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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. 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
'(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
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)
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
'(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>: A local exchange
carrier with fewer than 2 percent of the Nation's
subscriber lines installed in the aggregate 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) 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. 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.
'(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.
'(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.
'(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
'(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)
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. 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 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. 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.
'(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).
'(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)
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, 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 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. 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 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. 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 information without
degeneration, and to interact in concert with
one another.
'SEC.
257. MARKET ENTRY BARRIERS PROCEEDING.
'(a)
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)
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. 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. 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 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).
'SEC.
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. 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'
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