[DOCID: f:publ104.104]
TELECOMMUNICATIONS ACT OF 1996
[[Page 110 STAT. 56]]
Public Law 104-104
104th Congress
An Act
To promote competition and reduce regulation in order to secure lower
prices and higher quality services for American telecommunications
consumers and encourage the rapid deployment of new telecommunications
technologies. <<NOTE: Feb. 8, 1996 - [S. 652]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress
assembled, <<NOTE: Telecommunications Act of 1996. Intergovernmental
relations.>>
SECTION 1. SHORT TITLE; REFERENCES.
(a) <<NOTE: 47 USC 609 note.>> Short Title.--This Act may be cited
as the ``Telecommunications Act of 1996''.
(b) References.--Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the
Communications Act of 1934 (47 U.S.C. 151 et seq.).
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title; references.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--TELECOMMUNICATION SERVICES
Subtitle A--Telecommunications Services
Sec. 101. Establishment of part II of title II.
``Part II--Development of Competitive Markets
``Sec. 251. Interconnection.
``Sec. 252. Procedures for negotiation, arbitration, and
approval of agreements.
``Sec. 253. Removal of barriers to entry.
``Sec. 254. Universal service.
``Sec. 255. Access by persons with disabilities.
``Sec. 256. Coordination for interconnectivity.
``Sec. 257. Market entry barriers proceeding.
``Sec. 258. Illegal changes in subscriber carrier selections.
``Sec. 259. Infrastructure sharing.
``Sec. 260. Provision of telemessaging service.
``Sec. 261. Effect on other requirements.''
Sec. 102. Eligible telecommunications carriers.
Sec. 103. Exempt telecommunications companies.
Sec. 104. Nondiscrimination principle.
Subtitle B--Special Provisions Concerning Bell Operating Companies
Sec. 151. Bell operating company provisions.
``PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
``Sec. 271. Bell operating company entry into interLATA
services.
``Sec. 272. Separate affiliate; safeguards.
[[Page 110 STAT. 57]]
``Sec. 273. Manufacturing by Bell operating companies.
``Sec. 274. Electronic publishing by Bell operating companies.
``Sec. 275. Alarm monitoring services.
``Sec. 276. Provision of payphone service.''
TITLE II--BROADCAST SERVICES
Sec. 201. Broadcast spectrum flexibility.
``Sec. 336. Broadcast spectrum flexibility.''
Sec. 202. Broadcast ownership.
Sec. 203. Term of licenses.
Sec. 204. Broadcast license renewal procedures.
Sec. 205. Direct broadcast satellite service.
Sec. 206. Automated ship distress and safety systems.
``Sec. 365. Automated ship distress and safety systems.''
Sec. 207. Restrictions on over-the-air reception devices.
TITLE III--CABLE SERVICES
Sec. 301. Cable Act reform.
Sec. 302. Cable service provided by telephone companies.
``Part V--Video Programming Services Provided by Telephone Companies
``Sec. 651. Regulatory treatment of video programming services.
``Sec. 652. Prohibition on buy outs.
``Sec. 653. Establishment of open video systems.''
Sec. 303. Preemption of franchising authority regulation of
telecommunications services.
Sec. 304. Competitive availability of navigation devices.
``Sec. 629. Competitive availability of navigation devices.''
Sec. 305. Video programming accessibility.
``Sec. 713. Video programming accessibility.''
TITLE IV--REGULATORY REFORM
Sec. 401. Regulatory forbearance.
``Sec. 10. Competition in provision of telecommunications
service.''
Sec. 402. Biennial review of regulations; regulatory relief.
``Sec. 11. Regulatory reform.''
Sec. 403. Elimination of unnecessary Commission regulations and
functions.
TITLE V--OBSCENITY AND VIOLENCE
Subtitle A--Obscene, Harassing, and Wrongful Utilization of
Telecommunications Facilities
Sec. 501. Short title.
Sec. 502. Obscene or harassing use of telecommunications facilities
under the Communications Act of 1934.
Sec. 503. Obscene programming on cable television.
Sec. 504. Scrambling of cable channels for nonsubscribers.
``Sec. 640. Scrambling of cable channels for nonsubscribers.''
Sec. 505. Scrambling of sexually explicit adult video service
programming.
``Sec. 641. Scrambling of sexually explicit adult video service
programming.''
Sec. 506. Cable operator refusal to carry certain programs.
Sec. 507. Clarification of current laws regarding communication of
obscene materials through the use of computers.
Sec. 508. Coercion and enticement of minors.
Sec. 509. Online family empowerment.
``Sec. 230. Protection for private blocking and screening of
offensive material.''
Subtitle B--Violence
Sec. 551. Parental choice in television programming.
Sec. 552. Technology fund.
Subtitle C--Judicial Review
Sec. 561. Expedited review.
TITLE VI--EFFECT ON OTHER LAWS
Sec. 601. Applicability of consent decrees and other law.
Sec. 602. Preemption of local taxation with respect to direct-to-home
services.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Prevention of unfair billing practices for information or
services provided over toll-free telephone calls.
[[Page 110 STAT. 58]]
Sec. 702. Privacy of customer information.
``Sec. 222. Privacy of customer information.''
Sec. 703. Pole attachments.
Sec. 704. Facilities siting; radio frequency emission standards.
Sec. 705. Mobile services direct access to long distance carriers.
Sec. 706. Advanced telecommunications incentives.
Sec. 707. Telecommunications Development Fund.
``Sec. 714. Telecommunications Development Fund.''
Sec. 708. National Education Technology Funding Corporation.
Sec. 709. Report on the use of advanced telecommunications services for
medical purposes.
Sec. 710. Authorization of appropriations.
SEC. 3. DEFINITIONS.
(a) Additional Definitions.--Section 3 (47 U.S.C. 153) is amended--
(1) in subsection (r)--
(A) by inserting ``(A)'' after ``means''; and
(B) by inserting before the period at the end the
following: ``, or (B) comparable service provided
through a system of switches, transmission equipment, or
other facilities (or combination thereof) by which a
subscriber can originate and terminate a
telecommunications service''; and
(2) by adding at the end thereof the following:
``(33) Affiliate.--The term `affiliate' means a person that
(directly or indirectly) owns or controls, is owned or
controlled by, or is under common ownership or control with,
another person. For purposes of this paragraph, the term `own'
means to own an equity interest (or the equivalent thereof) of
more than 10 percent.
``(34) AT&T consent decree.--The term `AT&T Consent Decree'
means the order entered August 24, 1982, in the antitrust action
styled United States v. Western Electric, Civil Action No. 82-
0192, in the United States District Court for the District of
Columbia, and includes any judgment or order with respect to
such action entered on or after August 24, 1982.
``(35) Bell operating company.--The term `Bell operating
company'--
``(A) means any of the following companies: Bell
Telephone Company of Nevada, Illinois Bell Telephone
Company, Indiana Bell Telephone Company, Incorporated,
Michigan Bell Telephone Company, New England Telephone
and Telegraph Company, New Jersey Bell Telephone
Company, New York Telephone Company, U S West
Communications Company, South Central Bell Telephone
Company, Southern Bell Telephone and Telegraph Company,
Southwestern Bell Telephone Company, The Bell Telephone
Company of Pennsylvania, The Chesapeake and Potomac
Telephone Company, The Chesapeake and Potomac Telephone
Company of Maryland, The Chesapeake and Potomac
Telephone Company of Virginia, The Chesapeake and
Potomac Telephone Company of West Virginia, The Diamond
State Telephone Company, The Ohio Bell Telephone
Company, The Pacific Telephone and Telegraph Company, or
Wisconsin Telephone Company; and
``(B) includes any successor or assign of any such
company that provides wireline telephone exchange
service; but
[[Page 110 STAT. 59]]
``(C) does not include an affiliate of any such
company, other than an affiliate described in
subparagraph (A) or (B).
``(36) Cable service.--The term `cable service' has the
meaning given such term in section 602.
``(37) Cable system.--The term `cable system' has the
meaning given such term in section 602.
``(38) Customer premises equipment.--The term `customer
premises equipment' means equipment employed on the premises of
a person (other than a carrier) to originate, route, or
terminate telecommunications.
``(39) Dialing parity.--The term `dialing parity' means that
a person that is not an affiliate of a local exchange carrier is
able to provide telecommunications services in such a manner
that customers have the ability to route automatically, without
the use of any access code, their telecommunications to the
telecommunications services provider of the customer's
designation from among 2 or more telecommunications services
providers (including such local exchange carrier).
``(40) Exchange access.--The term `exchange access' means
the offering of access to telephone exchange services or
facilities for the purpose of the origination or termination of
telephone toll services.
``(41) Information service.--The term `information service'
means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or
making available information via telecommunications, and
includes electronic publishing, but does not include any use of
any such capability for the management, control, or operation of
a telecommunications system or the management of a
telecommunications service.
``(42) Interlata service.--The term `interLATA service'
means telecommunications between a point located in a local
access and transport area and a point located outside such area.
``(43) Local access and transport area.--The term `local
access and transport area' or `LATA' means a contiguous
geographic area--
``(A) established before the date of enactment of
the Telecommunications Act of 1996 by a Bell operating
company such that no exchange area includes points
within more than 1 metropolitan statistical area,
consolidated metropolitan statistical area, or State,
except as expressly permitted under the AT&T Consent
Decree; or
``(B) established or modified by a Bell operating
company after such date of enactment and approved by the
Commission.
``(44) Local exchange carrier.--The term `local exchange
carrier' means any person that is engaged in the provision of
telephone exchange service or exchange access. Such term does
not include a person insofar as such person is engaged in the
provision of a commercial mobile service under section 332(c),
except to the extent that the Commission finds that such service
should be included in the definition of such term.
``(45) Network element.--The term `network element' means a
facility or equipment used in the provision of a
telecommunications service. Such term also includes features,
func
[[Page 110 STAT. 60]]
tions, and capabilities that are provided by means of such facility or
equipment, including subscriber numbers, databases, signaling
systems, and information sufficient for billing and collection
or used in the transmission, routing, or other provision of a
telecommunications service.
``(46) Number portability.--The term `number portability'
means the ability of users of telecommunications services to
retain, at the same location, existing telecommunications
numbers without impairment of quality, reliability, or
convenience when switching from one telecommunications carrier
to another.
