[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1542 Reported in House (RH)]
Union Calendar No. 54
107th CONGRESS
1st Session
H. R. 1542
[Report No. 107-83, Parts I and II]
To deregulate the Internet and high speed data services, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 24, 2001
Mr. Tauzin (for himself, Mr. Dingell, Mr. Goodlatte, Mr. Boucher, Mr.
English, Mr. Frost, Mr. Smith of Washington, Mr. Lucas of Kentucky, Mr.
Whitfield, Mr. Murtha, Mr. Collins, Mr. Blagojevich, Mr. Fossella, Mr.
Dicks, Mr. Gillmor, Mr. Barton of Texas, Mr. Kind, Mr. Greenwood, Mr.
Meeks of New York, Mr. Camp, Mr. Baldacci, Mr. Rahall, Mr. Holden, Mrs.
McCarthy of New York, Mr. Brady of Pennsylvania, Mr. Simpson, Mr. Boyd,
Mrs. Northup, Mr. Engel, Mr. Sandlin, Mr. Everett, Mr. Boehner, Mr.
Reynolds, Mr. Weldon of Pennsylvania, Mr. Sessions, Mr. Bonior, Mr.
Maloney of Connecticut, Mr. Buyer, Mr. Cunningham, Mr. McCrery, Mr.
Bishop, Mr. Lampson, Mr. Vitter, Mr. Bass, Mr. Ackerman, Mr. Blunt, Mr.
McHugh, Mr. Ryan of Wisconsin, Mr. Quinn, Mr. Baca, Mr. Gonzalez, Mr.
Baker, Mr. Walsh, Mr. Green of Texas, Mr. Wexler, Mr. Oxley, Mr.
Radanovich, Mr. Diaz-Balart, Mr. Cooksey, Mr. Clement, Mr. Larsen of
Washington, Mr. Schrock, Mr. Petri, Mr. Watkins, Ms. Ros-Lehtinen, Mr.
Hilliard, Mr. Otter, Mr. Shadegg, Mr. Bryant, Mr. Platts, Mr. Putnam,
Mr. Cummings, Mr. Rodriguez, Mr. Condit, Mr. Burr of North Carolina,
and Mr. Wynn) introduced the following bill; which was referred to the
Committee on Energy and Commerce
May 24, 2001
Reported by the Committee on Energy and Commerce with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
May 24, 2001
Referred to the Committee on the Judiciary for a period ending not
later than June 18, 2001 for consideration of such provisions of the
bill and amendment recommended by the Committee on Energy and Commerce
as proposed to narrow the purview of the Attorney General under section
271 of the Communications Act of 1934
June 18, 2001
Additional sponsors: Mr. Sweeney, Mr. Grucci, Mr. Turner, Mr. Gallegly,
Mr. Bachus, Mr. Foley, Ms. Granger, Mr. Crowley, Mr. Levin, Mr. Rangel,
Mr. Visclosky, Mr. Hilleary, Mr. Bonilla, Mr. Fletcher, Mr. Bentsen,
Mr. Riley, Mr. Reyes, Mr. Berry, Mr. Shows, Ms. Brown of Florida, Mr.
Weldon of Florida, Ms. Baldwin, Mr. Tancredo, Mrs. Meek of Florida, Mr.
Hayes, Mr. Ross, Mr. LaHood, Mr. Acevedo-Vila, Mr. Mollohan, Mr.
Hastings of Florida, Mr. Ortiz, Mr. Kildee, Mr. Allen, Mr. Serrano, Mr.
Brown of South Carolina, Mr. Smith of Texas, and Mr. LaTourette
June 18, 2001
Reported with amendments, adversely, from the Committee on the
Judiciary, committed to the Committee of the Whole House on the State
of the Union, and ordered to be printed
[Omit the part struck through in italic and insert the part printed in
boldface roman]
[For text of introduced bill, see copy of bill as introduced on April
24, 2001]
_______________________________________________________________________
A BILL
To deregulate the Internet and high speed data services, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Internet Freedom and Broadband
Deployment Act of 2001''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Internet access services are inherently interstate and
international in nature, and should therefore not be subject to
regulation by the States.
