[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1504 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1504

    To establish a market driven telecommunications marketplace, to 
  eliminate government managed competition of existing communication 
    service, and to provide parity between functionally equivalent 
                               services.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2005

Mr. Ensign (for himself and Mr. McCain) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
    To establish a market driven telecommunications marketplace, to 
  eliminate government managed competition of existing communication 
    service, and to provide parity between functionally equivalent 
                               services.

    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 ``Broadband 
Investment and Consumer Choice Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. General principle.
Sec. 4. Definitions.
Sec. 5. Consumer communications service.
Sec. 6. Federal quality standards.
Sec. 7. Consumer access to content and applications.
Sec. 8. Regulatory authority of the commission.
Sec. 9. Network interconnection and access requirements.
Sec. 10. Unbundled access to copper loops, physical collocation, and 
                            resale.
Sec. 11. Number portability.
Sec. 12. Special provisions for 2-percent carriers.
Sec. 13. Video services.
Sec. 14. Copyright limitations on exclusive rights video service 
                            providers.
Sec. 15. Municipally owned networks.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Since passage of the Telecommunications Act of 1996, 
        there have been dramatic changes in the industry, technology, 
        and marketplace requiring Congress to revisit the 
        communications policy of the Nation.
            (2) Inter-modal competition is bringing consumers more 
        choice in voice, data, and video service options than ever 
        before.
            (3) A new policy framework is required to allow 
        functionally equivalent services to compete fairly.
            (4) Silos of regulation based on historical regulatory 
        classifications only invite arbitrage and result in government 
        influenced market distortions.
            (5) Such market distortions coupled with lack of regulatory 
        certainty is chilling investment and stalling deployment of 
        broadband networks.
            (6) The United States is falling behind the world in 
        broadband penetration and it must encourage investment to 
        regain a leadership position in the world.
            (7) Communications networks are global in nature and the 
        United States must eliminate barriers for domestic 
        communications providers to compete in the global marketplace.
            (8) As the United States transitions to a market driven 
        communications service sector, consumers should be protected 
        with a safety net of access to affordable Basic Telephone 
        Service.
            (9) A new communications framework should foster consumer 
        value and choice by unleashing markets, in lieu of government-
        managed competition.
            (10) The 1's and 0's of the digital age are not constrained 
        by State lines or national boundaries, therefore, a patch work 
        quilt of State and local regulations will only stifle growth 
        and impose undue costs and burdens on consumers.
            (11) In the event that market failure leads State or local 
        governments to contemplate construction of their own 
        communications services, the option to enter that market should 
        first be provided to commercial providers under similar terms 
        to ensure that such governments are not competing unnecessarily 
        with private industry.
            (12) Robust competition coupled with rapid number 
        portability will empower consumers to choose the best services 
        at the best prices.

SEC. 3. GENERAL PRINCIPLE.

            (1) Applicability of the communications act of 1934.--
        Except as provided in this Act, any conduct, activity, service, 
        or service provider shall on or after the date of enactment of 
        this Act, be subject only to the requirements of this Act, if 
        such conduct, activity, service, or service provider was, 
        before the date of enactment of this Act, subject to--
                    (A) titles I, II, and VI or section 332 of the 
                Communications Act of 1934 (47 U.S.C. 151 et seq.);
                    (B) any equivalent State common carrier law or 
                regulation with respect to telecommunications, 
                telecommunications services, or information services; 
                or
                    (C) any State or local law, regulation, or order 
                with respect to cable services or video services.
            (2) Limitation on government authority.--Notwithstanding 
        any other provision of Federal, State, or local law, and except 
        as provided in this Act, no Federal, State, or local government 
        shall have authority--
                    (A) to regulate the rates, terms, price, or quality 
                of any communications service;
                    (B) to require any facilities-based communications 
                service provider to provide third parties with access 
                to its facilities; or
                    (C) to regulate the rates, terms, and conditions, 
                if any, on which a facilities-based communications 
                service provider chooses to afford third parties with 
                access to its facilities.
            (3) No effect on titles iv, v, vii of the communications 
        act of 1934.--Nothing in this Act shall be construed to affect 
        title IV, V, or VII of the Communications Act of 1934 (47 
        U.S.C. 151 et seq.) and the provisions of such titles shall be 
        applicable to any conduct, activity, service, or service 
        provider subject to this Act.
            (4) Affect on certain provisions of title ii of the 
        communications act of 1934.--
                    (A) In general.--Nothing in this Act shall be 
                construed to affect the authority of the Commission 
                under sections 206, 207, 208, 209, 224, 225, 226, 227, 
                229, 230, 253, and 255 of the Communications Act of 
                1934.
                    (B) Authority still valid.--Except as provided 
                otherwise in this Act, any conduct, activity, service, 
                or service provider subject to this Act shall be 
                subject to the authority and the requirements of the 
                provisions of the Communications Act of 1934 described 
                in subparagraph (A).
            (5) No affect on state laws of general applicability.--
        Nothing in this Act is intended to affect State laws of general 
        applicability to all businesses, except to the extent that such 
        laws are inconsistent with this Act.
            (6) Direct-to-home satellite services.--No State or local 
        government shall have the authority to regulate through 
        franchise agreements or otherwise direct-to-home satellite 
        services, including any activity, conduct, or matter 
        concerning--
                    (A) rates;
                    (B) services;
                    (C) billing;
                    (D) equipment; and
                    (E) sales.
            (7) Regulatory treatment of mobile services.--
                    (A) Forbearance.--The Commission shall forbear from 
                applying any regulation, provision, or requirement 
                imposed by this Act or the Communications Act of 1934 
                to a mobile service or persons or classes of persons 
                engaged in the provision of such service, to the extent 
                such persons are engaged in the provision of such 
                service, in all of the geographic markets served by 
                such service, unless the Commission determines that 
                enforcement of such regulation or provision is 
                necessary--
                            (i) because of the lack of competition 
                        among providers of such service; or
                            (ii) for the protection of public health 
                        and safety.
                    (B) Petition for forbearance.--
                            (i) In general.--Any provider or class of 
                        providers of a mobile service may submit a 
                        petition to the Commission requesting that the 
                        Commission exercise the authority granted under 
                        subparagraph (A) with respect to that provider 
                        or class of providers.
                            (ii) 1-year review period.--Not later than 
                        1 year after the Commission receives a petition 
                        submitted under clause (i), such petition shall 
                        be deemed granted if the Commission does not 
                        deny the petition on either of the grounds 
                        described in subparagraph (A), unless such 1-
                        year period is extended by the Commission.
                            (iii) Extension of review period.--The 
                        Commission may extend the initial 1-year period 
                        under clause (ii) by an additional 90 days if 
                        the Commission finds that an extension is 
                        necessary to complete the determination 
                        required by that clause.
                            (iv) Authority of commission.--The 
                        Commission--
                                    (I) may grant or deny a petition in 
                                whole or in part; and
                                    (II) shall explain its decision in 
                                writing.
            (8) Regulatory treatment of seamless mobility.--
                    (A) In general.--In implementing the provisions of 
                this Act or any other proceeding, the Commission shall 
                not take any action to impede the development of 
                seamless mobility.
                    (B) Definition.--For purposes of this paragraph, 
                the term ``seamless mobility'' means the ability of a 
                consumer and connecting devices of consumer to move 
                easily and smoothly between and among internet protocol 
                enabled technology platforms, facilities, and networks.
            (9) Rulemaking.--The Commission shall have authority to 
        establish rules to implement the provisions of paragraphs (3) 
        and (4) that are no greater or lesser than the requirements 
        contained in the titles described in paragraph (3) and the 
        sections described in paragraph (4).

SEC. 4. DEFINITIONS.

