'PART
III--SPECIAL PROVISIONS CONCERNING BELL OPERATING
COMPANIES
'SEC.
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.
'(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
'(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).
'(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)
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.
'(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)
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.
'(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 assignee of such owner) to distribute; or
'(D)
of alarm monitoring services;
'(2)
of two-way interactive video services or Internet
services over dedicated facilities to or for elementary
and secondary schools as defined in section 254(h)(5);
'(3)
of commercial mobile services in accordance with section
332(c) of this Act and with the regulations prescribed
by the Commission pursuant to paragraph (8) of such
section;
'(4)
of a service that permits a customer that is located
in one LATA to retrieve stored information from, or
file information for storage in, information storage
facilities of such company that are located in another
LATA;
'(5)
of signaling information used in connection with the
provision of telephone exchange services or exchange
access by a local exchange carrier; or
'(6)
of network control signaling information to, and receipt
of such signaling information from, common carriers
offering interLATA services at any location within
the area in which such Bell operating company provides
telephone exchange services or exchange access.
'(h)
Limitations: The provisions of subsection
(g) are intended to be narrowly construed. The interLATA
services provided under subparagraph (A), (B), or
(C) of subsection (g)(1) are limited to those interLATA
transmissions incidental to the provision by a Bell
operating company or its affiliate of video, audio,
and other programming services that the company or
its affiliate is engaged in providing to the public.
The Commission shall ensure that the provision of
services authorized under subsection (g) by a Bell
operating company or its affiliate will not adversely
affect telephone exchange service ratepayers or competition
in any telecommunications market.
'(i)
Additional Definitions: As used in
this section--
'(1)
In-region state: The term 'in-region
State' means a State in which a Bell operating company
or any of its affiliates was authorized to provide
wireline telephone exchange service pursuant to the
reorganization plan approved under the AT&T Consent
Decree, as in effect on the day before the date of
enactment of the Telecommunications Act of 1996.
'(2)
Audio programming services: The term
'audio programming services' means programming provided
by, or generally considered to be comparable to programming
provided by, a radio broadcast station.
'(3)
Video programming services; other programming
services: The terms 'video programming service'
and 'other programming services' have the same meanings
as such terms have under section 602 of this Act.
'(j)
Certain Service Applications Treated as In-Region
Service Applications: For purposes of this
section, a Bell operating company application to provide
800 service, private line service, or their equivalents
that--
'(1)
terminate in an in-region State of that Bell operating
company, and
'(2)
allow the called party to determine the interLATA
carrier,
shall
be considered an in-region service subject to the
requirements of subsection (b)(1).
'SEC.
272. SEPARATE AFFILIATE; SAFEGUARDS.
'(a)
Separate Affiliate Required for Competitive
Activities:
'(1)
In general: A Bell operating company
(including any affiliate) which is a local exchange
carrier that is subject to the requirements of section
251(c) may not provide any service described in paragraph
(2) unless it provides that service through one or
more affiliates that--
'(A)
are separate from any operating company entity that
is subject to the requirements of section 251(c);
and
'(B)
meet the requirements of subsection (b).
'(2)
Services for which a separate affiliate is
required: The services for which a separate
affiliate is required by paragraph (1) are:
'(A)
Manufacturing activities (as defined in section 273(h)).
'(B)
Origination of interLATA telecommunications services,
other than--
'(i)
incidental interLATA services described in paragraphs
(1), (2), (3), (5), and (6) of section 271(g);
'(ii)
out-of-region services described in section 271(b)(2);
or
'(iii)
previously authorized activities described in section
271(f).
'(C)
InterLATA information services, other than electronic
publishing (as defined in section 274(h)) and alarm
monitoring services (as defined in section 275(e)).
'(b)
Structural and Transactional Requirements:
The separate affiliate required by this section--
'(1)
shall operate independently from the Bell operating
company;
'(2)
shall maintain books, records, and accounts in the
manner prescribed by the Commission which shall be
separate from the books, records, and accounts maintained
by the Bell operating company of which it is an affiliate;
'(3)
shall have separate officers, directors, and employees
from the Bell operating company of which it is an
affiliate;
'(4)
may not obtain credit under any arrangement that would
permit a creditor, upon default, to have recourse
to the assets of the Bell operating company; and
'(5)
shall conduct all transactions with the Bell operating
company of which it is an affiliate on an arm's length
basis with any such transactions reduced to writing
and available for public inspection.
