[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1528 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1528

  To supersede the Modification of Final Judgment entered August 24, 
1982, in the antitrust action styled United States v. Western Electric, 
Civil Action No. 82-0192, United States District Court for the District 
                  of Columbia, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 2, 1995

   Mr. Hyde introduced the following bill; which was referred to the 
    Committee on the Judiciary, and in addition to the Committee on 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To supersede the Modification of Final Judgment entered August 24, 
1982, in the antitrust action styled United States v. Western Electric, 
Civil Action No. 82-0192, United States District Court for the District 
                  of Columbia, 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 ``Antitrust Consent Decree Reform Act 
of 1995''.

SEC. 2. AUTHORIZATION FOR BELL OPERATING COMPANY TO ENTER COMPETITIVE 
              LINES OF BUSINESS.

    (a) Application.--
            (1) In general.--After the applicable date specified in 
        paragraph (2), a Bell operating company may apply to the 
        Attorney General for authorization, notwithstanding the 
        Modification of Final Judgment--
                    (A) to provide interexchange telecommunications 
                services,
                    (B) to manufacture or provide telecommunications 
                equipment, or manufacture customer premises equipment, 
                or
                    (C) to provide alarm monitoring services.
        The application shall describe the nature and scope of the 
        activity, and the product market, service market, and 
        geographic market, for which authorization is sought.
            (2) Applicable dates.--For purposes of paragraph (1), the 
        applicable date after which a Bell operating company may apply 
        for authorization shall be--
                    (A) the date of the enactment of this Act, with 
                respect to--
                            (i) providing interexchange 
                        telecommunications services, and
                            (ii) manufacturing or providing 
                        telecommunications equipment, or manufacturing 
                        customer premises equipment, and
                    (B) the date that occurs 3 years after the date of 
                the enactment of this Act, with respect to providing 
                alarm monitoring services.
            (3) Publication.--Not later than 10 days after receiving an 
        application made under paragraph (1), the Attorney General 
        shall publish the application in the Federal Register.
            (4) Availability of information.--The Attorney General 
        shall make available to the public all information (excluding 
        trade secrets and privileged or confidential commercial or 
        financial information) submitted by the applicant in connection 
        with the application.
    (b) Determination by the Attorney General.--
            (1) Comment period.--Not later than 45 days after an 
        application is published under subsection (a)(3), interested 
        persons may submit written comments to the Attorney General, 
        regarding the application. Submitted comments shall be 
        available to the public.
            (2) Determination.--(A) After the time for comment under 
        paragraph (1) has expired, but not later than 180 days after 
        receiving an application made under subsection (a)(1), the 
        Attorney General shall issue a written determination, with 
        respect to granting the authorization for which the Bell 
        operating company has applied. If the Attorney General fails to 
        issue such determination in the 180-day period beginning on the 
        date the Attorney General receives such application, the 
        Attorney General shall be deemed to have issued a determination 
        approving such application on the last day of such period.
            (B) The Attorney General shall approve the granting of the 
        authorization requested in the application unless the Attorney 
        General finds by clear and convincing evidence that there is a 
        dangerous probability that such company or its affiliates would 
        successfully use market power to achieve monopoly power in the 
        market such company seeks to enter. The Attorney General may 
        approve all or part of the requested authorization.
            (C) A determination that approves any part of a requested 
        authorization shall describe with particularity the nature and 
        scope of the approved activity, and list each product market, 
        service market, and geographic market, to which such approval 
        applies.
            (3) Publication.--Not later than 10 days after issuing a 
        determination under paragraph (2), the Attorney General shall 
        publish a brief description of the determination in the Federal 
        Register.
            (4) Finality.--A determination made under paragraph (2) 
        shall be final unless a petition with respect to such 
        determination is timely filed under subsection (c)(1).
    (c) Judicial Review.--
            (1) Filing of petition.--(A) Not later than 30 days after a 
        determination by the Attorney General is published under 
        subsection (b)(3), the Bell operating company that applied to 
        the Attorney General under subsection (a), or any person who 
        would be injured in its business or property as a result of the 
        determination regarding such company's engaging in the activity 
        described in such company's application, may file a petition 
        for judicial review of the determination in the United States 
        Court of Appeals for the District of Columbia Circuit.
            (B) The United States Court of Appeals for the District of 
        Columbia shall have exclusive jurisdiction to review 
determinations made under section 2(b)(2).
            (2) Certification of record.--As part of the answer to the 
        petition, the Attorney General shall file in such court a 
        certified copy of the record upon which the determination is 
        based.
            (3) Consolidation of petitions.--The court shall 
        consolidate for judicial review all petitions filed under this 
        subsection with respect to the application.
            (4) Judgment.--(A) The court shall enter a judgment after 
        reviewing the determination in accordance with section 706 of 
        title 5 of the United States Code. Whether there is clear and 
        convincing evidence supporting the determination, as required 
        by subsection (b)(2)(B), shall be affirmed by the court only if 
        the court finds that the record certified pursuant to paragraph 
        (2) provides substantial evidence for that determination.
            (B) A judgment--
                    (i) affirming any part of the determination that 
                approves granting all or part of the requested 
                authorization, or
                    (ii) reversing any part of the determination that 
                denies all or part of the requested authorization,
        shall describe with particularity the nature and scope of the 
        activity, and each product market, service market, and 
        geographic market, to which the affirmance or reversal applies.