    (a) In General.--For purposes of this Act:
            (1) Basic telephone service; bts.--The term ``Basic 
        Telephone Service'' or ``BTS''--
                    (A) means a single-line flat rate voice 
                communications service--
                            (i) within a traditional local calling 
                        area;
                            (ii) with access to 911;
                            (iii) with touch tone dialing; and
                            (iv) with access to long distance; and
                    (B) does not include any interexchange 
                communications wireline service.
            (2) Broadband communications service.--The term ``broadband 
        communications service'' means a communications service 
        enabling the trans- mission of communications at a capacity 
        greater than 64 kilobits per second.
            (3) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (4) Communications service.--The term ``communications 
        service''--
                    (A) means any service enabling an end user to 
                transmit, receive, store, forward, retrieve, modify, or 
                obtain voice, data, image, or video communications 
                using any technology, including--
                            (i) copper;
                            (ii) coaxial cable;
                            (iii) optical fiber;
                            (iv) terrestrial fixed wireless;
                            (v) terrestrial mobile wireless;
                            (vi) satellite;
                            (vii) power lines; or
                            (viii) successor technologies; and
                    (B) does not include--
                            (i) television or radio broadcasting; and
                            (ii) any service that is not provided to 
                        the public or to a substantial portion of the 
                        public.
            (5) Consumer.--The term ``consumer''--
                    (A) means a consumer of goods or services whether 
                for a fee, in exchange for an explicit benefit, or 
                provided for free; and
                    (B) includes--
                            (i) an end user of communications service;
                            (ii) individuals;
                            (iii) partnerships;
                            (iv) associations;
                            (v) joint-stock companies;
                            (vi) trusts; and
                            (vii) corporations.
            (6) Copper loops.--The term ``copper loops'' means an 
        entirely copper cable transmission facility used to provide 
        circuit switched services, between a distribution frame (or its 
        equivalent) in the central office of an incumbent local 
        exchange carrier and the loop demarcation point at the premise 
        of a consumer.
            (7) Eligible telecommunications carrier; etc.--The term 
        ``eligible telecommunications carrier'' or ``ETC'' means a 
        telecommunications carrier that has been determined, under 
        section 214(e) of the Communications Act of 1934 (47 U.S.C. 
        214(e)), to be eligible for Federal universal service support.
            (8) Facilities-based provider.--The term ``facilities-based 
        provider'' means a provider of a communications service to the 
        extent that such provider makes available such communications 
        service predominantly by means of its own network.
            (9) Franchise.--The term ``franchise'' has the meaning 
        given to such term in section 602(9) of the Communications Act 
        of 1934 (47 U.S.C. 522(9)).
            (10) Incumbent local exchange carrier.--The term 
        ``Incumbent Local Exchange Carrier'' has the meaning given to 
        such term in section 251(h) of the Communications Act of 1934 
        (47 U.S.C. 251(h)).
            (11) Interconnection.--The term ``interconnection'' means 
        the physical linking of 2 networks whether directly or 
        indirectly for the mutual exchange of non video traffic.
            (12) Narrowband communications service.--The term 
        ``narrowband communications service'' means a communications 
        service enabling the transmission of communications at a 
        capacity of not more than 64 kilobits per second.
            (13) Public switched telephone network.--The term ``public 
        switched telephone network'' means the collection of 
        interconnected circuit switched telecommunications.
            (14) Satellite carrier.--The term ``satellite carrier'' has 
        the meaning given to such term in section 119(d)(6) of title 
        17, United States Code.
            (15) Transiting service.--The term ``transiting service'' 
        means a service provided by a facilities-based provider which 
        facilitates the indirect interconnection between 2 other 
        facilities-based providers on the circuit switched network.
            (16) 2-percent carrier.--The term ``2-percent carrier'' 
        means an incumbent local exchange provider which serves in 
        aggregate less than 2 percent of the access lines of the Nation 
        on the date of enactment this Act.
            (17) Video service.--The term ``video service'' means--
                    (A) video programming;
                    (B) interactive on demand services; and
                    (C) other programming services.
            (18) Video service provider.--The term ``video service 
        provider''--
                    (A) means a provider of video service that utilizes 
                a public right-of-way in the provision of such service; 
                and
                    (B) does not include--
                            (i) a satellite carrier;
                            (ii) any person providing video programming 
                        using radio communication;
                            (iii) any other provider of video service 
                        that does not use a public right-of-way in the 
                        provision of its service; or
                            (iv) any person providing video service by 
                        means of a commercial mobile service, unless 
                        such person has substantially replaced a video 
                        service provider described in subparagraph (A) 
                        by occupying a position in the video service 
                        market comparable to that occupied by such 
                        provider.
    (b) Common Terminology.--Except as otherwise provided in subsection 
(a), terms used in this Act shall have the same meaning given to such 
terms under sections 3, 332(d), and 602 of the Communications Act of 
1934 (47 U.S.C. 153, 332(d), and 522).

SEC. 5. CONSUMER COMMUNICATIONS SERVICE.

    (a) Basic Telephone Service Safety Net.--Each telecommunications 
carrier that is deemed to be an incumbent local exchange carrier on the 
date of enactment of this Act and any ETC shall offer BTS to business 
and residential customers throughout the service territory of such 
incumbent local exchange carrier, as such service territory was defined 
on the date of enactment of this Act.
    (b) Rate Cap.--
            (1) In general.--Until January 1, 2010, BTS rates charged 
        by an incumbent local exchange carrier shall be capped at 
        current basic local residential or business rates.
            (2) Exception.--The cap under paragraph (1) does not 
        include additional fees and charges that may be imposed to 
        cover expenses related to--
                    (A) subscriber line and universal service charges; 
                and
                    (B) other similar taxes and fees.
            (3) Annual adjustment.--After January 1, 2010, BTS rate 
        caps may be adjusted annually by the incumbent local exchange 
        carrier by an amount not to exceed any adjustment in the 
        Consumer Price Index.
    (c) Expansion of BTS.--An incumbent local exchange carrier or an 
ETC may expand or modify the services it provides in its BTS offering, 
if such expansion or modification results in a BTS offering that is 
equal or more favorable to consumers.
    (d) BTS Technology.--
            (1) In general.--An incumbent local exchange carrier or an 
        ETC may determine the technology it uses to meet its BTS 
        obligations under this section, if such technology does not 
        alter the rates, terms, and conditions for a BTS offering 
        required under subsection (b).
            (2) Equal access not required.--Notwithstanding any other 
        provision of this Act or any other provision of law, a BTS 
        offering may not require equal access to long distance, if the 
        incumbent local exchange carrier or an ETC is offering BTS 
        through a communications technology that does not support equal 
        access as of the date of enactment of this Act.
    (e) Termination of Bts.--If a consumer purchases any service, 
capability, or function in addition to a BTS offering, the resulting 
offering shall not--
            (1) be deemed to be a BTS offering; and
            (2) be subject to the requirements of subsection (a).
    (f) Carrier of Last Resort Obligations.--Any carrier of last resort 
obligation under the Communications Act of 1934 (47 U.S.C. 151 et seq.) 
or any equivalent State law, regulation, or order shall be satisfied, 
subject to the exceptions provided in such section, by the ubiquitous 
availability of BTS to all consumers in a service territory.

SEC. 6. FEDERAL QUALITY STANDARDS.