'(c)
Nondiscrimination Safeguards: In
its dealings with its affiliate described in subsection
(a), a Bell operating company--
'(1)
may not discriminate between that company or affiliate
and any other entity in the provision or procurement
of goods, services, facilities, and information, or
in the establishment of standards; and
'(2)
shall account for all transactions with an affiliate
described in subsection (a) in accordance with accounting
principles designated or approved by the Commission.
'(d)
Biennial Audit:
'(1)
General requirement: A company required
to operate a separate affiliate under this section
shall obtain and pay for a joint Federal/State audit
every 2 years conducted by an independent auditor
to determine whether such company has complied with
this section and the regulations promulgated under
this section, and particularly whether such company
has complied with the separate accounting requirements
under subsection (b).
'(2)
Results submitted to commission; state commissions:
The auditor described in paragraph (1) shall submit
the results of the audit to the Commission and to
the State commission of each State in which the company
audited provides service, which shall make such results
available for public inspection. Any party may submit
comments on the final audit report.
'(3)
Access to documents: For purposes
of conducting audits and reviews under this subsection--
'(A)
the independent auditor, the Commission, and the State
commission shall have access to the financial accounts
and records of each company and of its affiliates
necessary to verify transactions conducted with that
company that are relevant to the specific activities
permitted under this section and that are necessary
for the regulation of rates;
'(B)
the Commission and the State commission shall have
access to the working papers and supporting materials
of any auditor who performs an audit under this section;
and
'(C)
the State commission shall implement appropriate procedures
to ensure the protection of any proprietary information
submitted to it under this section.
'(e)
Fulfillment of Certain Requests:
A Bell operating company and an affiliate that is
subject to the requirements of section 251(c)--
'(1)
shall fulfill any requests from an unaffiliated entity
for telephone exchange service and exchange access
within a period no longer than the period in which
it provides such telephone exchange service and exchange
access to itself or to its affiliates;
'(2)
shall not provide any facilities, services, or information
concerning its provision of exchange access to the
affiliate described in subsection (a) unless such
facilities, services, or information are made available
to other providers of interLATA services in that market
on the same terms and conditions;
'(3)
shall charge the affiliate described in subsection
(a), or impute to itself (if using the access for
its provision of its own services), an amount for
access to its telephone exchange service and exchange
access that is no less than the amount charged to
any unaffiliated interexchange carriers for such service;
and
'(4)
may provide any interLATA or intraLATA facilities
or services to its interLATA affiliate if such services
or facilities are made available to all carriers at
the same rates and on the same terms and conditions,
and so long as the costs are appropriately allocated.
'(f)
Sunset:
'(1)
Manufacturing and long distance:
The provisions of this section (other than subsection
(e)) shall cease to apply with respect to the manufacturing
activities or the interLATA telecommunications services
of a Bell operating company 3 years after the date
such Bell operating company or any Bell operating
company affiliate is authorized to provide interLATA
telecommunications services under section 271(d),
unless the Commission extends such 3-year period by
rule or order.
'(2)
InterLATA information services: The
provisions of this section (other than subsection
(e)) shall cease to apply with respect to the interLATA
information services of a Bell operating company 4
years after the date of enactment of the Telecommunications
Act of 1996, unless the Commission extends such 4-year
period by rule or order.
'(3)
Preservation of existing authority:
Nothing in this subsection shall be construed to limit
the authority of the Commission under any other section
of this Act to prescribe safeguards consistent with
the public interest, convenience, and necessity.
'(g)
Joint Marketing:
'(1)
Affiliate sales of telephone exchange services:
A Bell operating company affiliate required by this
section may not market or sell telephone exchange
services provided by the Bell operating company unless
that company permits other entities offering the same
or similar service to market and sell its telephone
exchange services.
'(2)
Bell operating company sales of affiliate
services: A Bell operating company may not
market or sell interLATA service provided by an affiliate
required by this section within any of its in-region
States until such company is authorized to provide
interLATA services in such State under section 271(d).
'(3)
Rule of construction: The joint marketing
and sale of services permitted under this subsection
shall not be considered to violate the nondiscrimination
provisions of subsection (c).
'(h)
Transition: With respect to any activity
in which a Bell operating company is engaged on the
date of enactment of the Telecommunications Act of
1996, such company shall have one year from such date
of enactment to comply with the requirements of this
section.
'SEC.