``(47) Rural telephone company.--The term `rural telephone
company' means a local exchange carrier operating entity to the
extent that such entity--
``(A) provides common carrier service to any local
exchange carrier study area that does not include
either--
``(i) any incorporated place of 10,000
inhabitants or more, or any part thereof, based on
the most recently available population statistics
of the Bureau of the Census; or
``(ii) any territory, incorporated or
unincorporated, included in an urbanized area, as
defined by the Bureau of the Census as of August
10, 1993;
``(B) provides telephone exchange service, including
exchange access, to fewer than 50,000 access lines;
``(C) provides telephone exchange service to any
local exchange carrier study area with fewer than
100,000 access lines; or
``(D) has less than 15 percent of its access lines
in communities of more than 50,000 on the date of
enactment of the Telecommunications Act of 1996.
``(48) Telecommunications.--The term `telecommunications'
means the transmission, between or among points specified by the
user, of information of the user's choosing, without change in
the form or content of the information as sent and received.
``(49) Telecommunications carrier.--The term
`telecommunications carrier' means any provider of
telecommunications services, except that such term does not
include aggregators of telecommunications services (as defined
in section 226). A telecommunications carrier shall be treated
as a common carrier under this Act only to the extent that it is
engaged in providing telecommunications services, except that
the Commission shall determine whether the provision of fixed
and mobile satellite service shall be treated as common
carriage.
``(50) Telecommunications equipment.--The term
`telecommunications equipment' means equipment, other than
customer premises equipment, used by a carrier to provide
telecommunications services, and includes software integral to
such equipment (including upgrades).
``(51) Telecommunications service.--The term
`telecommunications service' means the offering of
telecommunications for a fee directly to the public, or to such
classes of users as to be effectively available directly to the
public, regardless of the facilities used.''.
[[Page 110 STAT. 61]]
(b) <<NOTE: 47 USC 153 note.>> Common Terminology.--Except as
otherwise provided in this Act, the terms used in this Act have the
meanings provided in section 3 of the Communications Act of 1934 (47
U.S.C. 153), as amended by this section.
(c) Stylistic Consistency.--Section 3 (47 U.S.C. 153) is amended--
(1) in subsections (e) and (n), by redesignating clauses
(1), (2), and (3), as clauses (A), (B), and (C), respectively;
(2) in subsection (w), by redesignating paragraphs (1)
through (5) as subparagraphs (A) through (E), respectively;
(3) in subsections (y) and (z), by redesignating paragraphs
(1) and (2) as subparagraphs (A) and (B), respectively;
(4) by redesignating subsections (a) through (ff) as
paragraphs (1) through (32);
(5) by indenting such paragraphs 2 em spaces;
(6) by inserting after the designation of each such
paragraph--
(A) a heading, in a form consistent with the form of
the heading of this subsection, consisting of the term
defined by such paragraph, or the first term so defined
if such paragraph defines more than one term; and
(B) the words ``The term'';
(7) by changing the first letter of each defined term in
such paragraphs from a capital to a lower case letter (except
for ``United States'', ``State'', ``State commission'', and
``Great Lakes Agreement''); and
(8) by reordering such paragraphs and the additional
paragraphs added by subsection (a) in alphabetical order based
on the headings of such paragraphs and renumbering such
paragraphs as so reordered.
(d) Conforming Amendments.--The Act is amended--
(1) in section 225(a)(1), <<NOTE: 47 USC 225.>> by striking
``section 3(h)'' and inserting ``section 3'';
(2) in section 332(d), <<NOTE: 47 USC 332.>> by striking
``section 3(n)'' each place it appears and inserting ``section
3''; and
(3) in sections 621(d)(3), 636(d), and 637(a)(2), <<NOTE: 47
USC 541, 556, 557.>> by striking ``section 3(v)'' and inserting
``section 3''.
TITLE I--TELECOMMUNICATION SERVICES
Subtitle A--Telecommunications Services
SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.
(a) Amendment.--Title II is amended by inserting after section 229
(47 U.S.C. 229) the following new part:
``PART II--DEVELOPMENT OF COMPETITIVE MARKETS
``SEC. 251. <<NOTE: 47 USC 251.>> INTERCONNECTION.
``(a) General Duty of Telecommunications Carriers.--Each
telecommunications carrier has the duty--
``(1) to interconnect directly or indirectly with the
facilities and equipment of other telecommunications carriers;
and
[[Page 110 STAT. 62]]
``(2) not to install network features, functions, or
capabilities that do not comply with the guidelines and
standards established pursuant to section 255 or 256.
``(b) Obligations of All Local Exchange Carriers.--Each local
exchange carrier has the following duties:
``(1) Resale.--The duty not to prohibit, and not to impose
unreasonable or discriminatory conditions or limitations on, the
resale of its telecommunications services.
``(2) Number portability.--The duty to provide, to the
extent technically feasible, number portability in accordance
with requirements prescribed by the Commission.
``(3) Dialing parity.--The duty to provide dialing parity to
competing providers of telephone exchange service and telephone
toll service, and the duty to permit all such providers to have
nondiscriminatory access to telephone numbers, operator
services, directory assistance, and directory listing, with no
unreasonable dialing delays.
``(4) Access to rights-of-way.--The duty to afford access to
the poles, ducts, conduits, and rights-of-way of such carrier to
competing providers of telecommunications services on rates,
terms, and conditions that are consistent with section 224.
``(5) Reciprocal compensation.--The duty to establish
reciprocal compensation arrangements for the transport and
termination of telecommunications.
``(c) Additional Obligations of Incumbent Local Exchange Carriers.--
In addition to the duties contained in subsection (b), each incumbent
local exchange carrier has the following duties:
``(1) Duty to negotiate.--The duty to negotiate in good
faith in accordance with section 252 the particular terms and
conditions of agreements to fulfill the duties described in
paragraphs (1) through (5) of subsection (b) and this
subsection. The requesting telecommunications carrier also has
the duty to negotiate in good faith the terms and conditions of
such agreements.
``(2) Interconnection.--The duty to provide, for the
facilities and equipment of any requesting telecommunications
carrier, interconnection with the local exchange carrier's
network--
``(A) for the transmission and routing of telephone
exchange service and exchange access;
``(B) at any technically feasible point within the
carrier's network;
``(C) that is at least equal in quality to that
provided by the local exchange carrier to itself or to
any subsidiary, affiliate, or any other party to which
the carrier provides interconnection; and
``(D) on rates, terms, and conditions that are just,
reasonable, and nondiscriminatory, in accordance with
the terms and conditions of the agreement and the
requirements of this section and section 252.
``(3) Unbundled access.--The duty to provide, to any
requesting telecommunications carrier for the provision of a
telecommunications service, nondiscriminatory access to network
elements on an unbundled basis at any technically feasible point
on rates, terms, and conditions that are just, reasonable, and
nondiscriminatory in accordance with the terms and conditions of
the agreement and the requirements of this section and section
252. An incumbent local exchange carrier shall
[[Page 110 STAT. 63]]
provide such unbundled network elements in a manner that allows
requesting carriers to combine such elements in order to provide
such telecommunications service.
``(4) Resale.--The duty--
``(A) to offer for resale at wholesale rates any
telecommunications service that the carrier provides at
retail to subscribers who are not telecommunications
carriers; and
``(B) not to prohibit, and not to impose
unreasonable or discriminatory conditions or limitations
on, the resale of such telecommunications service,
except that a State commission may, consistent with
regulations prescribed by the Commission under this
section, prohibit a reseller that obtains at wholesale
rates a telecommunications service that is available at
retail only to a category of subscribers from offering
such service to a different category of subscribers.
``(5) Notice of changes.--The duty to provide reasonable
public notice of changes in the information necessary for the
transmission and routing of services using that local exchange
carrier's facilities or networks, as well as of any other
changes that would affect the interoperability of those
facilities and networks.
``(6) Collocation.--The duty to provide, on rates, terms,
and conditions that are just, reasonable, and nondiscriminatory,
for physical collocation of equipment necessary for
interconnection or access to unbundled network elements at the
premises of the local exchange carrier, except that the carrier
may provide for virtual collocation if the local exchange
carrier demonstrates to the State commission that physical
collocation is not practical for technical reasons or because of
space limitations.
``(d) Implementation.--
``(1) <<NOTE: Regulations.>> In general.--Within 6 months
after the date of enactment of the Telecommunications Act of
1996, the Commission shall complete all actions necessary to
establish regulations to implement the requirements of this
section.
``(2) Access standards.--In determining what network
elements should be made available for purposes of subsection
(c)(3), the Commission shall consider, at a minimum, whether--
``(A) access to such network elements as are
proprietary in nature is necessary; and
``(B) the failure to provide access to such network
elements would impair the ability of the
telecommunications carrier seeking access to provide the
services that it seeks to offer.
``(3) Preservation of state access regulations.--In
prescribing and enforcing regulations to implement the
requirements of this section, the Commission shall not preclude
the enforcement of any regulation, order, or policy of a State
commission that--
``(A) establishes access and interconnection
obligations of local exchange carriers;
``(B) is consistent with the requirements of this
section; and
[[Page 110 STAT. 64]]
``(C) does not substantially prevent implementation
of the requirements of this section and the purposes of
this part.
``(e) Numbering Administration.--
``(1) Commission authority and jurisdiction.--The Commission
shall create or designate one or more impartial entities to
administer telecommunications numbering and to make such numbers
available on an equitable basis. The Commission shall have
exclusive jurisdiction over those portions of the North American
Numbering Plan that pertain to the United States. Nothing in
this paragraph shall preclude the Commission from delegating to
State commissions or other entities all or any portion of such
jurisdiction.
``(2) Costs.--The cost of establishing telecommunications
numbering administration arrangements and number portability
shall be borne by all telecommunications carriers on a
competitively neutral basis as determined by the Commission.
``(f) Exemptions, Suspensions, and Modifications.--
``(1) Exemption for certain rural telephone companies.--
``(A) Exemption.--Subsection (c) of this section
shall not apply to a rural telephone company until (i)
such company has received a bona fide request for
interconnection, services, or network elements, and (ii)
the State commission determines (under subparagraph (B))
that such request is not unduly economically burdensome,
is technically feasible, and is consistent with section
254 (other than subsections (b)(7) and (c)(1)(D)
thereof).
``(B) State termination of exemption and
implementation schedule.--The party making a bona fide
request of a rural telephone company for
interconnection, services, or network elements shall
submit a notice of its request to the State commission.
The State commission shall conduct an inquiry for the
purpose of determining whether to terminate the
exemption under subparagraph (A). Within 120 days after
the State commission receives notice of the request, the
State commission shall terminate the exemption if the
request is not unduly economically burdensome, is
technically feasible, and is consistent with section 254
(other than subsections (b)(7) and (c)(1)(D) thereof).
Upon termination of the exemption, a State commission
shall establish an implementation schedule for
compliance with the request that is consistent in time
and manner with Commission regulations.
