[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1555 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1555

 To promote competition and reduce regulation in order to secure lower 
  prices and higher quality services for American telecommunications 
consumers and encourage the rapid deployment of new telecommunications 
                             technologies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 1995

    Mr. Bliley (for himself, Mr. Dingell, Mr. Fields of Texas, Mr. 
Moorhead, Mr. Oxley, Mr. Bilirakis, Mr. Schaefer, Mr. Barton of Texas, 
    Mr. Hastert, Mr. Stearns, Mr. Paxon, Mr. Gillmor, Mr. Klug, Mr. 
Greenwood, Mr. Crapo, Mr. Frisa, Mr. White, Mr. Coburn, Mr. Tauzin, Mr. 
Hall of Texas, Mr. Boucher, Mr. Manton, Mr. Towns, Ms. Eshoo, and Mrs. 
   Lincoln) introduced the following bill; which was referred to the 
    Committee on Commerce, and in addition to the Committee on the 
 Judiciary, 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 promote competition and reduce regulation in order to secure lower 
  prices and higher quality services for American telecommunications 
consumers and encourage the rapid deployment of new telecommunications 
                             technologies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Communications Act 
of 1995''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
     TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS

Sec. 101. Establishment of part II of title II.
             ``Part II--Development of Competitive Markets

        ``Sec. 241. Interconnection.
        ``Sec. 242. Equal access and interconnection to the local loop 
                            for competing providers.
        ``Sec. 243. Preemption.
        ``Sec. 244. Statements of terms and conditions for access and 
                            interconnection.
        ``Sec. 245. Bell operating company entry into interLATA 
                            services.
        ``Sec. 246. Universal service.
        ``Sec. 247. Pricing flexibility and abolition of rate-of-return 
                            regulation.
        ``Sec. 248. Network functionality and accessibility.
        ``Sec. 249. Illegal changes in subscriber carrier selections.
        ``Sec. 250. Study.
        ``Sec. 251. Territorial exemption.
Sec. 102. Competition in manufacturing, information services, and alarm 
                            services.
              ``Part III--Special and Temporary Provisions

        ``Sec. 271. Manufacturing by Bell operating companies.
        ``Sec. 272. Electronic publishing by Bell operating companies.
        ``Sec. 273. Alarm monitoring and telemessaging services by Bell 
                            operating companies.
Sec. 103. Forbearance from regulation.
        ``Sec. 229. Forbearance from regulation.
Sec. 104. Privacy of customer information.
        ``Sec. 222. Privacy of customer proprietary network 
                            information.
Sec. 105. Pole attachments.
Sec. 106. Preemption of franchising authority regulation of 
                            telecommunications services.
Sec. 107. Mobile service access to long distance carriers.
             TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS

Sec. 201. Cable service provided by telephone companies.
  ``Part V--Video Programming Services Provided by Telephone Companies

        ``Sec. 651. Definitions.
        ``Sec. 652. Separate video programming affiliate.
        ``Sec. 653. Establishment of video platform.
        ``Sec. 654. Authority to prohibit cross-subsidization.
        ``Sec. 655. Prohibition on buy outs.
        ``Sec. 656. Applicability of parts I through IV.
        ``Sec. 657. Rural area exemption.
Sec. 202. Competition from cable systems.
Sec. 203. Competitive availability of navigation devices.
        ``Sec. 713. Competitive availability of navigation devices.
Sec. 204. Video programming accessibility.
Sec. 205. Technical amendments.
          TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS

Sec. 301. Broadcaster spectrum flexibility.
        ``Sec. 336. Broadcast spectrum flexibility.
Sec. 302. Term of licenses.
Sec. 303. Broadcast license renewal procedures.
Sec. 304. Exclusive Federal jurisdiction over direct broadcast 
                            satellite service.
Sec. 305. Automated ship distress and safety systems.
Sec. 306. Restrictions on over-the-air reception devices.
Sec. 307. DBS signal security.
                     TITLE IV--EFFECT ON OTHER LAWS

Sec. 401. Relationship to other laws.
Sec. 402. Preemption of local taxation with respect to direct-to-home 
                            satellite services.
                          TITLE V--DEFINITIONS

Sec. 501. Definitions.

     TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS

SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.

    (a) Amendment.--Title II of the Communications Act of 1934 is 
amended by inserting after section 229 (47 U.S.C. 229) the following 
new part:

             ``PART II--DEVELOPMENT OF COMPETITIVE MARKETS

``SEC. 241. INTERCONNECTION.

    ``The duty of a common carrier under section 201(a) includes the 
duty to interconnect with the facilities and equipment of other 
providers of telecommunications services and information services.

``SEC. 242. EQUAL ACCESS AND INTERCONNECTION TO THE LOCAL LOOP FOR 
              COMPETING PROVIDERS.

    ``(a) Openness and Accessibility Obligations.--The duty under 
section 201(a) of a local exchange carrier includes the following 
duties:
            ``(1) Interconnection.--The duty to provide, in accordance 
        with subsection (b), equal access to and interconnection with 
        the facilities of the carrier's networks to any other carrier 
        or person offering (or seeking to offer) telecommunications 
        services or information services reasonably requesting such 
        equal access and interconnection, so that such networks are 
        fully interoperable with such telecommunications services and 
        information services.
            ``(2) Unbundling of network elements.--The duty to offer 
        unbundled services, elements, features, functions, and 
        capabilities whenever technically feasible and economically 
        reasonable, at just, reasonable, and nondiscriminatory prices 
        and in accordance with subsection (b)(4).
            ``(3) Resale.--The duty not to prohibit, and not to impose 
        unreasonable or discriminatory conditions or limitations on, 
        the resale, on a bundled or unbundled basis, of services, 
        elements, features, functions, and capabilities in conjunction 
        with the furnishing of a telecommunications service or an 
        information service.
            ``(4) Number portability.--The duty to provide, to the 
        extent technically feasible and economically reasonable, number 
        portability in accordance with requirements prescribed by the 
        Commission.
            ``(5) Dialing parity.--The duty to provide, in accordance 
        with subsection (c), dialing parity to competing providers of 
        telephone exchange service and telephone toll service.
            ``(6) Access to rights of way.--The duty to afford access 
        to the poles, ducts, conduits, and rights of way of such 
        carrier to competing providers of telecommunications services 
        in accordance with section 224(d).
            ``(7) Network functionality and accessibility.--The duty 
        not to install network features, functions, or capabilities 
        that do not comply with the standards established pursuant to 
        section 248.
            ``(8) Good faith negotiation.--The duty to negotiate, under 
        the supervision of State commissions, the particular terms and 
        conditions of agreements to fulfill the duties described in 
        paragraphs (1) through (7).
    ``(b) Interconnection, Compensation, and Equal Access.--
            ``(1) Interconnection.--A local exchange carrier shall 
        provide access to and interconnection with the facilities of 
        the carrier's network at any technically feasible and 
        economically reasonable point within the carrier's network on 
        just and reasonable terms and conditions, to any other carrier 
        or person offering (or seeking to offer) telecommunications 
        services or information services requesting such access.
            ``(2) Intercarrier compensation between facilities-based 
        carriers.--
                    ``(A) In general.--For the purposes of paragraph 
                (1), the terms and conditions for interconnection of 
                the network of a competing provider of telephone 
                exchange service shall not be considered to be just and 
                reasonable unless--
                            ``(i) such terms and conditions provide for 
                        the mutual and reciprocal recovery by each 
                        carrier of costs associated with the 
                        termination on such carrier's network of calls 
                        that originate on the network of the other 
                        carrier;
                            ``(ii) such terms and conditions determine 
                        such costs on the basis of a reasonable 
                        approximation of the additional costs of 
                        terminating such calls; and
                            ``(iii) the recovery of costs permitted by 
                        such terms and conditions are reasonable in 
                        relation to the prices for termination of calls 
                        that would prevail in a competitive market.
                    ``(B) Rules of construction.--This paragraph shall 
                not be construed--
                            ``(i) to preclude arrangements that afford 
                        such mutual recovery of costs through the 
                        offsetting of reciprocal obligations, including 
                        arrangements that waive mutual recovery (such 
                        as bill-and-keep arrangements); or
                            ``(ii) to authorize the Commission or any 
                        State commission to engage in any rate 
                        regulation proceeding to establish with 
                        particularity the additional costs of 
                        terminating calls, or to require carriers to 
                        maintain records with respect to the additional 
                        costs of terminating calls.
            ``(3) Equal access.--A local exchange carrier shall afford, 
        to any other carrier or person offering (or seeking to offer) a 
        telecommunications service or an information service, 
        reasonable and nondiscriminatory access on an unbundled basis--
                    ``(A) to databases, signaling systems, poles, 
                ducts, conduits, and rights-of-way owned or controlled 
                by a local exchange carrier, or other facilities, 
                functions, or information (including subscriber 
                numbers) integral to the efficient transmission, 
                routing, or other provision of telephone exchange 
                services or exchange access;
                    ``(B) that is at least equal in type, quality, and 
                price to the access which the carrier affords to itself 
                or to any other person; and
                    ``(C) that is sufficient to ensure the full 
                interoperability of the equipment and facilities of the 
                carrier and of the person seeking such access.
            ``(4) Commission action required.--
                    ``(A) In general.--Within 15 months after the date 
                of enactment of this part, the Commission shall 
                complete all actions necessary (including any 
                reconsideration) to establish regulations to implement 
                the requirements of this section. The Commission shall 
                establish such regulations after consultation with the 
                Joint Board established pursuant to section 246.
                    ``(B) Collocation.--Such regulations shall provide 
                for actual collocation of equipment necessary for 
                interconnection for telecommunications services at the 
                premises of a local exchange carrier, except that the 
                regulations shall provide for virtual collocation where 
                the local exchange carrier demonstrates that actual 
                collocation is not practical for technical reasons or 
                because of space limitations.
                    ``(C) User payment of unbundling costs.--Such 
                regulations shall require that the costs that a carrier 
                incurs in offering unbundled services, elements, 
                features, functions, and capabilities shall be borne by 
                the users of such services, elements, features, 
                functions, and capabilities.
                    ``(D) Imputed charges to carrier.--Such regulations 
                shall require the carrier, to the extent it provides a 
                telecommunications service or an information service, 
                to impute such access and interconnection charges to 
                itself.
    ``(c) Number Portability and Dialing Parity.--
            ``(1) Availability.--A local exchange carrier shall ensure 
        that--
                    ``(A) number portability shall be available on 
                request in accordance with subsection (a)(4); and
                    ``(B) dialing parity shall be available upon 
                request, except that, in the case of a Bell operating 
                company, such company shall ensure that dialing parity 
                for intraLATA telephone toll service shall be available 
                not later than the date such company is authorized to 
                provide interLATA services.
            ``(2)  Number administration.--The Commission shall 
        designate an impartial entity to administer telecommunications 
        numbering and to make such numbers available on an equitable 
        basis. The Commission shall have exclusive jurisdiction over 
        those portions of the North American Numbering Plan that 
        pertain to the United States. Nothing in this paragraph shall 
        preclude the Commission from delegating to State commissions or 
        other entities any portion of such jurisdiction.
    ``(d) Modifications and Waivers.--The Commission may modify or 
waive the requirements of this section for any local exchange carrier 
(or class or category of such carriers) that has, in the aggregate 
nationwide, fewer than 500,000 access lines installed, to the extent 
that the Commission determines that compliance with such requirements 
(without such modification) would be unduly economically burdensome, 
technologically infeasible, or otherwise not in the public interest.
    ``(e) Avoidance of Redundant Regulations.--Nothing in this section 
shall be construed to prohibit the Commission from enforcing 
regulations prescribed prior to the date of enactment of this part in 
fulfilling the requirements of this section, to the extent that such 
regulations are consistent with the provisions of this section.

``SEC. 243. PREEMPTION.

    ``(a) Removal of Barriers to Entry.--Except as provided in 
subsection (b) of this section, no State or local statute, regulation, 
or other legal requirement shall--
            ``(1) effectively prohibit any carrier or other person from 
        entering the business of providing interstate or intrastate 
        telecommunications services or information services; or
            ``(2) effectively prohibit any carrier or other person 
        providing interstate or intrastate telecommunications services 
        or information services from exercising the access and 
        interconnection rights provided under this part.
    ``(b) State and Local Authority.--Nothing in this section shall 
affect the ability of State or local officials to impose, on a 
nondiscriminatory basis, requirements necessary to preserve and advance 
universal service, protect the public safety and welfare, ensure the 
continued quality of telecommunications services, ensure that a 
provider's business practices are consistent with consumer protection 
laws and regulations, and ensure just and reasonable rates, provided 
that such requirements do not effectively prohibit any carrier or 
person from providing interstate or intrastate telecommunications 
services or information services.
    ``(c) Construction Permits.--Subsection (a) shall not be construed 
to prohibit a local government from requiring a person or carrier to 
obtain ordinary and usual construction or similar permits for its 
operations if--
            ``(1) such permit is required without regard to the nature 
        of the business; and
            ``(2) requiring such permit does not effectively prohibit 
        any person or carrier from providing any interstate or 
        intrastate telecommunications service or information service.
    ``(d) Exception.--In the case of commercial mobile services, the 
provisions of section 332(c)(3) shall apply in lieu of the provisions 
of this section.
    ``(e) Parity of Franchise and Other Charges.--Notwithstanding 
section 2(b), no local government may impose or collect any franchise, 
license, permit, or right-of-way fee or any assessment, rental, or any 
other charge or equivalent thereof as a condition for operating in the 
locality or for obtaining access to, occupying, or crossing public 
rights-of-way from any provider of telecommunications services that 
distinguishes between or among providers of telecommunications 
services, including the local exchange carrier. For purposes of this 
subsection, a franchise, license, permit, or right-of-way fee or an 
assessment, rental, or any other charge or equivalent thereof does not 
include any imposition of general applicability which does not 
distinguish between or among providers of telecommunications services, 
or any tax.

``SEC. 244. STATEMENTS OF TERMS AND CONDITIONS FOR ACCESS AND 
              INTERCONNECTION.