273. MANUFACTURING BY BELL OPERATING COMPANIES.
'(a)
Authorization: A Bell operating company
may manufacture and provide telecommunications equipment,
and manufacture customer premises equipment, if the
Commission authorizes that Bell operating company
or any Bell operating company affiliate to provide
interLATA services under section 271(d), subject to
the requirements of this section and the regulations
prescribed thereunder, except that neither a Bell
operating company nor any of its affiliates may engage
in such manufacturing in conjunction with a Bell operating
company not so affiliated or any of its affiliates.
'(b)
Collaboration; Research and Royalty Agreements:
'(1)
Collaboration: Subsection (a) shall
not prohibit a Bell operating company from engaging
in close collaboration with any manufacturer of customer
premises equipment or telecommunications equipment
during the design and development of hardware, software,
or combinations thereof related to such equipment.
'(2)
Certain research arrangements; royalty agreements:
Subsection (a) shall not prohibit a Bell operating
company from--
'(A)
engaging in research activities related to manufacturing,
and
'(B)
entering into royalty agreements with manufacturers
of telecommunications equipment.
'(c)
Information Requirements:
'(1)
Information on protocols and technical requirements:
Each Bell operating company shall, in accordance with
regulations prescribed by the Commission, maintain
and file with the Commission full and complete information
with respect to the protocols and technical requirements
for connection with and use of its telephone exchange
service facilities. Each such company shall report
promptly to the Commission any material changes or
planned changes to such protocols and requirements,
and the schedule for implementation of such changes
or planned changes.
'(2)
Disclosure of information: A Bell
operating company shall not disclose any information
required to be filed under paragraph (1) unless that
information has been filed promptly, as required by
regulation by the Commission.
'(3)
Access by competitors to information:
The Commission may prescribe such additional regulations
under this subsection as may be necessary to ensure
that manufacturers have access to the information
with respect to the protocols and technical requirements
for connection with and use of telephone exchange
service facilities that a Bell operating company makes
available to any manufacturing affiliate or any unaffiliated
manufacturer.
'(4)
Planning information: Each Bell operating
company shall provide, to interconnecting carriers
providing telephone exchange service, timely information
on the planned deployment of telecommunications equipment.
'(d)
Manufacturing Limitations for Standard-Setting
Organizations:
'(1)
Application to bell communications research
or manufacturers: Bell Communications Research,
Inc., or any successor entity or affiliate--
'(A)
shall not be considered a Bell operating company or
a successor or assign of a Bell operating company
at such time as it is no longer an affiliate of any
Bell operating company; and
'(B)
notwithstanding paragraph (3), shall not engage in
manufacturing telecommunications equipment or customer
premises equipment as long as it is an affiliate of
more than 1 otherwise unaffiliated Bell operating
company or successor or assign of any such company.
Nothing
in this subsection prohibits Bell Communications Research,
Inc., or any successor entity, from engaging in any
activity in which it is lawfully engaged on the date
of enactment of the Telecommunications Act of 1996.
Nothing provided in this subsection shall render Bell
Communications Research, Inc., or any successor entity,
a common carrier under title II of this Act. Nothing
in this subsection restricts any manufacturer from
engaging in any activity in which it is lawfully engaged
on the date of enactment of the Telecommunications
Act of 1996.
'(2)
Proprietary information: Any entity
which establishes standards for telecommunications
equipment or customer premises equipment, or generic
network requirements for such equipment, or certifies
telecommunications equipment or customer premises
equipment, shall be prohibited from releasing or otherwise
using any proprietary information, designated as such
by its owner, in its possession as a result of such
activity, for any purpose other than purposes authorized
in writing by the owner of such information, even
after such entity ceases to be so engaged.
'(3)
Manufacturing safeguards: (A) Except
as prohibited in paragraph (1), and subject to paragraph
(6), any entity which certifies telecommunications
equipment or customer premises equipment manufactured
by an unaffiliated entity shall only manufacture a
particular class of telecommunications equipment or
customer premises equipment for which it is undertaking
or has undertaken, during the previous 18 months,
certification activity for such class of equipment
through a separate affiliate.
'(B)
Such separate affiliate shall--
'(i)
maintain books, records, and accounts separate from
those of the entity that certifies such equipment,
consistent with generally acceptable accounting principles;
'(ii)
not engage in any joint manufacturing activities with
such entity; and
'(iii)
have segregated facilities and separate employees
with such entity.