    (a) Quality Standards.--The Commission, taking into consideration 
that different technologies can potentially be used to provide BTS 
service and that such technologies may have different performance 
characteristics than a public switched telephone network, shall 
establish Federal quality standards for BTS service relating to--
            (1) reasonable uptime;
            (2) installation intervals;
            (3) repair intervals; and
            (4) suitable voice quality.
    (b) Additional Standards.--The Commission shall establish 
reasonable maximum intervals for the performance of different classes 
of incumbent local exchange carriers.
    (c) Enforcement.--
            (1) In general.--Notwithstanding any other provision of 
        this Act, a State commission shall have the authority to 
        enforce the Federal quality standards established under 
        subsections (a) and (b).
            (2) Limitation.--
                    (A) In general.--The regulatory power granted to a 
                State commission under this subsection shall apply only 
                to the enforcement of the Federal standards under 
                subsections (a) and (b).
                    (B) Penalties.--Any penalties assessed by a State 
                commission for violations of the standards established 
                under subsections (a) and (b) shall be limited to those 
                provided for in paragraph (4).
            (3) Limitation on class actions.--No class action alleging 
        a violation of the standards under subsection (a) and (b) shall 
        be maintained under this subsection by an individual or any 
        private party in Federal or State court.
            (4) Penalties.--
                    (A) In general.--Notwithstanding any other 
                provision of this Act, any ETC or incumbent local 
                exchange carrier that violates the standards 
                established under subsections (a) and (b) shall be 
                subject to a civil penalty not to exceed $50 per 
                household for the first violation.
                    (B) Subsequent violations.--Subsequent violations 
                by any ETC or incumbent local exchange carrier of the 
                standards established under subsections (a) and (b) 
                shall increase at intervals of $50 per violation per 
                household up to a maximum of $500.
                    (C) Annual adjustment.--The amount of penalties 
                provided under this section shall be adjusted annually 
                by an amount equal to any adjustment in the Consumer 
                Price Index.
                    (D) Penalty to be paid to consumers.--
                            (i) In general.--All penalties collected 
                        under authority of this section shall be paid 
                        to consumers that are directly affected by the 
                        failure to comply with the standards 
                        established under subsections (a) and (b).
                            (ii) Exclusive remedy.--The penalties 
                        established under authority of this section 
                        shall be the exclusive remedy for failure to 
                        comply with the standards established under 
                        subsections (a) and (b).
    (d) Commission to Act if State Commission Will Not Act.--If a State 
commission fails to carry out its enforcement responsibilities under 
subsection (c), the Commission shall--
            (1) issue an order preempting the jurisdiction of the State 
        commission; and
            (2) assume exclusive enforcement authority.
    (e) Lifeline Assistance.--Nothing in this section shall affect the 
collection, distribution, or administration of the Lifeline Assistance 
Program provided for by the Commission under regulations set forth in 
section 69.117 of title 47, Code of Federal Regulations, and other 
related sections of such title.

SEC. 7. CONSUMER ACCESS TO CONTENT AND APPLICATIONS.

    (a) Access.--
            (1) In general.--A consumer may not be denied access to any 
        content provided over facilities used to provide broadband 
        communications service and a broadband service provider shall 
        not willfully and knowingly block access to such content by a 
        subscriber, unless--
                    (A) such content is determined to be illegal;
                    (B) such denial is expressly authorized by Federal 
                or State law; or
                    (C) such access is inconsistent with the terms of 
                the service plan of such consumer including applicable 
                bandwidth capacity or quality of service constraints.
            (2) Customized content.--A broadband communications service 
        provider may offer to a consumer a customized plan developed 
        through such service providers network or commercial 
        arrangements with providers of content, applications, and other 
        service components to differentiate--
                    (A) access to content;
                    (B) the availability of applications; and
                    (C) the character of service components available.
            (3) Non-customized content.--Nothing in subsection (a) 
        shall adversely affect the performance of non-customized 
        consumer access to content, services, and applications offered 
        by the competitors of a broadband service provider.
    (b) Enforcement of Access Violations.--
            (1) In general.--The Commission may take such enforcement 
        action as it may prescribe by rule, if the Commission 
        determines that a broadband communications service provider 
        intentionally restricted access to any content described in 
        subsection (a)(1).
            (2) Exception.--A broadband communications service provider 
        may not be in violation of subsection (a), if such service 
        provider does not interrupt or block access to any content 
        described in subsection (a)(1) when--
                    (A) performing network--
                            (i) optimization or management;
                            (ii) security; or
                            (iii) prioritization;
                    (B) performing other measures to ensure network 
                security and integrity; or
                    (C) attempting to prevent unlawful conduct.
    (c) Parental Controls.--Nothing in this section shall be construed 
to prohibit--
            (1) any communications service provider from offering a 
        service that allows a consumer to block display of programs 
        with a common rating; and
            (2) a provider of mobile services from offering or 
        providing access only to a family friendly service to a 
        subscriber.
    (d) Connectivity of Devices.--Except as provided in this section, a 
broadband service provider shall not prevent any person from utilizing 
equipment and devices in connection with lawful content or 
applications.
    (e) Access to VoIP Applications.--Nothing in subsection (a) shall 
permit a broadband service provider to prevent a customer from using 
voice over Internet Protocol applications offered by a competitor.

SEC. 8. REGULATORY AUTHORITY OF THE COMMISSION.

    (a) Federal Policy.--The Commission shall, with respect to 
communication service providers, develop rules and regulations 
regarding--
            (1) automatic dialing, telephone solicitation, slamming, 
        cramming, E911, obscene and harassing telephone calls;
            (2) billing disputes;
            (3) the use, sale, and distribution of consumer proprietary 
        network information; and
            (4) access for persons with disabilities, including--
                    (A) the hearing impaired; and
                    (B) the speech impaired.
    (b) Commission Rules.--
            (1) In general.--In developing the rules required under 
        subsection (a), the Commission shall take into account the 
        technical limitations of the technology used by communications 
        service providers.
            (2) Timing.--Not later than 120 days after the date of 
        enactment of this Act, the Commission shall establish the rules 
        required under subsection (a), and until such rules become 
        effective, the requirements of Federal law, including all prior 
        Commission rules and orders in effect on the date of enactment 
        of this Act relating to the matters described in subsection (a) 
        shall--
                    (A) remain in effect; and
                    (B) be applicable to the matters described in 
                subsection (a).
    (c) Enforcement.--
            (1) State commission authority.--Notwithstanding any other 
        provisions of this Act, a State commission shall have authority 
        to enforce the rules established by the Commission pursuant to 
        this section.
            (2) Local point of contact.--Each State commission shall 
        designate a local point of contact, which residents of that 
        State may contact to alert the State of any potential 
        violations of the rules and regulations set forth under 
        subsection (a).
            (3) Limitation on class actions.--No class action alleging 
        a violation of the rules and regulations set forth under 
        subsection (a) shall be maintained under this subsection by an 
        individual or any private party in Federal or State court.
            (4) Parens patriae authority.--In any case in which a State 
        commission has reason to believe that an act or practice 
        violates the rules and regulations set forth under subsection 
        (a), the State commission may bring a civil action on behalf of 
        the residents of that State in a district court of the United 
        States of appropriate jurisdiction, or any other court of 
        competent jurisdiction, to--
                    (A) enjoin the act or practice;
                    (B) obtain--
                            (i) damages in the sum of actual damages, 
                        restitution, or other compensation on behalf of 
                        affected residents of the State; and
                            (ii) punitive damages, if the violation is 
                        willful or intentional; or
                    (C) obtain such other legal and equitable relief as 
                the court may consider to be appropriate.
            (5) Venue; service of process.--
                    (A) Venue.--Any action brought under this 
                subsection may be brought in the district court of the 
                United States that meets applicable requirements 
                relating to venue under section 1931 of title 28, 
                United States Code.
                    (B) Service or process.--In an action brought under 
                this subsection, process may be served in any district 
                in which the defendant--
                            (i) is an inhabitant; or
                            (ii) may be found.
    (d) Limitation of State Authority.--Notwithstanding the provisions 
of this section, States and State commissions shall have no authority 
to impose different or additional interconnection or intercarrier 
compensation requirements on communication service providers.
    (e) Commission to Act if State Commission Will Not Act.--If a State 
commission fails to carry out its enforcement responsibilities under 
subsection (c), the Commission shall--
            (1) issue an order preempting the jurisdiction of the State 
        commission; and
            (2) assume exclusive enforcement authority.

SEC. 9. NETWORK INTERCONNECTION AND ACCESS REQUIREMENTS.