(2) The imposition of regulations by the Federal
Communications Commission and the States has impeded the rapid
delivery of high speed Internet access services and Internet
backbone services to the public, thereby reducing consumer
choice and welfare.
(3) The Telecommunications Act of 1996 represented a
careful balance between the need to open up local
telecommunications markets to competition and the need to
increase competition in the provision of interLATA voice
telecommunications services.
(4) In enacting the prohibition on Bell operating company
provision of interLATA services, Congress recognized that
certain telecommunications services have characteristics that
render them incompatible with the prohibition on Bell operating
company provision of interLATA services, and exempted such
services from the interLATA prohibition.
(5) High speed data services and Internet backbone services
constitute unique markets that are likewise incompatible with
the prohibition on Bell operating company provision of
interLATA services.
(6) Since the enactment of the Telecommunications Act of
1996, the Federal Communications Commission has construed the
prohibition on Bell operating company provision of interLATA
services in a manner that has impeded the development of
advanced telecommunications services, thereby limiting consumer
choice and welfare.
(7) Internet users should have choice among competing
Internet service providers.
(8) Internet service providers should have the right to
interconnect with high speed data networks in order to provide
service to Internet users.
(b) Purposes.--It is therefore the purpose of this Act to provide
market incentives for the rapid delivery of advanced telecommunications
services--
(1) by deregulating high speed data services, Internet
backbone services, and Internet access services;
(2) by clarifying that the prohibition on Bell operating
company provision of interLATA services does not extend to the
provision of high speed data services and Internet backbone
services;
(3) by ensuring that consumers can choose among competing
Internet service providers; and
(4) by ensuring that Internet service providers can
interconnect with competitive high speed data networks in order
to provide Internet access service to the public.
SEC. 3. DEFINITIONS
(a) Amendments.--Section 3 of the Communications Act of 1934 (47
U.S.C. 153) is amended--
(1) by redesignating paragraph (20) as paragraph (21);
(2) by redesignating paragraphs (21) through (52) as
paragraphs (26) through (57), respectively;
(3) by inserting after paragraph (19) the following new
paragraph:
``(20) High speed data service.--The term `high speed data
service' means any service that consists of or includes the
offering of a capability to transmit, using a packet-switched
or successor technology, information at a rate that is
generally not less than 384 kilobits per second in at least one
direction. Such term does not include special access service
offered through dedicated transport links between a customer's
premises and an interexchange carrier's switch or point of
presence.'';
(4) by inserting after paragraph (21) the following new
paragraphs:
``(22) Internet.--The term `Internet' means collectively
the myriad of computer and telecommunications facilities,
including equipment and operating software, which comprise the
interconnected world-wide network of networks that employ the
Transmission Control Protocol/Internet Protocol, or any
predecessor or successor protocols to such protocol, to
communicate information of all kinds by wire or radio.
``(23) Internet access service.--The term `Internet access
service' means a service that combines computer processing,
information storage, protocol conversion, and routing with
transmission to enable users to access Internet content and
services.
``(24) Internet backbone.--The term `Internet backbone'
means a network that carries Internet traffic over high-
capacity long-haul transmission facilities and that is
interconnected with other such networks via private peering
relationships.
``(25) Internet backbone service.--The term `Internet
backbone service' means any interLATA service that consists of
or includes the transmission by means of an Internet backbone
of any packets, and shall include related local
connectivity.''.
(b) Conforming Amendments.--
(1) Section 230(f) of the Communications Act of 1934 (47
U.S.C. 230(f)) is amended--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively.
(2) Section 223(h)(2) of such Act (47 U.S.C. 223(h)(2)) is
amended by striking ``230(f)(2)'' and inserting ``230(f)(1)''.
SEC. 4. LIMITATION ON AUTHORITY TO REGULATE HIGH SPEED DATA SERVICES.
(a) In General.--Part I of title II of the Communications Act of
1934 (47 U.S.C. 201 et seq.) is amended by adding at the end the
following new section:
``SEC. 232. PROVISION OF HIGH SPEED DATA SERVICES.