'(C)
Such entity that certifies such equipment shall--
'(i)
not discriminate in favor of its manufacturing affiliate
in the establishment of standards, generic requirements,
or product certification;
'(ii)
not disclose to the manufacturing affiliate any proprietary
information that has been received at any time from
an unaffiliated manufacturer, unless authorized in
writing by the owner of the information; and
'(iii)
not permit any employee engaged in product certification
for telecommunications equipment or customer premises
equipment to engage jointly in sales or marketing
of any such equipment with the affiliated manufacturer.
'(4)
Standard-setting entities: Any entity
that is not an accredited standards development organization
and that establishes industry-wide standards for telecommunications
equipment or customer premises equipment, or industry-wide
generic network requirements for such equipment, or
that certifies telecommunications equipment or customer
premises equipment manufactured by an unaffiliated
entity, shall--
'(A)
establish and publish any industry-wide standard for,
industry-wide generic requirement for, or any substantial
modification of an existing industry-wide standard
or industry-wide generic requirement for, telecommunications
equipment or customer premises equipment only in compliance
with the following procedure:
'(i)
such entity shall issue a public notice of its consideration
of a proposed industry-wide standard or industry-wide
generic requirement;
'(ii)
such entity shall issue a public invitation to interested
industry parties to fund and participate in such efforts
on a reasonable and nondiscriminatory basis, administered
in such a manner as not to unreasonably exclude any
interested industry party;
'(iii)
such entity shall publish a text for comment by such
parties as have agreed to participate in the process
pursuant to clause (ii), provide such parties a full
opportunity to submit comments, and respond to comments
from such parties;
'(iv)
such entity shall publish a final text of the industry-wide
standard or industry-wide generic requirement, including
the comments in their entirety, of any funding party
which requests to have its comments so published;
and
'(v)
such entity shall attempt, prior to publishing a text
for comment, to agree with the funding parties as
a group on a mutually satisfactory dispute resolution
process which such parties shall utilize as their
sole recourse in the event of a dispute on technical
issues as to which there is disagreement between any
funding party and the entity conducting such activities,
except that if no dispute resolution process is agreed
to by all the parties, a funding party may utilize
the dispute resolution procedures established pursuant
to paragraph (5) of this subsection;
'(B)
engage in product certification for telecommunications
equipment or customer premises equipment manufactured
by unaffiliated entities only if--
'(i)
such activity is performed pursuant to published criteria;
'(ii)
such activity is performed pursuant to auditable criteria;
and
'(iii)
such activity is performed pursuant to available industry-accepted
testing methods and standards, where applicable, unless
otherwise agreed upon by the parties funding and performing
such activity;
'(C)
not undertake any actions to monopolize or attempt
to monopolize the market for such services; and
'(D)
not preferentially treat its own telecommunications
equipment or customer premises equipment, or that
of its affiliate, over that of any other entity in
establishing and publishing industry-wide standards
or industry-wide generic requirements for, and in
certification of, telecommunications equipment and
customer premises equipment.
'(5)
Alternate dispute resolution: Within
90 days after the date of enactment of the Telecommunications
Act of 1996, the Commission shall prescribe a dispute
resolution process to be utilized in the event that
a dispute resolution process is not agreed upon by
all the parties when establishing and publishing any
industry-wide standard or industry-wide generic requirement
for telecommunications equipment or customer premises
equipment, pursuant to paragraph (4)(A)(v). The Commission
shall not establish itself as a party to the dispute
resolution process. Such dispute resolution process
shall permit any funding party to resolve a dispute
with the entity conducting the activity that significantly
affects such funding party's interests, in an open,
nondiscriminatory, and unbiased fashion, within 30
days after the filing of such dispute. Such disputes
may be filed within 15 days after the date the funding
party receives a response to its comments from the
entity conducting the activity. The Commission shall
establish penalties to be assessed for delays caused
by referral of frivolous disputes to the dispute resolution
process.
'(6)
Sunset: The requirements of paragraphs
(3) and (4) shall terminate for the particular relevant
activity when the Commission determines that there
are alternative sources of industry-wide standards,
industry-wide generic requirements, or product certification
for a particular class of telecommunications equipment
or customer premises equipment available in the United
States. Alternative sources shall be deemed to exist
when such sources provide commercially viable alternatives
that are providing such services to customers. The
Commission shall act on any application for such a
determination within 90 days after receipt of such
application, and shall receive public comment on such
application.
'(7)
Administration and enforcement authority:
For the purposes of administering this subsection
and the regulations prescribed thereunder, the Commission
shall have the same remedial authority as the Commission
has in administering and enforcing the provisions
of this title with respect to any common carrier subject
to this Act.