``(C) Limitation on exemption.--The exemption
provided by this paragraph shall not apply with respect
to a request under subsection (c) from a cable operator
providing video programming, and seeking to provide any
telecommunications service, in the area in which the
rural telephone company provides video programming. The
limitation contained in this subparagraph shall not
apply to a rural telephone company that is providing
video programming on the date of enactment of the
Telecommunications Act of 1996.
``(2) Suspensions and modifications for rural carriers.--A
local exchange carrier with fewer than 2 percent of the Nation's
subscriber lines installed in the aggregate
[[Page 110 STAT. 65]]
nationwide may petition a State commission for a suspension or
modification of the application of a requirement or requirements
of subsection (b) or (c) to telephone exchange service
facilities specified in such petition. The State commission
shall grant such petition to the extent that, and for such
duration as, the State commission determines that such
suspension or modification--
``(A) is necessary--
``(i) to avoid a significant adverse economic
impact on users of telecommunications services
generally;
``(ii) to avoid imposing a requirement that is
unduly economically burdensome; or
``(iii) to avoid imposing a requirement that
is technically infeasible; and
``(B) is consistent with the public interest,
convenience, and necessity.
The State commission shall act upon any petition filed under
this paragraph within 180 days after receiving such petition.
Pending such action, the State commission may suspend
enforcement of the requirement or requirements to which the
petition applies with respect to the petitioning carrier or
carriers.
``(g) Continued Enforcement of Exchange Access and Interconnection
Requirements.--On and after the date of enactment of the
Telecommunications Act of 1996, each local exchange carrier, to the
extent that it provides wireline services, shall provide exchange
access, information access, and exchange services for such access to
interexchange carriers and information service providers in accordance
with the same equal access and nondiscriminatory interconnection
restrictions and obligations (including receipt of compensation) that
apply to such carrier on the date immediately preceding the date of
enactment of the Telecommunications Act of 1996 under any court order,
consent decree, or regulation, order, or policy of the Commission, until
such restrictions and obligations are explicitly superseded by
regulations prescribed by the Commission after such date of enactment.
During the period beginning on such date of enactment and until such
restrictions and obligations are so superseded, such restrictions and
obligations shall be enforceable in the same manner as regulations of
the Commission.
``(h) Definition of Incumbent Local Exchange Carrier.--
``(1) Definition.--For purposes of this section, the term
`incumbent local exchange carrier' means, with respect to an
area, the local exchange carrier that--
``(A) on the date of enactment of the
Telecommunications Act of 1996, provided telephone
exchange service in such area; and
``(B)(i) on such date of enactment, was deemed to be
a member of the exchange carrier association pursuant to
section 69.601(b) of the Commission's regulations (47
C.F.R. 69.601(b)); or
``(ii) is a person or entity that, on or after such
date of enactment, became a successor or assign of a
member described in clause (i).
``(2) Treatment of comparable carriers as incumbents.--The
Commission may, by rule, provide for the treatment of a local
exchange carrier (or class or category thereof)
[[Page 110 STAT. 66]]
as an incumbent local exchange carrier for purposes of this section
if--
``(A) such carrier occupies a position in the market
for telephone exchange service within an area that is
comparable to the position occupied by a carrier
described in paragraph (1);
``(B) such carrier has substantially replaced an
incumbent local exchange carrier described in paragraph
(1); and
``(C) such treatment is consistent with the public
interest, convenience, and necessity and the purposes of
this section.
``(i) Savings Provision.--Nothing in this section shall be construed
to limit or otherwise affect the Commission's authority under section
201.
``SEC. 252. <<NOTE: 47 USC 252.>> PROCEDURES FOR NEGOTIATION,
ARBITRATION, AND APPROVAL OF AGREEMENTS.
``(a) Agreements Arrived at Through Negotiation.--
``(1) Voluntary negotiations.--Upon receiving a request for
interconnection, services, or network elements pursuant to
section 251, an incumbent local exchange carrier may negotiate
and enter into a binding agreement with the requesting
telecommunications carrier or carriers without regard to the
standards set forth in subsections (b) and (c) of section 251.
The agreement shall include a detailed schedule of itemized
charges for interconnection and each service or network element
included in the agreement. The agreement, including any
interconnection agreement negotiated before the date of
enactment of the Telecommunications Act of 1996, shall be
submitted to the State commission under subsection (e) of this
section.
``(2) Mediation.--Any party negotiating an agreement under
this section may, at any point in the negotiation, ask a State
commission to participate in the negotiation and to mediate any
differences arising in the course of the negotiation.
``(b) Agreements Arrived at Through Compulsory Arbitration.--
``(1) Arbitration.--During the period from the 135th to the
160th day (inclusive) after the date on which an incumbent local
exchange carrier receives a request for negotiation under this
section, the carrier or any other party to the negotiation may
petition a State commission to arbitrate any open issues.
``(2) Duty of petitioner.--
``(A) A party that petitions a State commission
under paragraph (1) shall, at the same time as it
submits the petition, provide the State commission all
relevant documentation concerning--
``(i) the unresolved issues;
``(ii) the position of each of the parties
with respect to those issues; and
``(iii) any other issue discussed and resolved
by the parties.
``(B) A party petitioning a State commission under
paragraph (1) shall provide a copy of the petition and
any documentation to the other party or parties not
later than the day on which the State commission
receives the petition.
[[Page 110 STAT. 67]]
``(3) Opportunity to respond.--A non-petitioning party to a
negotiation under this section may respond to the other party's
petition and provide such additional information as it wishes
within 25 days after the State commission receives the petition.
``(4) Action by state commission.--
``(A) The State commission shall limit its
consideration of any petition under paragraph (1) (and
any response thereto) to the issues set forth in the
petition and in the response, if any, filed under
paragraph (3).
``(B) The State commission may require the
petitioning party and the responding party to provide
such information as may be necessary for the State
commission to reach a decision on the unresolved issues.
If any party refuses or fails unreasonably to respond on
a timely basis to any reasonable request from the State
commission, then the State commission may proceed on the
basis of the best information available to it from
whatever source derived.
``(C) The State commission shall resolve each issue
set forth in the petition and the response, if any, by
imposing appropriate conditions as required to implement
subsection (c) upon the parties to the agreement, and
shall conclude the resolution of any unresolved issues
not later than 9 months after the date on which the
local exchange carrier received the request under this
section.
``(5) Refusal to negotiate.--The refusal of any other party
to the negotiation to participate further in the negotiations,
to cooperate with the State commission in carrying out its
function as an arbitrator, or to continue to negotiate in good
faith in the presence, or with the assistance, of the State
commission shall be considered a failure to negotiate in good
faith.
``(c) Standards for Arbitration.--In resolving by arbitration under
subsection (b) any open issues and imposing conditions upon the parties
to the agreement, a State commission shall--
``(1) ensure that such resolution and conditions meet the
requirements of section 251, including the regulations
prescribed by the Commission pursuant to section 251;
``(2) establish any rates for interconnection, services, or
network elements according to subsection (d); and
``(3) provide a schedule for implementation of the terms and
conditions by the parties to the agreement.
``(d) Pricing Standards.--
``(1) Interconnection and network element charges.--
Determinations by a State commission of the just and reasonable
rate for the interconnection of facilities and equipment for
purposes of subsection (c)(2) of section 251, and the just and
reasonable rate for network elements for purposes of subsection
(c)(3) of such section--
``(A) shall be--
``(i) based on the cost (determined without
reference to a rate-of-return or other rate-based
proceeding) of providing the interconnection or
network element (whichever is applicable), and
``(ii) nondiscriminatory, and
``(B) may include a reasonable profit.
[[Page 110 STAT. 68]]
``(2) Charges for transport and termination of traffic.--
``(A) In general.--For the purposes of compliance by
an incumbent local exchange carrier with section
251(b)(5), a State commission shall not consider the
terms and conditions for reciprocal compensation to be
just and reasonable unless--
``(i) such terms and conditions provide for
the mutual and reciprocal recovery by each carrier
of costs associated with the transport and
termination on each carrier's network facilities
of calls that originate on the network facilities
of the other carrier; and
``(ii) such terms and conditions determine
such costs on the basis of a reasonable
approximation of the additional costs of
terminating such calls.
``(B) Rules of construction.--This paragraph shall
not be construed--
``(i) to preclude arrangements that afford the
mutual recovery of costs through the offsetting of
reciprocal obligations, including arrangements
that waive mutual recovery (such as bill-and-keep
arrangements); or
``(ii) to authorize the Commission or any
State commission to engage in any rate regulation
proceeding to establish with particularity the
additional costs of transporting or terminating
calls, or to require carriers to maintain records
with respect to the additional costs of such
calls.
``(3) Wholesale prices for telecommunications services.--For
the purposes of section 251(c)(4), a State commission shall
determine wholesale rates on the basis of retail rates charged
to subscribers for the telecommunications service requested,
excluding the portion thereof attributable to any marketing,
billing, collection, and other costs that will be avoided by the
local exchange carrier.
``(e) Approval by State Commission.--
``(1) Approval required.--Any interconnection agreement
adopted by negotiation or arbitration shall be submitted for
approval to the State commission. A State commission to which an
agreement is submitted shall approve or reject the agreement,
with written findings as to any deficiencies.
``(2) Grounds for rejection.--The State commission may only
reject--
``(A) an agreement (or any portion thereof) adopted
by negotiation under subsection (a) if it finds that--
``(i) the agreement (or portion thereof)
discriminates against a telecommunications carrier
not a party to the agreement; or
``(ii) the implementation of such agreement or
portion is not consistent with the public
interest, convenience, and necessity; or
``(B) an agreement (or any portion thereof) adopted
by arbitration under subsection (b) if it finds that the
agreement does not meet the requirements of section 251,
including the regulations prescribed by the Commission
pursuant to section 251, or the standards set forth in
subsection (d) of this section.
[[Page 110 STAT. 69]]
``(3) Preservation of authority.--Notwithstanding paragraph
(2), but subject to section 253, nothing in this section shall
prohibit a State commission from establishing or enforcing other
requirements of State law in its review of an agreement,
including requiring compliance with intrastate
telecommunications service quality standards or requirements.
``(4) Schedule for decision.--If the State commission does
not act to approve or reject the agreement within 90 days after
submission by the parties of an agreement adopted by negotiation
under subsection (a), or within 30 days after submission by the
parties of an agreement adopted by arbitration under subsection
(b), the agreement shall be deemed approved. No State court
shall have jurisdiction to review the action of a State
commission in approving or rejecting an agreement under this
section.
``(5) Commission to act if state will not act.--If a State
commission fails to act to carry out its responsibility under
this section in any proceeding or other matter under this
section, then the Commission shall issue an order preempting the
State commission's jurisdiction of that proceeding or matter
within 90 days after being notified (or taking notice) of such
failure, and shall assume the responsibility of the State
commission under this section with respect to the proceeding or
matter and act for the State commission.