    ``(a) In General.--Within 18 months after the date of enactment of 
this part, and from time to time thereafter, a local exchange carrier 
shall prepare and file with a State commission statements of the terms 
and conditions that such carrier generally offers within that State 
with respect to the services or elements provided to comply with the 
equal access and interconnection requirements of section 242 and the 
regulations thereunder. Any such statement pertaining to the charges 
for interstate services or elements shall be filed with the Commission.
    ``(b) Review.--
            ``(1) State commission review.--A State commission to which 
        a statement is submitted under subsection (a) shall review such 
        statement in accordance with State law. A State commission may 
        not approve such statement unless such statement complies with 
        section 242 and the regulations thereunder. Except as provided 
        in section 243, nothing in this section shall prohibit a State 
        commission from establishing or enforcing other requirements of 
        State law in its review of such statement.
            ``(2) FCC review.--The Commission shall review such 
        statements to ensure that--
                    ``(A) the charges for interstate services or 
                elements are just, reasonable, and nondiscriminatory; 
                and
                    ``(B) the terms and conditions for such interstate 
                services or elements unbundle any separable services, 
                elements, features, functions, or capabilities in 
                accordance with section 242(a)(2) and any regulations 
                thereunder.
    ``(c) Time for Review.--
            ``(1) Schedule for review.--The Commission and the State 
        commission to which a statement is submitted shall, not later 
        than 60 days after the date of such submission--
                    ``(A) complete the review of such statement under 
                subsection (b) (including any reconsideration thereof), 
                unless the submitting carrier agrees to an extension of 
                the period for such review; or
                    ``(B) permit such statement to take effect.
            ``(2) Authority to continue review.--Paragraph (1) shall 
        not preclude the Commission or a State commission from 
        continuing to review a statement that has been permitted to 
        take effect under subparagraph (B) of such paragraph.
    ``(d) Effect of Agreements.--Nothing in this section shall prohibit 
a carrier from filing an agreement to provide services or elements 
affording access and interconnection as a statement of terms and 
conditions that the carrier generally offers for purposes of this 
section. The approval of a statement under this section shall not 
operate to prohibit a carrier from entering into subsequent agreements 
that contain terms and conditions that differ from those contained in a 
statement that has been reviewed and approved under this section, but--
            ``(1) each such subsequent agreement shall be filed under 
        this section; and
            ``(2) such carrier shall be obligated to offer access to 
        such services and elements to other carriers and persons 
        (including carriers and persons covered by previously approved 
        statements) requesting such access on terms and conditions 
        that, in relation to the terms and conditions in such 
        subsequent agreements, are not discriminatory.
    ``(e) Sunset.--The provisions of this section shall cease to apply 
in any local exchange market, defined by geographic area and class or 
category of service, that the Commission determines has become subject 
to full and open competition.

``SEC. 245. BELL OPERATING COMPANY ENTRY INTO INTERLATA SERVICES.

    ``(a) Verification of Access and Interconnection Compliance.--At 
any time after 18 months after the date of enactment of this part, a 
Bell operating company may provide to the Commission verification by 
such company with respect to one or more States that such company is in 
compliance with the requirements of this part. Such verification shall 
contain the following:
            ``(1) Certification.--A certification by each State 
        commission of such State or States that such carrier is in 
        compliance with the standards described in subsection (b), 
        except as provided in subsection (c)(2).
            ``(2) Agreement or statement.--For each such State, either 
        of the following:
                    ``(A) Presence of a facilities-based competitor.--
                An agreement that has been approved under section 243 
                specifying the terms and conditions under which the 
                Bell operating company is providing access and 
                interconnection to its network in accordance with 
                section 242 for the network of a competing provider of 
                telephone exchange service.
                    ``(B) Failure to request access.--If no such 
                provider has requested such access and interconnection 
                before the date which is 3 months before the date the 
                company makes its submission under this subsection, a 
                statement of the terms and conditions that the carrier 
                generally offers to provide such access and 
                interconnection that has been approved or permitted to 
                take effect by the State commission under section 243.
    ``(b) Certification of Compliance With Part II.--For the purposes 
of subsection (a)(1), a Bell operating company shall submit to the 
Commission a certification by a State commission of compliance with 
each of the following conditions in such State:
            ``(1) Interconnection.--The Bell operating company provides 
        access and interconnection in accordance with subsections 
        (a)(1) and (b) of section 242 to any other carrier or person 
        offering telecommunications services requesting such access and 
        interconnection, and complies with the Commission regulations 
        pursuant to such section concerning such access and 
        interconnection.
            ``(2) Unbundling of network elements.--The Bell operating 
        company provides unbundled features, functions, and 
        capabilities in accordance with subsection (a)(2) of section 
        242 and the regulations prescribed by the Commission pursuant 
        to such section.
            ``(3) Resale and sharing.--Neither the Bell operating 
        company, nor any unit of State or local government within the 
        State, imposes any restrictions on resale or sharing of 
        telephone exchange service (or unbundled services, elements, 
        features, or functions of telephone exchange service) in 
        violation of section 242(a)(3).
            ``(4) Number portability.--The Bell operating company 
        provides number portability in compliance with the Commission's 
        regulations pursuant to subsections (a)(4) and (c) of section 
        242.
            ``(5) Dialing parity.--The Bell operating company provides 
        dialing parity in accordance with subsections (a)(5) and (c) of 
        section 242, and will, not later than the effective date of its 
        authority to commence providing interLATA services, take such 
        actions as are necessary to provide dialing parity for 
        intraLATA telephone toll service in accordance with such 
        subsections.
            ``(6) Access to conduits and rights of way.--The poles, 
        ducts, conduits, and rights of way of such Bell operating 
        company are available to competing providers of 
        telecommunications services in accordance with the requirements 
        of sections 242(a)(6) and 224(d).
            ``(7) Elimination of franchise limitations.--No unit of the 
        State or local government in such State or States imposes any 
        prohibition or limitation in violation of section 243.
            ``(8) Network functionality and accessibility.--The Bell 
        operating company will not install network features, functions, 
        or capabilities that do not comply with the standards 
        established pursuant to section 248.
            ``(9) Negotiation of terms and conditions.--The Bell 
        operating company has negotiated in good faith, under the 
        supervision of the State commission, in accordance with the 
        requirements of section 242(a)(8) with any person requesting 
        access or interconnection.
    ``(c) Commission Review.--
            ``(1) Review of state decisions and certifications.--The 
        Commission shall review any verification submitted by a Bell 
        operating company pursuant to subsection (a). The Commission 
        may require such company to submit such additional information 
        as is necessary to validate any of the items of such 
        verification.
            ``(2) De novo review.--If--
                    ``(A) a State commission does not have the 
                jurisdiction or authority to make the certification 
                required by subsection (b);
                    ``(B) the State commission has failed to act within 
                90 days after the date a request for such certification 
is filed with such State commission; or
                    ``(C) the State commission has sought to impose a 
                term or condition in violation of section 243;
        the local exchange carrier may request the Commission to 
        certify the carrier's compliance with the conditions specified 
        in subsection (b).
            ``(3) Time for decision; public comment.--Unless such Bell 
        operating company consents to a longer period of time, the 
        Commission shall approve, disapprove, or approve with 
        conditions such verification within 90 days after the date of 
        its submission. During such 90 days, the Commission shall 
        afford interested persons an opportunity to present information 
        and evidence concerning such verification.
            ``(4) Standard for decision.--The Commission shall not 
        approve such verification unless the Commission determines 
        that--
                    ``(A) the Bell operating company meets each of the 
                conditions required to be certified under subsection 
                (b); and
                    ``(B) the agreement or statement submitted under 
                subsection (a)(2) complies with the requirements of 
                section 242 and the regulations thereunder.
    ``(d) Enforcement of Conditions.--
            ``(1) Commission authority.--If at any time after the 
        approval of a verification under subsection (c), the Commission 
        determines that a Bell operating company has ceased to meet any 
        of the conditions required to be certified under subsection 
        (b), the Commission may, after notice and opportunity for a 
        hearing--
                    ``(A) issue an order to such company to correct the 
                deficiency;
                    ``(B) impose a penalty on such company pursuant to 
                title V; or
                    ``(C) suspend or revoke such approval.
            ``(2) Receipt and review of complaints.--The Commission 
        shall establish procedures for the review of complaints 
        concerning failures by Bell operating companies to meet 
        conditions required to be certified under subsection (b). 
        Unless the parties otherwise agree, the Commission shall act on 
        such complaint within 90 days.
            ``(3) State authority.--The authority of the Commission 
        under this subsection shall not be construed to preempt any 
        State commission from taking actions to enforce the conditions 
        required to be certified under subsection (b).
    ``(e) Authority To Provide InterLATA Services.--
            ``(1) Prohibition.--Except as provided in paragraph (2) and 
        subsection (f), a Bell operating company may not provide 
        interLATA services.
            ``(2) Authority subject to certification.--A Bell operating 
        company may, in any States to which its verification under 
        subsection (a) applies, provide interLATA services--
                    ``(A) during any period after the effective date of 
                the Commission's approval of such verification pursuant 
                to subsection (c), and
                    ``(B) until the approval of such verification is 
                suspended or revoked by the Commission pursuant to 
                subsection (c).
    ``(f) Exceptions for Incidental Services.--Subsection (e) shall not 
prohibit a Bell operating company, at any time after the date of the 
enactment of this part, from providing interLATA 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 or 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 local access and transport 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 section 332(c) of this Act and with the regulations 
        prescribed by the Commission pursuant to paragraph (7) of such 
        section;
            ``(4) providing a service that permits a customer that is 
        located in one local access and transport area to retrieve 
        stored information from, or file information for storage in, 
        information storage facilities of such company that are located 
        in another local access and transport area;
            ``(5) providing signaling information used in connection 
        with the provision of telephone exchange services to a local 
        exchange carrier that, together with any affiliated local 
        exchange carriers, has aggregate annual revenues of less than 
        $100,000,000; or
            ``(6) providing network control signaling information to, 
        and receiving such signaling information from, common carriers 
        offering interLATA services at any location within the area in 
        which such Bell operating company provides telephone exchange 
        services or exchange access.
    ``(g) Forbearance.--The Commission may not, pursuant to section 
229, forbear from applying any provision of this section or any 
regulation thereunder until at least 5 years after the date of 
enactment of this part.
    ``(h) Sunset.--The provisions of this section shall cease to apply 
in any local exchange market, defined by geographic area and class or 
category of service, that the Commission determines has become subject 
to full and open competition.
    ``(i) Definitions.--As used in this section--
            ``(1) Audio programming.--The term `audio programming' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a radio broadcast 
        station.
            ``(2) Video programming.--The term `video programming' has 
        the meaning provided in section 602.
            ``(3) 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 this Act.

``SEC. 246. UNIVERSAL SERVICE.

    ``(a) Joint Board To Preserve Universal Service.--Within 30 days 
after the date of enactment of this part, the Commission shall convene 
a Federal-State Joint Board under section 410(c) for the purpose of 
recommending actions to the Commission and State commissions for the 
preservation of universal service in furtherance of the purposes set 
forth in section 1 of this Act. In addition to the members required 
under section 410(c), one member of the Joint Board shall be a State-
appointed utility consumer advocate nominated by a national 
organization of State utility consumer advocates.
    ``(b) Principles.--The Joint Board shall base policies for the 
preservation of universal service on the following principles:
            ``(1) Just and reasonable rates.--A plan adopted by the 
        Commission and the States should ensure the continued viability 
        of universal service by maintaining quality services at just 
        and reasonable rates.
            ``(2) Definitions of included services; comparability in 
        urban and rural areas.--Such plan should recommend a definition 
        of the nature and extent of the services encompassed within 
        carriers' universal service obligations. Such plan should seek 
        to promote access to advanced telecommunications services and 
        capabilities, and to promote reasonably comparable services for 
        the general public in urban and rural areas, while maintaining 
        just and reasonable rates.
            ``(3) Adequate and sustainable support mechanisms.--Such 
        plan should recommend specific and predictable mechanisms to 
        provide adequate and sustainable support for universal service.
            ``(4) Equitable and nondiscriminatory contributions.--All 
        providers of telecommunications services should make an 
        equitable and nondiscriminatory contribution to the 
        preservation of universal service.
            ``(5) Educational access to advanced telecommunications 
        services.--To the extent that a common carrier establishes 
        advanced telecommunications services, such plan should include 
        recommendations to ensure access to advanced telecommunications 
        services for students in elementary and secondary schools.
            ``(6) Additional principles.--Such other principles as the 
        Board determines are necessary and appropriate for the 
        protection of the public interest, convenience, and necessity 
        and consistent with the purposes of this Act.
    ``(c) Definition of Universal Service.--In recommending a 
definition of the nature and extent of the services encompassed within 
carriers' universal service obligations under subsection (b)(2), the 
Joint Board shall consider the extent to which--
            ``(1) a telecommunications service has, through the 
        operation of market choices by customers, been subscribed to by 
        a substantial majority of residential customers;
            ``(2) such service or capability is essential to public 
        health, public safety, or the public interest;
            ``(3) such service has been deployed in the public switched 
        telecommunications network; and
            ``(4) inclusion of such service within carriers' universal 
        service obligations is otherwise consistent with the public 
        interest, convenience, and necessity.
The Joint Board may, from time to time, recommend to the Commission 
modifications in the definition proposed under subsection (b).
    ``(d) Report; Commission Response.--The Joint Board convened 
pursuant to subsection (a) shall report its recommendations within 270 
days after the date of enactment of this part. The Commission shall 
complete any proceeding to act upon such recommendations and to comply 
with the principles set forth in subsection (b) within one year after 
such date of enactment.
    ``(e) State Authority.--Nothing in this section shall be construed 
to restrict the authority of any State to adopt regulations imposing 
universal service obligations on the provisions of intrastate 
telecommunications services.
    ``(f) Sunset.--The Joint Board established by this section shall 
cease to exist 5 years after the date of enactment of this part.

``SEC. 247. PRICING FLEXIBILITY AND ABOLITION OF RATE-OF-RETURN 
              REGULATION.