'(8)
Definitions: For purposes of this
subsection:
'(A)
The term 'affiliate' shall have the same meaning as
in section 3 of this Act, except that, for purposes
of paragraph (1)(B)--
'(i)
an aggregate voting equity interest in Bell Communications
Research, Inc., of at least 5 percent of its total
voting equity, owned directly or indirectly by more
than 1 otherwise unaffiliated Bell operating company,
shall constitute an affiliate relationship; and
'(ii)
a voting equity interest in Bell Communications Research,
Inc., by any otherwise unaffiliated Bell operating
company of less than 1 percent of Bell Communications
Research's total voting equity shall not be considered
to be an equity interest under this paragraph.
'(B)
The term 'generic requirement' means a description
of acceptable product attributes for use by local
exchange carriers in establishing product specifications
for the purchase of telecommunications equipment,
customer premises equipment, and software integral
thereto.
'(C)
The term 'industry-wide' means activities funded by
or performed on behalf of local exchange carriers
for use in providing wireline telephone exchange service
whose combined total of deployed access lines in the
United States constitutes at least 30 percent of all
access lines deployed by telecommunications carriers
in the United States as of the date of enactment of
the Telecommunications Act of 1996.
'(D)
The term 'certification' means any technical process
whereby a party determines whether a product, for
use by more than one local exchange carrier, conforms
with the specified requirements pertaining to such
product.
'(E)
The term 'accredited standards development organization'
means an entity composed of industry members which
has been accredited by an institution vested with
the responsibility for standards accreditation by
the industry.
'(e)
Bell Operating Company Equipment Procurement
and Sales:
'(1)
Nondiscrimination standards for manufacturing:
In the procurement or awarding of supply contracts
for telecommunications equipment, a Bell operating
company, or any entity acting on its behalf, for the
duration of the requirement for a separate subsidiary
including manufacturing under this Act--
'(A)
shall consider such equipment, produced or supplied
by unrelated persons; and
'(B)
may not discriminate in favor of equipment produced
or supplied by an affiliate or related person.
'(2)
Procurement standards: Each Bell
operating company or any entity acting on its behalf
shall make procurement decisions and award all supply
contracts for equipment, services, and software on
the basis of an objective assessment of price, qualify,
delivery, and other commercial factors.
'(3)
Network planning and design: A Bell
operating company shall, to the extent consistent
with the antitrust laws, engage in joint network planning
and design with local exchange carriers operating
in the same area of interest. No participant in such
planning shall be allowed to delay the introduction
of new technology or the deployment of facilities
to provide telecommunications services, and agreement
with such other carriers shall not be required as
a prerequisite for such introduction or deployment.
'(4)
Sales restrictions: Neither a Bell
operating company engaged in manufacturing nor a manufacturing
affiliate of such a company shall restrict sales to
any local exchange carrier of telecommunications equipment,
including software integral to the operation of such
equipment and related upgrades.
'(5)
Protection of proprietary information:
A Bell operating company and any entity it owns or
otherwise controls shall protect the proprietary information
submitted for procurement decisions from release not
specifically authorized by the owner of such information.
'(f)
Administration and Enforcement Authority:
For the purposes of administering and enforcing the
provisions of this section and the regulations prescribed
thereunder, the Commission shall have the same authority,
power, and functions with respect to any Bell operating
company or any affiliate thereof as the Commission
has in administering and enforcing the provisions
of this title with respect to any common carrier subject
to this Act.
'(g)
Additional Rules and Regulations:
The Commission may prescribe such additional rules
and regulations as the Commission determines are necessary
to carry out the provisions of this section, and otherwise
to prevent discrimination and cross-subsidization
in a Bell operating company's dealings with its affiliate
and with third parties.
'(h)
Definition: As used in this section,
the term 'manufacturing' has the same meaning as such
term has under the AT&T Consent Decree.
'SEC.
274. ELECTRONIC PUBLISHING BY BELL OPERATING COMPANIES.
'(a)
Limitations: No Bell operating company
or any affiliate may engage in the provision of electronic
publishing that is disseminated by means of such Bell
operating company's or any of its affiliates' basic
telephone service, except that nothing in this section
shall prohibit a separated affiliate or electronic
publishing joint venture operated in accordance with
this section from engaging in the provision of electronic
publishing.