``(6) Review of state commission actions.--In a case in
which a State fails to act as described in paragraph (5), the
proceeding by the Commission under such paragraph and any
judicial review of the Commission's actions shall be the
exclusive remedies for a State commission's failure to act. In
any case in which a State commission makes a determination under
this section, any party aggrieved by such determination may
bring an action in an appropriate Federal district court to
determine whether the agreement or statement meets the
requirements of section 251 and this section.
``(f) Statements of Generally Available Terms.--
``(1) In general.--A Bell operating company may prepare and
file with a State commission a statement of the terms and
conditions that such company generally offers within that State
to comply with the requirements of section 251 and the
regulations thereunder and the standards applicable under this
section.
``(2) State commission review.--A State commission may not
approve such statement unless such statement complies with
subsection (d) of this section and section 251 and the
regulations thereunder. Except as provided in section 253,
nothing in this section shall prohibit a State commission from
establishing or enforcing other requirements of State law in its
review of such statement, including requiring compliance with
intrastate telecommunications service quality standards or
requirements.
``(3) Schedule for review.--The State commission to which a
statement is submitted shall, not later than 60 days after the
date of such submission--
``(A) complete the review of such statement under
paragraph (2) (including any reconsideration thereof),
unless the submitting carrier agrees to an extension of
the period for such review; or
[[Page 110 STAT. 70]]
``(B) permit such statement to take effect.
``(4) Authority to continue review.--Paragraph (3) shall not
preclude the State commission from continuing to review a
statement that has been permitted to take effect under
subparagraph (B) of such paragraph or from approving or
disapproving such statement under paragraph (2).
``(5) Duty to negotiate not affected.--The submission or
approval of a statement under this subsection shall not relieve
a Bell operating company of its duty to negotiate the terms and
conditions of an agreement under section 251.
``(g) Consolidation of State Proceedings.--Where not inconsistent
with the requirements of this Act, a State commission may, to the extent
practical, consolidate proceedings under sections 214(e), 251(f), 253,
and this section in order to reduce administrative burdens on
telecommunications carriers, other parties to the proceedings, and the
State commission in carrying out its responsibilities under this Act.
``(h) <<NOTE: Public information.>> Filing Required.--A State
commission shall make a copy of each agreement approved under subsection
(e) and each statement approved under subsection (f) available for
public inspection and copying within 10 days after the agreement or
statement is approved. The State commission may charge a reasonable and
nondiscriminatory fee to the parties to the agreement or to the party
filing the statement to cover the costs of approving and filing such
agreement or statement.
``(i) Availability to Other Telecommunications Carriers.--A local
exchange carrier shall make available any interconnection, service, or
network element provided under an agreement approved under this section
to which it is a party to any other requesting telecommunications
carrier upon the same terms and conditions as those provided in the
agreement.
``(j) Definition of Incumbent Local Exchange Carrier.--For purposes
of this section, the term `incumbent local exchange carrier' has the
meaning provided in section 251(h).
``SEC. 253. <<NOTE: 47 USC 253.>> REMOVAL OF BARRIERS TO ENTRY.
``(a) In General.--No State or local statute or regulation, or other
State or local legal requirement, may prohibit or have the effect of
prohibiting the ability of any entity to provide any interstate or
intrastate telecommunications service.
``(b) State Regulatory Authority.--Nothing in this section shall
affect the ability of a State to impose, on a competitively neutral
basis and consistent with section 254, requirements necessary to
preserve and advance universal service, protect the public safety and
welfare, ensure the continued quality of telecommunications services,
and safeguard the rights of consumers.
``(c) State and Local Government Authority.--Nothing in this section
affects the authority of a State or local government to manage the
public rights-of-way or to require fair and reasonable compensation from
telecommunications providers, on a competitively neutral and
nondiscriminatory basis, for use of public rights-of-way on a
nondiscriminatory basis, if the compensation required is publicly
disclosed by such government.
``(d) Preemption.--If, after notice and an opportunity for public
comment, the Commission determines that a State or local government has
permitted or imposed any statute, regulation, or legal requirement that
violates subsection (a) or (b), the Commission
[[Page 110 STAT. 71]]
shall preempt the enforcement of such statute, regulation, or legal
requirement to the extent necessary to correct such violation or
inconsistency.
``(e) Commercial Mobile Service Providers.--Nothing in this section
shall affect the application of section 332(c)(3) to commercial mobile
service providers.
``(f) Rural Markets.--It shall not be a violation of this section
for a State to require a telecommunications carrier that seeks to
provide telephone exchange service or exchange access in a service area
served by a rural telephone company to meet the requirements in section
214(e)(1) for designation as an eligible telecommunications carrier for
that area before being permitted to provide such service. This
subsection shall not apply--
``(1) to a service area served by a rural telephone company
that has obtained an exemption, suspension, or modification of
section 251(c)(4) that effectively prevents a competitor from
meeting the requirements of section 214(e)(1); and
``(2) to a provider of commercial mobile services.
``SEC. 254. <<NOTE: 47 USC 254.>> UNIVERSAL SERVICE.
``(a) Procedures to Review Universal Service Requirements.--
``(1) Federal-state joint board on universal service.--
Within one month after the date of enactment of the
Telecommunications Act of 1996, the Commission shall institute
and refer to a Federal-State Joint Board under section 410(c) a
proceeding to recommend changes to any of its regulations in
order to implement sections 214(e) and this section, including
the definition of the services that are supported by Federal
universal service support mechanisms and a specific timetable
for completion of such recommendations. In addition to the
members of the Joint Board required under section 410(c), one
member of such Joint Board shall be a State-appointed utility
consumer advocate nominated by a national organization of State
utility consumer advocates. The Joint Board shall, after notice
and opportunity for public comment, make its recommendations to
the Commission 9 months after the date of enactment of the
Telecommunications Act of 1996.
``(2) Commission action.--The Commission shall initiate a
single proceeding to implement the recommendations from the
Joint Board required by paragraph (1) and shall complete such
proceeding within 15 months after the date of enactment of the
Telecommunications Act of 1996. The rules established by such
proceeding shall include a definition of the services that are
supported by Federal universal service support mechanisms and a
specific timetable for implementation. Thereafter, the
Commission shall complete any proceeding to implement subsequent
recommendations from any Joint Board on universal service within
one year after receiving such recommendations.
``(b) Universal Service Principles.--The Joint Board and the
Commission shall base policies for the preservation and advancement of
universal service on the following principles:
``(1) Quality and rates.--Quality services should be
available at just, reasonable, and affordable rates.
[[Page 110 STAT. 72]]
``(2) Access to advanced services.--Access to advanced
telecommunications and information services should be provided
in all regions of the Nation.
``(3) Access in rural and high cost areas.--Consumers in all
regions of the Nation, including low-income consumers and those
in rural, insular, and high cost areas, should have access to
telecommunications and information services, including
interexchange services and advanced telecommunications and
information services, that are reasonably comparable to those
services provided in urban areas and that are available at rates
that are reasonably comparable to rates charged for similar
services in urban areas.
``(4) Equitable and nondiscriminatory contributions.--All
providers of telecommunications services should make an
equitable and nondiscriminatory contribution to the preservation
and advancement of universal service.
``(5) Specific and predictable support mechanisms.--There
should be specific, predictable and sufficient Federal and State
mechanisms to preserve and advance universal service.
``(6) Access to advanced telecommunications services for
schools, health care, and libraries.--Elementary and secondary
schools and classrooms, health care providers, and libraries
should have access to advanced telecommunications services as
described in subsection (h).
``(7) Additional principles.--Such other principles as the
Joint Board and the Commission determine are necessary and
appropriate for the protection of the public interest,
convenience, and necessity and are consistent with this Act.
``(c) Definition.--
``(1) In general.--Universal service is an evolving level of
telecommunications services that the Commission shall establish
periodically under this section, taking into account advances in
telecommunications and information technologies and services.
The Joint Board in recommending, and the Commission in
establishing, the definition of the services that are supported
by Federal universal service support mechanisms shall consider
the extent to which such telecommunications services--
``(A) are essential to education, public health, or
public safety;
``(B) have, through the operation of market choices
by customers, been subscribed to by a substantial
majority of residential customers;
``(C) are being deployed in public
telecommunications networks by telecommunications
carriers; and
``(D) are consistent with the public interest,
convenience, and necessity.
``(2) Alterations and modifications.--The Joint Board may,
from time to time, recommend to the Commission modifications in
the definition of the services that are supported by Federal
universal service support mechanisms.
``(3) Special services.--In addition to the services
included in the definition of universal service under paragraph
(1), the Commission may designate additional services for such
support mechanisms for schools, libraries, and health care
providers for the purposes of subsection (h).
[[Page 110 STAT. 73]]
``(d) Telecommunications Carrier Contribution.--Every
telecommunications carrier that provides interstate telecommunications
services shall contribute, on an equitable and nondiscriminatory basis,
to the specific, predictable, and sufficient mechanisms established by
the Commission to preserve and advance universal service. The Commission
may exempt a carrier or class of carriers from this requirement if the
carrier's telecommunications activities are limited to such an extent
that the level of such carrier's contribution to the preservation and
advancement of universal service would be de minimis. Any other provider
of interstate telecommunications may be required to contribute to the
preservation and advancement of universal service if the public interest
so requires.
``(e) Universal Service Support.--After the date on which Commission
regulations implementing this section take effect, only an eligible
telecommunications carrier designated under section 214(e) shall be
eligible to receive specific Federal universal service support. A
carrier that receives such support shall use that support only for the
provision, maintenance, and upgrading of facilities and services for
which the support is intended. Any such support should be explicit and
sufficient to achieve the purposes of this section.
``(f) State Authority.--A State may adopt regulations not
inconsistent with the Commission's rules to preserve and advance
universal service. Every telecommunications carrier that provides
intrastate telecommunications services shall contribute, on an equitable
and nondiscriminatory basis, in a manner determined by the State to the
preservation and advancement of universal service in that State. A State
may adopt regulations to provide for additional definitions and
standards to preserve and advance universal service within that State
only to the extent that such regulations adopt additional specific,
predictable, and sufficient mechanisms to support such definitions or
standards that do not rely on or burden Federal universal service
support mechanisms.
``(g) <<NOTE: Rules. Rural areas.>> Interexchange and Interstate
Services.--Within 6 months after the date of enactment of the
Telecommunications Act of 1996, the Commission shall adopt rules to
require that the rates charged by providers of interexchange
telecommunications services to subscribers in rural and high cost areas
shall be no higher than the rates charged by each such provider to its
subscribers in urban areas. Such rules shall also require that a
provider of interstate interexchange telecommunications services shall
provide such services to its subscribers in each State at rates no
higher than the rates charged to its subscribers in any other State.