    ``(a) Pricing Flexibility.--
            ``(1) Commission criteria.--Within 270 days after the date 
        of enactment of this part, the Commission shall complete all 
        actions necessary (including any reconsideration) to 
        establish--
                    ``(A) criteria for determining whether a 
                telecommunications service or provider of such service 
                has become, or is substantially certain to become, 
                subject to competition, either within a geographic area 
                or within a class or category of service; and
                    ``(B) appropriate flexible pricing procedures that 
                afford a regulated provider of a service described in 
                subparagraph (A) the opportunity to respond fairly to 
                such competition and that are consistent with the 
                protection of subscribers and the public interest, 
                convenience, and necessity.
            ``(2) State selection.--A State commission may utilize the 
        flexible pricing procedures or procedures (established under 
paragraph (1)(B)) that are appropriate in light of the criteria 
established under paragraph (1)(A).
            ``(3) Determinations.--The Commission, with respect to 
        rates for interstate or foreign communications, and State 
        commissions, with respect to rates for intrastate 
        communications, shall, upon application--
                    ``(A) render determinations in accordance with the 
                criteria established under paragraph (1)(A) concerning 
                the services or providers that are the subject of such 
                application; and
                    ``(B) upon a proper showing, implement appropriate 
                flexible pricing procedures consistent with paragraphs 
                (1)(B) and (2) with respect to such services or 
                providers.
        The Commission and such State commission shall approve or 
        reject any such application within 180 days after the date of 
        its submission.
    ``(b) Abolition of Rate-of-Return Regulation.--Notwithstanding any 
other provision of law, to the extent that a carrier has complied with 
sections 242 and 244 of this part, the Commission, with respect to 
rates for interstate or foreign communications, and State commissions, 
with respect to rates for intrastate communications, shall not require 
rate-of-return regulation.
    ``(c) Termination of Price Regulation.--Notwithstanding any other 
provision of law, to the extent that a carrier has complied with 
sections 242 and 244 of this part, the Commission, with respect to 
rates for interstate or foreign communications, and State commissions, 
with respect to rates for intrastate communications, shall not regulate 
prices for services that are determined, in accordance with the 
criteria established under subsection (a)(1)(A), to be subject to 
competition that effectively prevents rates for such services that are 
unjust or unreasonable or unjustly or unreasonably discriminatory.
    ``(d) Ability To Continue Affordable Voice-Grade Service.--
Notwithstanding subsections (a), (b), and (c), each State commission 
shall permit residential subscribers to continue to receive only basic 
voice-grade local telephone service equivalent to the service generally 
available to residential subscribers on the date of enactment of this 
part, at just, reasonable, and affordable rates. Determinations 
concerning the affordability of rates for such services shall, for a 
period of 3 years after the effective date of any flexible pricing 
procedure established under this section, be based on the rates 
generally available to residential subscribers on such date of 
enactment and the pricing rules established by the State commission.
    ``(e) Exception.--In the case of commercial mobile services, the 
provisions of section 332(c)(1) shall apply in lieu of the provisions 
of this section.
    ``(f) Avoidance of Redundant Regulations.--Nothing in this section 
shall be construed to prohibit the Commission or a State commission 
from enforcing regulations prescribed prior to the date of enactment of 
this part in fulfilling the requirements of this section, to the extent 
that such regulations are consistent with the provisions of this 
section.

``SEC. 248. NETWORK FUNCTIONALITY AND ACCESSIBILITY.

    ``(a) Functionality and Accessibility.--The duty of a common 
carrier under section 201(a) to furnish communications service includes 
the duty to furnish that service in accordance with the standards 
established pursuant to this section.
    ``(b) Coordination for Interoperability and Accessibility.--The 
Commission shall establish--
            ``(1) procedures for the conduct of coordinated network 
        planning by common carriers and other providers of 
        telecommunications services or information services, subject to 
        Commission supervision, for the effective and efficient 
        interconnection and interoperability of public and private 
        networks; and
            ``(2) procedures for Commission oversight of the 
        development by appropriate industry standards-setting 
        organizations of--
                    ``(A) standards for the interconnection and 
                interoperability of such networks;
                    ``(B) standards that promote access to network 
                capabilities and services by individuals with 
                disabilities; and
                    ``(C) standards that promote access to information 
                services by subscribers to telephone exchange service 
                furnished by a rural telephone company.
    ``(c) Accessibility for Individuals With Disabilities.--
            ``(1) Accessibility.--Within 1 year after the date of 
        enactment of this section, the Commission shall prescribe such 
        regulations as are necessary to ensure that advances in network 
        services deployed by local exchange carriers shall be 
        accessible and usable by individuals with disabilities, 
        including individuals with functional limitations of hearing, 
        vision, movement, manipulation, speech, and interpretation of 
        information, unless the cost of making the services accessible 
        and usable would result in an undue burden or adverse 
        competitive impact. Such regulations shall seek to permit the 
        use of both standard and special equipment, and seek to 
        minimize the need of individuals to acquire additional devices 
        beyond those used by the general public to obtain such access. 
        Throughout the process of developing such regulations, the 
        Commission shall coordinate and consult with representatives of 
        individuals with disabilities and interested equipment and 
        service providers to ensure their concerns and interests are 
        given full consideration in such process.
            ``(2) Compatibility.--Such regulations shall require that 
        whenever an undue burden or adverse competitive impact would 
        result from the requirements in paragraph (1), the local 
        exchange carrier that deploys the network service shall ensure 
        that the network service in question is compatible with 
        existing peripheral devices or specialized customer premises 
        equipment commonly used by persons with disabilities to achieve 
        access, unless doing so would result in an undue burden or 
        adverse competitive impact.
            ``(3) Undue burden.--The term `undue burden' means 
        significant difficulty or expense. In determining whether the 
        activity necessary to comply with the requirements of this 
        subsection would result in an undue burden, the factors to be 
        considered include the following:
                    ``(A) The nature and cost of the activity.
                    ``(B) The impact on the operation of the facility 
                involved in the deployment of the network service.
                    ``(C) The financial resources of the local exchange 
                carrier.
                    ``(D) The type of operations of the local exchange 
                carrier.
            ``(4) Adverse competitive impact.--In determining whether 
        the activity necessary to comply with the requirements of this 
        subsection would result in adverse competitive impact, the 
        following factors shall be considered:
                    ``(A) Whether such activity would raise the cost of 
                the network service in question beyond the level at 
                which there would be sufficient consumer demand by the 
                general population to make the network service 
                profitable.
                    ``(B) Whether such activity would, with respect to 
                the network service in question, put the local exchange 
                carrier at a competitive disadvantage. This factor may 
                be considered so long as competing network service 
                providers are not held to the same obligation with 
                respect to access by persons with disabilities.
            ``(5) Effective date.--The regulations required by this 
        subsection shall become effective 18 months after the date of 
        enactment of this part.

``SEC. 249. ILLEGAL CHANGES IN SUBSCRIBER CARRIER SELECTIONS.

    ``No common carrier shall submit or execute a change in a 
subscriber's selection of a provider of telephone exchange service or 
telephone toll service except in accordance with such verification 
procedures as the Commission shall prescribe. Nothing in this section 
shall preclude any State commission from enforcing such procedures with 
respect to intrastate services.

``SEC. 250. STUDY.

    ``At least once every three years, the Commission shall conduct a 
study that--
            ``(1) reviews the definition of, and the adequacy of 
        support for, universal service, and evaluates the extent to 
        which universal service has been protected and access to 
        advanced services has been facilitated pursuant to this part 
        and the plans and regulations thereunder;
            ``(2) evaluates the extent to which access to advanced 
        telecommunications services for students in elementary and 
        secondary school classrooms has been attained pursuant to 
        section 246(b)(5); and
            ``(3) determines whether the regulations established under 
        section 248(c) have ensured that advances in network services 
        by providers of telecommunications services and information 
        services are accessible and usable by individuals with 
        disabilities.

``SEC. 251. TERRITORIAL EXEMPTION.

    ``Until 5 years after the date of enactment of this part, the 
provisions of this part shall not apply to any local exchange carrier 
in any United States territory if (1) the local exchange carrier is 
owned by the government of such territory, and (2) on the date of 
enactment of this Act, the number of households subscribing to 
telephone service is less than 85 percent of the total households 
located in such territory.''.
    (b) Consolidated Rulemaking Proceeding.--The Commission shall 
conduct a single consolidated rulemaking proceeding to prescribe or 
amend regulations necessary to implement the requirements of--
            (1) part II of title II of the Communications Act of 1934 
        as added by subsection (a) of this section;
            (2) section 222 as amended by section 104 of this Act; and
            (3) section 224 as amended by section 105 of this Act.
    (c) Designation of Part I.--Title II of the Act is further amended 
by inserting before the heading of section 201 the following new 
heading:

          ``Part I--Regulation of Dominant Common Carriers''.

    (d) Conforming Amendments.
            (1) Federal-state jurisdiction.--Section 2(b) of the 
        Communications Act of 1934 (47 U.S.C. 152(b)) is amended by 
        inserting ``part II of title II,'' after ``227, inclusive,''.
            (2) Forfeitures.--Sections 503(b)(1) and 504(b) of such Act 
        (47 U.S.C. 503(b)) are each amended by inserting ``part I of'' 
        before ``title II''.

SEC. 103. COMPETITION IN MANUFACTURING, INFORMATION SERVICES, AND ALARM 
              SERVICES.

    (a) Competition in Manufacturing, Information Services, and Alarm 
Services..--Title II of the Act is amended by adding at the end of part 
II (as added by section 101) the following new part:

              ``PART III--SPECIAL AND TEMPORARY PROVISIONS

``SEC. 271. MANUFACTURING BY BELL OPERATING COMPANIES.

    ``(a) Access and Interconnection.--It shall be unlawful for a Bell 
operating company, directly or through an affiliate, to manufacture or 
provide telecommunications equipment, or to manufacture customer 
premises equipment, until the Commission has approved under section 
245(c) verifications that such Bell operating company, and each Bell 
operating company with which it is affiliated, are in compliance with 
the access and interconnection requirements of part II of this title.
    ``(b) Collaboration.--Nothing in this section (other than 
subsection (f)) shall be construed to limit or restrict the ability of 
a Bell operating company and its affiliates to 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 related to such equipment.
    ``(c) Existing 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.
    ``(d) Information Requirements.--
            ``(1) Information on protocols and technical 
        requirements.--Each Bell operating company shall, in accordance 
        with regulations prescribed by the Commission, 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. Each such company shall 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 to affiliates.--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 filed promptly, as required by regulation by the 
        Commission.
            ``(3) Access by competitors 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 
        access to the information with respect to the protocols and 
        technical requirements for connection with and use of its 
        telephone exchange service facilities required for such 
        competition that such company makes available to its 
        manufacturing affiliate.
            ``(4) Planning information.--Each Bell operating company 
        shall provide, to contiguous common carriers providing 
        telephone exchange service, timely information on the planned 
        deployment of telecommunications equipment.
    ``(e) Administration and Enforcement 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 or any affiliate thereof as the Commission has in administering 
and enforcing the provisions of this title with respect to any common 
carrier subject to this Act.
    ``(f) Antitrust Laws.--Nothing in this section shall be construed 
to modify, impair, or supersede the applicability of any of the 
antitrust laws.
    ``(g) Definition.--As used in this section, the term 
`manufacturing' has the same meaning as such term has under the 
Modification of Final Judgment.

``SEC. 272. ELECTRONIC PUBLISHING BY BELL OPERATING COMPANIES.

    ``(a) Limitations.--No Bell operating company or any affiliate may 
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, except that nothing in this section shall 
prohibit a separated affiliate or electronic publishing joint venture 
operated in accordance with this section from engaging in the provision 
of electronic publishing.
    ``(b) Separated Affiliate or Electronic Publishing Joint Venture 
Requirements.--A separated affiliate or electronic publishing joint 
venture shall be operated independently from the Bell operating 
company. Such separated affiliate or joint venture and the Bell 
operating company with which it is affiliated shall--
            ``(1) maintain separate books, records, and accounts and 
        prepare separate financial statements;
            ``(2) not incur debt in a manner that would permit a 
        creditor of the separated affiliate or joint venture upon 
        default to have recourse to the assets of the Bell operating 
        company;
            ``(3) carry out transactions (A) in a manner consistent 
        with such independence, (B) pursuant to written contracts or 
        tariffs that are filed with the Commission and made publicly 
        available, and (C) in a manner that is auditable in accordance 
        with generally accepted auditing standards;
            ``(4) value any assets that are transferred directly or 
        indirectly from the Bell operating company to a separated 
        affiliate or joint venture, and record any transactions by 
        which such assets are transferred, in accordance with such 
        regulations as may be prescribed by the Commission or a State 
        commission to prevent improper cross subsidies;
            ``(5) between a separated affiliate and a Bell operating 
        company--
                    ``(A) have no officers, directors, and employees in 
                common after the effective date of this section; and
                    ``(B) own no property in common;
            ``(6) not use for the marketing of any product or service 
        of the separated affiliate or joint venture, 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) not permit the Bell operating company--
                    ``(A) to perform hiring or training of personnel on 
                behalf of a separated affiliate;
                    ``(B) to 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; or
                    ``(C) to perform research and development on behalf 
                of a separated affiliate;
            ``(8) each have performed annually a compliance review--
                    ``(A) that is conducted by an independent entity 
                for the purpose of determining compliance during the 
                preceding calendar year with any provision of this 
                section; and
                    ``(B) the results of which are maintained by the 
                separated affiliate or joint venture and the Bell 
                operating company for a period of 5 years subject to 
                review by any lawful authority;
            ``(9) within 90 days of receiving a review described in 
        paragraph (8), file a report of any exceptions and 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) Joint Marketing.--
            ``(1) In general.--Except as provided in paragraph (2)--
                    ``(A) a Bell operating company shall not carry out 
                any promotion, marketing, sales, or advertising for or 
                in conjunction with a separated affiliate; and
                    ``(B) 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.
            ``(2) Permissible joint activities.--
                    ``(A) 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.
                    ``(B) 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 if (i) the Bell operating 
                company only provides facilities, services, and basic 
                telephone service information as authorized by this 
                section, and (ii) the Bell operating company does not 
                own such teaming or business arrangement.
                    ``(C) 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, if 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.
    ``(d) Private Right of Action.--
            ``(1) Damages.--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; except that damages may not be 
        awarded for a violation that is discovered by a compliance 
        review as required by subsection (b)(7) of this section and 
        corrected within 90 days.
            ``(2) Cease and desist orders.--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.
    ``(e) Separated Affiliate Reporting Requirement.--Any separated 
affiliate under this section shall file with the Commission annual 
reports in a form substantially equivalent to the Form 10-K required by 
regulations of the Securities and Exchange Commission.
    ``(f) Effective Dates.--
            ``(1) 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.
            ``(2) Sunset.--The provisions of this section shall not 
        apply to conduct occurring after June 30, 2000.
    ``(g) Definition of Electronic Publishing.--
            ``(1) In general.--The term `electronic publishing' means 
        the dissemination, provision, publication, or sale to an 
        unaffiliated entity or person, of any one or more of the 
        following: news (including sports); business or financial 
        reports; editorials, columns, or features; advertising; photos 
        or images of a type used in publishing; archival material of a 
        type used in publishing legal notices; or other like or similar 
        information.
            ``(2) Exceptions.--The term `electronic publishing' shall 
        not include the following services:
                    ``(A) Information access, as that term is defined 
                by the Modification of Final Judgment.
                    ``(B) The transmission of information as a common 
                carrier.
                    ``(C) 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.
                    ``(D) Voice storage and retrieval services, 
                including voice messaging and electronic mail services.
                    ``(E) Data processing or transaction processing 
                services that do not involve the generation or 
                alteration of the content of information.
                    ``(F) Electronic billing or advertising of a Bell 
                operating company's regulated telecommunications 
                services.
                    ``(G) Language translation or data format 
                conversion.
                    ``(H) The provision of information necessary for 
                the management, control, or operation of a telephone 
                company telecommunications system.
                    ``(I) The provision of directory assistance that 
                provides names, addresses, and telephone numbers and 
                does not include advertising.
                    ``(J) Caller identification services.
                    ``(K) Repair and provisioning databases and credit 
                card and billing validation for telephone company 
                operations.
                    ``(L) 911-E and other emergency assistance 
                databases.
                    ``(M) 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.
                    ``(N) Any upgrades to these network services that 
                do not involve the generation or alteration of the 
                content of information.
                    ``(O) Video programming or full motion video 
                entertainment on demand.
    ``(h) Additional 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 that such term does not 
        include--
                    ``(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.
            ``(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 
        C.F.R. 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 `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.
            ``(6) The term `entity' means any organization, and 
        includes corporations, partnerships, sole proprietorships, 
        associations, and joint ventures.
            ``(7) The term `inbound telemarketing' means the marketing 
        of property, goods, or services by telephone to a customer or 
        potential customer who initiated the call.
            ``(8) 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.
            ``(9) 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.
            ``(10) The term `Bell operating company' has the meaning 
        provided in section 3, except that such term includes any 
        entity or corporation that is owned or controlled by such a 
        company (as so defined) but does not include an electronic 
        publishing joint venture owned by such an entity or 
        corporation.