'(b)
Separated Affiliate or Electronic Publishing
Joint Venture Requirements: A separated affiliate
or electronic publishing joint venture shall be operated
independently from the Bell operating company. Such
separated affiliate or joint venture and the Bell
operating company with which it is affiliated shall--
'(1)
maintain separate books, records, and accounts and
prepare separate financial statements;
'(2)
not incur debt in a manner that would permit a creditor
of the separated affiliate or joint venture upon default
to have recourse to the assets of the Bell operating
company;
'(3)
carry out transactions (A) in a manner consistent
with such independence, (B) pursuant to written contracts
or tariffs that are filed with the Commission and
made publicly available, and (C) in a manner that
is auditable in accordance with generally accepted
auditing standards;
'(4)
value any assets that are transferred directly or
indirectly from the Bell operating company to a separated
affiliate or joint venture, and record any transactions
by which such assets are transferred, in accordance
with such regulations as may be prescribed by the
Commission or a State commission to prevent improper
cross subsidies;
'(5)
between a separated affiliate and a Bell operating
company--
'(A)
have no officers, directors, and employees in common
after the effective date of this section; and
'(B)
own no property in common;
'(6)
not use for the marketing of any product or service
of the separated affiliate or joint venture, the name,
trademarks, or service marks of an existing Bell operating
company except for names, trademarks, or service marks
that are owned by the entity that owns or controls
the Bell operating company;
'(7)
not permit the Bell operating company--
'(A)
to perform hiring or training of personnel on behalf
of a separated affiliate;
'(B)
to perform the purchasing, installation, or maintenance
of equipment on behalf of a separated affiliate, except
for telephone service that it provides under tariff
or contract subject to the provisions of this section;
or
'(C)
to perform research and development on behalf of a
separated affiliate;
'(8)
each have performed annually a compliance review--
'(A)
that is conducted by an independent entity for the
purpose of determining compliance during the preceding
calendar year with any provision of this section;
and
'(B)
the results of which are maintained by the separated
affiliate or joint venture and the Bell operating
company for a period of 5 years subject to review
by any lawful authority; and
'(9)
within 90 days of receiving a review described in
paragraph (8), file a report of any exceptions and
corrective action with the Commission and allow any
person to inspect and copy such report subject to
reasonable safeguards to protect any proprietary information
contained in such report from being used for purposes
other than to enforce or pursue remedies under this
section.
'(c)
Joint Marketing:
'(1)
In general: Except as provided in
paragraph (2)--
'(A)
a Bell operating company shall not carry out any promotion,
marketing, sales, or advertising for or in conjunction
with a separated affiliate; and
'(B)
a Bell operating company shall not carry out any promotion,
marketing, sales, or advertising for or in conjunction
with an affiliate that is related to the provision
of electronic publishing.
'(2)
Permissible joint activities:
'(A)
Joint telemarketing: A Bell operating
company may provide inbound telemarketing or referral
services related to the provision of electronic publishing
for a separated affiliate, electronic publishing joint
venture, affiliate, or unaffiliated electronic publisher,
provided that if such services are provided to a separated
affiliate, electronic publishing joint venture, or
affiliate, such services shall be made available to
all electronic publishers on request, on nondiscriminatory
terms.
'(B)
Teaming arrangements: A Bell operating
company may engage in nondiscriminatory teaming or
business arrangements to engage in electronic publishing
with any separated affiliate or with any other electronic
publisher if (i) the Bell operating company only provides
facilities, services, and basic telephone service
information as authorized by this section, and (ii)
the Bell operating company does not own such teaming
or business arrangement.
'(C)
Electronic publishing joint ventures:
A Bell
operating
company or affiliate may participate on a nonexclusive
basis in electronic publishing joint ventures with
entities that are not a Bell operating company, affiliate,
or separated affiliate to provide electronic publishing
services, if the Bell operating company or affiliate
has not more than a 50 percent direct or indirect
equity interest (or the equivalent thereof) or the
right to more than 50 percent of the gross revenues
under a revenue sharing or royalty agreement in any
electronic publishing joint venture. Officers and
employees of a Bell operating company or affiliate
participating in an electronic publishing joint venture
may not have more than 50 percent of the voting control
over the electronic publishing joint venture. In the
case of joint ventures with small, local electronic
publishers, the Commission for good cause shown may
authorize the Bell operating company or affiliate
to have a larger equity interest, revenue share, or
voting control but not to exceed 80 percent. A Bell
operating company participating in an electronic publishing
joint venture may provide promotion, marketing, sales,
or advertising personnel and services to such joint
venture.