``(h) Telecommunications Services for Certain Providers.--
``(1) In general.--
``(A) Health care providers for rural areas.--A
telecommunications carrier shall, upon receiving a bona
fide request, provide telecommunications services which
are necessary for the provision of health care services
in a State, including instruction relating to such
services, to any public or nonprofit health care
provider that serves persons who reside in rural areas
in that State at rates that are reasonably comparable to
rates charged for similar services in urban areas in
that State. A telecommunications carrier providing
service under this paragraph shall be entitled to have
an amount equal to the difference, if any,
[[Page 110 STAT. 74]]
between the rates for services provided to health care providers for
rural areas in a State and the rates for similar
services provided to other customers in comparable rural
areas in that State treated as a service obligation as a
part of its obligation to participate in the mechanisms
to preserve and advance universal service.
``(B) Educational providers and libraries.--All
telecommunications carriers serving a geographic area
shall, upon a bona fide request for any of its services
that are within the definition of universal service
under subsection (c)(3), provide such services to
elementary schools, secondary schools, and libraries for
educational purposes at rates less than the amounts
charged for similar services to other parties. The
discount shall be an amount that the Commission, with
respect to interstate services, and the States, with
respect to intrastate services, determine is appropriate
and necessary to ensure affordable access to and use of
such services by such entities. A telecommunications
carrier providing service under this paragraph shall--
``(i) have an amount equal to the amount of
the discount treated as an offset to its
obligation to contribute to the mechanisms to
preserve and advance universal service, or
``(ii) notwithstanding the provisions of
subsection (e) of this section, receive
reimbursement utilizing the support mechanisms to
preserve and advance universal service.
``(2) Advanced services.--The Commission shall establish
competitively neutral rules--
``(A) to enhance, to the extent technically feasible
and economically reasonable, access to advanced
telecommunications and information services for all
public and nonprofit elementary and secondary school
classrooms, health care providers, and libraries; and
``(B) to define the circumstances under which a
telecommunications carrier may be required to connect
its network to such public institutional
telecommunications users.
``(3) Terms and conditions.--Telecommunications services and
network capacity provided to a public institutional
telecommunications user under this subsection may not be sold,
resold, or otherwise transferred by such user in consideration
for money or any other thing of value.
``(4) Eligibility of users.--No entity listed in this
subsection shall be entitled to preferential rates or treatment
as required by this subsection, if such entity operates as a
for-profit business, is a school described in paragraph (5)(A)
with an endowment of more than $50,000,000, or is a library not
eligible for participation in State-based plans for funds under
title III of the Library Services and Construction Act (20
U.S.C. 335c et seq.).
``(5) Definitions.--For purposes of this subsection:
``(A) Elementary and secondary schools.--The term
`elementary and secondary schools' means elementary
schools and secondary schools, as defined in paragraphs
(14) and (25), respectively, of section 14101 of the
[[Page 110 STAT. 75]]
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
``(B) Health care provider.--The term `health care
provider' means--
``(i) post-secondary educational institutions
offering health care instruction, teaching
hospitals, and medical schools;
``(ii) community health centers or health
centers providing health care to migrants;
``(iii) local health departments or agencies;
``(iv) community mental health centers;
``(v) not-for-profit hospitals;
``(vi) rural health clinics; and
``(vii) consortia of health care providers
consisting of one or more entities described in
clauses (i) through (vi).
``(C) Public institutional telecommunications
user.--The term `public institutional telecommunications
user' means an elementary or secondary school, a
library, or a health care provider as those terms are
defined in this paragraph.
``(i) Consumer Protection.--The Commission and the States should
ensure that universal service is available at rates that are just,
reasonable, and affordable.
``(j) 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.
``(k) Subsidy of Competitive Services Prohibited.--A
telecommunications carrier may not use services that are not competitive
to subsidize services that are subject to competition. The Commission,
with respect to interstate services, and the States, with respect to
intrastate services, shall establish any necessary cost allocation
rules, accounting safeguards, and guidelines to ensure that services
included in the definition of universal service bear no more than a
reasonable share of the joint and common costs of facilities used to
provide those services.
``SEC. 255. <<NOTE: 47 USC 255.>> ACCESS BY PERSONS WITH DISABILITIES.
``(a) Definitions.--As used in this section--
``(1) Disability.--The term `disability' has the meaning
given to it by section 3(2)(A) of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12102(2)(A)).
``(2) Readily achievable.--The term `readily achievable' has
the meaning given to it by section 301(9) of that Act (42 U.S.C.
12181(9)).
``(b) Manufacturing.--A manufacturer of telecommunications equipment
or customer premises equipment shall ensure that the equipment is
designed, developed, and fabricated to be accessible to and usable by
individuals with disabilities, if readily achievable.
``(c) Telecommunications Services.--A provider of telecommunications
service shall ensure that the service is accessible to and usable by
individuals with disabilities, if readily achievable.
``(d) Compatibility.--Whenever the requirements of subsections (b)
and (c) are not readily achievable, such a manufacturer or provider
shall ensure that the equipment or service is compatible
[[Page 110 STAT. 76]]
with existing peripheral devices or specialized customer premises
equipment commonly used by individuals with disabilities to achieve
access, if readily achievable.
``(e) Guidelines.--Within 18 months after the date of enactment of
the Telecommunications Act of 1996, the Architectural and Transportation
Barriers Compliance Board shall develop guidelines for accessibility of
telecommunications equipment and customer premises equipment in
conjunction with the Commission. The Board shall review and update the
guidelines periodically.
``(f) No Additional Private Rights Authorized.--Nothing in this
section shall be construed to authorize any private right of action to
enforce any requirement of this section or any regulation thereunder.
The Commission shall have exclusive jurisdiction with respect to any
complaint under this section.
``SEC. 256. <<NOTE: 47 USC 256.>> COORDINATION FOR INTERCONNECTIVITY.
``(a) Purpose.--It is the purpose of this section--
``(1) to promote nondiscriminatory accessibility by the
broadest number of users and vendors of communications products
and services to public telecommunications networks used to
provide telecommunications service through--
``(A) coordinated public telecommunications network
planning and design by telecommunications carriers and
other providers of telecommunications service; and
``(B) public telecommunications network
interconnectivity, and interconnectivity of devices with
such networks used to provide telecommunications
service; and
``(2) to ensure the ability of users and information
providers to seamlessly and transparently transmit and receive
information between and across telecommunications networks.
``(b) Commission Functions.--In carrying out the purposes of this
section, the Commission--
``(1) shall establish procedures for Commission oversight of
coordinated network planning by telecommunications carriers and
other providers of telecommunications service for the effective
and efficient interconnection of public telecommunications
networks used to provide telecommunications service; and
``(2) may participate, in a manner consistent with its
authority and practice prior to the date of enactment of this
section, in the development by appropriate industry standards-
setting organizations of public telecommunications network
interconnectivity standards that promote access to--
``(A) public telecommunications networks used to
provide telecommunications service;
``(B) network capabilities and services by
individuals with disabilities; and
``(C) information services by subscribers of rural
telephone companies.
``(c) Commission's Authority.--Nothing in this section shall be
construed as expanding or limiting any authority that the Commission may
have under law in effect before the date of enactment of the
Telecommunications Act of 1996.
``(d) Definition.--As used in this section, the term `public
telecommunications network interconnectivity' means the ability of two
or more public telecommunications networks used to provide
telecommunications service to communicate and exchange informa
[[Page 110 STAT. 77]]
tion without degeneration, and to interact in concert with one another.
``SEC. 257. <<NOTE: 47 USC 257.>> MARKET ENTRY BARRIERS PROCEEDING.
``(a) <<NOTE: Regulations.>> Elimination of Barriers.--Within 15
months after the date of enactment of the Telecommunications Act of
1996, the Commission shall complete a proceeding for the purpose of
identifying and eliminating, by regulations pursuant to its authority
under this Act (other than this section), market entry barriers for
entrepreneurs and other small businesses in the provision and ownership
of telecommunications services and information services, or in the
provision of parts or services to providers of telecommunications
services and information services.
``(b) National Policy.--In carrying out subsection (a), the
Commission shall seek to promote the policies and purposes of this Act
favoring diversity of media voices, vigorous economic competition,
technological advancement, and promotion of the public interest,
convenience, and necessity.
``(c) <<NOTE: Reports.>> Periodic Review.--Every 3 years following
the completion of the proceeding required by subsection (a), the
Commission shall review and report to Congress on--
``(1) any regulations prescribed to eliminate barriers
within its jurisdiction that are identified under subsection (a)
and that can be prescribed consistent with the public interest,
convenience, and necessity; and
``(2) the statutory barriers identified under subsection (a)
that the Commission recommends be eliminated, consistent with
the public interest, convenience, and necessity.
``SEC. 258. <<NOTE: 47 USC 258.>> ILLEGAL CHANGES IN SUBSCRIBER CARRIER
SELECTIONS.
``(a) Prohibition.--No telecommunications carrier shall submit or
execute a change in a subscriber's selection of a provider of telephone
exchange service or telephone toll service except in accordance with
such verification procedures as the Commission shall prescribe. Nothing
in this section shall preclude any State commission from enforcing such
procedures with respect to intrastate services.
``(b) Liability for Charges.--Any telecommunications carrier that
violates the verification procedures described in subsection (a) and
that collects charges for telephone exchange service or telephone toll
service from a subscriber shall be liable to the carrier previously
selected by the subscriber in an amount equal to all charges paid by
such subscriber after such violation, in accordance with such procedures
as the Commission may prescribe. The remedies provided by this
subsection are in addition to any other remedies available by law.
``SEC. 259. <<NOTE: 47 USC 259.>> INFRASTRUCTURE SHARING.
``(a) Regulations Required.--The Commission shall prescribe, within
one year after the date of enactment of the Telecommunications Act of
1996, regulations that require incumbent local exchange carriers (as
defined in section 251(h)) to make available to any qualifying carrier
such public switched network infrastructure, technology, information,
and telecommunications facilities and functions as may be requested by
such qualifying carrier for the purpose of enabling such qualifying
carrier to provide telecommunications services, or to provide access to
information services, in the service area in which such qualifying
carrier has requested
[[Page 110 STAT. 78]]
and obtained designation as an eligible telecommunications carrier
under section 214(e).