``SEC. 273. ALARM MONITORING AND TELEMESSAGING SERVICES BY BELL 
              OPERATING COMPANIES.

    ``(a) Delayed Entry Into Alarm Monitoring.--
            ``(1) Prohibition.--No Bell operating company or affiliate 
        thereof shall engage in the provision of alarm monitoring 
        services before July 1, 2000.
            ``(2) Existing activities.--Paragraph (1) shall not apply 
        to any provision of alarm monitoring services in which a Bell 
        operating company or affiliate is lawfully engaged on the date 
        of enactment of this part.
    ``(b) Nondiscrimination.--A common carrier engaged in the provision 
of alarm monitoring services or telemessaging services shall--
            ``(1) provide nonaffiliated entities, upon reasonable 
        request, with the network services it provides to its own alarm 
        monitoring or telemessaging operations, on nondiscriminatory 
        terms and conditions; and
            ``(2) not subsidize its alarm monitoring services or its 
        telemessaging services with revenues from telephone exchange 
        service.
    ``(c) Expedited Consideration of Complaints.--The Commission shall 
establish procedures for the receipt and review of complaints 
concerning violations of subsection (b) or the regulations thereunder 
that result in material financial harm to a provider of alarm 
monitoring service or telemessaging service. Such procedures shall 
ensure that the Commission will make a final determination with respect 
to any such complaint within 120 days after receipt of the complaint. 
If the complaint contains an appropriate showing that the alleged 
violation occurred, as determined by the Commission in accordance with 
such regulations, the Commission shall, within 60 days after receipt of 
the complaint, order the common carrier and its affiliates to cease 
engaging in such violation pending such final determination.
    ``(d) Definitions.--As used in this section:
            ``(1) 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.
            ``(2) Telemessaging services.--The term `telemessaging 
        services' means voice mail and voice storage and retrieval 
        services provided over telephone lines for telemessaging 
        customers and any live operator services used to answer, 
        record, transcribe, and relay messages (other than 
        telecommunications relay services) from incoming telephone 
        calls on behalf of the telemessaging customers (other than any 
        service incidental to directory assistance).''.

SEC. 103. FORBEARANCE FROM REGULATION.

    Title II of the Communications Act of 1934 is amended by inserting 
after section 228 (47 U.S.C. 228) the following new section:

``SEC. 229. FORBEARANCE FROM REGULATION.

    ``(a) Authority to Forbear.--The Commission shall forbear from 
applying any provision of this part or part II (other than sections 
201, 202, 208, 243, and 247), or any regulation thereunder, to a common 
carrier or service, or class of carriers or services, in any or some of 
its or their geographic markets, if the Commission determines that--
            ``(1) enforcement of such provision or regulation is not 
        necessary to ensure that the charges, practices, 
        classifications, or regulations by, for, or in connection with 
        that carrier or service are just and reasonable and are not 
        unjustly or unreasonably discriminatory;
            ``(2) enforcement of such regulation or provision is not 
        necessary for the protection of consumers; and
            ``(3) forbearance from applying such provision or 
        regulation is consistent with the public interest.
    ``(b) Competitive Effect To Be Weighed.--In making the 
determination under subsection (a)(3), the Commission shall consider 
whether forbearance from enforcing the provision or regulation will 
promote competitive market conditions, including the extent to which 
such forbearance will enhance competition among providers of 
telecommunications services. If the Commission determines that such 
forbearance will promote competition among providers of 
telecommunications services, that determination may be the basis for a 
Commission finding that forbearance is in the public interest.''.

SEC. 104. PRIVACY OF CUSTOMER INFORMATION.

    (a) Privacy of Customer Proprietary Network Information.--Title II 
of the Communications Act of 1934 is amended by inserting after section 
221 (47 U.S.C. 221) the following new section:

``SEC. 222. PRIVACY OF CUSTOMER PROPRIETARY NETWORK INFORMATION.

    ``(a) Subscriber List Information.--Notwithstanding subsections 
(b), (c), and (d), a 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 request.
    ``(b) Privacy Requirements for Common Carriers.--A carrier--
            ``(1) shall not, except as required by law or with the 
        approval of the customer to which the information relates--
                    ``(A) use customer proprietary network information 
                in the provision of any service except to the extent 
                necessary (i) in the provision of common carrier 
                services, (ii) in the provision of a service necessary 
                to or used in the provision of common carrier services, 
                including the publishing of directories, or (iii) to 
                continue to provide a particular information service 
                that the carrier provided as of May 1, 1995, to persons 
                who were customers of such service on that date;
                    ``(B) use customer proprietary network information 
                in the identification or solicitation of potential 
                customers for any service other than the telephone 
                exchange service or telephone toll service from which 
                such information is derived;
                    ``(C) use customer proprietary network information 
                in the provision of customer premises equipment; or
                    ``(D) disclose customer proprietary network 
                information to any person except to the extent 
                necessary to permit such person to provide services or 
                products that are used in and necessary to the 
                provision by such carrier of the services described in 
                subparagraph (A);
            ``(2) shall disclose customer proprietary network 
        information, upon affirmative written request by the customer, 
        to any person designated by the customer;
            ``(3) shall, whenever such carrier provides any aggregate 
        information, notify the Commission of the availability of such 
        aggregate information and shall provide such aggregate 
        information on reasonable terms and conditions to any other 
        service or equipment provider upon reasonable request therefor; 
        and
            ``(4) except for disclosures permitted by paragraph (1)(D), 
        shall not unreasonably discriminate between affiliated and 
        unaffiliated service or equipment providers in providing access 
        to, or in the use and disclosure of, individual and aggregate 
        information made available consistent with this subsection.
    ``(c) Rule of Construction.--This section shall not be construed to 
prohibit the use or disclosure of customer proprietary network 
information as necessary--
            ``(1) to render, bill, and collect for the services 
        identified in subparagraph (A);
            ``(2) to render, bill, and collect for any other service 
        that the customer has requested;
            ``(3) to protect the rights or property of the carrier;
            ``(4) to protect users of any of those services and other 
        carriers from fraudulent, abusive, or unlawful use of or 
        subscription to such service; or
            ``(5) to provide any inbound telemarketing, referral, or 
        administrative services to the customer for the duration of the 
        call if such call was initiated by the customer and the 
        customer approves of the use of such information to provide 
        such service.
    ``(d) Exemption Permitted.--The Commission may, by rule, exempt 
from the requirements of subsection (b) carriers that have, together 
with any affiliated carriers, in the aggregate nationwide, fewer than 
500,000 access 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.
    ``(e) Definitions.--As used in this section:
            ``(1) Customer proprietary network information.--The term 
        `customer proprietary network information' means--
                    ``(A) information which relates to the quantity, 
                technical configuration, type, destination, and amount 
                of use of telephone exchange service or telephone toll 
                service subscribed to by any customer of a carrier, and 
                is made available to the carrier by the customer solely 
                by virtue of the carrier-customer relationship;
                    ``(B) information contained in the bills pertaining 
                to telephone exchange service or telephone toll service 
                received by a customer of a carrier; and
                    ``(C) such other information concerning the 
                customer as is available to the local exchange carrier 
                by virtue of the customer's use of the carrier's 
                telephone exchange service or telephone toll services, 
                and 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) Subscriber list information.--The term `subscriber 
        list information' means any information--
                    ``(A) identifying the listed names of subscribers 
                of a carrier and such subscribers' telephone numbers, 
                addresses, or primary advertising classifications, or 
                any combination of such listed names, numbers, 
                addresses, or classifications; and
                    ``(B) that the carrier or an affiliate has 
                published or accepted for future publication.''.
            ``(3) Aggregate information.--The term `aggregate 
        information' means collective data that relates to a group or 
        category of services or customers, from which individual 
        customer identities and characteristics have been removed.''.
    (b) Converging Communications Technologies and Consumer Privacy.--
            (1) Commission examination.--Within one year after the date 
        of enactment of this Act, the Commission shall commence a 
        proceeding--
                    (A) 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;
                    (B) 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;
                    (C) 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;
                    (D) to propose changes in the Commission's 
                regulations as necessary to correct any defects 
                identified pursuant to subparagraph (A) in such rights 
                and remedies; and
                    (E) to prepare recommendations to the Congress for 
                any legislative changes required to correct such 
                defects.
            (2) Subjects for examination.--In conducting the 
        examination required by paragraph (1), the Commission shall 
        determine whether consumers are able, and, if not, the methods 
        by which consumers may be enabled--
                    (A) to have knowledge that consumer information is 
                being collected about them through their utilization of 
                various communications technologies;
                    (B) to have notice that such information could be 
                used, or is intended to be used, by the entity 
                collecting the data for reasons unrelated to the 
                original communications, or that such information could 
                be sold (or is intended to be sold) to other companies 
                or entities; and
                    (C) to stop the reuse or sale of that information.
            (3) Schedule for commission responses.--The Commission 
        shall, within 18 months after the date of enactment of this 
        Act--
                    (A) complete any rulemaking required to revise 
                Commission regulations to correct defects in such 
                regulations identified pursuant to paragraph (1); and
                    (B) submit to the Congress a report containing the 
                recommendations required by paragraph (1)(C).

SEC. 105. POLE ATTACHMENTS.

    Section 224 of the Communications Act of 1934 (47 U.S.C. 244) is 
amended--
            (1) in subsection (a)(4)--
                    (A) by inserting after ``system'' the following: 
                ``or a provider of telecommunications service''; and
                    (B) by inserting after ``utility'' the following: 
                ``, which attachment may be used by such cable 
                television system to provide cable service or any other 
                service,'';
            (2) by redesignating paragraphs (1) and (2) of subsection 
        (b) as paragraphs (2) and (3), respectively;
            (3) by inserting before paragraph (2) of subsection (b) (as 
        so redesignated) the following:
    ``(b)(1) A utility shall provide a cable television system or other 
provider of telecommunications services with nondiscriminatory access 
to any pole, duct, conduit, or right-of-way owned or controlled by the 
utility.'';
            (4) in subsection (c)(2)(B), by striking ``cable television 
        services'' and inserting ``the services offered via such 
        attachments'';
            (5) by redesignating subsection (d)(2) as subsection 
        (d)(4); and
            (6) by striking subsection (d)(1) and inserting the 
        following:
    ``(d)(1) For purposes of subsection (b) of this section, the 
Commission shall, no later than 1 year after the date of enactment of 
the Communication Act of 1995, prescribe regulations for ensuring that 
utilities charge just and reasonable and nondiscriminatory rates for 
pole attachments provided to all providers of telecommunications 
services, including such attachments used by cable television systems 
to provide telecommunications services (as defined in section 3 of this 
Act). Such regulations shall--
            ``(A) apportion the cost of the entire pole, duct, conduit, 
        or right-of-way according to the percentage of usable space 
        required for each entity, and
            ``(B) allow for reasonable terms and conditions relating to 
        health, safety, and the provision of reliable utility service.
    ``(2) An entity that obtains an attachment to a pole, conduit, or 
right-of-way shall not be required to bear any of the costs of 
rearranging or replacing its attachment, if such rearrangement or 
replacement is required as a result of an additional attachment or the 
modification of an existing attachment sought by any other entity 
(including the owner of such pole, conduct, or right-of-way).
    ``(3) Whenever the owner of a conduit or right-of-way has made such 
conduit or right-of-way accessible, the owner shall provide written 
notification of such action to any entity that has obtained an 
attachment to such conduit or right-of-way so that such entity may have 
a reasonable opportunity to add to or modify its existing attachment. 
Any entity that adds to or modifies its existing attachment after 
receiving such notification shall bear an equitable share of the costs 
incurred by the owner in making such conduit or right-of-way 
accessible.''.

SEC. 106. PREEMPTION OF FRANCHISING AUTHORITY REGULATION OF 
              TELECOMMUNICATIONS SERVICES.

    (a) Telecommunications Services.--Section 621(b) of the 
Communications Act of 1934 (47 U.S.C. 541(c)) is amended by adding at 
the end thereof the following new paragraph:
    ``(3)(A) To the extent that a cable operator or affiliate thereof 
is engaged in the provision of telecommunications services--
            ``(i) such cable operator or affiliate shall not be 
        required to obtain a franchise under this title; and
            ``(ii) the provisions of this title shall not apply to such 
        cable operator or affiliate.
    ``(B) A franchising authority may not impose any requirement that 
has the purpose or effect of prohibiting, limiting, restricting, or 
conditioning the provision of a telecommunications service by a cable 
operator or an affiliate thereof.
    ``(C) A franchising authority may not order a cable operator or 
affiliate thereof--
            ``(i) to discontinue the provision of a telecommunications 
        service, or
            ``(ii) to discontinue the operation of a cable system, to 
        the extent such cable system is used for the provision of a 
        telecommunications service, by reason of the failure of such 
        cable operator or affiliate thereof to obtain a franchise or 
        franchise renewal under this title with respect to the 
        provision of such telecommunications service.
    ``(D) A franchising authority may not require a cable operator to 
provide any telecommunications service or facilities as a condition of 
the initial grant of a franchise or a franchise renewal.''.
    (b) Franchise Fees.--Section 622(b) of the Communications Act of 
1934 (47 U.S.C. 542(b)) is amended by inserting ``to provide cable 
services'' immediately before the period at the end of the first 
sentence thereof.

SEC. 107. MOBILE SERVICE ACCESS TO LONG DISTANCE CARRIERS.