'(d)
Bell Operating Company Requirement:
A Bell operating company under common ownership or
control with a separated affiliate or electronic publishing
joint venture shall provide network access and interconnections
for basic telephone service to electronic publishers
at just and reasonable rates that are tariffed (so
long as rates for such services are subject to regulation)
and that are not higher on a per-unit basis than those
charged for such services to any other electronic
publisher or any separated affiliate engaged in electronic
publishing.
'(e)
Private Right of Action:
'(1)
Damages: Any person claiming that
any act or practice of any Bell operating company,
affiliate, or separated affiliate constitutes a violation
of this section may file a complaint with the Commission
or bring suit as provided in section 207 of this Act,
and such Bell operating company, affiliate, or separated
affiliate shall be liable as provided in section 206
of this Act; except that damages may not be awarded
for a violation that is discovered by a compliance
review as required by subsection (b)(7) of this section
and corrected within 90 days.
'(2)
Cease and desist orders: In addition
to the provisions of paragraph (1), any person claiming
that any act or practice of any Bell operating company,
affiliate, or separated affiliate constitutes a violation
of this section may make application to the Commission
for an order to cease and desist such violation or
may make application in any district court of the
United States of competent jurisdiction for an order
enjoining such acts or practices or for an order compelling
compliance with such requirement.
'(f)
Separated Affiliate Reporting Requirement:
Any separated affiliate under this section shall file
with the Commission annual reports in a form substantially
equivalent to the Form 10-K required by regulations
of the Securities and Exchange Commission.
'(g)
Effective Dates:
'(1)
Transition: Any electronic publishing
service being offered to the public by a Bell operating
company or affiliate on the date of enactment of the
Telecommunications Act of 1996 shall have one year
from such date of enactment to comply with the requirements
of this section.
'(2)
Sunset: The provisions of this section
shall not apply to conduct occurring after 4 years
after the date of enactment of the Telecommunications
Act of 1996.
'(h)
Definition of Electronic Publishing:
'(1)
In general: The term 'electronic
publishing' means the dissemination, provision, publication,
or sale to an unaffiliated entity or person, of any
one or more of the following: news (including sports);
entertainment (other than interactive games); business,
financial, legal, consumer, or credit materials; editorials,
columns, or features; advertising; photos or images;
archival or research material; legal notices or public
records; scientific, educational, instructional, technical,
professional, trade, or other literary materials;
or other like or similar information.
'(2)
Exceptions: The term 'electronic
publishing' shall not include the following services:
'(A)
Information access, as that term is defined by the
AT&T Consent Decree.
'(B)
The transmission of information as a common carrier.
'(C)
The transmission of information as part of a gateway
to an information service that does not involve the
generation or alteration of the content of information,
including data transmission, address translation,
protocol conversion, billing management, introductory
information content, and navigational systems that
enable users to access electronic publishing services,
which do not affect the presentation of such electronic
publishing services to users.
'(D)
Voice storage and retrieval services, including voice
messaging and electronic mail services.
'(E)
Data processing or transaction processing services
that do not involve the generation or alteration of
the content of information.
'(F)
Electronic billing or advertising of a Bell operating
company's regulated telecommunications services.
'(G)
Language translation or data format conversion.
'(H)
The provision of information necessary for the management,
control, or operation of a telephone company telecommunications
system.
'(I)
The provision of directory assistance that provides
names, addresses, and telephone numbers and does not
include advertising.
'(J)
Caller identification services.
'(K)
Repair and provisioning databases and credit card
and billing validation for telephone company operations.
'(L)
911-E and other emergency assistance databases.
'(M)
Any other network service of a type that is like or
similar to these network services and that does not
involve the generation or alteration of the content
of information.
'(N)
Any upgrades to these network services that do not
involve the generation or alteration of the content
of information.
'(O)
Video programming or full motion video entertainment
on demand.
'(i)
Additional Definitions: As used in
this section--
'(1)
The term 'affiliate' means any entity that, directly
or indirectly, owns or controls, is owned or controlled
by, or is under common ownership or control with,
a Bell operating company. Such term shall not include
a separated affiliate.
'(2)
The term 'basic telephone service' means any wireline
telephone exchange service, or wireline telephone
exchange service facility, provided by a Bell operating
company in a telephone exchange area, except that
such term does not include--
'(A)
a competitive wireline telephone exchange service
provided in a telephone exchange area where another
entity provides a wireline telephone exchange service
that was provided on January 1, 1984, or
'(B)
a commercial mobile service.
'(3)
The term 'basic telephone service information' means
network and customer information of a Bell operating
company and other information acquired by a Bell operating
company as a result of its engaging in the provision
of basic telephone service.