    (a) Interconnection Arrangements.--
            (1) In general.--Facilities-based providers shall establish 
        commercial arrangements regarding the ability of such 
        facilities-based providers to interconnect with other 
        facilities-based providers.
            (2) Scope of arrangements.--The commercial arrangements 
        described in paragraph (1) shall establish the rates, terms, 
        and conditions on which facilities-based providers shall 
        interconnect with other facilities-based providers.
            (3) Exemption from regulation.--Except as provided in 
        subsections (b) and (c), the commercial arrangements described 
        in paragraph (1) may not be subject to regulation by the 
        Commission or by the States or State commissions.
    (b) Commission Intervention With Narrowband Communication Service 
Providers.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Commission shall develop a 
        regulatory framework governing interconnection between 
        facilities-based providers and narrowband communication service 
        providers.
            (2) Scope of regulatory framework.--The regulatory 
        framework described in paragraph (1) shall apply only in 
        connection with the termination or origination of traffic on 
        narrowband communication service providers facilities.
            (3) Uniform rate structure.--The regulatory framework 
        described in paragraph (1)--
                    (A) shall establish a uniform rate structure 
                governing interconnection between facilities-based 
                providers and narrowband communication service 
                providers;
                    (B) shall apply only in the event narrowband 
                communication service providers cannot agree on the 
                rates, terms, and conditions of interconnection between 
                facilities-based providers and such narrowband 
                communication service providers; and
                    (C) may not require the Commission to use any 
                particular rate-making methodology in establishing the 
                uniform rate structure required by this paragraph.
            (4) No state authority.--No State or State commission may 
        establish rates, terms, or conditions governing interconnection 
        between facilities-based providers and narrowband communication 
        service providers regardless of the jurisdictional nature of 
        the underlying traffic involved.
            (5) Contents of framework.--The regulatory framework 
        described in paragraph (1)--
                    (A) shall establish reasonable and equitable points 
                of interconnection;
                    (B) shall facilitate narrowband communication 
                service providers efforts to innovate and introduce new 
                services and packages of services to consumers;
                    (C) shall eliminate arbitrage opportunities;
                    (D) shall eliminate intercarrier disputes over the 
                rates, terms, and conditions of direct interconnection; 
                and
                    (E) may not unduly burden electronic commerce.
    (c) Transiting Service.--
            (1) In general.--Transiting service providers shall 
        establish commercial arrangements with respect to transiting 
        services.
            (2) Scope of arrangements.--The commercial arrangements 
        described in paragraph (1) shall establish the rates, terms, 
        and conditions for transiting service.
            (3) Exemption from regulation.--Except as provided in 
        paragraphs (4) and (5), the commercial arrangements described 
        in paragraphs (1) and (2) may not be subject to regulation by 
        the Commission or by the States or State commissions.
            (4) Commission intervention for transiting service.--
                    (A) Establishment of regulatory framework.--Not 
                later than 6 months after the date of enactment of this 
                Act, the Commission shall develop a regulatory 
                framework governing transiting service.
                    (B) Applicability of regulatory framework.--The 
                regulatory framework developed under subparagraph (A) 
                shall apply only in the event agreement cannot be 
                reached on the rates, terms, and conditions for 
                transiting service pursuant to paragraphs (1) and (2).
            (5) Scope of regulatory framework.--The regulatory 
        framework described in paragraph (4) shall establish the rates, 
        terms, and conditions on which facilities-based providers shall 
        provide transiting service.
            (6) No compensation obligation.--Transiting service 
        providers shall have no obligation to compensate any party to 
        an indirect interconnection of narrowband communications 
        service providers for the delivery of any transited traffic.
    (d) Sunset of Regulatory Framework.--The regulatory frameworks 
established under subsections (b) and (c) shall terminate on the day 
occurring 5 years after the date of enactment of this Act.
    (e) Notice of Changes.--A facilities-based provider of 
communications service shall provide reasonable public notice of--
            (1) changes in the information necessary for the 
        transmission and routing of communications service using such 
        facilities-based provider of communications service facilities 
        or networks; and
            (2) any other changes that would affect the 
        interoperability of such facilities and networks.
    (f) Identification of Traffic.--Any party seeking to use a 
facilities-based provider of communications service network to route 
their traffic through another facilities-based provider of 
communications service shall, to the extent technically feasible and in 
a manner consistent with applicable industry standards, identify--
            (1) such traffic; and
            (2) the origin of such traffic.
    (g) Equal Access.--Nothing in this Act shall require any 
communications service provider, or any other person, that was not 
required on the date of enactment of this Act to provide equal access 
to common carriers for the provision of telephone toll services to 
provide such equal access.

SEC. 10. UNBUNDLED ACCESS TO COPPER LOOPS, PHYSICAL COLLOCATION, AND 
              RESALE.

    (a) Incumbent Local Exchange Carrier Obligations.--
            (1) Unbundled access.--
                    (A) In general.--An incumbent local exchange 
                carrier shall provide unbundled access to copper local 
                loops on commercially reasonable rates, terms, and 
                conditions.
                    (B) Commission to resolve disputes.--The Commission 
                shall resolve any disputes regarding unbundled access 
                to copper loops as described in subparagraph (A).
                    (C) Exemption.--Except as provided in subparagraph 
                (A), no facilities-based provider of communications 
                service shall have any obligation to provide unbundled 
                access to any of its facilities, equipment, or support 
                systems, either individually or in combination.
            (2) Collocation.--
                    (A) In general.--An incumbent local exchange 
                carrier shall provide physical collocation at the 
                central office of such carrier for access to unbundled 
                copper loops.
                    (B) Virtual collocation.--If the physical 
                collocation described in subparagraph (A) is not 
                practical for technical reasons or due to space 
                limitations, virtual collocation for access to 
                unbundled copper loops shall be required.
            (3) Resale.--
                    (A) In general.--An incumbent local exchange 
                carrier shall provide resale of any local narrowband 
                communications service that is subject to regulation 
                under this Act.
                    (B) Resale rate.--The resale rate applicable to 
                subparagraph (A) shall--
                            (i) be established by the Commission; and
                            (ii) equal the retail rate for such 
                        services less the costs actually avoided.
    (b) Sunset.--The obligations established under subsection (a) shall 
terminate on January 1, 2011.
    (c) Report.--Not later than January 1, 2009, the Commission shall 
submit to Congress a detailed report, with recommendations, on whether 
the obligations established under subsection (a) are in the public 
interest.

SEC. 11. NUMBER PORTABILITY.

    (a) In General.--All communications service providers that use 
numbers or the successor system assigned by the North American 
Numbering Plan, or any such successor entity, shall provide number 
portability to consumers.
    (b) 5-Day Rule.--The Commission shall develop rules and regulations 
requiring that numbers be ported in no more than 5 business days.
    (c) Rulemaking Proceeding.--The Commission may commence a 
rulemaking proceeding if the Commission finds that excessive early 
cancellation fees charged by communications service providers are 
hindering the ability of consumers to change providers.

SEC. 12. SPECIAL PROVISIONS FOR 2-PERCENT CARRIERS.

    (a) Opt In/Opt Out.--
            (1) In general.--Any 2-percent carrier may elect to 
        continue to be subject to Federal and State statutory and 
        regulatory requirements as such requirements existed on the 
        date of enactment of this Act.
            (2) Study area basis.--The election under paragraph (1) may 
        be made only on a study area basis.
    (b) Rural Exemption.--If a communications service provider that is 
also a rural telephone company, as that term is defined in section 3 of 
the Communications Act of 1934 (47 U.S.C. 153), elects under subsection 
(a) to continue to be subject to the regulatory requirements in 
existence on the date of enactment of this Act, such communications 
service provider shall retain its rural exemption pursuant to section 
251(f) of the Communications Act of 1934 (47 U.S.C. 251(f)).
    (c) NECA Tariffs Unaffected.--Nothing in this section precludes or 
affects any tariff filed by the National Exchange Carrier Association, 
and any such tariff may continue to include--
            (1) all tariffed services in effect on the date of 
        enactment of this Act; and
            (2) any new service or modifications to existing service 
        typically covered by such tariffs.
    (d) Negotiation Authority of NECA.--For the purpose of conducting 
and concluding commercial negotiations regarding interconnection 
arrangements, the National Exchange Carrier Association is authorized 
to be the negotiating agent for any 2-percent carrier wishing to use 
the National Exchange Carrier Association for such purpose.

SEC. 13. VIDEO SERVICES.