    (a) Amendment.--Section 332(c) of the Communications Act of 1934 
(47 U.S.C. 332(c)) is amended by adding at the end the following new 
paragraph:
            ``(7) Mobile services access.--(A) The Commission shall 
        prescribe regulations to afford subscribers of two-way switched 
        voice commercial mobile radio services access to a provider of 
        telephone toll service of the subscriber's choice, except to 
        the extent that such provider is engaged in the provision of a 
        mobile satellite service. The Commission may exempt carriers or 
        classes of carriers from the requirements of such regulations 
        to the extent the Commission determines such exemption is 
        consistent with the public interest, convenience, and 
        necessity. For purposes of this paragraph, `access' shall mean 
        access to a provider of telephone toll service through the use 
        of carrier identification codes assigned to each such provider.
            ``(B) The regulations prescribed by the Commission pursuant 
        to subparagraph (A) shall supersede any inconsistent 
        requirements imposed by the Modification of Final Judgment or 
        any order in United States v. AT&T Corp. and McCaw Cellular 
        Communications, Inc., Civil Action No. 94-01555 (United States 
        District Court, District of Columbia).''.
    (b) Effective Date Conforming Amendment.--Section 6002(c)(2)(B) of 
the Omnibus Budget Reconciliation Act of 1993 is amended by striking 
``section 332(c)(6)'' and inserting ``paragraphs (6) and (7) of section 
332(c)''.

             TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS

SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.

    (a) General Requirement.--
            (1) Amendment.--Section 613(b) of the Communications Act of 
        1934 (47 U.S.C. 533(b)) is amended to read as follows:
    ``(b)(1) Subject to the requirements of part V and the other 
provisions of this title, any common carrier subject in whole or in 
part to title II of this Act may, either through its own facilities or 
through an affiliate, provide video programming directly to subscribers 
in its telephone service area.
    ``(2) Subject to the requirements of part V and the other 
provisions of this title, any common carrier subject in whole or in 
part to title II of this Act may provide channels of communications or 
pole, line, or conduit space, or other rental arrangements, to any 
entity which is directly or indirectly owned, operated, or controlled 
by, or under common control with, such common carrier, if such 
facilities or arrangements are to be used for, or in connection with, 
the provision of video programming directly to subscribers in its 
telephone service area.
    ``(3) Notwithstanding paragraphs (1) and (2), an affiliate that--
            ``(A) is, consistent with section 656, owned, operated, or 
        controlled by, or under common control with, a common carrier 
        subject in whole or in part to title II of this Act, and
            ``(B) provides video programming to subscribers in the 
        telephone service area of such carrier, but
            ``(C) does not utilize the local exchange facilities or 
        services of any affiliated common carrier in distributing such 
        programming,
shall not be subject to the requirements of part V, but shall be 
subject to the requirements of this part and parts III and IV.''.
            (2) Conforming amendment.--Section 602 of the 
        Communications Act of 1934 (47 U.S.C. 531) is amended--
                    (A) in paragraph (6)(B), by inserting ``or use'' 
                after ``the selection'';
                    (B) by redesignating paragraphs (18) and (19) as 
                paragraphs (19) and (20) respectively; and
                    (C) by inserting after paragraph (17) the following 
                new paragraph:
            ``(18) the term `telephone service area' when used in 
        connection with a common carrier subject in whole or in part to 
        title II of this Act means the area within which such carrier 
        provides telephone exchange service as of May 1, 1995, but if 
        any common carrier after such date transfers its exchange 
        service facilities to another common carrier, the area to which 
        such facilities provide telephone exchange service shall be 
        treated as part of the telephone service area of the acquiring 
        common carrier and not of the selling common carrier;''.
    (b) Provisions for Regulation of Cable Service Provided by 
Telephone Companies.--Title VI of the Communications Act of 1934 (47 
U.S.C. 521 et seq.) is amended by adding at the end the following new 
part:

  ``PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE COMPANIES

``SEC. 651. DEFINITIONS.

    ``For purposes of this part--
            ``(1) the term `control' means--
                    ``(A) an ownership interest in which an entity has 
                the right to vote more than 50 percent of the 
                outstanding common stock or other ownership interest; 
                or
                    ``(B) if no single entity directly or indirectly 
                has the right to vote more than 50 percent of the 
                outstanding common stock or other ownership interest, 
                actual working control, in whatever manner exercised, 
                as defined by the Commission by regulation on the basis 
                of relevant factors and circumstances, which shall 
                include partnership and direct ownership interests, 
                voting stock interests, the interests of officers and 
                directors, and the aggregation of voting interests; and
            ``(2) the term `rural area' means a geographic area that 
        does not include either--
                    ``(A) any incorporated or unincorporated place of 
                10,000 inhabitants or more, or any part thereof; or
                    ``(B) any territory, incorporated or 
                unincorporated, included in an urbanized area, as 
                defined by the Bureau of the Census.

``SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.

    ``(a) In General.--Except as provided in subsection (d) of this 
section, a common carrier subject to title II of this Act shall not 
provide video programming directly to subscribers in its telephone 
service area unless such video programming is provided through a video 
programming affiliate that is separate from such carrier.
    ``(b) Books and Marketing.--
            ``(1) In general.--A video programming affiliate of a 
        common carrier shall--
                    ``(A) maintain books, records, and accounts 
                separate from such carrier which identify all 
                transactions with such carrier;
                    ``(B) carry out directly (or through any 
                nonaffiliated person) its own promotion, except that 
                institutional advertising carried out by such carrier 
                shall be permitted so long as each party bears its pro 
                rata share of the costs; and
                    ``(C) not own real or personal property in common 
                with such carrier.
            ``(2) Inbound telemarketing and referral.--Notwithstanding 
        paragraph (1)(B), a common carrier may provide telemarketing or 
        referral services in response to the call of a customer or 
        potential customer related to the provision of video 
        programming by a video programming affiliate of such carrier. 
        If such services are provided to a video programming affiliate, 
        such services shall be made available to any video programmer 
        or cable operator on request, on nondiscriminatory terms, at 
        just and reasonable prices, and subject to regulations of the 
        Commission to ensure that the carrier's method of providing 
        telemarketing or referral and its price structure do not 
        competitively disadvantage any video programmer or cable 
        operator, regardless of size, including those which do not use 
        the carrier's telemarketing services.
            ``(3) Joint marketing.--Notwithstanding paragraph (1)(B), a 
        common carrier may market video programming directly upon a 
        showing to the Commission that a cable operator or other entity 
        directly or indirectly provides telecommunications services 
        within the telephone service area of the common carrier, and 
        markets such telecommunications services jointly with video 
        programming services. The common carrier shall specify the 
        geographic region covered by the showing. The Commission shall 
        approve or disapprove such showing within 60 days after the 
        date of its submission.
    ``(c) Business Transactions With Carrier.--Any contract, agreement, 
arrangement, or other manner of conducting business, between a common 
carrier and its video programming affiliate, providing for--
            ``(1) the sale, exchange, or leasing of property between 
        such affiliate and such carrier,
            ``(2) the furnishing of goods or services between such 
        affiliate and such carrier, or
            ``(3) the transfer to or use by such affiliate for its 
        benefit of any asset or resource of such carrier,
shall be on a fully compensatory and auditable basis, shall be without 
cost to the telephone service ratepayers of the carrier, shall be filed 
with the Commission, and shall be in compliance with regulations 
established by the Commission that will enable the Commission to assess 
the compliance of any transaction.
    ``(d) Waiver.--
            ``(1) Criteria for waiver.--The Commission may waive any of 
        the requirements of this section for small telephone companies 
        or telephone companies serving rural areas, if the Commission 
        determines, after notice and comment, that--
                    ``(A) such waiver will not affect the ability of 
                the Commission to ensure that all video programming 
                activity is carried out without any support from 
                telephone ratepayers;
                    ``(B) the interests of telephone ratepayers and 
                cable subscribers will not be harmed if such waiver is 
                granted;
                    ``(C) such waiver will not adversely affect the 
                ability of persons to obtain access to the video 
                platform of such carrier; and
                    ``(D) such waiver otherwise is in the public 
                interest.
            ``(2) Deadline for action.--The Commission shall act to 
        approve or disapprove a waiver application within 180 days 
        after the date it is filed.
            ``(3) Continued applicability of section 656.--In the case 
        of a common carrier that obtains a waiver under this 
        subsection, any requirement that section 656 applies to a video 
        programming affiliate shall instead apply to such carrier.
    ``(e) Sunset of Requirements.--The provisions of this section shall 
cease to be effective on July 1, 2000.

``SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.

    ``(a) Video Platform.--
            ``(1) In general.--Any common carrier subject to title II 
        of this Act, and that provides video programming directly to 
        subscribers in its telephone service area, shall establish a 
        video platform. This paragraph shall not apply to any carrier 
        to the extent that it provides video programming directly to 
        subscribers in its telephone service area solely through a 
        cable system acquired in accordance with section 655(b).
            ``(2) Identification of demand for carriage.--Any common 
        carrier subject to the requirements of paragraph (1) shall, 
        prior to establishing a video platform, submit a notice to the 
        Commission of its intention to establish channel capacity for 
        the provision of video programming to meet the bona fide demand 
        for such capacity. Such notice shall--
                    ``(A) be in such form and contain information 
                concerning the geographic area intended to be served 
                and such information as the Commission may require by 
                regulations pursuant to subsection (b);
                    ``(B) specify the methods by which any entity 
                seeking to use such channel capacity should submit to 
                such carrier a specification of its channel capacity 
                requirements; and
                    ``(C) specify the procedures by which such carrier 
                will determine (in accordance with the Commission's 
                regulations under subsection (b)(1)(B)) whether such 
                requests for capacity are bona fide.
        The Commission shall submit any such notice for publication in 
        the Federal Register within 5 working days.
            ``(3) Response to request for carriage.--After receiving 
        and reviewing the requests for capacity submitted pursuant to 
        such notice, such common carrier shall establish channel 
        capacity that is sufficient to provide carriage for--
                    ``(A) all bona fide requests submitted pursuant to 
                such notice,
                    ``(B) any additional channels required pursuant to 
                section 656, and
                    ``(C) any additional channels required by the 
                Commission's regulations under subsection (b)(1)(C).
            ``(4) Responses to changes in demand for capacity.--Any 
        common carrier that establishes a video platform under this 
        section shall--
                    ``(A) immediately notify the Commission and each 
                video programming provider of any delay in or denial of 
                channel capacity or service, and the reasons therefor;
                    ``(B) continue to receive and grant, to the extent 
                of available capacity, carriage in response to bona 
                fide requests for carriage from existing or additional 
                video programming providers;
                    ``(C) if at any time the number of channels 
                required for bona fide requests for carriage may 
                reasonably be expected soon to exceed the existing 
                capacity of such video platform, immediately notify the 
                Commission of such expectation and of the manner and 
                date by which such carrier will provide sufficient 
                capacity to meet such excess demand; and
                    ``(D) construct such additional capacity as may be 
                necessary to meet such excess demand.
            ``(5) Dispute resolution.--The Commission shall have the 
        authority to resolve disputes under this section and the 
        regulations prescribed thereunder. Any such dispute shall be 
        resolved within 180 days after notice of such dispute is 
        submitted to the Commission. At that time or subsequently in a 
        separate damages proceeding, the Commission may award damages 
        sustained in consequence of any violation of this section to 
        any person denied carriage, or require carriage, or both. Any 
        aggrieved party may seek any other remedy available under this 
        Act.
    ``(b) Commission Actions.--
            ``(1) In general.--Within 15 months after the date of the 
        enactment of this section, the Commission shall complete all 
        actions necessary (including any reconsideration) to prescribe 
        regulations that--
                    ``(A) consistent with the requirements of section 
                656, prohibit a common carrier from discriminating 
                among video programming providers with regard to 
                carriage on its video platform, and ensure that the 
                rates, terms, and conditions for such carriage are 
                just, reasonable, and nondiscriminatory;
                    ``(B) prescribe definitions and criteria for the 
                purposes of determining whether a request shall be 
                considered a bona fide request for purposes of this 
                section;
                    ``(C) permit a common carrier to carry on only one 
                channel any video programming service that is offered 
                by more than one video programming provider (including 
                the common carrier's video programming affiliate), 
                provided that subscribers have ready and immediate 
                access to any such video programming service;
                    ``(D) establish a requirement that video platforms 
                contain a suitable margin of unused channel capacity to 
                meet reasonable growth in bona fide demand for such 
                capacity;
                    ``(E) extend to the distribution of video 
                programming over video platforms the Commission's 
                regulations concerning network nonduplication (47 
                C.F.R. 76.92 et seq.) and syndicated exclusivity (47 
                C.F.R. 76.151 et seq.);
                    ``(F) require the video platform to provide 
                service, transmission, interconnection, and 
                interoperability for unaffiliated or independent video 
                programming providers that is equivalent to that 
                provided to the common carrier's video programming 
                affiliate, except that the video platform shall not 
                discriminate between analog and digital video 
                programming offered by such unaffiliated or independent 
                video programming providers;
                    ``(G)(i) prohibit a common carrier from 
                discriminating among video programming providers with 
                regard to material or information provided by the 
                common carrier to subscribers for the purposes of 
                selecting programming on the video platform, or in the 
                way such material or information is presented to 
                subscribers;
                    ``(ii) require a common carrier to ensure that 
                video programming providers or copyright holders (or 
                both) are able suitably and uniquely to identify their 
                programming services to subscribers; and
                    ``(iii) if such identification is transmitted as 
                part of the programming signal, require the carrier to 
                transmit such identification without change or 
                alteration; and
                    ``(H) prohibit a common carrier from excluding 
                areas from its video platform service area on the basis 
                of the ethnicity, race, or income of the residents of 
                that area, and provide for public comments on the 
                adequacy of the proposed service area on the basis of 
                the standards set forth under this subparagraph.
            ``(2) Applicability to other high capacity systems.--The 
        Commission shall apply the requirements of this section, in 
        lieu of the requirements of section 612, to any cable operator 
        of a cable system that has installed a switched, broadband 
        video programming delivery system, except that the Commission 
        shall not apply the requirements of the regulations prescribed 
        pursuant to subsection (b)(1)(D) or any other requirement that 
        the Commission determines is inappropriate.
    ``(c) Regulatory Streamlining.--With respect to the establishment 
and operation of a video platform, the requirements of this section 
shall apply in lieu of, and not in addition to, the requirements of 
title II.
    ``(d) Commission Inquiry.--The Commission shall conduct a study of 
whether it is in the public interest to extend the requirements of 
subsection (a) to any other cable operators in lieu of the requirements 
of section 612. The Commission shall submit to the Congress a report on 
the results of such study not later than 2 years after the date of 
enactment of this section.

``SEC. 654. AUTHORITY TO PROHIBIT CROSS-SUBSIDIZATION.

    ``Nothing in this part shall prohibit a State commission that 
regulates the rates for telephone exchange service or exchange access 
based on the cost of providing such service or access from--
            ``(1) prescribing regulations to prohibit a common carrier 
        from engaging in any practice that results in the inclusion in 
        rates for telephone exchange service or exchange access of any 
        operating expenses, costs, depreciation charges, capital 
        investments, or other expenses directly associated with the 
        provision of competing video programming services by the common 
        carrier or affiliate; or
            ``(2) ensuring such competing video programming services 
        bear a reasonable share of the joint and common costs of 
        facilities used to provide telephone exchange service or 
        exchange access and competing video programming services.

