 
                numbers, addresses, or advertising classifications, or 
                any combination of such names, numbers, addresses, or 
                classifications; and
                    ``(B) that the carrier or an affiliate has 
                published or accepted for future publication.
            ``(3) The term `aggregate information' means collective 
        data that relates to a group or category of services or 
        customers, from which individual customer identities or 
        characteristics have been removed.
            ``(4) the term `automatic number identification' means an 
        access signaling protocol in common use by common carriers that 
        uses an identifying signal associated with the use of a 
        subscriber's telephone to provide billing information or other 
        information to the local exchange carrier and to any other 
        interconnecting carriers.
    ``(g) Proceeding Required.--Within 6 months after the date of 
enactment of this section, the Commission shall commence a proceeding--
            ``(1) to examine the impact of the integration into 
        interconnected communications networks of wireless telephone, 
        cable, satellite, and other technologies on the privacy rights 
        and remedies of the consumers of those technologies;
            ``(2) to examine the impact that the globalization of such 
        integrated communications networks has on the international 
        dissemination of consumer information and the privacy rights 
        and remedies to protect consumers;
            ``(3) to propose changes in the Commission's regulations to 
        ensure that the effect on consumer privacy rights is considered 
        in the introduction of new telecommunications services and that 
        the protection of such privacy rights is incorporated as 
        necessary in the design of such services or the rules 
        regulating such services;
            ``(4) to propose changes in the Commission's regulations as 
        necessary to correct any defects identified pursuant to 
        paragraph (1) in such rights and remedies; and
            ``(5) to prepare recommendations to the Congress for any 
        legislative changes required to correct such defects.''.

                       TITLE VII--MEDIA DIVERSITY

SEC. 701. REMOVAL OF BROADCAST STATION OWNERSHIP RESTRICTIONS.

    Within one year after the date of enactment of this Act, the 
Commission shall, after a notice and comment proceeding, modify or 
remove such national and local ownership rules on radio and television 
broadcast stations as are necessary to ensure that broadcasters are 
able to compete fairly with other media providers while ensuring that 
the public receives information from a diversity of media sources

SEC. 702. REVIEW OF STATUTORY OWNERSHIP RESTRICTION.

    Within one year after the date of enactment of this Act, the 
Commission shall review the ownership restriction in section 613(a)(1) 
and report to Congress whether or not such restriction continues to 
serve the public interest.

703. REVIEW OF VIDEO NON-DUPLICATION AND SYNDICATED EXCLUSIVITY RULES.

    Within one year after the date of enactment of this Act, the 
Commission shall complete a notice and comment proceeding to consider 
the applicability of the Commission's rules regarding network non-
duplication protection and syndicated exclusivity protection to other 
multichannel video programming providers.

SEC. 704. BROADCASTER PROVISION OF ADDITIONAL SERVICES.

    The Commission shall, after a notice and comment proceeding, 
prescribe regulations to permit broadcasters to make use of the 
broadcast spectrum that they are licensed to use, for services that are 
related to the programming services which they are authorized to 
provide. To the extent that the broadcast licensee provides commercial 
services using broadcast spectrum, the Commission shall be authorized 
to collect from each licensee an amount equivalent to the amount that 
would have been paid if the license to provide such service has been 
subjected to competitive bidding under section 309(j) of the 
Communications Act of 1934 (47 U.S.C. 309(j)). Such amounts shall be 
collected and distributed pursuant to such section 309(j). Nothing 
shall be construed as relieving a broadcasting station from its 
obligation to serve the public interest, convenience, and necessity.

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