'(4)
The term 'control' has the meaning that it has in
17 C.F.R. 240.12b-2, the regulations promulgated by
the Securities and Exchange Commission pursuant to
the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq.) or any successor provision to such section.
'(5)
The term 'electronic publishing joint venture' means
a joint venture owned by a Bell operating company
or affiliate that engages in the provision of electronic
publishing which is disseminated by means of such
Bell operating company's or any of its affiliates'
basic telephone service.
'(6)
The term 'entity' means any organization, and includes
corporations, partnerships, sole proprietorships,
associations, and joint ventures.
'(7)
The term 'inbound telemarketing' means the marketing
of property, goods, or services by telephone to a
customer or potential customer who initiated the call.
'(8)
The term 'own' with respect to an entity means to
have a direct or indirect equity interest (or the
equivalent thereof) of more than 10 percent of an
entity, or the right to more than 10 percent of the
gross revenues of an entity under a revenue sharing
or royalty agreement.
'(9)
The term 'separated affiliate' means a corporation
under common ownership or control with a Bell operating
company that does not own or control a Bell operating
company and is not owned or controlled by a Bell operating
company and that engages in the provision of electronic
publishing which is disseminated by means of such
Bell operating company's or any of its affiliates'
basic telephone service.
'(10)
The term 'Bell operating company' has the meaning
provided in section 3, except that such term includes
any entity or corporation that is owned or controlled
by such a company (as so defined) but does not include
an electronic publishing joint venture owned by such
an entity or corporation.
'SEC.
275. ALARM MONITORING SERVICES.
'(a)
Delayed Entry Into Alarm Monitoring:
'(1)
Prohibition: No Bell operating company
or affiliate thereof shall engage in the provision
of alarm monitoring services before the date which
is 5 years after the date of enactment of the Telecommunications
Act of 1996.
'(2)
Existing activities: Paragraph (1)
does not prohibit or limit the provision, directly
or through an affiliate, of alarm monitoring services
by a Bell operating company that was engaged in providing
alarm monitoring services as of November 30, 1995,
directly or through an affiliate. Such Bell operating
company or affiliate may not acquire any equity interest
in, or obtain financial control of, any unaffiliated
alarm monitoring service entity after November 30,
1995, and until 5 years after the date of enactment
of the Telecommunications Act of 1996, except that
this sentence shall not prohibit an exchange of customers
for the customers of an unaffiliated alarm monitoring
service entity.
'(b)
Nondiscrimination: An incumbent local
exchange carrier (as defined in section 251(h)) engaged
in the provision of alarm monitoring services shall--
'(1)
provide nonaffiliated entities, upon reasonable request,
with the network services it provides to its own alarm
monitoring operations, on nondiscriminatory terms
and conditions; and
'(2)
not subsidize its alarm monitoring services either
directly or indirectly from telephone exchange service
operations.
'(c)
Expedited Consideration of Complaints:
The Commission shall establish procedures for the
receipt and review of complaints concerning violations
of subsection (b) or the regulations thereunder that
result in material financial harm to a provider of
alarm monitoring service. Such procedures shall ensure
that the Commission will make a final determination
with respect to any such complaint within 120 days
after receipt of the complaint. If the complaint contains
an appropriate showing that the alleged violation
occurred, as determined by the Commission in accordance
with such regulations, the Commission shall, within
60 days after receipt of the complaint, order the
incumbent local exchange carrier (as defined in section
251(h)) and its affiliates to cease engaging in such
violation pending such final determination.
'(d)
Use of Data: A local exchange carrier
may not record or use in any fashion the occurrence
or contents of calls received by providers of alarm
monitoring services for the purposes of marketing
such services on behalf of such local exchange carrier,
or any other entity. Any regulations necessary to
enforce this subsection shall be issued initially
within 6 months after the date of enactment of the
Telecommunications Act of 1996.
'(e)
Definition of Alarm Monitoring service:
The term 'alarm monitoring service' means a service
that uses a device located at a residence, place of
business, or other fixed premises--
'(1)
to receive signals from other devices located at or
about such premises regarding a possible threat at
such premises to life, safety, or property, from burglary,
fire, vandalism, bodily injury, or other emergency,
and
'(2)
to transmit a signal regarding such threat by means
of transmission facilities of a local exchange carrier
or one of its affiliates to a remote monitoring center
to alert a person at such center of the need to inform
the customer or another person or police, fire, rescue,
security, or public safety personnel of such threat,