``SEC. 655. PROHIBITION ON BUY OUTS.

    ``(a) General Prohibition.--No common carrier that provides 
telephone exchange service, and no entity owned by or under common 
ownership or control with such carrier, may purchase or otherwise 
obtain control over any cable system that is located within its 
telephone service area and is owned by an unaffiliated person.
    ``(b) Exceptions.--Notwithstanding subsection (a), a common carrier 
may--
            ``(1) obtain a controlling interest in, or form a joint 
        venture or other partnership with, a cable system that serves a 
        rural area;
            ``(2) obtain, in addition to any interest, joint venture, 
        or partnership obtained or formed pursuant to paragraph (1), a 
        controlling interest in, or form a joint venture or other 
        partnership with, any cable system or systems if--
                    ``(A) such systems in the aggregate serve less than 
                10 percent of the households in the telephone service 
                area of such carrier; and
                    ``(B) no such system serves a franchise area with 
                more than 35,000 inhabitants, except that a common 
                carrier may obtain such interest or form such joint 
                venture or other partnership with a cable system that 
                serves a franchise area with more than 35,000 but not 
                more than 50,000 inhabitants if such system is not 
                affiliated with any other system whose franchise area 
                is contiguous to the franchise area of the acquired 
                system;
            ``(3) obtain, with the concurrence of the cable operator on 
        the rates, terms, and conditions, the use of that part of the 
        transmission facilities of such a cable system extending from 
        the last multi-user terminal to the premises of the end user, 
        if such use is reasonably limited in scope and duration, as 
        determined by the Commission; or
            ``(4) obtain a controlling interest in, or form a joint 
        venture or other partnership with, or provide financing to, a 
        cable system (hereinafter in this paragraph referred to as `the 
        subject cable system'), if--
                    ``(A) the subject cable system operates in a 
                television market that is not in the top 25 markets, 
                and that has more than 1 cable system operator, and the 
                subject cable system is not the largest cable system in 
                such television market;
                    ``(B) the subject cable system and the largest 
                cable system in such television market held on May 1, 
                1995, cable television franchises from the largest 
                municipality in the television market and the 
                boundaries of such franchises were identical on such 
                date;
                    ``(C) the subject cable system is not owned by or 
                under common ownership or control of any one of the 50 
                largest cable system operators as existed on May 1, 
                1995; and
                    ``(D) the largest system in the television market 
                is owned by or under common ownership or control of any 
                one of the 10 largest cable system operators as existed 
                on May 1, 1995.
    ``(c) Waiver.--
            ``(1) Criteria for waiver.--The Commission may waive the 
        restrictions in subsection (a) of this section only upon a 
        showing by the applicant that--
                    ``(A) because of the nature of the market served by 
                the cable system concerned--
                            ``(i) the incumbent cable operator would be 
                        subjected to undue economic distress by the 
                        enforcement of such subsection; or
                            ``(ii) the cable system would not be 
                        economically viable if such subsection were 
                        enforced; and
                    ``(B) the local franchising authority approves of 
                such waiver.
            ``(2) Deadline for action.--The Commission shall act to 
        approve or disapprove a waiver application within 180 days 
        after the date it is filed.

``SEC. 656. APPLICABILITY OF PARTS I THROUGH IV.

    ``(a) In General.--Any provision that applies to a cable operator 
under--
            ``(1) sections 613, 616, 617, 628, 631, 632, and 634 of 
        this title, shall apply,
            ``(2) sections 611, 612, 614, and 615 of this title, and 
        section 325 of title III, shall apply in accordance with the 
        regulations prescribed under subsection (b), and
            ``(3) parts III and IV (other than sections 628, 631, 632, 
        and 634) of this title shall not apply,
to any video programming affiliate established by a common carrier in 
accordance with the requirements of this part.
    ``(b) Implementation.--
            ``(1) Commission action.--The Commission shall prescribe 
        regulations to ensure that a common carrier in the operation of 
        its video platform shall provide (A) capacity, services, 
        facilities, and equipment for public, educational, and 
        governmental use, (B) capacity for commercial use, (C) carriage 
        of commercial and non-commercial broadcast television stations, 
        and (D) an opportunity for commercial broadcast stations to 
        choose between mandatory carriage and reimbursement for 
        retransmission of the signal of such station. In prescribing 
        such regulations, the Commission shall, to the extent possible, 
        impose obligations that are no greater or lesser than the 
        obligations contained in the provisions described in subsection 
        (a)(2) of this section.
            ``(2) Fees.--A video programming affiliate of any common 
        carrier that establishes a video platform under this part, and 
        any multichannel video programming distributor offering a 
        competing service using such video platform (as determined in 
        accordance with regulations of the Commission), shall be 
        subject to the payment of fees imposed by a local franchising 
        authority, in lieu of the fees required under section 622. The 
        rate at which such fees are imposed shall not exceed the rate 
        at which franchise fees are imposed on any cable operator 
        transmitting video programming in the same service area.

``SEC. 657. RURAL AREA EXEMPTION.

    ``The provisions of sections 652, 653, and 655 shall not apply to 
video programming provided in a rural area by a common carrier that 
provides telephone exchange service in the same area.''.

SEC. 202. COMPETITION FROM CABLE SYSTEMS.

    (a) Definition of Cable Service.--Section 602(6)(B) of the 
Communications Act of 1934 (47 U.S.C. 522(6)(B)) is amended by 
inserting ``or use'' after ``the selection''.
    (b) Clustering.--Section 613 of the Communications Act of 1934 (47 
U.S.C. 533) is amended by adding at the end the following new 
subsection:
    ``(i) Acquisition of Cable Systems.--The Commission may not require 
divestiture of, or restrict or prevent the acquisition of, an ownership 
interest in a cable system by any person based in whole or in part on 
the geographic location of such cable system.''.
    (c) Equipment.--Section 623(a) of the Communications Act of 1934 
(47 U.S.C. 543(a)) is amended--
            (1) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Equipment.--If the Commission finds that a cable 
        system is subject to effective competition under subparagraph 
        (D) of subsection (l)(1), the rates for equipment, 
        installations, and connections for additional television 
        receivers (other than equipment, installations, and connections 
        furnished by such system to subscribers who receive only a rate 
        regulated basic service tier) shall not be subject to 
        regulation by the Commission or by a State or franchising 
        authority. If the Commission finds that a cable system is 
        subject to effective competition under subparagraph (A), (B), 
        or (C) of subsection (l)(1), the rates for any equipment, 
        installations, and connections furnished by such system to any 
        subscriber shall not be subject to regulation by the 
        Commission, or by a State or franchising authority. No Federal 
        agency, State, or franchising authority may establish the price 
        or rate for the installation, sale, or lease of any equipment 
        furnished to any subscriber by a cable system solely in 
        connection with video programming offered on a per channel or 
        per program basis.''.
    (d) Limitation on Basic Tier Rate Increases; Scope of Review.--
Section 623(a) of the Communications Act of 1934 (47 U.S.C. 543(a)) is 
further amended by adding at the end the following new paragraph:
            ``(8) Limitation on basic tier rate increases; scope of 
        review.--A cable operator may not increase its basic service 
        tier rate more than once every 6 months. Such increase may be 
        implemented, using any reasonable billing or proration method, 
        30 days after providing notice to subscribers and the 
        appropriate regulatory authority. The rate resulting from such 
        increase shall be deemed reasonable and shall not be subject to 
        reduction or refund if the franchising authority or the 
        Commission, as appropriate, does not complete its review and 
        issue a final order within 90 days after implementation of such 
        increase. The review by the franchising authority or the 
        Commission of any future increase in such rate shall be limited 
        to the incremental change in such rate effected by such 
        increase.''.
    (e) National Information Infrastructure Development.--Section 
623(a) of the Communications Act of 1934 (47 U.S.C. 543) is further 
amended by adding at the end the following new paragraph:
            ``(9) National information infrastructure.--
                    ``(A) Purpose.--It is the purpose of this paragraph 
                to--
                            ``(i) promote the development of the 
                        National Information Infrastructure;
                            ``(ii) enhance the competitiveness of the 
                        National Information Infrastructure by ensuring 
                        that cable operators have incentives comparable 
                        to other industries to develop such 
                        infrastructure; and
                            ``(iii) encourage the rapid deployment of 
                        digital technology necessary to the development 
                        of the National Information Infrastructure.
                    ``(B) Aggregation of equipment costs.--The 
                Commission shall allow cable operators, pursuant to any 
                rules promulgated under subsection (b)(3), to 
                aggregate, on a franchise, system, regional, or company 
                level, their equipment costs into broad categories, 
                such as converter boxes, regardless of the varying 
                levels of functionality of the equipment within each 
                such broad category. Such aggregation shall not be 
                permitted with respect to equipment used by subscribers 
                who receive only a rate regulated service tier.
                    ``(C) Revision to commission rules; forms.--Within 
                90 days of the date of enactment of this paragraph, the 
                Commission shall issue revisions to the appropriate 
                rules and forms necessary to implement subparagraph 
                (B).''.
    (f) Complaint Threshold; Scope of Commission Review.--Section 
623(c) of the Communications Act of 1934 (47 U.S.C. 543(c)) is 
amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Review of complaints.--
                    ``(A) Complaint threshold.--The Commission shall 
                have the authority to review any increase in the rates 
                for cable programming services implemented after the 
                date of enactment of the Communications Act of 1995 
                only if, within 90 days after such increase becomes 
                effective, at least 10 subscribers to such services or 
                5 percent of the subscribers to such services, 
                whichever is greater, file separate, individual 
                complaints against such increase with the Commission in 
                accordance with the requirements established under 
                paragraph (1)(B).
                    ``(B) Time period for commission review.--The 
                Commission shall complete its review of any such 
                increase and issue a final order within 90 days after 
                it receives the number of complaints required by 
                subparagraph (A).
            ``(4) Treatment of pending cable programming services 
        complaints.--Upon enactment of the Communications Act of 1995, 
        the Commission shall suspend the processing of all pending 
        cable programming services rate complaints. These pending 
        complaints shall be counted by the Commission toward the 
        complaint threshold specified in paragraph (3)(A). Parties 
        shall have an additional 90 days from the date of enactment of 
        such Act to file complaints about prior increases in cable 
        programming services rates if such rate increases were already 
        subject to a valid, pending complaint on the date of enactment. 
        At the expiration of such 90-day period, the Commission shall 
        dismiss all pending cable programming services rate cases for 
which the complaint threshold has not been met, and may resume its 
review of those pending cable programming services rate cases for which 
the complaint threshold has been met, which review shall be completed 
within 180 days after the date of the Communications Act of 1995.
            ``(5) Scope of commission review.--A cable programming 
        services rate shall be deemed not unreasonable and shall not be 
        subject to reduction or refund if--
                    ``(A) such rate was not the subject of a pending 
                complaint at the time of enactment of the 
                Communications Act of 1995;
                    ``(B) such rate was the subject of a complaint that 
                was dismissed pursuant to paragraph (4);
                    ``(C) such rate resulted from an increase for which 
                the complaint threshold specified in paragraph (3)(A) 
                has not been met;
                    ``(D) the Commission does not complete its review 
                and issue a final order in the time period specified in 
                paragraph (3)(B) or (4); or
                    ``(E) the Commission issues an order finding such 
                rate to be not unreasonable.
        The review by the Commission of any future increase in such 
        rate shall be limited to the incremental change in such rate 
        effected by such increase.'';
            (2) in paragraph (1)(B) by striking ``obtain Commission 
        consideration and resolution of whether the rate in question is 
        unreasonable'' and inserting ``be counted toward the complaint 
        threshold specified in paragraph (3)(A)''; and
            (3) in paragraph (1)(C) by striking ``such complaint'' and 
        inserting in lieu thereof ``the first complaint''.
    (g) Uniform Rate Structure.--Section 623(d) of the Communications 
Act of 1934 (47 U.S.C. 543(d)) is amended to read as follows:
    ``(d) Uniform Rate Structure.--A cable operator shall have a 
uniform rate structure throughout its franchise area for the provision 
of cable services that are regulated by the Commission or the 
franchising authority. Bulk discounts to multiple dwelling units shall 
not be subject to this requirement.''.
    (h) Effective Competition.--Section 623(l)(1) of the Communications 
Act of 1934 (47 U.S.C. 543(l)(1)) is amended--
            (1) in subparagraph (B)(ii)--
                    (A) by inserting ``all'' before ``multichannel 
                video programming distributors''; and
                    (B) by striking ``or'' at the end thereof;
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(D) with respect to cable programming services 
                and subscriber equipment, installations, and 
                connections for additional television receivers (other 
                than equipment, installations, and connections 
                furnished to subscribers who receive only a rate 
                regulated basic service tier)--
                            ``(i) a common carrier has been authorized 
                        by the Commission to construct facilities to 
                        provide video dialtone service in a cable 
                        operator's franchise area;
                            ``(ii) a common carrier has been authorized 
                        by the Commission or pursuant to a franchise to 
                        provide video programming directly to 
                        subscribers in the franchise area; or
                            ``(iii) the Commission has completed all 
                        actions necessary (including any 
                        reconsideration) to prescribe regulations 
                        pursuant to section 653(b)(1) relating to video 
                        platforms.''.
    (i) Relief for Cable Operators.--Section 623 of the Communications 
Act of 1934 (47 U.S.C. 543) is amended by adding at the end the 
following new subsection:
    ``(m) Small Cable Operators.--
            ``(1) Small cable operator relief.--A small cable operator 
        shall not be subject to subsections (a), (b), (c), or (d) in 
        any franchise area with respect to the provision of cable 
        programming services, or a basic service tier where such tier 
        was the only tier offered in such area on December 31, 1994.
            ``(2) Definition of small cable operator.--For purposes of 
        this subsection, `small cable operator' means a cable operator 
        that--
                    ``(A) directly or through an affiliate, serves in 
                the aggregate fewer than 1 percent of all cable 
                subscribers in the United States; and
                    ``(B) is not affiliated with any entity or entities 
                whose gross annual revenues in the aggregate exceed 
                $250,000,000.''.
    (j) Technical Standards.--Section 624(e) of the Communications Act 
of 1934 (47 U.S.C. 544(e)) is amended by striking the last two 
sentences and inserting the following: ``No State or franchising 
authority may prohibit, condition, or restrict a cable system's use of 
any type of subscriber equipment or any transmission technology.''.
    (k) Cable Security Systems.--Section 624A(b)(2) of the 
Communications Act of 1934 (47 U.S.C. 544a(b)(2)) is amended to read as 
follows:
            ``(2) Cable security systems.--No federal agency, State, or 
        franchising authority may prohibit or limit a cable operator's 
        use of any security system (including scrambling, encryption, 
        traps, and interdiction), except that the Commission may 
        prohibit or limit the use of any such system solely with 
        respect to the delivery of a basic service tier that, as of 
        January 1, 1995, contained only the signals and programming 
        specified in section 623(b)(7)(A), unless the use of such 
        system is necessary to prevent the unauthorized reception of 
        such tier.''.
    (l) Retiering of Basic Tier Services.--Section 625(d) of the 
Communications Act of 1934 (47 U.S.C. 543(d)) is amended by adding at 
the end the following new sentence: ``Any signals or services carried 
on the basic service tier but not required under section 623(b)(7)(A) 
may be moved from the basic service tier at the operator's sole 
discretion, except to the extent that the removal of such a signal or 
service from the basic service tier is prohibited by contract. The 
movement of such signals or services to an unregulated package of 
services shall not subject such package to regulation.''.
    (m) Subscriber Notice.--Section 632 of the Communications Act of 
1934 (47 U.S.C. 552) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Subscriber Notice.--A cable operator may provide notice of 
service and rate changes to subscribers using any reasonable written 
means at its sole discretion. Notwithstanding section 623(b)(6) or any 
other provision of this Act, a cable operator shall not be required to 
provide prior notice of any rate change that is the result of a 
regulatory fee, franchise fee, or any other fee, tax, assessment, or 
charge of any kind imposed by any Federal agency, State, or franchising 
authority on the transaction between the operators and subscriber.''.