``(b) Terms and Conditions of Regulations.--The regulations
prescribed by the Commission pursuant to this section shall--
``(1) not require a local exchange carrier to which this
section applies to take any action that is economically
unreasonable or that is contrary to the public interest;
``(2) permit, but shall not require, the joint ownership or
operation of public switched network infrastructure and services
by or among such local exchange carrier and a qualifying
carrier;
``(3) ensure that such local exchange carrier will not be
treated by the Commission or any State as a common carrier for
hire or as offering common carrier services with respect to any
infrastructure, technology, information, facilities, or
functions made available to a qualifying carrier in accordance
with regulations issued pursuant to this section;
``(4) ensure that such local exchange carrier makes such
infrastructure, technology, information, facilities, or
functions available to a qualifying carrier on just and
reasonable terms and conditions that permit such qualifying
carrier to fully benefit from the economies of scale and scope
of such local exchange carrier, as determined in accordance with
guidelines prescribed by the Commission in regulations issued
pursuant to this section;
``(5) establish conditions that promote cooperation between
local exchange carriers to which this section applies and
qualifying carriers;
``(6) not require a local exchange carrier to which this
section applies to engage in any infrastructure sharing
agreement for any services or access which are to be provided or
offered to consumers by the qualifying carrier in such local
exchange carrier's telephone exchange area; and
``(7) require that such local exchange carrier file with the
Commission or State for public inspection, any tariffs,
contracts, or other arrangements showing the rates, terms, and
conditions under which such carrier is making available public
switched network infrastructure and functions under this
section.
``(c) Information Concerning Deployment of New Services and
Equipment.--A local exchange carrier to which this section applies that
has entered into an infrastructure sharing agreement under this section
shall provide to each party to such agreement timely information on the
planned deployment of telecommunications services and equipment,
including any software or upgrades of software integral to the use or
operation of such telecommunications equipment.
``(d) Definition.--For purposes of this section, the term
`qualifying carrier' means a telecommunications carrier that--
``(1) lacks economies of scale or scope, as determined in
accordance with regulations prescribed by the Commission
pursuant to this section; and
``(2) offers telephone exchange service, exchange access,
and any other service that is included in universal service, to
all consumers without preference throughout the service area for
which such carrier has been designated as an eligible
telecommunications carrier under section 214(e).
[[Page 110 STAT. 79]]
``SEC. 260. <<NOTE: 47 USC 260.>> PROVISION OF TELEMESSAGING SERVICE.
``(a) Nondiscrimination Safeguards.--Any local exchange carrier
subject to the requirements of section 251(c) that provides
telemessaging service--
``(1) shall not subsidize its telemessaging service directly
or indirectly from its telephone exchange service or its
exchange access; and
``(2) shall not prefer or discriminate in favor of its
telemessaging service operations in its provision of
telecommunications services.
``(b) Expedited Consideration of Complaints.--The Commission shall
establish procedures for the receipt and review of complaints concerning
violations of subsection (a) or the regulations thereunder that result
in material financial harm to a provider of telemessaging service. Such
procedures shall ensure that the Commission will make a final
determination with respect to any such complaint within 120 days after
receipt of the complaint. If the complaint contains an appropriate
showing that the alleged violation occurred, the Commission shall,
within 60 days after receipt of the complaint, order the local exchange
carrier and any affiliates to cease engaging in such violation pending
such final determination.
``(c) Definition.--As used in this section, the term `telemessaging
service' means voice mail and voice storage and retrieval services, any
live operator services used to record, transcribe, or relay messages
(other than telecommunications relay services), and any ancillary
services offered in combination with these services.
``SEC. 261. <<NOTE: 47 USC 261.>> EFFECT ON OTHER REQUIREMENTS.
``(a) Commission Regulations.--Nothing in this part shall be
construed to prohibit the Commission from enforcing regulations
prescribed prior to the date of enactment of the Telecommunications Act
of 1996 in fulfilling the requirements of this part, to the extent that
such regulations are not inconsistent with the provisions of this part.
``(b) Existing State Regulations.--Nothing in this part shall be
construed to prohibit any State commission from enforcing regulations
prescribed prior to the date of enactment of the Telecommunications Act
of 1996, or from prescribing regulations after such date of enactment,
in fulfilling the requirements of this part, if such regulations are not
inconsistent with the provisions of this part.
``(c) Additional State Requirements.--Nothing in this part precludes
a State from imposing requirements on a telecommunications carrier for
intrastate services that are necessary to further competition in the
provision of telephone exchange service or exchange access, as long as
the State's requirements are not inconsistent with this part or the
Commission's regulations to implement this part.''.
(b) Designation of Part I.--Title II of the Act is further amended
by inserting before the heading of section 201 the following new
heading:
``PART I--COMMON CARRIER REGULATION''.
(c) <<NOTE: 47 USC 151 note.>> Stylistic Consistency.--The Act is
amended so that--
[[Page 110 STAT. 80]]
(1) the designation and heading of each title of the Act
shall be in the form and typeface of the designation and heading
of this title of this Act; and
(2) the designation and heading of each part of each title
of the Act shall be in the form and typeface of the designation
and heading of part I of title II of the Act, as amended by
subsection (a).
SEC. 102. ELIGIBLE TELECOMMUNICATIONS CARRIERS.
(a) In General.--Section 214 (47 U.S.C. 214) is amended by adding at
the end thereof the following new subsection:
``(e) Provision of Universal Service.--
``(1) Eligible telecommunications carriers.--A common
carrier designated as an eligible telecommunications carrier
under paragraph (2) or (3) shall be eligible to receive
universal service support in accordance with section 254 and
shall, throughout the service area for which the designation is
received--
``(A) offer the services that are supported by
Federal universal service support mechanisms under
section 254(c), either using its own facilities or a
combination of its own facilities and resale of another
carrier's services (including the services offered by
another eligible telecommunications carrier); and
``(B) advertise the availability of such services
and the charges therefor using media of general
distribution.
``(2) Designation of eligible telecommunications carriers.--
A State commission shall upon its own motion or upon request
designate a common carrier that meets the requirements of
paragraph (1) as an eligible telecommunications carrier for a
service area designated by the State commission. Upon request
and consistent with the public interest, convenience, and
necessity, the State commission may, in the case of an area
served by a rural telephone company, and shall, in the case of
all other areas, designate more than one common carrier as an
eligible telecommunications carrier for a service area
designated by the State commission, so long as each additional
requesting carrier meets the requirements of paragraph (1).
Before designating an additional eligible telecommunications
carrier for an area served by a rural telephone company, the
State commission shall find that the designation is in the
public interest.
``(3) Designation of eligible telecommunications carriers
for unserved areas.--If no common carrier will provide the
services that are supported by Federal universal service support
mechanisms under section 254(c) to an unserved community or any
portion thereof that requests such service, the Commission, with
respect to interstate services, or a State commission, with
respect to intrastate services, shall determine which common
carrier or carriers are best able to provide such service to the
requesting unserved community or portion thereof and shall order
such carrier or carriers to provide such service for that
unserved community or portion thereof. Any carrier or carriers
ordered to provide such service under this paragraph shall meet
the requirements of paragraph (1) and shall be designated as an
eligible telecommunications carrier for that community or
portion thereof.
[[Page 110 STAT. 81]]
``(4) Relinquishment of universal service.--A State
commission shall permit an eligible telecommunications carrier
to relinquish its designation as such a carrier in any area
served by more than one eligible telecommunications carrier. An
eligible telecommunications carrier that seeks to relinquish its
eligible telecommunications carrier designation for an area
served by more than one eligible telecommunications carrier
shall give advance notice to the State commission of such
relinquishment. Prior to permitting a telecommunications carrier
designated as an eligible telecommunications carrier to cease
providing universal service in an area served by more than one
eligible telecommunications carrier, the State commission shall
require the remaining eligible telecommunications carrier or
carriers to ensure that all customers served by the
relinquishing carrier will continue to be served, and shall
require sufficient notice to permit the purchase or construction
of adequate facilities by any remaining eligible
telecommunications carrier. The State commission shall establish
a time, not to exceed one year after the State commission
approves such relinquishment under this paragraph, within which
such purchase or construction shall be completed.
``(5) Service area defined.--The term `service area' means a
geographic area established by a State commission for the
purpose of determining universal service obligations and support
mechanisms. In the case of an area served by a rural telephone
company, `service area' means such company's `study area' unless
and until the Commission and the States, after taking into
account recommendations of a Federal-State Joint Board
instituted under section 410(c), establish a different
definition of service area for such company.''.
SEC. 103. EXEMPT TELECOMMUNICATIONS COMPANIES.
The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 and
following) is amended by redesignating sections 34 and 35 <<NOTE: 15 USC
79z-6, 79.>> as sections 35 and 36, respectively, and by inserting the
following new section after section 33:
``SEC. 34. <<NOTE: 15 USC 79z-5c.>> EXEMPT TELECOMMUNICATIONS
COMPANIES.
``(a) Definitions.--For purposes of this section--
``(1) Exempt telecommunications company.--The term `exempt
telecommunications company' means any person determined by the
Federal Communications Commission to be engaged directly or
indirectly, wherever located, through one or more affiliates (as
defined in section 2(a)(11)(B)), and exclusively in the business
of providing---
``(A) telecommunications services;
``(B) information services;
``(C) other services or products subject to the
jurisdiction of the Federal Communications Commission;
or
``(D) products or services that are related or
incidental to the provision of a product or service
described in subparagraph (A), (B), or (C).
No person shall be deemed to be an exempt telecommunications
company under this section unless such person has applied to the
Federal Communications Commission for a determination under this
paragraph. A person applying in good faith for such a
determination shall be deemed an exempt telecommunications
company under this section, with all of the exemptions
[[Page 110 STAT. 82]]
provided by this section, until the Federal Communications Commission
makes such determination. <<NOTE: Notification.>> The Federal
Communications Commission shall make such determination within
60 days of its receipt of any such application filed after the
enactment of this section and shall notify the Commission
whenever a determination is made under this paragraph that any
person is an exempt telecommunications
company. <<NOTE: Rules.>> Not later than 12 months after the
date of enactment of this section, the Federal Communications
Commission shall promulgate rules implementing the provisions of
this paragraph which shall be applicable to applications filed
under this paragraph after the effective date of such rules.
``(2) Other terms.--For purposes of this section, the terms
`telecommunications services' and `information services' shall
have the same meanings as provided in the Communications Act of
1934.
``(b) State Consent for Sale of Existing Rate-Based Facilities.--If
a rate or charge for the sale of electric energy or natural gas (other
than any portion of a rate or charge which represents recovery of the
cost of a wholesale rate or charge) for, or in connection with, assets
of a public utility company that is an associate company or affiliate of
a registered holding company was in effect under the laws of any State
as of December 19, 1995, the public utility company owning such assets
may not sell such assets to an exempt telecommunications company that is
an associate company or affiliate unless State commissions having
jurisdiction over such public utility company approve such sale. Nothing
in this subsection shall preempt the otherwise applicable authority of
any State to approve or disapprove the sale of such assets. The approval
of the Commission under this Act shall not be required for the sale of
assets as provided in this subsection.
