[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 570 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 570

To recognize the unique status of local exchange carriers in providing 
  the public switched network infrastructure and to ensure the broad 
    availability of advanced public switched network infrastructure.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 11 (legislative day, March 3), 1993

 Mr. Grassley (for himself, Mr. Exon, Mr. Dole, Mr. Kerry, Mr. Bryan, 
    Mr. Pressler, Mr. Stevens, Mr. Burns, Mr. Lott, Mr. Hatch, Mr. 
 Thurmond, Mr. Simon, Mr. Kohl, Mr. Brown, Mr. Pryor, Mr. Sasser, Mr. 
Conrad, Mr. Wofford, Mr. Bond, Mr. Jeffords, Mrs. Kassebaum, Mr. Smith, 
 Mr. Harkin, Mr. D'Amato, Mr. Bingaman, Mr. Bumpers, Mr. Nickles, Mr. 
 Cochran, Mr. Durenberger, Mr. Daschle, Mr. Murkowski, Mr. Shelby, and 
  Mr. Riegle) introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To recognize the unique status of local exchange carriers in providing 
  the public switched network infrastructure and to ensure the broad 
    availability of advanced public switched network infrastructure.

    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 ``Local Exchange Infrastructure 
Modernization Act of 1993''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) a ubiquitous high quality public switched network will 
        promote--
                    (A) universal service at reasonable rates;
                    (B) the universal availability of advanced public 
                switched network capabilities and information services;
                    (C) the public health, safety, national defense, 
                education and security and emergency preparedness;
                    (D) the economic development and quality of life by 
                bringing access to advanced public switched network 
                capabilities to the American people regardless of their 
                location;
                    (E) new services and motivate new service providers 
                by providing uniform accessibility and 
                interoperability;
                    (F) the international competitiveness of American 
                industry; and
                    (G) a seamless, nationwide, coordinated and state-
                of-the-art public switched network that will enhance 
                the quality of life for all Americans;
            (2) the increasing technological complexity and need for 
        ubiquitous infrastructure capability and interoperability of 
        the public switched network requires--
                    (A) sharing of the public switched network 
                infrastructure and functionality between and among 
                local exchange carriers;
                    (B) joint coordinated network planning, design and 
                cooperative implementation among all local exchange 
                carriers; and
                    (C) development of standards for interconnection 
                between the local exchange carrier public switched 
                network and others by appropriate standards-setting 
                bodies;
            (3) the access services provided by the local exchange 
        carrier public switched network to competitive carriers, 
        information service providers and others, tie these diverse 
        elements into an interoperable national telecommunications 
        network;
            (4) a ubiquitous, advanced local exchange carrier public 
        switched network enhances the function and availability of 
        services provided by all carriers and all other persons 
        accessing the local exchange carrier public switched network; 
        and
            (5) it is in the public interest to promote development of 
        the public switched network by local exchange carriers because 
        they--
                    (A) have universal service obligations for 
                geographically specific serving areas for which they 
                must construct a ubiquitous infrastructure;
                    (B) provide public switched network services that 
                are subject to regulation with respect to rates, terms 
                and conditions;
                    (C) must provide network access to their own 
                competitors on nondiscriminatory rates, terms and 
                conditions; and
                    (D) are suppliers of last resort to customers in 
                their serving areas.

SEC. 3. AMENDMENTS TO THE COMMUNICATIONS ACT OF 1934.

    (a) Amendment to Section 1.--Section 1 of the Communications Act of 
1934 (47 U.S.C. 151) is amended by designating the existing text as 
subsection (a), and adding at the end thereof the following new 
subsection:
    ``(b) The Commission shall exercise its authority so as to--
            ``(1) preserve and enhance universal service at reasonable 
        rates;
            ``(2) achieve universal availability of advanced network 
        capabilities and information services;
            ``(3) assure a seamless nationwide distribution network 
        through joint networking planning, coordination and service 
        arrangements between and among local exchange carriers;
            ``(4) maintain high standards for quality of advanced 
        network services; and
            ``(5) assure adequate communication for the public health, 
        safety, defense, education, national security and emergency 
        preparedness.''.
    (b) Amendment to Section 2.--Section 2(b) of the Communications Act 
of 1934 (47 U.S.C. 152) is amended by deleting ``227'' and inserting in 
lieu thereof ``229''.
    (c) Amendment to Section 3.--Section 3 of the Communications Act of 
1934 (47 U.S.C. 153) is amended by adding at the end thereof the 
following new definitions:
    ``(hh) The term `local exchange carrier' means a carrier which--
            ``(1) is required to provide upon request, under tariff or 
        subject to other government oversight (by the Commission or a 
        State commission), interstate and intrastate access services 
        and telephone exchange service;
            ``(2) is, or was, a participant in one or more interstate 
        pools established by the Commission, or would have been 
        required to participate in one or more such pools had the 
        carrier been engaged in interstate and intrastate access and 
        telephone exchange service while such participation was 
        mandatory;
            ``(3) is subject to the requirements imposed by the 
        Commission or a State commission related to the provision of 
        equal access; and
            ``(4) conforms with the provisions of the North American 
        Numbering Plan applicable to the assignment of numbering 
        resources for telephone exchange service, as defined by the 
        Plan's Administrator.
    ``(ii) 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).''.
    (d) Amendment to Title II.--Title II of the Communications Act of 
1934 (47 U.S.C. 201 et seq.) is amended by adding at the end thereof 
the following new sections:

``SEC. 228. NETWORK PLANNING AND STANDARDS.