SEC. 203. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.

    Title VII of the Communications Act of 1934 is amended by adding at 
the end the following new section:

``SEC. 713. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.

    ``(a) Definitions.--As used in this section:
            ``(1) The term `telecommunications subscription service' 
        means the provision directly to subscribers of video, voice, or 
        data services for which a subscriber charge is made.
            ``(2) The term `telecommunications system' or a 
        `telecommunications system operator' means a provider of 
        telecommunications subscription service.
    ``(b) Competitive Consumer Availability of Customer Premises 
Equipment.--The Commission shall adopt regulations to assure 
competitive availability, to consumers of telecommunications 
subscription services, of converter boxes, interactive communications 
devices, and other customer premises equipment from manufacturers, 
retailers, and other vendors not affiliated with any telecommunications 
system operator. Such regulations shall take into account the needs of 
owners and distributors of video programming and information services 
to ensure system and signal security and prevent theft of service. Such 
regulations shall not prohibit any telecommunications system operator 
from also offering devices and customer premises equipment to 
consumers, provided that the system operator's charges to consumers for 
such devices and equipment are separately stated and not bundled with 
or subsidized by charges for any telecommunications subscription 
service.
    ``(c) Waiver for New Network Services.--The Commission may waive a 
regulation adopted pursuant to subsection (b) for a limited time upon 
an appropriate showing by a telecommunications system operator that 
such waiver is necessary to the introduction of a new 
telecommunications subscription service.
    ``(d) Sunset.--The regulations adopted pursuant to this section 
shall be terminated when the Commission determines that there exists a 
fully competitive market for the acquisition of converter boxes, 
interactive communications devices, and other customer premises 
equipment.''.

SEC. 204. VIDEO PROGRAMMING ACCESSIBILITY.

    (a) Commission Inquiry.--Within 180 days after the date of 
enactment of this section, the Federal Communications Commission shall 
complete an inquiry to ascertain the level at which video programming 
is closed captioned. Such inquiry shall examine the extent to which 
existing or previously published programming is closed captioned, the 
size of the video programming provider or programming owner providing 
closed captioning, the size of the market served, the relative audience 
shares achieved, or any other related factors. The Commission shall 
submit to the Congress a report on the results of such inquiry.
    (b) Accountability Criteria.--Within 18 months after the date of 
enactment, the Commission shall prescribe such regulations as are 
necessary to implement this section. Such regulations shall ensure 
that--
            (1) video programming first published or exhibited after 
        the effective date of such regulations is fully accessible 
        through the provision of closed captions, except as provided in 
        subsection (d); and
            (2) video programming providers or owners maximize the 
        accessibility of video programming first published or exhibited 
        prior to the effective date of such regulations through the 
        provision of closed captions, except as provided in subsection 
        (d).
    (c) Deadlines for Captioning.--Such regulations shall include an 
appropriate schedule of deadlines for the provision of closed 
captioning of video programming.
    (d) Exemptions.--Notwithstanding subsection (b)--
            (1) the Commission may exempt by regulation programs, 
        classes of programs, or services for which the Commission has 
        determined that the provision of closed captioning would be 
        economically burdensome to the provider or owner of such 
        programming;
            (2) a provider of video programming or the owner of any 
        program carried by the provider shall not be obligated to 
        supply closed captions if such action would be inconsistent 
        with contracts in effect on the date of enactment of this Act, 
        except that nothing in this section shall be construed to 
        relieve a video programming provider of its obligations to 
        provide services required by Federal law; and
            (3) a provider of video programming or program owner may 
        petition the Commission for an exemption from the requirements 
        of this section, and the Commission may grant such petition 
        upon a showing that the requirements contained in this section 
        would result in an undue burden.
    (e) Undue Burden.--The term `undue burden' means significant 
difficulty or expense. In determining whether the closed captions 
necessary to comply with the requirements of this paragraph would 
result in an undue economic burden, the factors to be considered 
include--
            (1) the nature and cost of the closed captions for the 
        programming;
            (2) the impact on the operation of the provider or program 
        owner;
            (3) the financial resources of the provider or program 
        owner; and
            (4) the type of operations of the provider or program 
        owner.
    (f) Video Descriptions Inquiry.--Within 6 months after the date of 
enactment of this Act, the Commission shall commence an inquiry to 
examine the use of video descriptions on video programming in order to 
ensure the accessibility of video programming to persons with visual 
impairments, and report to Congress on its findings. The Commission's 
report shall assess appropriate methods and schedules for phasing video 
descriptions into the marketplace, technical and quality standards for 
video descriptions, a definition of programming for which video 
descriptions would apply, and other technical and legal issues that the 
Commission deems appropriate. Following the completion of such inquiry, 
the Commission may adopt regulation it deems necessary to promote the 
accessibility of video programming to persons with visual impairments.
    (g) Video Description.--For purposes of this section, ``video 
description'' means the insertion of audio narrated descriptions of a 
television program's key visual elements into natural pauses between 
the program's dialogue.

SEC. 205. TECHNICAL AMENDMENTS.

    (a) Retransmission.--Section 325(b)(2)(D) of the Communications Act 
of 1934 (47 U.S.C. 325(b)(2)(D)) is amended to read as follows:
            ``(D) retransmission by a cable operator or other 
        multichannel video programming distributor of the signal of a 
        superstation if (i) the customers served by the cable operator 
        or other multichannel video programming distributor reside 
        outside the originating station's television market, as defined 
        by the Commission for purposes of section 614(h)(1)(C); (ii) 
        such signal was obtained from a satellite carrier or 
        terrestrial microwave common carrier; and (iii) and the 
        origination station was a superstation on May 1, 1991.''.
    (b) Market Determinations.--Section 614(h)(1)(C)(i) of the 
Communications Act of 1934 (47 U.S.C. 534(h)(1)(C)(i)) is amended by 
striking out ``in the manner provided in section 73.3555(d)(3)(i) of 
title 47, Code of Federal Regulations, as in effect on May 1, 1991,'' 
and inserting ``by the Commission by regulation or order using, where 
available, commercial publications which delineate television markets 
based on viewing patterns,''.

          TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS

SEC. 301. BROADCASTER SPECTRUM FLEXIBILITY.

    Title III of the Communications Act of 1934 is amended by inserting 
after section 335 (47 U.S.C. 335) the following new section:

``SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.

    ``(a) Commission Action.--If the Commission determines to issue 
additional licenses for advanced television services, the Commission 
shall--
            ``(1) limit the initial eligibility for such licenses to 
        persons that, as of the date of such issuance, are licensed to 
        operate a television broadcast station or hold a permit to 
        construct such a station (or both); and
            ``(2) adopt regulations that allow such licensees or 
        permittees to offer such ancillary or supplementary services on 
        designated frequencies as may be consistent with the public 
        interest, convenience, and necessity.
    ``(b) Contents of Regulations.--In prescribing the regulations 
required by subsection (a), the Commission shall--
            ``(1) only permit such licensee or permittee to offer 
        ancillary or supplementary services if the use of a designated 
        frequency for such services is consistent with the technology 
        or method designated by the Commission for the provision of 
        advanced television services;
            ``(2) limit the broadcasting of ancillary or supplementary 
        services on designated frequencies so as to avoid derogation of 
        any advanced television services, including high definition 
        television broadcasts, that the Commission may require using 
        such frequencies;
            ``(3) apply to any other ancillary or supplementary service 
        such of the Commission's regulations as are applicable to the 
        offering of analogous services by any other person;
            ``(4) adopt such technical and other requirements as may be 
        necessary or appropriate to assure the quality of the signal 
        used to provide advanced television services, and may adopt 
        regulations that stipulate the minimum number of hours per day 
        that such signal must be transmitted; and
            ``(5) prescribe such other regulations as may be necessary 
        for the protection of the public interest, convenience, and 
        necessity.
    ``(c) Recovery of License.--
            ``(1) Conditions required.--If the Commission grants a 
        license for advanced television services to a person that, as 
        of the date of such issuance, is licensed to operate a 
        television broadcast station or holds a permit to construct 
        such a station (or both), the Commission shall, as a condition 
        of such license, require that, upon a determination by the 
        Commission pursuant to the regulations prescribed under 
        paragraph (2), either the additional license or the original 
        license held by the licensee be surrendered to the Commission 
        in accordance with such regulations for reallocation or 
        reassignment (or both) pursuant to Commission regulation.
            ``(2) Criteria.--The Commission shall prescribe criteria 
        for rendering determinations concerning license surrender 
        pursuant to license conditions required by paragraph (1). Such 
        criteria shall--
                    ``(A) require such determinations to be based on 
                whether the substantial majority of the public have 
                obtained television receivers that are capable of 
                receiving advanced television services; and
                    ``(B) not require the cessation of the broadcasting 
                under either the original or additional license if such 
                cessation would render the television receivers of a 
                substantial portion of the public useless, or otherwise 
                cause undue burdens on the owners of such television 
                receivers.
    ``(d) Fees.--
            ``(1) Services to which fees apply.--If the regulations 
        prescribed pursuant to subsection (a) permit a licensee to 
        offer ancillary or supplementary services on a designated 
        frequency--
                    ``(A) for which the payment of a subscription fee 
                is required in order to receive such services, or
                    ``(B) for which the licensee directly or indirectly 
                receives compensation from a third party in return for 
                transmitting material furnished by such third party 
                (other than commercial advertisements used to support 
                broadcasting for which a subscription fee is not 
                required),
        the Commission shall establish a program to assess and collect 
        from the licensee for such designated frequency an annual fee 
        or other schedule or method of payment that promotes the 
        objectives described in subparagraphs (A) and (B) of paragraph 
        (2).
            ``(2) Collection of fees.--The program required by 
        paragraph (1) shall--
                    ``(A) be designed (i) to recover for the public a 
                portion of the value of the public spectrum resource 
                made available for such commercial use, and (ii) to 
                avoid unjust enrichment through the method employed to 
                permit such uses of that resource;
                    ``(B) recover for the public an amount that, to the 
                extent feasible, equals but does not exceed (over the 
                term of the license) the amount that would have been 
                recovered had such services been licensed pursuant to 
                the provisions of section 309(j) of this Act and the 
                Commission's regulations thereunder; and
                    ``(C) be adjusted by the Commission from time to 
                time in order to continue to comply with the 
                requirements of this paragraph.
            ``(3) Treatment of revenues.--
                    ``(A) General rule.--Except as provided in 
                subparagraph (B), all proceeds obtained pursuant to the 
                regulations required by this subsection shall be 
                deposited in the Treasury in accordance with chapter 33 
                of title 31, United States Code.
                    ``(B) Retention of revenues.--Notwithstanding 
                subparagraph (A), the salaries and expenses account of 
                the Commission shall retain as an offsetting collection 
                such sums as may be necessary from such proceeds for 
                the costs of developing and implementing the program 
                required by this section and regulating and supervising 
                advanced television services. Such offsetting 
                collections shall be available for obligation subject 
                to the terms and conditions of the receiving 
                appropriations account, and shall be deposited in such 
                accounts on a quarterly basis.
            ``(4) Report.--Within 5 years after the date of the 
        enactment of this section, the Commission shall report to the 
        Congress on the implementation of the program required by this 
        subsection, and shall annually thereafter advise the Congress 
        on the amounts collected pursuant to such program.
    ``(e) Evaluation.--Within 10 years after the date the Commission 
first issues additional licenses for advanced television services, the 
Commission shall conduct an evaluation of the advanced television 
services program. Such evaluation shall include--
            ``(1) an assessment of the willingness of consumers to 
        purchase the television receivers necessary to receive 
        broadcasts of advanced television services;
            ``(2) an assessment of alternative uses, including public 
        safety use, of the frequencies used for such broadcasts; and
            ``(3) the extent to which the Commission has been or will 
        be able to reduce the amount of spectrum assigned to licensees 
        in order to issue additional licenses for the provision of 
        advanced television services.
    ``(f) Definitions.--As used in this section:
            ``(1) Advanced television services.--The term `advanced 
        television services' means television services provided using 
        digital or other advanced technology to enhance audio quality 
        and video resolution, as further defined in the opinion, 
        report, and order of the Commission entitled `Advanced 
        Television Systems and Their Impact Upon the Existing 
        Television Broadcast Service', MM Docket 87-268, adopted 
        September 17, 1992, and successor proceedings.
            ``(2) Designated frequencies.--The term `designated 
        frequency' means each of the frequencies designated by the 
        Commission for licenses for advanced television services.
            ``(3) High definition television.--The term `high 
        definition television' refers to systems that offer 
        approximately twice the vertical and horizontal resolution of 
        receivers generally available on the date of enactment of this 
        section, as further defined in the proceedings described in 
        paragraph (1) of this subsection.''.

SEC. 302. TERM OF LICENSES.