``(c) Ownership of ETCS by Exempt Holding Companies.--
Notwithstanding any provision of this Act, a holding company that is
exempt under section 3 of this Act shall be permitted, without condition
or limitation under this Act, to acquire and maintain an interest in the
business of one or more exempt telecommunications companies.
``(d) Ownership of ETCS by Registered Holding Companies.--
Notwithstanding any provision of this Act, a registered holding company
shall be permitted (without the need to apply for, or receive, approval
from the Commission, and otherwise without condition under this Act) to
acquire and hold the securities, or an interest in the business, of one
or more exempt telecommunications companies.
``(e) Financing and Other Relationships Between ETCS and Registered
Holding Companies.--The relationship between an exempt
telecommunications company and a registered holding company, its
affiliates and associate companies, shall remain subject to the
jurisdiction of the Commission under this Act: Provided, That--
``(1) section 11 of this Act shall not prohibit the
ownership of an interest in the business of one or more exempt
telecommunications companies by a registered holding company
(regardless of activities engaged in or where facilities owned
or operated by such exempt telecommunications companies are
located), and such ownership by a registered holding company
[[Page 110 STAT. 83]]
shall be deemed consistent with the operation of an integrated public
utility system;
``(2) the ownership of an interest in the business of one or
more exempt telecommunications companies by a registered holding
company (regardless of activities engaged in or where facilities
owned or operated by such exempt telecommunications companies
are located) shall be considered as reasonably incidental, or
economically necessary or appropriate, to the operations of an
integrated public utility system;
``(3) the Commission shall have no jurisdiction under this
Act over, and there shall be no restriction or approval required
under this Act with respect to (A) the issue or sale of a
security by a registered holding company for purposes of
financing the acquisition of an exempt telecommunications
company, or (B) the guarantee of a security of an exempt
telecommunications company by a registered holding company; and
``(4) except for costs that should be fairly and equitably
allocated among companies that are associate companies of a
registered holding company, the Commission shall have no
jurisdiction under this Act over the sales, service, and
construction contracts between an exempt telecommunications
company and a registered holding company, its affiliates and
associate companies.
``(f) Reporting Obligations Concerning Investments and Activities of
Registered Public-Utility Holding Company Systems.--
``(1) Obligations to report information.--Any registered
holding company or subsidiary thereof that acquires or holds the
securities, or an interest in the business, of an exempt
telecommunications company shall file with the Commission such
information as the Commission, by rule, may prescribe
concerning--
``(A) investments and activities by the registered
holding company, or any subsidiary thereof, with respect
to exempt telecommunications companies, and
``(B) any activities of an exempt telecommunications
company within the holding company system,
that are reasonably likely to have a material impact on the
financial or operational condition of the holding company
system.
``(2) Authority to require additional information.--If,
based on reports provided to the Commission pursuant to
paragraph (1) of this subsection or other available information,
the Commission reasonably concludes that it has concerns
regarding the financial or operational condition of any
registered holding company or any subsidiary thereof (including
an exempt telecommunications company), the Commission may
require such registered holding company to make additional
reports and provide additional information.
``(3) Authority to limit disclosure of information.--
Notwithstanding any other provision of law, the Commission shall
not be compelled to disclose any information required to be
reported under this subsection. Nothing in this subsection shall
authorize the Commission to withhold the information from
Congress, or prevent the Commission from complying with a
request for information from any other Federal or State
department or agency requesting the information for purposes
[[Page 110 STAT. 84]]
within the scope of its jurisdiction. For purposes of section 552 of
title 5, United States Code, this subsection shall be considered
a statute described in subsection (b)(3)(B) of such section 552.
``(g) Assumption of Liabilities.--Any public utility company that is
an associate company, or an affiliate, of a registered holding company
and that is subject to the jurisdiction of a State commission with
respect to its retail electric or gas rates shall not issue any security
for the purpose of financing the acquisition, ownership, or operation of
an exempt telecommunications company. Any public utility company that is
an associate company, or an affiliate, of a registered holding company
and that is subject to the jurisdiction of a State commission with
respect to its retail electric or gas rates shall not assume any
obligation or liability as guarantor, endorser, surety, or otherwise by
the public utility company in respect of any security of an exempt
telecommunications company.
``(h) Pledging or Mortgaging of Assets.--Any public utility company
that is an associate company, or affiliate, of a registered holding
company and that is subject to the jurisdiction of a State commission
with respect to its retail electric or gas rates shall not pledge,
mortgage, or otherwise use as collateral any assets of the public
utility company or assets of any subsidiary company thereof for the
benefit of an exempt telecommunications company.
``(i) Protection Against Abusive Affiliate Transactions.--A public
utility company may enter into a contract to purchase services or
products described in subsection (a)(1) from an exempt
telecommunications company that is an affiliate or associate company of
the public utility company only if--
``(1) every State commission having jurisdiction over the
retail rates of such public utility company approves such
contract; or
``(2) such public utility company is not subject to State
commission retail rate regulation and the purchased services or
products--
``(A) would not be resold to any affiliate or
associate company; or
``(B) would be resold to an affiliate or associate
company and every State commission having jurisdiction
over the retail rates of such affiliate or associate
company makes the determination required by subparagraph
(A).
The requirements of this subsection shall not apply in any case in which
the State or the State commission concerned publishes a notice that the
State or State commission waives its authority under this subsection.
``(j) Nonpreemption of Rate Authority.--Nothing in this Act shall
preclude the Federal Energy Regulatory Commission or a State commission
from exercising its jurisdiction under otherwise applicable law to
determine whether a public utility company may recover in rates the
costs of products or services purchased from or sold to an associate
company or affiliate that is an exempt telecommunications company,
regardless of whether such costs are incurred through the direct or
indirect purchase or sale of products or services from such associate
company or affiliate.
``(k) Reciprocal Arrangements Prohibited.--Reciprocal arrangements
among companies that are not affiliates or associate companies of each
other that are entered into in order to avoid the provisions of this
section are prohibited.
[[Page 110 STAT. 85]]
``(l) Books and Records.--(1) Upon written order of a State
commission, a State commission may examine the books, accounts,
memoranda, contracts, and records of--
``(A) a public utility company subject to its regulatory
authority under State law;
``(B) any exempt telecommunications company selling products
or services to such public utility company or to an associate
company of such public utility company; and
``(C) any associate company or affiliate of an exempt
telecommunications company which sells products or services to a
public utility company referred to in subparagraph (A),
wherever located, if such examination is required for the effective
discharge of the State commission's regulatory responsibilities
affecting the provision of electric or gas service in connection with
the activities of such exempt telecommunications company.
``(2) <<NOTE: Confidentiality.>> Where a State commission issues an
order pursuant to paragraph (1), the State commission shall not publicly
disclose trade secrets or sensitive commercial information.
``(3) <<NOTE: Courts.>> Any United States district court located in
the State in which the State commission referred to in paragraph (1) is
located shall have jurisdiction to enforce compliance with this
subsection.
``(4) Nothing in this section shall--
``(A) preempt applicable State law concerning the provision
of records and other information; or
``(B) in any way limit rights to obtain records and other
information under Federal law, contracts, or otherwise.
``(m) Independent Audit Authority for State Commissions.--
``(1) State may order audit.--Any State commission with
jurisdiction over a public utility company that--
``(A) is an associate company of a registered
holding company; and
``(B) transacts business, directly or indirectly,
with a subsidiary company, an affiliate or an associate
company that is an exempt telecommunications company,
may order an independent audit to be performed, no more
frequently than on an annual basis, of all matters deemed
relevant by the selected auditor that reasonably relate to
retail rates: Provided, That such matters relate, directly or
indirectly, to transactions or transfers between the public
utility company subject to its jurisdiction and such exempt
telecommunications company.
``(2) Selection of firm to conduct audit.--(A) If a State
commission orders an audit in accordance with paragraph (1), the
public utility company and the State commission shall jointly
select, within 60 days, a firm to perform the audit. The firm
selected to perform the audit shall possess demonstrated
qualifications relating to--
``(i) competency, including adequate technical
training and professional proficiency in each discipline
necessary to carry out the audit; and
``(ii) independence and objectivity, including that
the firm be free from personal or external impairments
to independence, and should assume an independent
position with the State commission and auditee, making
certain that the audit is based upon an impartial
consideration of all pertinent facts and responsible
opinions.
[[Page 110 STAT. 86]]
``(B) The public utility company and the exempt
telecommunications company shall cooperate fully with all
reasonable requests necessary to perform the audit and the
public utility company shall bear all costs of having the audit
performed.
``(3) Availability of auditor's report.--The auditor's
report shall be provided to the State commission not later than
6 months after the selection of the auditor, and provided to the
public utility company not later than 60 days thereafter.
``(n) Applicability of Telecommunications Regulation.--Nothing in
this section shall affect the authority of the Federal Communications
Commission under the Communications Act of 1934, or the authority of
State commissions under State laws concerning the provision of
telecommunications services, to regulate the activities of an exempt
telecommunications company.''.
SEC. 104. NONDISCRIMINATION PRINCIPLE.
Section 1 (47 U.S.C. 151) is amended by inserting after ``to all
the people of the United States'' the following: ``, without
discrimination on the basis of race, color, religion, national origin,
or sex,''.
Subtitle B--Special Provisions Concerning Bell Operating Companies
SEC. 151. BELL OPERATING COMPANY PROVISIONS.
(a) Establishment of Part III of Title II.--Title II is amended by
adding at the end of part II (as added by section 101) the following new
part:
``PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
``SEC. 271. <<NOTE: 47 USC 271.>> BELL OPERATING COMPANY ENTRY INTO
INTERLATA SERVICES.
``(a) General Limitation.--Neither a Bell operating company, nor any
affiliate of a Bell operating company, may provide interLATA services
except as provided in this section.
``(b) InterLATA Services to Which This Section Applies.--
``(1) In-region services.--A Bell operating company, or any
affiliate of that Bell operating company, may provide interLATA
services originating in any of its in-region States (as defined
in subsection (i)) if the Commission approves the application of
such company for such State under subsection (d)(3).
``(2) Out-of-region services.--A Bell operating company, or
any affiliate of that Bell operating company, may provide
interLATA services originating outside its in-region States
after the date of enactment of the Telecommunications Act of
1996, subject to subsection (j).