    (a) Video Service Providers.--A video service provider may not be 
required--
            (1) to obtain a State or local video franchise;
            (2) to build out its video distribution system in any 
        particular manner; or
            (3) to provide leased or common carrier access to its video 
        distribution facilities and equipment to any other video 
        service provider.
    (b) State and Local Government Authority to Regulate.--
            (1) Reasonable fee.--
                    (A) Compensating local governments.--
                            (i) In general.--A State or local 
                        government may require a video service provider 
                        to pay a reasonable video service fee on an 
                        annual basis to the units of local government 
                        in which the video service provider provides 
                        video service for the purpose of compensating 
                        such local government for the costs that it 
                        incurs in managing the public rights-of-way 
                        used by such provider.
                            (ii) Amount of fee.--The video service fee 
                        imposed under clause (i) shall not exceed 5 
                        percent of gross revenues.
                    (B) Definition.--For purposes of this paragraph, 
                the term ``gross revenues''--
                            (i) means all consideration of any kind or 
                        nature received by a video service provider 
                        from its subscribers for the provision of video 
                        service within a municipality, including--
                                    (I) cash;
                                    (II) credits;
                                    (III) property; and
                                    (IV) in-kind contributions 
                                (services or goods); and
                            (ii) does not include--
                                    (I) revenue not actually received, 
                                even if billed, including bad debt;
                                    (II) revenue received by any 
                                affiliate or any other person in 
                                exchange for supplying goods or 
                                services used by a video service 
                                provider to provide video service;
                                    (III) refunds, rebates, or 
                                discounts provided to--
                                            (aa) subscribers;
                                            (bb) leased access 
                                        providers;
                                            (cc) advertisers; or
                                            (dd) the municipality;
                                    (IV) revenue from services not 
                                classified as video service, 
                                including--
                                            (aa) revenue received from 
                                        telecommunications services;
                                            (bb) revenue received from 
                                        information services;
                                            (cc) revenue received in 
                                        connection with advertising;
                                            (dd) revenue received in 
                                        connection with home shopping 
                                        services; or
                                            (ee) any other revenue 
                                        attributed by a video service 
                                        provider to non-video service 
                                        in accordance with any 
                                        applicable rules, regulations, 
                                        standards, or orders;
                                    (V) revenue paid by subscribers to 
                                home shopping programmers directly from 
                                the sale of merchandise through any 
                                home shopping channel offered as part 
                                of the video service;
                                    (VI) the sale of video service for 
                                resale in which the purchaser of such 
                                service is required to collect a 5 
                                percent fee from the customer of such 
                                purchaser;
                                    (VII) any tax of general 
                                applicability--
                                            (aa) imposed upon a video 
                                        service provider or upon 
                                        subscribers by a Federal, 
                                        State, city, or any other 
                                        governmental entity; and
                                            (bb) required to be 
                                        collected by a video service 
                                        provider and remitted to the 
                                        taxing entity, including--

                                                    (AA) sales or use 
                                                taxes;

                                                    (BB) gross receipts 
                                                taxes;

                                                    (CC) excise taxes;

                                                    (DD) utility users 
                                                taxes;

                                                    (EE) public service 
                                                taxes;

                                                    (FF) communication 
                                                taxes; and

                                                    (GG) the 5 percent 
                                                fee described in 
                                                subclause (VI);