``(a) Freedom From Regulation.--Except to the extent that high
speed data service, Internet backbone service, and Internet access
service are expressly referred to in this Act, neither the Commission,
nor any State, shall have authority to regulate the rates, charges,
terms, or conditions for, or entry into the provision of, any high
speed data service, Internet backbone service, or Internet access
service, or to regulate any network element to the extent it is used in
the provision of any such service; nor shall the Commission impose or
require the collection of any fees, taxes, charges, or tariffs upon
such service.
``(b) Savings Provision.--Nothing in this section shall be
construed to limit or affect the authority of any State to regulate
circuit-switched telephone exchange services, nor affect the rights of
cable franchise authorities to establish requirements that are
otherwise consistent with this Act.
``(c) Continued Enforcement of ESP Exemption, Universal Service
Rules Permitted.--Nothing in this section shall affect the ability of
the Commission to retain or modify--
``(1) the exemption from interstate access charges for
enhanced service providers under Part 69 of the Commission's
regulations, and the requirements of the MTS/WATS Market
Structure Order (97 FCC 2d 682, 715 (1983)); or
``(2) rules issued pursuant to section 254.''.
(b) Conforming Amendment.--Section 251 of the Communications Act of
1934 (47 U.S.C. 251) is amended by adding at the end thereof the
following new subsection:
``(j) Exemption.--
``(1) Access to network elements for high speed data
service.--
``(A) Limitation.--Subject to subparagraphs (B),
(C), and (D) of this paragraph, neither the Commission
nor any State shall require an incumbent local exchange
carrier to provide unbundled access to any network
element for the provision of any high speed data
service.
``(B) Preservation of regulations and line sharing
order.--Notwithstanding subparagraph (A), the
Commission shall, to the extent consistent with
subsections (c)(3) and (d)(2), require the provision of
unbundled access to those network elements described in
section 51.319 of the Commission's regulations (47
C.F.R. 51.319), as--
``(i) in effect on January 1, 1999; and
``(ii) subject to subparagraphs (C) and
(D), as modified by the Commission's Line
Sharing Order.
``(C) Exceptions to preservation of line sharing
order.--
``(i) Unbundled access to remote terminal
not required.--An incumbent local exchange
carrier shall not be required to provide
unbundled access to the high frequency portion
of the loop at a remote terminal.
``(ii) Charges for access to high frequency
portion.--The Commission and the States shall
permit an incumbent local exchange carrier to
charge requesting carriers for the high
frequency portion of a loop an amount equal to
which such incumbent local exchange carrier
imputes to its own high speed data service.
``(D) Limitations on reinterpretation of line
sharing order.--Neither the Commission nor any State
Commission shall construe, interpret, or reinterpret
the Commission's Line Sharing Order in such manner as
would expand an incumbent local exchange carrier's
obligation to provide access to any network element for
the purpose of line sharing.
``(E) Authority to reduce elements subject to
requirement.--This paragraph shall not prohibit the
Commission from modifying the regulation referred to in
subparagraph (B) to reduce the number of network
elements subject to the unbundling requirement, or to
forbear from enforcing any portion of that regulation
in accordance with the Commission's authority under
section 706 of the Telecommunications Act of 1996,
notwithstanding any limitation on that authority in
section 10 of this Act.
``(F) Prohibition on discriminatory subsidies.--Any
network element used in the provision of high speed
data service that is not subject to the requirements of
subsection (c) shall not be entitled to any subsidy,
including any subsidy pursuant to section 254, that is
not provided on a nondiscriminatory basis to all
providers of high speed data service and Internet
access service. This prohibition on discriminatory
subsidies shall not be interpreted to authorize or
require the extension of any subsidy to any provider of
high speed data service or Internet access service.
``(2) Resale.--For a period of three years after the
enactment of this subsection, an incumbent local exchange
carrier that provides high speed data service shall have a duty
to offer for resale any such service at wholesale rates in
accordance with subsection (c)(4). After such three-year
period, such carrier shall offer such services for resale
pursuant to subsection (b)(1).