    ``The Commission shall, within 180 days following the date of the 
enactment of this section, prescribe regulations that require--
            ``(1) joint coordinated network planning, design and 
        cooperative implementation among all local exchange carriers in 
        the provision of public switched network infrastructure and 
        services; and
            ``(2) development of standards for interconnection between 
        the local exchange carrier public switched network and others 
        by appropriate standard-setting bodies.

``SEC. 229. INFRASTRUCTURE SHARING ARRANGEMENTS BETWEEN OR AMONG LOCAL 
              EXCHANGE CARRIERS.

    ``(a) Within 180 days following the date of the enactment of this 
section, the Commission shall prescribe regulations that require a 
local exchange carrier to share public switched network infrastructure 
and functionality with requesting local exchange carriers lacking 
economies of scale or scope, as defined in subsection (b).
    ``(b) For the purposes of this section, the term `local exchange 
carrier lacking economies of scale or scope' means any local exchange 
carrier which serves a geographic area for which it lacks economies of 
scale or scope for the particular required network functionality.
    ``(c) The regulations governing such sharing between or among local 
exchange carriers shall--
            ``(1) promote economically efficient decision-making by 
        local exchange carriers;
            ``(2) not require any local exchange carrier to make any 
        decision that is uneconomic or adverse to the public interest;
            ``(3) permit, but not require, joint ownership and 
        operation of public switched network infrastructure and 
        services by or among local exchange carriers;
            ``(4) limit their applicability to local exchange carriers;
            ``(5) ensure that a local exchange carrier, when sharing 
        any infrastructure or providing any functionality to other 
        local exchange carriers pursuant to this section, shall not be 
        deemed a common carrier for hire when acting in this capacity, 
        and such arrangements shall not be deemed common carrier 
        services by the Commission or by any State commission;
            ``(6) ensure that fair and reasonable terms and conditions 
        for and in connection with the business arrangement described 
        in this section are determined by local exchange carriers in 
        accordance with general guidelines contained in the regulations 
        prescribed pursuant to this section;
            ``(7) establish conditions that promote cooperation between 
        local exchange carriers; and
            ``(8) ensure that all regulatory rights and obligations for 
        and in connection with the business arrangements described in 
        this section shall be determined exclusively in accordance with 
        the regulations prescribed pursuant to this section.
    ``(d) Nothing in this Act shall be construed to enact into law any 
economic support currently provided to telephone exchange service or 
enact into law any prohibition with regard to new economic support 
mechanisms for telephone exchange service or any service other than 
telephone exchange service.

``SEC. 230. SIGNALLING.

    ``Notwithstanding any other law or any restriction or obligation 
imposed before the date of enactment of this section pursuant to 
Modification of Final Judgment, no local exchange carrier shall be 
prohibited from transporting or processing signalling and information 
for another local exchange carrier in adjoining or reasonably proximate 
serving areas upon request of that local exchange carrier to the same 
extent that the providing local exchange carrier is permitted to engage 
in such activities for itself.

``SEC. 231. INTRASTATE COMMUNICATION.

    ``Except as provided in section 2, nothing in this Act shall be 
construed to alter, limit, or supersede the authority of any State with 
respect to the regulation of intrastate communication service.''.

SEC. 4. ANTITRUST IMMUNITY FOR LOCAL EXCHANGE CARRIERS.

    (a) Nothing contained in any Federal or State antitrust law shall 
render unlawful any action taken by a local exchange carrier pursuant 
to sections 228, 229, and 230 of the Communications Act of 1934, or any 
individual or concerted action taken, including but not limited to, 
lobbying before Congress or the Federal Communications Commission or 
communicating by any means with other local exchange carriers, by any 
local exchange carrier, or its directors, officers, agents, employees, 
affiliates, subsidiaries, joint ventures, counsel or other persons 
purporting to act on behalf of such carrier.
    (b) For purposes of this Act, the following terms are defined to 
mean:
            (1) The term ``Federal Antitrust Laws'' means the Acts 
        known as the Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act 
        (15 U.S.C. 12 et seq.), the Robinson-Patman Act (15 U.S.C. 13 
        et seq.), the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.), all subsequent amendments of such Acts, and any and all 
        other laws which have been or are hereafter enacted to regulate 
        or prevent contracts, combinations, or conspiracies in 
        restraint of trade or monopolistic practices.
            (2) The term ``State Antitrust Laws'' means all laws 
        enacted by States or territories within the United States or 
        their political subdivisions which are patterned after the 
        Federal laws known as the Sherman Act (15 U.S.C. 1 et seq.), 
        the Clayton Act (15 U.S.C. 12 et seq.), the Robinson-Patman Act 
        (15 U.S.C. 13 et seq.), the Federal Trade Commission Act (15 
        U.S.C. 41 et seq.), or any subsequent amendments to such Acts, 
        or any other State laws which are not patterned after such 
        Federal Acts or amendments but which are designed to regulate 
        or prevent contracts, combinations, or conspiracies in 
        restraint of trade or monopolistic practices.

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