``(3) Incidental interlata services.--A Bell operating
company, or any affiliate of a Bell operating company, may
provide incidental interLATA services (as defined in subsection
(g)) originating in any State after the date of enactment of the
Telecommunications Act of 1996.
[[Page 110 STAT. 87]]
``(4) Termination.--Nothing in this section prohibits a Bell
operating company or any of its affiliates from providing
termination for interLATA services, subject to subsection (j).
``(c) Requirements for Providing Certain In-Region InterLATA
Services.--
``(1) Agreement or statement.--A Bell operating company
meets the requirements of this paragraph if it meets the
requirements of subparagraph (A) or subparagraph (B) of this
paragraph for each State for which the authorization is sought.
``(A) Presence of a facilities-based competitor.--A
Bell operating company meets the requirements of this
subparagraph if it has entered into one or more binding
agreements that have been approved under section 252
specifying the terms and conditions under which the Bell
operating company is providing access and
interconnection to its network facilities for the
network facilities of one or more unaffiliated competing
providers of telephone exchange service (as defined in
section 3(47)(A), but excluding exchange access) to
residential and business subscribers. For the purpose of
this subparagraph, such telephone exchange service may
be offered by such competing providers either
exclusively over their own telephone exchange service
facilities or predominantly over their own telephone
exchange service facilities in combination with the
resale of the telecommunications services of another
carrier. For the purpose of this subparagraph, services
provided pursuant to subpart K of part 22 of the
Commission's regulations (47 C.F.R. 22.901 et seq.)
shall not be considered to be telephone exchange
services.
``(B) Failure to request access.--A Bell operating
company meets the requirements of this subparagraph if,
after 10 months after the date of enactment of the
Telecommunications Act of 1996, no such provider has
requested the access and interconnection described in
subparagraph (A) before the date which is 3 months
before the date the company makes its application under
subsection (d)(1), and a statement of the terms and
conditions that the company generally offers to provide
such access and interconnection has been approved or
permitted to take effect by the State commission under
section 252(f). For purposes of this subparagraph, a
Bell operating company shall be considered not to have
received any request for access and interconnection if
the State commission of such State certifies that the
only provider or providers making such a request have
(i) failed to negotiate in good faith as required by
section 252, or (ii) violated the terms of an agreement
approved under section 252 by the provider's failure to
comply, within a reasonable period of time, with the
implementation schedule contained in such agreement.
``(2) Specific interconnection requirements.--
``(A) Agreement required.--A Bell operating company
meets the requirements of this paragraph if, within the
State for which the authorization is sought--
``(i)(I) such company is providing access and
interconnection pursuant to one or more agreements
described in paragraph (1)(A), or
[[Page 110 STAT. 88]]
``(II) such company is generally offering
access and interconnection pursuant to a statement
described in paragraph (1)(B), and
``(ii) such access and interconnection meets
the requirements of subparagraph (B) of this
paragraph.
``(B) Competitive checklist.--Access or
interconnection provided or generally offered by a Bell
operating company to other telecommunications carriers
meets the requirements of this subparagraph if such
access and interconnection includes each of the
following:
``(i) Interconnection in accordance with the
requirements of sections 251(c)(2) and 252(d)(1).
``(ii) Nondiscriminatory access to network
elements in accordance with the requirements of
sections 251(c)(3) and 252(d)(1).
``(iii) Nondiscriminatory access to the poles,
ducts, conduits, and rights-of-way owned or
controlled by the Bell operating company at just
and reasonable rates in accordance with the
requirements of section 224.
``(iv) Local loop transmission from the
central office to the customer's premises,
unbundled from local switching or other services.
``(v) Local transport from the trunk side of a
wireline local exchange carrier switch unbundled
from switching or other services.
``(vi) Local switching unbundled from
transport, local loop transmission, or other
services.
``(vii) Nondiscriminatory access to--
``(I) 911 and E911 services;
``(II) directory assistance services
to allow the other carrier's customers
to obtain telephone numbers; and
``(III) operator call completion
services.
``(viii) White pages directory listings for
customers of the other carrier's telephone
exchange service.
``(ix) Until the date by which
telecommunications numbering administration
guidelines, plan, or rules are established,
nondiscriminatory access to telephone numbers for
assignment to the other carrier's telephone
exchange service customers. After that date,
compliance with such guidelines, plan, or rules.
``(x) Nondiscriminatory access to databases
and associated signaling necessary for call
routing and completion.
``(xi) Until the date by which the Commission
issues regulations pursuant to section 251 to
require number portability, interim
telecommunications number portability through
remote call forwarding, direct inward dialing
trunks, or other comparable arrangements, with as
little impairment of functioning, quality,
reliability, and convenience as possible. After
that date, full compliance with such regulations.
``(xii) Nondiscriminatory access to such
services or information as are necessary to allow
the requesting carrier to implement local dialing
parity in accordance with the requirements of
section 251(b)(3).
[[Page 110 STAT. 89]]
``(xiii) Reciprocal compensation arrangements
in accordance with the requirements of section
252(d)(2).
``(xiv) Telecommunications services are
available for resale in accordance with the
requirements of sections 251(c)(4) and 252(d)(3).
``(d) Administrative Provisions.--
``(1) Application to commission.--On and after the date of
enactment of the Telecommunications Act of 1996, a Bell
operating company or its affiliate may apply to the Commission
for authorization to provide interLATA services originating in
any in-region State. The application shall identify each State
for which the authorization is sought.
``(2) Consultation.--
``(A) <<NOTE: Notification.>> Consultation with the
attorney general.--The Commission shall notify the
Attorney General promptly of any application under
paragraph (1). Before making any determination under
this subsection, the Commission shall consult with the
Attorney General, and if the Attorney General submits
any comments in writing, such comments shall be included
in the record of the Commission's decision. In
consulting with and submitting comments to the
Commission under this paragraph, the Attorney General
shall provide to the Commission an evaluation of the
application using any standard the Attorney General
considers appropriate. The Commission shall give
substantial weight to the Attorney General's evaluation,
but such evaluation shall not have any preclusive effect
on any Commission decision under paragraph (3).
``(B) Consultation with state commissions.--Before
making any determination under this subsection, the
Commission shall consult with the State commission of
any State that is the subject of the application in
order to verify the compliance of the Bell operating
company with the requirements of subsection (c).
``(3) Determination.--Not later than 90 days after receiving
an application under paragraph (1), the Commission shall issue a
written determination approving or denying the authorization
requested in the application for each State. The Commission
shall not approve the authorization requested in an application
submitted under paragraph (1) unless it finds that--
``(A) the petitioning Bell operating company has met
the requirements of subsection (c)(1) and--
``(i) with respect to access and
interconnection provided pursuant to subsection
(c)(1)(A), has fully implemented the competitive
checklist in subsection (c)(2)(B); or
``(ii) with respect to access and
interconnection generally offered pursuant to a
statement under subsection (c)(1)(B), such
statement offers all of the items included in the
competitive checklist in subsection (c)(2)(B);
``(B) the requested authorization will be carried
out in accordance with the requirements of section 272;
and
``(C) the requested authorization is consistent with
the public interest, convenience, and necessity.
The Commission shall state the basis for its approval or denial
of the application.
[[Page 110 STAT. 90]]
``(4) Limitation on commission.--The Commission may not, by
rule or otherwise, limit or extend the terms used in the
competitive checklist set forth in subsection (c)(2)(B).
``(5) <<NOTE: Federal Register, publication.>>
Publication.--Not later than 10 days after issuing a
determination under paragraph (3), the Commission shall publish
in the Federal Register a brief description of the
determination.
``(6) Enforcement of conditions.--
``(A) Commission authority.--If at any time after
the approval of an application under paragraph (3), the
Commission determines that a Bell operating company has
ceased to meet any of the conditions required for such
approval, the Commission may, after notice and
opportunity for a hearing--
``(i) issue an order to such company to
correct the deficiency;
``(ii) impose a penalty on such company
pursuant to title V; or
``(iii) suspend or revoke such approval.
``(B) Receipt and review of complaints.--The
Commission shall establish procedures for the review of
complaints concerning failures by Bell operating
companies to meet conditions required for approval under
paragraph (3). Unless the parties otherwise agree, the
Commission shall act on such complaint within 90 days.
``(e) Limitations.--
``(1) Joint marketing of local and long distance services.--
Until a Bell operating company is authorized pursuant to
subsection (d) to provide interLATA services in an in-region
State, or until 36 months have passed since the date of
enactment of the Telecommunications Act of 1996, whichever is
earlier, a telecommunications carrier that serves greater than 5
percent of the Nation's presubscribed access lines may not
jointly market in such State telephone exchange service obtained
from such company pursuant to section 251(c)(4) with interLATA
services offered by that telecommunications carrier.
``(2) Intralata toll dialing parity.--
``(A) Provision required.--A Bell operating company
granted authority to provide interLATA services under
subsection (d) shall provide intraLATA toll dialing
parity throughout that State coincident with its
exercise of that authority.
``(B) Limitation.--Except for single-LATA States and
States that have issued an order by December 19, 1995,
requiring a Bell operating company to implement
intraLATA toll dialing parity, a State may not require a
Bell operating company to implement intraLATA toll
dialing parity in that State before a Bell operating
company has been granted authority under this section to
provide interLATA services originating in that State or
before 3 years after the date of enactment of the
Telecommunications Act of 1996, whichever is earlier.
Nothing in this subparagraph precludes a State from
issuing an order requiring intraLATA toll dialing parity
in that State prior to either such date so long as such
order does not take effect until after the earlier of
either such dates.
[[Page 110 STAT. 91]]
``(f) Exception for Previously Authorized Activities.--Neither
subsection (a) nor section 273 shall prohibit a Bell operating company
or affiliate from engaging, at any time after the date of enactment of
the Telecommunications Act of 1996, in any activity to the extent
authorized by, and subject to the terms and conditions contained in, an
order entered by the United States District Court for the District of
Columbia pursuant to section VII or VIII(C) of the AT&T Consent Decree
if such order was entered on or before such date of enactment, to the
extent such order is not reversed or vacated on appeal. Nothing in this
subsection shall be construed to limit, or to impose terms or conditions
on, an activity in which a Bell operating company is otherwise
authorized to engage under any other provision of this section.
``(g) Definition of Incidental InterLATA Services.--For purposes of
this section, the term `incidental interLATA services' means the
interLATA provision by a Bell operating company or its affiliate--
``(1)(A) of audio programming, video programming, or other
programming services to subscribers to such services of such
company or affiliate;
``(B) of the capability for interaction by such subscribers
to select or respond to such audio programming, video
programming, or other programming services;
``(C) to distributors of audio programming or video
programming that such company or affiliate owns or controls, or
is licensed by the copyright owner of such programming (or by an