SEC. 3. AUTHORIZATION AS PREREQUISITE.

    (a) Prerequisite.--Until a Bell operating company is so authorized 
in accordance with section 2, it shall be unlawful for such company, 
directly or through an affiliate, to engage in an activity described in 
section 2(a)(1).
    (b) General Exceptions.--Except with respect to providing alarm 
monitoring services, subsection (a) shall not prohibit a Bell operating 
company from engaging, at any time after the date of the enactment of 
this Act, in any activity as authorized by an order entered by the 
United States District Court for the District of Columbia pursuant to 
section VII or VIII(C) of the Modification of Final Judgment, if--
            (1) such order was entered on or before the date of the 
        enactment of this Act, or
            (2) a request for such authorization was pending before 
        such court on the date of the enactment of this Act.
    (c) Exception for Certain Alarm Monitoring Services.--Subsection 
(a) shall not prohibit a Bell operating company, at any time after the 
date of the enactment of this Act, from providing alarm monitoring 
services to the same extent that such company was already providing 
such services before such date.
    (d) Exception for Certain Interexchange Telecommunications 
Services.--Subsection (a) shall not prohibit a Bell operating company, 
at any time after the date of the enactment of this Act, from providing 
interexchange telecommunications services with respect to 
telecommunications that originate in any exchange area in which such 
company is not the dominant provider of wireline telephone exchange 
service.
    (e) Exceptions for Incidental Services.--Subsection (a) shall not 
prohibit a Bell operating company, at any time after the date of the 
enactment of this Act, from providing interexchange telecommunications 
services for the purpose of--
            (1)(A) providing audio programming, video programming, or 
        other programming services to subscribers to such services of 
        such company,
            (B) providing the capability for interaction by such 
        subscribers to select or respond to such audio programming, 
        video programming, or other programming services, or
            (C) providing to distributors audio programming or video 
        programming that such company owns, controls, or is licensed by 
        the copyright owner of such programming, or by an assignee of 
        such owner, to distribute,
            (2) providing a telecommunications service, using the 
        transmission facilities of a cable system that is an affiliate 
        of such company, between exchange areas within a cable system 
        franchise area in which such company is not, on the date of the 
        enactment of this Act, a provider of wireline telephone 
        exchange service,
            (3) providing commercial mobile services in accordance with 
        existing law,
            (4) providing a service that permits a customer that is 
        located in one exchange area to retrieve stored information 
        from, or file information for storage in, information storage 
        facilities of such company that are located in another exchange 
        area,
            (5) providing signaling information used in connection with 
        the provision of exchange services, or exchange access, to a 
        local exchange carrier, or
            (6) providing network control signaling information to, and 
        receiving such signaling information from, interexchange 
        carriers at any location within the area in which such company 
        provides exchange services or exchange access.

SEC. 4. REGULATION OF ELECTRONIC PUBLISHING.