                                    (VIII) the provision of video 
                                service to public institutions, public 
                                schools, or governmental entities at no 
                                charge;
                                    (IX) any foregone revenue from the 
                                provision of free or reduced-cost video 
                                service by a video service provider to 
                                any person, including--
                                            (aa) the municipality;
                                            (bb) other public 
                                        institutions; and
                                            (cc) other institutions;
                                    (X) sales of capital assets or 
                                sales of surplus equipment;
                                    (XI) reimbursement by programmers 
                                of marketing costs incurred by a video 
                                service provider for the introduction 
                                or promotion of programming;
                                    (XII) directory or Internet 
                                advertising revenue, including revenue 
                                from--
                                            (aa) yellow page sales;
                                            (bb) white page sales;
                                            (cc) banner advertisement; 
                                        and
                                            (dd) electronic publishing; 
                                        and
                                    (XIII) copyright fees paid to the 
                                United States Copyright Office.
            (2) Rights-of-way disputes to be resolved by the commission 
        or federal courts.--Any dispute regarding the application or 
        amount of fees charged under paragraph (1) shall, upon request 
        of a local unit of government or affected video service 
        provider, be resolved--
                    (A) by the Commission; or
                    (B) by filing a claim in the district court of the 
                United States that meets applicable requirements 
                relating to venue under section 1931 of title 28, 
                United States Code.
            (3) State adjustment of fees and taxes.--
                    (A) In general.--A video service provider may 
                petition the Commission for a reduction of the fee paid 
                by such provider under this subsection, if a State 
                adjusts the fees and taxes paid by communications 
                service providers or their customers for the purpose 
                of--
                            (i) providing fairness;
                            (ii) equality of treatment; or
                            (iii) simplification of the fees and taxes 
                        of such providers relative to each other or to 
                        other commercial and industrial tax payers in 
                        general within such State.
                    (B) Commission action on petition.--The Commission 
                shall act on any petition described in subparagraph (A) 
                not later than 60 days after its receipt.
                    (C) Grant of petition.--The Commission shall grant 
                a petition described in subparagraph (A) if and to the 
                extent it determines that the fees paid by a video 
                service provider should be reduced in order to achieve 
                the purposes of fairness, equality of treatment, or 
                simplification described in subparagraph (A).
            (4) Fee appearance on subscriber's bill.--A video service 
        provider may designate that portion of a subscriber's bill 
        attributable to a video service fee as a separate item on the 
        subscriber's bill.
    (c) Applicability of Title VI of the Communications Act; Cable Act 
Provisions.--
            (1) Obligations and duties.--Any video service provider 
        shall--
                    (A) not be subject to any provision of title VI of 
                the Communications Act of 1934 (47 U.S.C. 521 et seq.), 
                except as otherwise provided in this paragraph;
                    (B) be subject to the retransmission consent 
                obligations of section 325(b) of the Communications Act 
                of 1934 (47 U.S.C. 325(b));
                    (C) carry and determine the appropriate channel 
                positioning and grouping of, within each local 
                franchise area, not more than 4 public, educational, or 
                governmental use channels as required under section 611 
                of such Act (47 U.S.C. 531);
                    (D) carry the signals of local commercial 
                television stations as required under section 614 of 
                such Act (47 U.S.C. 534);
                    (E) carry the signals of local noncommercial 
                educational television stations as required under 
                section 615 of such Act (47 U.S.C. 535);
                    (F) be subject to the regulation of carriage 
                agreements under section 616 of such Act (47 U.S.C. 
                536);
                    (G) be subject to the requirements regarding 
                obscene or indecent programming under section 624(d)(2) 
                of such Act (47 U.S.C. 544(d)(2));
                    (H) be entitled to the benefits and protections 
                under section 624(f)(1) of such Act (47 U.S.C. 
                544(f)(1)) regarding the content of video service;
                    (I) be subject to the emergency information 
                requirements under section 624(g) of such Act (47 
                U.S.C. 544(g));
                    (J) be subject to the consumer electronics 
                equipment capability requirements under section 624A of 
                such Act (47 U.S.C. 545);
                    (K) be entitled to the benefits and protections 
                under section 628 of such Act (47 U.S.C. 548);
                    (L) be subject to the requirements under section 
                629 of such Act (47 U.S.C. 549);
                    (M) protect the personally identifiable information 
                of its subscribers in the same manner as is required of 
                cable operators with respect to subscribers to cable 
                services under section 631 of such Act (47 U.S.C. 551);
                    (N) be entitled to the benefits and protections 
                under section 633 of such Act (47 U.S.C. 553);
                    (O) be subject to the equal employment provisions 
                as required under subsections (a) through (h) of 
                section 634 of such Act (47 U.S.C. 554);
                    (P) be subject to criminal or civil liability under 
                section 638 of such Act (47 U.S.C. 558);
                    (Q) be subject to the penalties prescribed for the 
                transmission of obscene programming under section 639 
                of such Act (47 U.S.C. 559); and
                    (R) be required to comply with the scrambling 
                requirements under section 640 of such Act (47 U.S.C. 
                560).
            (2) Determinations of local signals.--For purposes of 
        complying with subparagraphs (C) and (D) of paragraph (1), a 
        video service provider shall treat as local stations with 
        respect to a customer located within the jurisdiction of any 
        franchising authority the same stations that are treated as 
        local television stations for a cable system located within 
        such jurisdiction.
            (3) Implementation.--
                    (A) Regulations required.--Not later than 120 days 
                after the date of enactment of this Act, the Commission 
                shall prescribe regulations to implement the 
                requirements of paragraph (1) that are no greater or 
                lesser than the obligations required by the 
                specifically referenced provisions of the 
                Communications Act of 1934 (47 U.S.C. 151 et seq.).
                    (B) Effective date of regulations.--The regulations 
                required under subparagraph (A) shall take effect 6 
                months after the date of enactment of this Act.
            (4) Existing franchises.--
                    (A) In general.--Any provision in any franchise 
                granted by a franchising authority that is inconsistent 
                with the provisions of this Act shall be deemed to be 
                preempted and superseded.
                    (B) Treatment as a video service provider.--A cable 
                operator operating under the authority of any franchise 
                described in subparagraph (A) prior to the date of 
                enactment of this Act shall be treated as a video 
                service provider under this Act.
            (5) Cable channels for public, educational, and 
        governmental use.--The governmental entity that was the 
        franchising authority for a State or a political subdivision of 
        a State on the date of enactment of this Act, shall for that 
        State or political subdivision determine which public, 
        educational, or governmental entities shall be authorized to 
        designate the channels required under paragraph (1)(C).
            (6) Consumer protection and customer service.--
                    (A) Regulations required.--Not later than 120 days 
                after the date of enactment of this Act, the Commission 
                shall establish regulations with respect to customer 
                service and consumer protection requirements of the 
                video service provider.
                    (B) Effective date of regulations.--The regulations 
                required under subparagraph (A) shall take effect 6 
                months after the date of enactment of this Act.
            (7) State commission authority.--
                    (A) In general.--Notwithstanding any other 
                provision of this Act, a State commission shall have 
                the authority to enforce the requirements of paragraph 
                (6)(A).
                    (B) Local point of contact.--Each State commission 
                shall designate a local point of contact, which 
                residents of such geographic area may contact to alert 
                such State commission of any potential violations of 
                the requirements and obligations established under 
                paragraph (6)(A).
                    (C) Limitation on class actions.--No class action 
                alleging a violation of the obligations set forth in 
                the regulations established by the Commission under 
                paragraph (6)(A) shall be maintained under this 
                subsection by an individual or any private party in 
                Federal or State court.
                    (D) Parens patriae authority.--In any case in which 
                a State commission has reason to believe that an act or 
                practice violates the obligations set forth in the 
                regulations established by the Commission under 
                paragraph (6)(A), the State commission may bring a 
                civil action on behalf of the residents within its 
                jurisdiction in a district court of the United States 
                of appropriate jurisdiction, or any other court of 
                competent jurisdiction, to--
                            (i) enjoin the act or practice;
                            (ii) obtain--
                                    (I) damages in the sum of actual 
                                damages, restitution, or other 
                                compensation on behalf of affected 
                                residents of the State; and
                                    (II) punitive damages, if the 
                                violation is willful or intentional; or
                            (iii) obtain such other legal and equitable 
                        relief as the court may consider to be 
                        appropriate.
                    (E) Venue; service of process.--
                            (i) Venue.--Any action brought under this 
                        paragraph may be brought in the district court 
                        of the United States that meets applicable 
                        requirements relating to venue under section 
                        1931 of title 28, United States Code.
                            (ii) Service or process.--In an action 
                        brought under this paragraph, process may be 
                        served in any district in which the defendant--
                                    (I) is an inhabitant; or
                                    (II) may be found.
                    (F) Limitation.--A State commission that is 
                authorized to enforce the requirements of paragraph (6) 
                may not be authorized to impose additional obligations 
                beyond those established by the Commission in paragraph 
                (6)(A).
    (d) Commission to Act if State Commission Will Not Act.--If a State 
commission fails to carry out its enforcement responsibilities under 
subsection (c)(7), the Commission shall--
            (1) issue an order preempting the jurisdiction of the State 
        commission; and
            (2) assume exclusive enforcement authority.
    (e) Ability to Manage Public Rights-of-Way.--
            (1) In general.--Except as provided in this section, 
        nothing in this Act shall affect the authority of a State or 
        local government to manage the public right-of-way in a manner 
        that is--
                    (A) non-discriminatory;
                    (B) competitively neutral; and
                    (C) consistent with applicable State law.
            (2) Construction permits.--
                    (A) In general.--In managing the public rights-of-
                way a State or local government may require the 
                issuance of a construction permit, without cost, to a 
                video service provider that is locating facilities in 
                such public right-of-way.
                    (B) Response work or repair.--If there is an 
                emergency necessitating response work or repair in the 
                public right-of-way, a video service provider may begin 
                such work or repair without prior approval from a State 
                or local government, if such provider notifies the 
                State or local government as promptly as possible after 
                beginning such work or repair.
            (3) Timely action required.--In managing the public rights-
        of-way a State or local government that is required to issue 
        permits or licenses for such use shall be required to act upon 
        any such request for use in a timely manner.
            (4) New roads.--Nothing in this section shall effect the 
        ability of a State or local government to impose reasonable 
        limits on access to public rights-of-way associated with newly 
        constructed roads.
    (f) Conforming Amendments to the Communications Act of 1934.--
            (1) Pole attachments.--Section 224 of the Communications 
        Act of 1934 (47 U.S.C. 224) is amended--
                    (A) in subsection (a)(1), by striking ``local 
                exchange carrier'' and inserting ``telecommunications 
                carrier'';
                    (B) by striking subsections (a)(5) and (d)(3);
                    (C) in subsection (d)(3), in the first sentence by 
                striking all after ``cable television system'' through 
                the period at the end and inserting ``and facilities of 
                other video service providers, regardless of the nature 
                of the services provided.''; and
                    (D) by adding at the end the following:
    ``(j) Wireless Service Facility Exemption.--Nothing in this section 
applies to a wireless service facility, including to towers of a 
provider of mobile services.''.
            (2) Carriage of local commercial television signals.--
        Section 614(b)(4) of the Communications Act of 1934 (47 U.S.C. 
        534(b)(4)) is amended to read as follows:
            ``(4) Signal quality.--
                    ``(A) Non-degradation.--The signals of local 
                commercial television stations that a cable operator 
                carries shall be carried without material degradation.
                    ``(B) Carriage standards.--The Commission shall 
                adopt carriage standards to ensure that, to the extent 
                technically feasible, the quality of signal processing 
                and carriage provided by a cable system for the 
                carriage of local commercial television stations will 
                be no less than that provided by the system for 
                carriage of any other type of broadcast local 
                commercial television signal when using the same 
                transmission technology.''.
            (3) Carriage of noncommercial educational television.--
        Section 615(g)(2) of the Communications Act of 1934 (47 U.S.C. 
        535(g)(2)) is amended to read as follows--
            ``(2) Bandwith and technical quality.--A cable operator 
        shall--
                    ``(A) provide each qualified local non-commercial 
                television station whose signal is carried in 
                accordance with this section with bandwith and 
                technical capacity equivalent to that provided to 
                commercial television stations carried on the cable 
                system when using the same transmission technology; and
                    ``(B) carry the signal of each qualified local non-
                commercial educated television station without material 
                degradation.''.
            (4) Development of competition and diversity in video 
        programming distribution.--Section 628 of the Communications 
        Act of 1934 (47 U.S.C. 548) is amended to read as follows:

``SEC. 628. DEVELOPMENT OF COMPETITION AND DIVERSITY IN VIDEO 
              PROGRAMMING DISTRIBUTION.