``(3) Definitions.--For purposes of this subsection--
``(A) the `Commission's Line Sharing Order' means
the Third Report and Order in CC Docket No. 98-147 and
the Fourth Report and Order in CC Docket 96-98 (FCC 99-
355), as adopted November 18, 1999, and without regard
to any clarification or interpretation in the further
notice of proposed rulemaking in such Dockets adopted
January 19, 2001 (FCC 01-26); and
``(B) the term `remote terminal' means an
accessible terminal located outside of the
central office to which analog signals are carried from customer
premises, in which such signals are converted to digital, and from
which such signals are carried, generally over fiber, to the central
office.''.
(c) Preservation of Existing Interconnection Agreements.--Nothing
in the amendments made by this section--
(1) shall be construed to permit or require the abrogation
or modification of any interconnection agreement in effect on
the date of enactment of this section during the term of such
agreement, except that this paragraph shall not apply to any
interconnection agreement beyond the expiration date of the
existing current term contained in such agreement on the date
of enactment of this section, without regard to any extension
or renewal of such agreement; or
(2) affects the implementation of any change of law
provision in any such agreement.
SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE.
Part I of title II of the Communications Act of 1934, as amended by
section 4, is amended by adding at the end the following new section:
``SEC. 233. INTERNET CONSUMERS FREEDOM OF CHOICE.
``(a) Purpose.--It is the purpose of this section to ensure that
Internet users have freedom of choice of Internet service provider.
``(b) Obligations of Incumbent Local Exchange Carriers.--Each
incumbent local exchange carrier has the duty to provide--
``(1) Internet users with the ability to subscribe to and
have access to any Internet service provider that interconnects
with such carrier's high speed data service;
``(2) any Internet service provider with the right to
acquire the facilities and services necessary to interconnect
with such carrier's high speed data service for the provision
of Internet access service;
``(3) any Internet service provider with the ability to
collocate equipment in accordance with the provisions of
section 251, to the extent necessary to achieve the objectives
of paragraphs (1) and (2) of this subsection; and
``(4) any provider of high speed data services, Internet
backbone service, or Internet access service with special
access for the provision of Internet access service within a
period no longer than the period in which such incumbent local
exchange carrier provides special access to itself or any
affiliate for the provision of such service.
``(c) Definitions.--As used in this section--
``(1) Internet service provider.--The term `Internet
service provider' means any provider of Internet access
service.
``(2) Incumbent local exchange carrier.--The term
`incumbent local exchange carrier' has the same meaning as
provided in section 251(h).
``(3) Special access service.--The term `special access
service' means the provision of dedicated transport links
between a customer's premises and the switch or point of
presence of a high speed data service provider, Internet
backbone service provider, or Internet service provider.''.
SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH SPEED DATA AND INTERNET
BACKBONE SERVICES.
(a) Incidental InterLATA Service Permitted.--Section 271(g) of the
Communications Act of 1934 (47 U.S.C. 271(g)) is amended--
(1) by striking ``or'' at the end of paragraph (5);
(2) by striking the period at the end of paragraph (6) and
inserting ``; or''; and
(3) by adding at the end thereof the following new
paragraph:
``(7) of high speed data service or Internet backbone
service, subject to subsection (l).''.
(b) Prohibition on Provision of Voice Telephone Services.--Section
271 of such Act is amended by adding at the end thereof the following
new subsection:
``(k) Prohibition on Provision of Voice Telephone Services.--Until
the date on which a Bell operating company is authorized to offer
interLATA services originating in an in-region State in accordance with
the provisions of this section, such Bell operating company offering
any high speed data service or Internet backbone service pursuant to
the provisions of paragraph (7) of subsection (g) may not, in such in-
region State provide interLATA voice telecommunications service,
regardless of whether there is a charge for such service, by means of
the high speed data service or Internet backbone service provided by
such company.''.