    (a) In General.--
            (1) Prohibition.--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) Permitted activities of separated affiliate.--Subject 
        to subsection (b), 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) Rule of construction.--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 and electronic publishing joint 
venture shall each--
            (1) maintain books, records, and accounts that are separate 
        from those of the Bell operating company and from any affiliate 
        and that 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 an affiliate, 
        provided that consolidated statements may also be prepared,
            (4) after 1 year from the effective date of this section, 
        not hire--
                    (A) 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,
                    (B) network operations personnel whose 
                responsibilities at the separated affiliate or 
                electronic publishing joint venture would require 
                dealing directly with the Bell operating company, or
                    (C) any person who was employed by the Bell 
                operating company during the year preceding their date 
                of hire,
        except that the requirements of this paragraph 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,
            (5) 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,
            (6) not use the name, trademarks, or service marks of an 
        existing Bell operating company except for names, trademarks, 
        or service marks that are or were used in common with the 
        entity that owns or controls the Bell operating company,
            (7) have performed annually by March 31 a compliance 
        review--
                    (A) that is conducted by an independent entity that 
                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) the results of which are maintained by the 
                separated affiliate for a period of 5 years subject to 
                review by any lawful authority;
            (8) within 90 days of receiving a review described in 
        paragraph (7), file a report of any exceptions and corrective 
        action with the Attorney General 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 such 
        Bell operating company 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 made publicly 
        available;
            (4) carry out transactions with a separated affiliate in a 
        manner that is auditable in accordance with generally accepted 
        auditing standards;
            (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 the Bell 
        operating company by its separated affiliate at the lesser of 
        net book cost or fair market value;
            (7) except for--
                    (A) instances where 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 State cost allocation 
        and other accounting rules;
            (9) have performed annually by March 31 a compliance 
        review--
                    (A) that is conducted by an independent entity that 
                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) the results of which are 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 any exceptions and corrective 
        action with the Attorney General 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 
        a State, and unbundled and individually tariffed to the 
        smallest extent that is technically feasible and economically 
        reasonable to provide;
            (12) provide network access and interconnections for basic 
        telephone service to electronic publishers at any technically 
        feasible and economically reasonable point within the Bell 
        operating company's network and at just and reasonable rates 
        that are tariffed (so long as rates for such services are 
        subject to regulation) and that are not higher on a per-unit 
        basis than those charged for such services to any other 
        electronic publisher or any separated affiliate engaged in 
        electronic publishing;
            (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 if such information is within any one 
        or more of the following categories:
                    (A) such information is necessary for the 
                transmission or routing of information by an 
                interconnected electronic publisher;
                    (B) such information is necessary to ensure the 
                interoperability of an electronic publisher's and the 
                Bell operating company's networks; or
                    (C) such information concerns changes in basic 
                telephone service network design and technical 
                standards which may 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 on behalf 
        of a separated affiliate;
            (21) not perform the purchasing, installation, or 
        maintenance of equipment on 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.--No Bell operating company, 
affiliate, or separated affiliate shall act in concert with another 
Bell operating company or any other 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.--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 for 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, 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 does not 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 
        participating Bell operating company or participating 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 Attorney 
        General 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) Records of transactions.--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 
                auditing standards, and
                    (C) pursuant to written contracts or tariffs filed 
                with a State and made publicly available.
            (2) Valuation of transfers.--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) Prohibition of evasions.--A Bell operating company 
        shall not provide directly or indirectly to a separated 
        affiliate any facilities, services, or basic telephone service 
        information related to the provision of electronic publishing 
        that are 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) Records of transactions.--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 
                auditing standards, and
                    (C) pursuant to written contracts or tariffs filed 
                with a State and made publicly available.
            (2) Valuation of transfers.--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) Prohibition of evasions.--An affiliate shall not 
        provide directly or indirectly to a separated affiliate any 
        facilities, services, or basic telephone service information 
        related to the provision of electronic publishing that are 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.
            (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 not apply to 
conduct occurring after June 30, 2000.
    (n) Private Right of Action.--Any person claiming that any act or 
practice of any Bell operating company, affiliate, or separated 
affiliate constitutes a violation of this section may commence a civil 
action in an appropriate district court of the United States for 
damages, for an order enjoining such act or practice or compelling 
compliance with such requirement, or for both.
    (o) Subpoenas.--In an action commenced under this section, a 
subpoena requiring the attendance of a witness at a hearing or a trial 
may be served at any place within the United States.
    (p) Definitions.--For purposes of this section:
            (1) 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.
            (2) 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.
            (3) The term ``basic telephone service'' means any wireline 
        telephone exchange service, or wireline telephone exchange 
        facility, 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) a commercial mobile service provided by an 
                affiliate that is required by the Federal 
                Communications Commission to be a corporate entity 
                separate from the Bell operating company.
            (4) 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.
            (5) The term ``control'' means the possession, direct or 
        indirect, of the power to direct or cause the direction of the 
        management and policies of a person, whether through the 
        ownership of voting securities, by contract, or otherwise.
            (6)(A) The term ``electronic publishing'' means the 
        dissemination, provision, publication, or sale to an 
        unaffiliated entity or person, using a Bell operating company's 
        basic telephone service, of--
                    (i) news,
                    (ii) entertainment (other than interactive games),
                    (iii) business, financial, legal, consumer, or 
                credit material,
                    (iv) editorials,
                    (v) columns,
                    (vi) sports reporting,
                    (vii) features,
                    (viii) advertising,
                    (ix) photos or images,
                    (x) archival or research material,
                    (xi) legal notices or public records,
                    (xii) scientific, educational, instructional, 
                technical, professional, trade, or other literary 
                materials, or
                    (xiii) 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) Data processing services that do not involve 
                the generation or alteration of the content of 
                information.
                    (vi) Transaction processing systems that do not 
                involve the generation or alteration of the content of 
                information.
                    (vii) Electronic billing or advertising of a Bell 
                operating company's regulated telecommunications 
                services.
                    (viii) Language translation.
                    (ix) Conversion of data from one format to another.
                    (x) The provision of information necessary for the 
                management, control, or operation of a telephone 
                company telecommunications system.
                    (xi) The provision of directory assistance that 
                provides names, addresses, and telephone numbers and 
                does not include advertising.
                    (xii) Caller identification services.
                    (xiii) Repair and provisioning databases for 
                telephone company operations.
                    (xiv) Credit card and billing validation for 
                telephone company operations.
                    (xv) 911-E and other emergency assistance 
                databases.
                    (xvi) 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.
                    (xvii) 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.
            (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.