    ``(a) Purpose.--The purpose of this section is--
            ``(1) to promote the public interest, convenience, and 
        necessity by increasing competition and diversity in the 
        multichannel video programming market;
            ``(2) to increase the availability of MVPD programming and 
        satellite broadcast programming to persons in rural and other 
        areas not currently able to receive such programming; and
            ``(3) to spur the development of communications 
        technologies.
    ``(b) Prohibition.--It shall be unlawful for an MVPD, an MVPD 
programming vendor in which an MVPD has an attributable interest, or a 
satellite broadcast programming vendor to engage in unfair methods of 
competition or unfair or deceptive acts or practices, the purpose or 
effect of which is to hinder significantly or to prevent any MVPD from 
providing MVPD programming or satellite broadcast programming to 
subscribers or consumers.
    ``(c) Regulations Required.--
            ``(1) Proceeding required.--Not later than 180 days after 
        the date of enactment of the Broadband Investment and Consumer 
        Choice Act, the Commission shall prescribe regulations to 
        specify particular conduct that is prohibited by subsection 
        (b), in order to promote--
                    ``(A) the public interest, convenience, and 
                necessity by increasing competition and diversity in 
                the multichannel video programming market; and
                    ``(B) the continuing development of communications 
                technologies.
            ``(2) Minimum contents of regulation.--The regulations 
        required under paragraph (1) shall--
                    ``(A) establish effective safeguards to prevent an 
                MVPD which has an attributable interest in an MVPD 
                programming vendor or a satellite broadcast programming 
                vendor from unduly or improperly influencing the 
                decision of such vendor to sell, or the prices, terms, 
                and conditions of sale of, MVPD programming or 
                satellite broadcast programming to any unaffiliated 
                MVPD;
                    ``(B) prohibit discrimination by an MVPD 
                programming vendor in which an MVPD has an attributable 
                interest or by a satellite broadcast programming vendor 
                in the prices, terms, and conditions of sale or 
                delivery of MVPD programming or satellite broadcast 
                programming among or between cable systems, cable 
                operators, or other MVPDs, or their agents or buying 
                groups, except that an MVPD programming vendor in which 
                an MVPD has an attributable interest or such a 
                satellite broadcast programming vendor shall not be 
                prohibited from--
                            ``(i) imposing reasonable requirements 
                        for--
                                    ``(I) creditworthiness;
                                    ``(II) offering of service; and
                                    ``(III) financial stability and 
                                standards regarding character and 
                                technical quality;
                            ``(ii) establishing different prices, 
                        terms, and conditions to take into account 
                        actual and reasonable differences in the cost 
                        of creation, sale, delivery, or transmission of 
                        MVPD programming or satellite broadcast 
                        programming;
                            ``(iii) establishing different prices, 
                        terms, and conditions which take into account 
                        economies of scale, cost savings, or other 
                        direct and legitimate economic benefits 
                        reasonably attributable to the number of 
                        subscribers served by the distributor; or
                            ``(iv) entering into an exclusive contract 
                        that is permitted under subparagraph (D);
                    ``(C) prohibit practices, understandings, 
                arrangements, and activities, including exclusive 
                contracts for MVPD programming or satellite broadcast 
                programming between an MVPD and an MVPD programming 
                vendor or satellite broadcast programming vendor, that 
                prevent an MVPD from obtaining such programming from 
                any MVPD programming vendor in which an MVPD has an 
                attributable interest or any satellite broadcast 
                programming vendor in which an MVPD has an attributable 
                interest for distribution to persons in areas not 
                served by an MVPD as of the date of enactment of the 
                Broadband Investment and Consumer Choice Act; and
                    ``(D) with respect to distribution to persons in 
                areas served by an MVPD, prohibit exclusive contracts 
                for MVPD programming or satellite broadcast programming 
                between an MVPD and an MVPD programming vendor in which 
                an MVPD has an attributable interest or a satellite 
                broadcast programming vendor in which an MVPD has an 
                attributable interest, unless the Commission determines 
                (in accordance with paragraph (4)) that such contract 
                is in the public interest.
            ``(3) Limitations.--
                    ``(A) Geographic limitations.--Nothing in this 
                section shall require any person who is engaged in the 
                national or regional distribution of video programming 
                to make such programming available in any geographic 
                area beyond which such programming has been authorized 
                or licensed for distribution.
                    ``(B) Applicability to satellite retransmissions.--
                Nothing in this section shall apply--
                            ``(i) to the signal of any broadcast 
                        affiliate of a national television network or 
                        other television signal that is retransmitted 
                        by satellite but that is not satellite 
                        broadcast programming; or
                            ``(ii) to any internal satellite 
                        communication of any broadcast network or cable 
                        network that is not satellite broadcast 
                        programming.
                    ``(C) Exclusion of individual video programs.--
                Nothing in this section shall apply to a specific 
                individual video program produced by an MVPD for local 
                distribution by that MVPD and not made available 
                directly or indirectly to unaffiliated MVPDs, if--
                            ``(i) all other video programming carried 
                        on a programming channel or network on which 
                        the individual video program is carried, is 
                        made available to unaffiliated MVPDs pursuant 
                        to paragraph (2)(D); and
                            ``(ii) such specific individual video 
                        program is not the transmission of a sporting 
                        event.
                    ``(D) MVPD sports programming.--The prohibition set 
                forth in paragraph (2)(D), and the rules adopted by the 
                Commission pursuant to that paragraph, shall apply to 
                any MVPD programming that includes the transmission of 
                live sporting events, irrespective of whether an MVPD 
                has an attributable interest in the MVPD programming 
                vendor engaged in the production, creation, or 
                wholesale distribution of such MVPD programming.
            ``(4) Public interest determinations on exclusive 
        contacts.--In determining whether an exclusive contract is in 
        the public interest for purposes of paragraph (2)(D), the 
        Commission shall consider with respect to the effect of such 
        contract on the distribution of video programming in areas that 
        are served by an MVPD--
                    ``(A) the effect of such exclusive contract on the 
                development of competition in local and national 
                multichannel video programming distribution markets;
                    ``(B) the effect of such exclusive contract on 
                competition from multichannel video programming 
                distribution technologies other than cable;
                    ``(C) the effect of such exclusive contract on the 
                attraction of capital investment in the production and 
                distribution of new MVPD programming;
                    ``(D) the effect of such exclusive contract on 
                diversity of programming in the multichannel video 
                programming distribution market; and
                    ``(E) the duration of the exclusive contract.
            ``(5) Sunset provision.--The prohibition required by 
        paragraph (2)(D) shall cease to be effective 10 years after the 
        date of enactment of the Broadband Investment and Consumer 
        Choice Act, unless the Commission finds, in a proceeding 
        conducted during the last year of such 10-year period, that 
        such prohibition continues to be necessary to preserve and 
        protect competition and diversity in the distribution of video 
        programming.
    ``(d) Adjudicatory Proceeding.--
            ``(1) In general.--An MVPD aggrieved by conduct that it 
        alleges constitutes a violation of subsection (b), or the 
        regulations of the Commission under subsection (c), may 
        commence an adjudicatory proceeding at the Commission.
            ``(2) Request for production of agreements.--In any 
        proceeding initiated under paragraph (1), the Commission shall 
        request from a party, and the party shall produce, such 
        agreements between the party and a third party relating to the 
        distribution of MVPD programming that the Commission believes 
        to be relevant to its decision regarding the matters at issue 
        in such adjudicatory proceeding.
            ``(3) Confidentiality to be maintained.--The production of 
        any agreement under paragraph (2) and its use in a Commission 
        decision in the adjudicatory proceeding under paragraph (1) 
        shall be subject to such provisions ensuring confidentiality as 
        the Commission may by regulation determine.
    ``(e) Remedies for Violations.--
            ``(1) Remedies authorized.--Upon completion of an 
        adjudicatory proceeding under subsection (d), the Commission 
        shall have the power to order appropriate remedies, including, 
        if necessary, the power to establish prices, terms, and 
        conditions of sale of programming to an aggrieved MVPD.
            ``(2) Additional remedies.--The remedies provided under 
        paragraph (1) are in addition to any remedy available to an 
        MVPD under title V or any other provision of this Act.
    ``(f) Procedures.--
            ``(1) In general.--The Commission shall prescribe 
        regulations to implement this section.
            ``(2) Content of regulations.--The regulations required 
        under paragraph (1) shall--
                    ``(A) provide for an expedited review of any 
                complaints made pursuant to this section, including the 
                issuance of a final order terminating such review not 
                later than 120 days after the date on which the 
                complaint was filed;
                    ``(B) establish procedures for the Commission to 
                collect such data as the Commission requires to carry 
                out this section, including the right to obtain copies 
                of all contracts and documents reflecting arrangements 
                and understandings alleged to violate this section; and
                    ``(C) provide for penalties to be assessed against 
                any person filing a frivolous complaint pursuant to 
                this section.
    ``(g) Reports.--The Commission shall, beginning not later than 18 
months after promulgation of the regulations required by subsection 
(c), annually report to Congress on the status of competition in the 
market for the delivery of video programming.
    ``(h) Exemptions for Prior Contracts.--
            ``(1) In general.--Nothing in this section shall affect--
                    ``(A) any contract that grants exclusive 
                distribution rights to any person with respect to 
                satellite cable programming and that was entered into 
                on or before June 1, 1990; or
                    ``(B) any contract that grants exclusive 
                distribution rights to any person with respect to MVPD 
                programming that is not satellite cable programming and 
                that was entered into on or before July 1, 2003, except 
                that the provisions of subsection (c)(2)(C) shall apply 
                for distribution to persons in areas not served by an 
                MVPD.
            ``(2) Limitation on renewals.--
                    ``(A) Satellite cable programming contracts.--A 
                contract pertaining to satellite cable programming or 
                satellite broadcast programming that was entered into 
                on or before June 1, 1990, but that is renewed or 
                extended after the date of enactment of the Broadband 
                Investment and Consumer Choice Act shall not be exempt 
                under paragraph (1).
                    ``(B) MVPD programming contracts.--A contract 
                pertaining to MVPD programming that is not satellite 
                cable programming that was entered into on or before 
                July 1, 2003, but that is renewed or extended after the 
                date of enactment of the Broadband Investment and 
                Consumer Choice Act shall not be exempt under paragraph 
                (1).
    ``(i) Definitions.--As used in this section:
            ``(1) MVPD.--The term `MVPD' means multichannel video 
        programming distributor.
            ``(2) MVPD programming.--The term `MVPD programming' 
        includes the following:
                    ``(A) Direct receipt.--Video programming primarily 
                intended for the direct receipt by MVPDs for their 
                retransmission to MVPD subscribers (including any 
                ancillary data transmission).
                    ``(B) Additional programming.--
                            ``(i) In general.--Additional types of 
                        programming content that the Commission 
                        determines in a rulemaking proceeding to be 
                        completed not later than 120 days from the date 
                        of enactment of the Broadband Investment and 
                        Consumer Choice Act, as of the time of such 
                        rulemaking, of a type that is--
                                    ``(I) primarily intended for the 
                                direct receipt by MVPDs for their 
                                retransmission to MVPD subscribers, 
                                regardless of whether such programming 
                                content is--
                                            ``(aa) digital or analog;
                                            ``(bb) compressed or 
                                        uncompressed;
                                            ``(cc) encrypted or 
                                        unencrypted; or
                                            ``(dd) provided on a 
                                        serial, pay-per-view, or on 
                                        demand basis; and
                                    ``(II) without regard to the end 
                                user device used to access such 
                                programming or the mode of delivery of 
                                such programming content to MVPDs.
                            ``(ii) Considerations.--In making the 
                        determination under clause (i), the Commission 
                        shall consider the effect of technologies and 
                        services that combine different forms of 
                        content so that certain content or programming 
                        is not included within the meaning of MVPD 
                        programming solely because it is integrated 
                        with other content that is of a type that is 
                        primarily intended for the direct receipt by 
                        MVPDs for their retransmission to MVPD 
                        subscribers.
                            ``(iii) Modification of programming defined 
                        as mvpd programming.--At any time after 3 years 
                        following the conclusion of the rulemaking 
                        proceeding required under clause (ii), any 
                        interested MVPD or MVPD programming vendor may 
                        petition the Commission to modify the types of 
                        additional programming content included by the 
                        Commission within the definition of MVPD 
                        programming in light of--
                                    ``(I) the purpose of this section;
                                    ``(II) market conditions at the 
                                time of such petition; and
                                    ``(III) the factors to be 
                                considered by the Commission under 
                                clause (ii).
            ``(3) MVPD programming vendor.--The term `MVPD programming 
        vendor'--
                    ``(A) means a person engaged in the production, 
                creation, or wholesale distribution for sale of MVPD 
                programming; and
                    ``(B) does not include a satellite broadcast 
                programming vendor.
            ``(4) Satellite broadcast programming.--The term `satellite 
        broadcast programming' means broadcast video programming when--
                    ``(A) such programming is retransmitted by 
                satellite; and
                    ``(B) the entity retransmitting such programming is 
                not the broadcaster or an entity performing such 
                retransmission on behalf of and with the specific 
                consent of the broadcaster.
            ``(5) Satellite broadcast programming vendor.--The term 
        `satellite broadcast programming vendor' means a fixed service 
        satellite carrier that provides service pursuant to section 119 
        of title 17, United States Code, with respect to satellite 
        broadcast programming.
            ``(6) Satellite cable programming.--The term `satellite 
        cable programming' has the same meaning as in section 705, 
        except that such term does not include satellite broadcast 
        programming.
            ``(7) Satellite cable programming vendor.--The term 
        `satellite cable programming vendor'--
                    ``(A) means a person engaged in the production, 
                creation, or wholesale distribution for sale of 
                satellite cable programming; and
                    ``(B) does not include a satellite broadcast 
                programming vendor.
    ``(j) Common Carriers.--
            ``(1) In general.--Any provision that applies to an MVPD 
        under this section shall apply to a common carrier or its 
        affiliate that provides video programming by any means directly 
        to subscribers.
            ``(2) Attributable interest.--Any provision that applies to 
        an MVPD programming vendor in which an MVPD has an attributable 
        interest shall apply to any MVPD programming vendor in which 
        such common carrier has an attributable interest.
            ``(3) Limitation.--For the purposes of this subsection, 2 
        or fewer common officers or directors shall not by itself 
        establish an attributable interest by a common carrier in an 
        MVPD programming vendor (or its parent company).''.
            (5) Regulations required.--Not later than 180 days after 
        the date of enactment of this Act, the Commission shall 
        prescribe such regulations as may be necessary to implement the 
        amendments made by this section.
    (g) Rulemaking on Section 629.--Not later than January 1, 2008, the 
Commission shall conduct a proceeding to determine the appropriateness 
of the requirements under subsection (c)(1)(L) taking into account 
changes and advancements in technology.