(c) Application Prerequisite to Providing High Speed Data Service
or Internet Backbone Service.--Section 271 of the Communications Act of
1934 (47 U.S.C. 271), as amended by subsection (b), is amended by
adding at the end the following:
``(l) Application Prerequisite to Providing High Speed Data Service
or Internet Backbone Service.--
``(1) Requirement to file application with attorney general
of the united states.--Neither a Bell operating company, nor
any affiliate of a Bell operating company, may begin providing
high speed data service or Internet backbone service in any in-
region State under the authority of subsection (g)(7)--
``(A) unless it files with the Attorney General of
the United States an application to provide such
service; and
``(B) until the Attorney General --
``(i) approves such application before the
expiration of the 90-day period beginning on
the date such application is filed; or
``(ii) fails to approve or to disapprove
such application during such 90-day period.
``(2) Authority of attorney general.--The Attorney General
of the United States--
``(A) may issue rules to establish requirements
applicable to the form and contents of applications
filed under paragraph (1);
``(B) may make recommendations to an applicant
regarding--
``(i) withdrawal of an application filed
under paragraph (1); or
``(ii) filing of an application under
paragraph (1), with or without modifications,
subsequent to the withdrawal of an application
filed under such paragraph; and
``(C) may not approve an application filed in
compliance with this subsection unless the Attorney
General determines that the applicant has demonstrated
that it meets the substantive requirements of
subsections (c) and (d) with respect to high speed data
service or Internet backbone service in the State for
which such application is filed.
``(3) Withdrawal of application.--An application filed
under paragraph (1) may be withdrawn by the applicant at any
time before the Attorney General approves or disapproves such
application, but may not be modified after being filed.''.
<DELETED>(c)</DELETED> (d) Conforming Amendments.--
(1) Section 272(a)(2)(B)(i) of such Act is amended to read
as follows:
``(i) incidental interLATA services
described in paragraphs (1), (2), (3), (5),
(6), and (7) of section 271(g);''.
(2) Section 272(a)(2)(C) of such Act is repealed.
(e) Continued Full Application of the Antitrust Laws to Matters
Involved in the Telecommunications Industry.--Section 601(b) of the
Telecommunications Act of 1996 (47 U.S.C. 152 note) is amended by
adding at the end the following:
``(4) Continuing operation of the antitrust laws.--The
rights, obligations, powers, and remedies provided under the
antitrust laws are in addition to, and are--
``(A) not preempted by;
``(B) not inconsistent with; and
``(C) not incompatible with;
any of the rights, obligations, powers, and remedies provided
under the Communications Act of 1934 (47 U.S.C. 151 et seq.),
under this Act, or under any law amended by either such Act,
regardless of the progress of competition in any market.''.
SEC. 7. DEPLOYMENT OF BROADBAND SERVICES.
Part III of title II of the Communications Act of 1934 is amended
by inserting after section 276 (47 U.S.C. 276) the following new
section:
``SEC. 277. DEPLOYMENT OF BROADBAND SERVICES.
``(a) Deployment Required.--Each Bell operating company and its
affiliates shall deploy high speed data services in each State in which
such company or affiliate is an incumbent local exchange carrier (as
such term is defined in section 251(h)) in accordance with the
requirements of this section.
``(b) Deployment Requirements.--
``(1) Mileposts for deployment.--A Bell operating company
or its affiliate shall deploy high speed data services by
attaining high speed data capability in its central offices in
each State to which subsection (a) applies. Such company or
affiliate shall attain such capability in accordance with the
following schedule:
``(A) Within one year after the date of enactment
of this section, such company or affiliate shall attain
high speed data capability in not less than 20 percent
of such central offices in such State.
``(B) Within 2 years after the date of enactment of
this section, such company or affiliate shall attain
high speed data capability in not less than 40 percent
of such central offices in such State.
``(C) Within 3 years after the date of enactment of
this section, such company or affiliate shall attain
high speed data capability in not less than 70 percent
of such central offices in such State.
``(D) Within 5 years after the date of enactment of
this section, such company or affiliate shall attain
high speed data capability in not less than 100 percent
of such central offices in such State.
``(2) High speed data capability.--For purposes of
paragraph (1), a central office shall be considered to have
attained high speed capability if--
``(A)(i) such central office is equipped with high
speed data multiplexing capability; and
``(ii) each upgradeable customer loop that
originates or terminates in such central office is
upgraded promptly upon receipt of a customer request
for such upgrading, as necessary to permit transmission
of high speed data service (including any conditioning
of the loop);
``(B) each customer served by such central office
(without regard to the upgradeability or length of the
customer's loop) is able to obtain the provision of
high speed data service from such Bell operating
company or its affiliate by means of an alternative
technology that does not involve the use of the
customer's loop; or
``(C) each such customer is able to obtain the
provision of high speed data service by one or the
other of the means described in subparagraphs (A) and
(B).