SEC. 5. DEFINITIONS.

    Except as provided in section 4, for purposes of this Act:
            (1) Affiliate.--The term ``affiliate'' means a person that 
        (directly or indirectly) owns or controls, is owned or 
        controlled by, or is under common ownership or control with, 
        another person. For purposes of this paragraph, to own refers 
        to owning an equity interest (or the equivalent thereof) of 
        more than 50 percent.
            (2) Alarm monitoring service.--The term ``alarm monitoring 
        service'' means a service that uses a device located at a 
        residence, place of business, or other fixed premises--
                    (A) to receive signals from other devices located 
                at or about such premises regarding a possible threat 
                at such premises to life, safety, or property, from 
                burglary, fire, vandalism, bodily injury, or other 
                emergency, and
                    (B) to transmit a signal regarding such threat by 
                means of transmission facilities of a Bell operating 
                company or one of its affiliates to a remote monitoring 
                center to alert a person at such center of the need to 
                inform the customer or another person or police, fire, 
                rescue, security, or public safety personnel of such 
                threat,
        but does not include a service that uses a medical monitoring 
        device attached to an individual for the automatic surveillance 
        of an ongoing medical condition.
            (3) Antitrust laws.--The term ``antitrust laws'' has the 
        meaning given it in subsection (a) of the first section of the 
        Clayton Act (15 U.S.C. 12(a)), except that such term includes 
        the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.), 
        commonly known as the Robinson Patman Act, and section 5 of the 
        Federal Trade Commission Act (15 U.S.C. 45) to the extent that 
        such section 5 applies to unfair methods of competition.
            (4) Audio programming.--The term ``audio programming'' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a radio broadcast 
        station.
            (5) Bell operating company.--The term ``Bell operating 
        company'' means--
                    (A) Bell Telephone Company of Nevada, Illinois Bell 
                Telephone Company, Indiana Bell Telephone Company, 
                Incorporated, Michigan Bell Telephone Company, New 
                England Telephone and Telegraph Company, New Jersey 
                Bell Telephone Company, New York Telephone Company, U S 
                West Communications Company, South Central Bell 
                Telephone Company, Southern Bell Telephone and 
                Telegraph Company, Southwestern Bell Telephone Company, 
                The Bell Telephone Company of Pennsylvania, The 
                Chesapeake and Potomac Telephone Company, The 
                Chesapeake and Potomac Telephone Company of Maryland, 
                The Chesapeake and Potomac Telephone Company of 
                Virginia, The Chesapeake and Potomac Telephone Company 
                of West Virginia, The Diamond State Telephone Company, 
                The Ohio Bell Telephone Company, The Pacific Telephone 
                and Telegraph Company, or Wisconsin Telephone Company,
                    (B) any successor or assign of any such company, or
                    (C) any affiliate of any person described in 
                subparagraph (A) or (B).
            (6) Cable system.--The term ``cable system'' has the same 
        meaning as such term has in section 602(7) of the 
        Communications Act of 1934 (47 U.S.C. 522(7)).
            (7) Carrier.--The term ``carrier'' has the same meaning as 
        such term has in section 3 of the Communications Act of 1934 
        (47 U.S.C. 153).
            (8) Commercial mobile services.--The term ``commercial 
        mobile services'' has the same meaning as such term has in 
        section 332(d) of the Communications Act of 1934 (47 U.S.C. 
        332(d)).
            (9) Customer premises equipment.--The term ``customer 
        premises equipment'' means equipment employed on the premises 
        of a person (other than a carrier) to originate, route, or 
        terminate telecommunications, and includes software integral to 
        such equipment.
            (10) Exchange access.--The term ``exchange access'' means 
        exchange services provided for the purpose of originating or 
        terminating interexchange telecommunications.
            (11) Exchange area.--The term ``exchange area'' means a 
        contiguous geographic area established by a Bell operating 
        company such that no exchange area includes points within more 
        than 1 metropolitan statistical area, consolidated metropolitan 
        statistical area, or State, except as expressly permitted under 
        the Modification of Final Judgment before the date of the 
        enactment of this Act.
            (12) Exchange service.--The term ``exchange service'' means 
        a telecommunications service provided within an exchange area.
            (13) Information.--Except as provided in paragraph (17), 
        the term ``information'' means knowledge or intelligence 
        represented by any form of writing, signs, signals, pictures, 
        sounds, or other symbols.
            (14) Interexchange telecommunications.--The term 
        ``interexchange telecommunications'' means telecommunications 
        between a point located in an exchange area and a point located 
        outside such exchange area.
            (15) Manufacture.--The term ``manufacture'' has the meaning 
        given such term under the Modification of Final Judgment.
            (16) Modification of final judgment.--The term 
        ``Modification of Final Judgment'' means the order entered 
        August 24, 1982, in the antitrust action styled United States 
        v. Western Electric, Civil Action No. 82-0192, in the United 
        States District Court for the District of Columbia, and 
        includes any judgment or order with respect to such action 
        entered on or after August 24, 1982.
            (17) Other programming services.--The term ``other 
        programming services'' means information (other than audio 
        programming or video programming) that the person who offers a 
        video programming service makes available to all subscribers 
        generally. For purposes of the preceding sentence, the terms 
        ``information'' and ``makes available to all subscribers 
        generally'' have the same meaning such terms have under section 
        602(13) of the Communications Act of 1934 (47 U.S.C. 522(13)).
            (18) Person.--The term ``person'' has the meaning given 
        such term in subsection (a) of the first section of the Clayton 
        Act (15 U.S.C. 12(a)).
            (19) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, the 
        Federated States of Micronesia, the Republic of the Marshall 
        Islands, Palau, or any territory or possession of the United 
        States.
            (20) Telecommunications.--The term ``telecommunications'' 
        means the transmission of information between points by 
        electromagnetic means.
            (21) Telecommunications equipment.--The term 
        ``telecommunications equipment'' means equipment, other than 
        customer premises equipment, used by a carrier to provide a 
        telecommunications service, and includes software integral to 
        such equipment.
            (22) Telecommunications service.--The term 
        ``telecommunications service'' means the offering for hire of 
        transmission facilities or of telecommunications by means of 
        such facilities.
            (23) Transmission facilities.--The term ``transmission 
        facilities'' means equipment (including wire, cable, microwave, 
        satellite, and fiber-optics) that transmits information by 
        electromagnetic means or that directly supports such 
        transmission, but does not include customer premises equipment.
            (24) Video programming.--The term ``video programming'' has 
        the same meaning as such term has in section 602(19) of the 
        Communications Act of 1934 (47 U.S.C. 522(19)).