SEC. 14. COPYRIGHT LIMITATIONS ON EXCLUSIVE RIGHTS VIDEO SERVICE 
              PROVIDERS.

    Section 111 of title 17, United States Code, shall for purposes of 
this Act be deemed to extend to any secondary transmission, as that 
term is defined in section 111, made by a video service provider.

SEC. 15. MUNICIPALLY OWNED NETWORKS.

    (a) Protection Against Undue Government Competition With Private 
Sector.--Any State or local government seeking to provide 
communications service shall--
            (1) provide conspicuous notice of the proposed scope of the 
        communications service to be provided, including--
                    (A) cost;
                    (B) services to be provided;
                    (C) coverage area;
                    (D) terms; and
                    (E) architecture; and
            (2) give a detailed accounting of all proposed 
        accommodations that such government owned communications 
        service would enjoy, including--
                    (A) any free or below cost rights-of-way;
                    (B) any beneficial or preferential tax treatment;
                    (C) bonds, grants, or other source of funding 
                unavailable to non-governmental entities; and
                    (D) land, space in buildings, or other 
                considerations.
    (b) Open Bids Must Be Made Available for Non-Governmental 
Entities.--Not later than 90 days after posting of the notice required 
under subsection (a)(1), a non-governmental entity shall have the 
option of participating in an open bidding process conducted by a 
neutral third party to provide such communications service on the same 
terms, conditions, financing, rights-of- way, land, space, and 
accommodations as secured by the State or local government.
    (c) Preference for Non-Governmental Entities.--In the event of 
identical bids under subsection (b), the neutral third party conducting 
the bidding process shall give preference to a non-governmental entity.
    (d) Open Access to Non-Governmental Entities.--If a State or local 
government wins the bid under subsection (b), a non-governmental entity 
shall have the ability to place facilities in the same conduit, 
trenches, and locations as the State or local government for concurrent 
or future use under the same conditions secured by the State or local 
government.
    (e) Grandfather Clause.--A State or local government providing 
communications service as of the date of enactment of this Act shall be 
exempt from this section, unless such State or local government--
            (1) substantially enters into new lines of business; or
            (2) substantially expands it communications service beyond 
        its current service area, as such service area existed upon the 
        date of enactment of this Act.
                                 <all>