    Section 307(c) of the Communications Act of 1934 (47 U.S.C. 307(c)) 
is amended to read as follows:
    ``(c) Terms of Licenses.--
            ``(1) Initial and renewal licenses.--Each license granted 
        for the operation of a broadcasting station shall be for a term 
        of not to exceed seven years. Upon application therefor, a 
        renewal of such license may be granted from time to time for a 
        term of not to exceed seven years from the date of expiration 
        of the preceding license, if the Commission finds that public 
        interest, convenience, and necessity would be served thereby. 
        Consistent with the foregoing provisions of this subsection, 
        the Commission may by rule prescribe the period or periods for 
        which licenses shall be granted and renewed for particular 
        classes of stations, but the Commission may not adopt or follow 
        any rule which would preclude it, in any case involving a 
        station of a particular class, from granting or renewing a 
        license for a shorter period than that prescribed for stations 
        of such class if, in its judgment, public interest, 
        convenience, or necessity would be served by such action.
            ``(2) Materials in application.--In order to expedite 
        action on applications for renewal of broadcasting station 
        licenses and in order to avoid needless expense to applicants 
        for such renewals, the Commission shall not require any such 
        applicant to file any information which previously has been 
        furnished to the Commission or which is not directly material 
        to the considerations that affect the granting or denial of 
        such application, but the Commission may require any new or 
        additional facts it deems necessary to make its findings.
            ``(3) Continuation pending decision.--Pending any hearing 
        and final decision on such an application and the disposition 
        of any petition for rehearing pursuant to section 405, the 
        Commission shall continue such license in effect.''.

SEC. 303. BROADCAST LICENSE RENEWAL PROCEDURES.

    (a) Amendment.--Section 309 of the Communications Act of 1934 (47 
U.S.C. 309) is amended by adding at the end thereof the following new 
subsection:
    ``(k) Broadcast Station Renewal Procedures.--
            ``(1) Standards for renewal.--If the licensee of a 
        broadcast station submits an application to the Commission for 
        renewal of such license, the Commission shall grant the 
        application if it finds, with respect to that station, during 
        the preceding term of its license--
                    ``(A) the station has served the public interest, 
                convenience, and necessity;
                    ``(B) there have been no serious violations by the 
                licensee of this Act or the rules and regulations of 
                the Commission; and
                    ``(C) there have been no other violations by the 
                licensee of this Act or the rules and regulations of 
                the Commission which, taken together, would constitute 
                a pattern of abuse.
            ``(2) Consequence of failure to meet standard.--If any 
        licensee of a broadcast station fails to meet the requirements 
        of this subsection, the Commission may deny the application for 
        renewal in accordance with paragraph (3), or grant such 
        application on terms and conditions as are appropriate, 
        including renewal for a term less than the maximum otherwise 
        permitted.
            ``(3) Standards for denial.--If the Commission determines, 
        after notice and opportunity for a hearing as provided in 
        subsection (e), that a licensee has failed to meet the 
        requirements specified in paragraph (1) and that no mitigating 
        factors justify the imposition of lesser sanctions, the 
        Commission shall--
                    ``(A) issue an order denying the renewal 
                application filed by such licensee under section 308; 
                and
                    ``(B) only thereafter accept and consider such 
                applications for a construction permit as may be filed 
                under section 308 specifying the channel or 
                broadcasting facilities of the former licensee.
            ``(4) Competitor consideration prohibited.--In making the 
        determinations specified in paragraph (1) or (2), the 
        Commission shall not consider whether the public interest, 
        convenience, and necessity might be served by the grant of a 
        license to a person other than the renewal applicant.''.
    (b) Conforming Amendment.--Section 309(d) of the Communications Act 
of 1934 (47 U.S.C. 309(d)) is amended by inserting after ``with 
subsection (a)'' each place such term appears the following: ``(or 
subsection (k) in the case of renewal of any broadcast station 
license)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any application for renewal filed on or after May 31, 1995.

SEC. 304. EXCLUSIVE FEDERAL JURISDICTION OVER DIRECT BROADCAST 
              SATELLITE SERVICE.

    Section 303 of the Communications Act of 1934 (47 U.S.C. 303) is 
amended by adding at the end thereof the following new subsection:
    ``(v) Have exclusive jurisdiction over the regulation of the direct 
broadcast satellite service.''.

SEC. 305. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

    Notwithstanding any provision of the Communications Act of 1934, a 
ship documented under the laws of the United States operating in 
accordance with the Global Maritime Distress and Safety System 
provisions of the Safety of Life at Sea Convention shall not be 
required to be equipped with a radio station operated by one or more 
radio officers or operators.

SEC. 306. RESTRICTIONS ON OVER-THE-AIR RECEPTION DEVICES.

    Within 180 days after the enactment of this Act, the Commission 
shall, pursuant to section 303, promulgate regulations to prohibit 
restrictions that inhibit a viewer's ability to receive video 
programming services through signal receiving devices designed for off-
the-air reception of television broadcast signals.

SEC. 307. DBS SIGNAL SECURITY.

    Section 705(e)(4) of the Communications Act of 1934 (47 U.S.C. 
605(e)) is amended by inserting after ``satellite cable programming'' 
the following: ``or programming of a licensee in the direct broadcast 
satellite service''.

                     TITLE IV--EFFECT ON OTHER LAWS

SEC. 401. RELATIONSHIP TO OTHER LAWS.

    (a) Modification of Final Judgment.--Parts II and III of title II 
of the Communications Act of 1934 (as added by this Act) shall 
supersede the Modification of Final Judgment, except that such part 
shall not affect--
            (1) section I of the Modification of Final Judgment, 
        relating to AT&T reorganization,
            (2) section II(A) (including appendix B) and II(B) of the 
        Modification of Final Judgment, relating to equal access and 
        nondiscrimination,
            (3) section IV(F) and IV(I) of the Modification of Final 
        Judgment, with respect to the requirements included in the 
        definitions of ``exchange access'' and ``information access'',
            (4) section VIII(B) of the Modification of Final Judgment, 
        relating to printed advertising directories,
            (5) section VIII(E) of the Modification of Final Judgment, 
        relating to notice to customers of AT&T,
            (6) section VIII(F) of the Modification of Final Judgment, 
        relating to less than equal exchange access,
            (7) section VIII(G) of the Modification of Final Judgment, 
        relating to transfer of AT&T assets, including all exceptions 
        granted thereunder before the date of the enactment of this 
        Act, and
            (8) with respect to the parts of the Modification of Final 
        Judgment described in paragraphs (1) through (7)--
                    (A) section III of the Modification of Final 
                Judgment, relating to applicability and effect,
                    (B) section IV of the Modification of Final 
                Judgment, relating to definitions,
                    (C) section V of the Modification of Final 
                Judgment, relating to compliance,
                    (D) section VI of the Modification of Final 
                Judgment, relating to visitorial provisions,
                    (E) section VII of the Modification of Final 
                Judgment, relating to retention of jurisdiction, and
                    (F) section VIII(I) of the Modification of Final 
                Judgment, relating to the court's sua sponte authority.
    (b) Antitrust Laws.--Nothing in this Act shall be construed to 
modify, impair, or supersede the applicability of any of the antitrust 
laws.
    (c) Federal, State, and Local Law.--(1) Except as provided in 
paragraph (2), parts II and III of title II of the Communications Act 
of 1934 shall not be construed to modify, impair, or supersede Federal, 
State, or local law unless expressly so provided in such part.
    (2) Parts II and III of title II of the Communications Act of 1934 
shall supersede State and local law to the extent that such law would 
impair or prevent the operation of such part.
    (d) Termination.--The provisions of the GTE consent decree shall 
cease to be effective on the date of enactment of this Act. For 
purposes of this subsection, the term ``GTE consent decree'' means the 
order entered on December 21, 1984 (as restated on January 11, 1985), 
in United States v. GTE Corporation, Civil Action No. 83-1298, 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 
December 21, 1984.
    (e) Inapplicability of Final Judgment to Wireless Successors.--No 
person shall be subject to the provisions of the Modification of Final 
Judgment by reason of having acquired wireless exchange assets or 
operations previously owned by a Bell operating company or an affiliate 
of a Bell operating company.
    (f) Antitrust Laws.--As used in this section, 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.

SEC. 402. PREEMPTION OF LOCAL TAXATION WITH RESPECT TO DBS SERVICES.

    (a) Preemption.--A provider of direct-to-home satellite service, or 
its agent or representative for the sale or distribution of direct-to-
home satellite services, shall be exempt from the collection or 
remittance, or both, of any tax or fee, as defined by subsection 
(b)(4), imposed by any local taxing jurisdiction with respect to the 
provision of direct broadcast satellite services. Nothing in this 
section shall be construed to exempt from collection or remittance any 
tax or fee on the sale of equipment.
    (b) Definitions.--For the purposes of this section--
            (1) Direct broadcast satellite service.--The term ``direct-
        to-home satellite service'' means the transmission or 
        broadcasting by satellite of programming directly to the 
        subscribers' premises without the use of ground receiving or 
        distribution equipment, except at the subscribers' premises or 
        in the uplink process to the satellite.
            (2) Direct-to-home satellite service provider.--For 
        purposes of this section, a ``provider of direct-to-home 
        satellite service'' means a person who transmits or broadcasts 
        direct-to-home satellite services.
            (3) Local taxing jurisdiction.--The term ``local taxing 
        jurisdiction'' means any municipality, city, county, township, 
        parish, transportation district, or assessment jurisdiction, or 
        any other local jurisdiction with the authority to impose a tax 
        or fee.
            (4) Tax or fee.--The terms ``tax'' and ``fee'' mean any 
        local sales tax, local use tax, local intangible tax, local 
        income tax, business license tax, utility tax, privilege tax, 
        gross receipts tax, excise tax, franchise fees, local 
        telecommunications tax, or any other tax, license, or fee that 
        is imposed for the privilege of doing business, regulating, or 
        raising revenue for a local taxing jurisdiction.
    (c) Effective Date.--This section shall be effective as of June 1, 
1994.

                          TITLE V--DEFINITIONS

SEC. 501. DEFINITIONS.

    (a) Additional Definitions.--Section 3 of the Act (47 U.S.C. 153) 
is amended--
            (1) in subsection (r)--
                    (A) by inserting ``(A)'' after ``means''; and
                    (B) by inserting before the period at the end the 
                following: ``, or (B) service provided through a system 
                of switches, transmission equipment, or other 
                facilities (or combination thereof) by which a 
                subscriber can originate and terminate a 
                telecommunications service within a State but which 
                does not result in the subscriber incurring a telephone 
                toll charge'';
            (2) by indenting such paragraphs 2 em spaces; and
            (3) by adding at the end thereof the following:
            ``(35) Affiliate.--The term `affiliate', when used in 
        relation to any person or entity, means another person or 
        entity who owns or controls, is owned or controlled by, or is 
        under common ownership or control with, such person or entity.
            ``(36) 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 
                that provides telephone exchange service.
            ``(37) Cable system.--The term `cable system' has the 
        meaning given such term in section 602(7) of this Act.
            ``(38) Customer premises equipment.--The term `customer 
        premises equipment' means equipment employed on the premises of 
        a person (other than a carrier) to originate, route, or 
        terminate telecommunications.
            ``(39) Dialing parity.--The term `dialing parity' means 
        that a person that is not an affiliated enterprise of a local 
        exchange carrier is able to provide telecommunications services 
        in such a manner that customers have the ability to route 
        automatically, without the use of any access code, their 
        telecommunications to the telecommunications services provider 
        of the customer's designation from among 2 or more 
        telecommunications services providers (including such local 
        exchange carrier).
            ``(40) Exchange access.--The term `exchange access' means 
        the offering of telephone exchange services or facilities for 
        the purpose of the origination or termination of interLATA 
        services.
            ``(41) Information service.--The term `information service' 
        means the offering of a capability for generating, acquiring, 
        storing, transforming, processing, retrieving, utilizing, or 
        making available information via telecommunications, and 
        includes electronic publishing, but does not include any use of 
        any such capability for the management, control, or operation 
        of a telecommunications system or the management of a 
        telecommunications service.
            ``(42) InterLATA service.--The term `interLATA service' 
        means telecommunications between a point located in a local 
        access and transport area and a point located outside such 
        area.
            ``(43) Local access and transport area.--The term `local 
        access and transport area' or `LATA' means a contiguous 
        geographic area--
                    ``(A) established 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; 
                or
                    ``(B) established or modified by a Bell operating 
                company after the date of enactment of this paragraph 
                and approved by the Commission.
            ``(44) Local exchange carrier.--The term `local exchange 
        carrier' means any person that is engaged in the provision of 
        telephone exchange service or exchange access. Such term does 
        not include a person insofar as such person is engaged in the 
        provision of a commercial mobile service under section 332(c), 
        except to the extent that the Commission finds that such 
        service as provided by such person in a State is a replacement 
        for a substantial portion of the wireline telephone exchange 
        service within such State.
            ``(45) 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.
            ``(46) Number portability.--The term `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 
        provider of telecommunications services to another, as long as 
        such user continues to be located within the same exchange 
        area.
            ``(47) Telecommunications.--The term `telecommunications' 
        means the transmission, between or among points specified by 
        the subscriber, of information of the subscriber'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.
            ``(48) Telecommunications equipment.--The term 
        `telecommunications equipment' means equipment, other than 
        customer premises equipment, used by a carrier to provide 
        telecommunications services, and includes software integral to 
        such equipment (including upgrades).
            ``(49) Telecommunications service.--The term 
        `telecommunications service' means the offering, on a common 
        carrier basis, of telecommunications facilities, or of 
        telecommunications by means of such facilities. Such term does 
        not include an information service.''.
    (b) Stylistic Consistency.--Section 3 of the Communications Act of 
1934 (47 U.S.C. 153) is amended--
            (1) in subsections (e) and (n), by redesignating clauses 
        (1), (2) and (3), as clauses (A), (B), and (C), respectively;
            (2) in subsection (w), by redesignating paragraphs (1) 
        through (5) as subparagraphs (A) through (E), respectively;
            (3) in subsections (y) and (z), by redesignating paragraphs 
        (1) and (2) as subparagraphs (A) and (B), respectively;
            (4) by redesignating subsections (a) through (hh) as 
        paragraphs (1) through (34);
            (5) by indenting such paragraphs 2 em spaces;
            (6) by inserting after the designation of each such 
        paragraph--
                    (A) a heading, in a form consistent with the form 
                of the heading of this subsection, consisting of the 
                term defined by such paragraph, or the first term so 
                defined if such paragraph defines more than one term; 
                and
                    (B) the words ``The term''; and
            (7) by changing the first letter of each defined term in 
        such paragraphs from a capital to a lower case letter; and
            (8) by recording such paragraphs and the additional 
        paragraphs added by subsection (a) in alphabetical order based 
        on the headings of such paragraphs and renumbering such 
        paragraphs as so reordered.
    (c) Conforming Amendments.--The Communications Act of 1934 is 
amended--
            (1) in section 225(a)(1), by striking ``section 3(h)'' and 
        inserting ``section 3'';
            (2) in section 332(d), by striking ``section 3(n)'' each 
        place it appears and inserting ``section 3''; and
            (3) in sections 621(d)(3), 636(d), and 637(a)(2), by 
        striking ``section 3(v)'' and inserting ``section 3''.
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