SEC. 6. RELATIONSHIP TO OTHER LAWS.

    (a) Modification of Final Judgment.--This Act shall supersede only 
the following sections of the Modification of Final Judgment:
            (1) Section II(C) of the Modification of Final Judgment, 
        relating to deadline for procedures for equal access 
        compliance.
            (2) Section II(D) of the Modification of Final Judgment, 
        relating to line of business restrictions.
            (3) Section VIII(A) of the Modification of Final Judgment, 
        relating to manufacturing restrictions.
            (4) Section VIII(C) of the Modification of Final Judgment, 
        relating to standard for entry into the interexchange market.
            (5) Section VIII(D) of the Modification of Final Judgment, 
        relating to prohibition on entry into electronic publishing.
            (6) Section VIII(H) of the Modification of Final Judgment, 
        relating to debt ratios at the time of transfer.
            (7) Section VIII(J) of the Modification of Final Judgment, 
        relating to prohibition on implementation of the plan of 
        reorganization before court approval.
    (b) Application to Other Action.--This Act shall supersede the 
final judgment entered December 21, 1984 and as restated January 11, 
1985, in the action styled United States v. GTE Corp., Civil Action No. 
83-1298, in the United States District Court for the District of 
Columbia, and such final judgment shall not be enforced with respect to 
conduct occurring after the date of the enactment of this Act.
    (c) Antitrust Laws.--Nothing in this Act shall be construed to 
modify, impair, or supersede the applicability of any of the antitrust 
laws.
    (d) 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 or purposes of this Act.
                                 <all>