``(3) Upgradeable loops.--For purposes of paragraph (2), a
customer loop is upgradeable if--
``(A) such loop is less than 15,000 feet in length
(from the central office to the customer's premises
along the line); and
``(B) such loop can, with or without conditioning,
transmit high speed data services without such
transmission on such loop causing significant
degradation of voice service.
``(c) Availability of Remedies.--
``(1) Forfeiture penalties.--A Bell operating company or
its affiliate that fails to comply with this section shall be
subject to the penalties provided in section 503(b)(2). In
determining whether to impose a forfeiture penalty, and in
determining the amount of any forfeiture penalty under section
503(b)(2)(D), the Commission shall take into consideration the
extent to which the requirements of this section are
technically infeasible.
``(2) Jurisdiction.--The Commission shall have exclusive
jurisdiction to enforce the requirements of this section,
except that any State commission may file a complaint with the
Commission seeking the imposition of penalties as provided in
paragraph (1).
``(d) Annual Report on Deployment.--
``(1) Analysis required.--The Commission shall include in
each of its annual reports submitted no more than 18 months
after the date of enactment of this section an analysis of the
deployment of high speed data service to underserved areas.
Such report shall include--
``(A) a statistical analysis of the extent to which
high speed data service has been deployed to central
offices and customer loops, or is available using
different technologies, as compared with the extent of
such deployment and availability prior to such date and
in prior reports under this subsection;
``(B) a breakdown of the delivery of high speed
data service by type of technology and class or
category of provider;
``(C) an identification of impediments to such
deployment and availability, and developments in
overcoming such impediments during the intervening
period between such reports; and
``(D) recommendations of the Commission, after
consultation with the National Telecommunications and
Information Administration, for further extending such
deployment and availability and overcoming such
impediments.
``(2) Definition of underserved area.--For purposes of
paragraph (1), the term `underserved areas' means areas that--
``(A) are high cost areas that are eligible for
services under subpart D of part 54 of the Commission's
regulations (47 C.F.R. 54.301 et seq.); or
``(B) are within or comprised of any census tract--
``(i) the poverty level of which is at
least 30 percent (based on the most recent
census data); or
``(ii) the median family income of which
does not exceed--
``(I) in the case of a census tract
located in a metropolitan statistical
area, 70 percent of the greater of the
metropolitan area median family income
or the statewide median family income;
and
``(II) in the case of a census
tract located in a nonmetropolitan
statistical area, 70 percent of the
nonmetropolitan statewide median family
income.
``(3) Designation of census tracts.--The Commission shall,
not later than 90 days after the date of the enactment of this
section, designate and publish those census tracts meeting the
criteria described in paragraph (2)(B).''.
SEC. 8. COMMISSION AUTHORIZED TO PRESCRIBE JUST AND REASONABLE CHARGES.
The Federal Communications Commission may impose penalties under
section 503 of the Communications Act of 1934 not to exceed $1,000,000
for any violation of provisions contained in, or amended by, section 5,
6, or 7 (or any combination thereof) of this Act. Each distinct
violation shall be a separate offense, and in the case of a continuing
violation, each day shall be deemed a separate offense, except that the
amount assessed for any continuing violation shall not exceed a total
of $10,000,000 for any single act or failure to act described in
section 5, 6, or 7 (or any combination thereof) of this Act.
Union Calendar No. 54
107th CONGRESS
1st Session
H. R. 1542
[Report No. 107-83, Parts I and II]
_______________________________________________________________________
A BILL
To deregulate the Internet and high speed data services, and for other
purposes.
_______________________________________________________________________
June 18, 2001
Reported with amendments, adversely, from the Committee on the
Judiciary, committed to the Committee of the Whole House on the State
of the Union, and ordered to be printed