FILE s652.enr --S.652-- S.652 One Hundred Fourth Congress of the United States of America AT THE SECOND SESSION Begun and held at the City of Washington on Wednesday, the third day of January, one thousand nine hundred and ninety-six An Act To promote competition and reduce regulation in order to secure lower prices and higher quality services for American telecommunications consumers and encourage the rapid deployment of new telecommunications technologies. [Italic->] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, [<-Italic] SECTION 1. SHORT TITLE; REFERENCES. (a) SHORT TITLE- This Act may be cited as the `Telecommunications Act of 1996'. (b) REFERENCES- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Communications Act of 1934 (47 U.S.C. 151 et seq.). SEC. 2. TABLE OF CONTENTS. The table of contents for this Act is as follows: Sec. 1. Short title; references. Sec. 2. Table of contents. Sec. 3. Definitions. TITLE I--TELECOMMUNICATION SERVICES SUBTITLE A--TELECOMMUNICATIONS SERVICES Sec. 101. Establishment of part II of title II. `PART II--DEVELOPMENT OF COMPETITIVE MARKETS Sec. 102. Eligible telecommunications carriers. Sec. 103. Exempt telecommunications companies. Sec. 104. Nondiscrimination principle. SUBTITLE B--SPECIAL PROVISIONS CONCERNING BELL OPERATINGCOMPANIES Sec. 151. Bell operating company provisions. `PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATINGCOMPANIES TITLE II--BROADCAST SERVICES Sec. 201. Broadcast spectrum flexibility. Sec. 202. Broadcast ownership.
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` Sec. 203. Term of licenses. Sec. 204. Broadcast license renewal procedures. Sec. 205. Direct broadcast satellite service. Sec. 206. Automated ship distress and safety systems. Sec. 207. Restrictions on over-the-air reception devices. TITLE III--CABLE SERVICES Sec. 301. Cable Act reform. Sec. 302. Cable service provided by telephone companies. `PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONECOMPANIES Sec. 303. Preemption of franchising authority regulation of telecommunications services. Sec. 304. Competitive availability of navigation devices. Sec. 305. Video programming accessibility. TITLE IV--REGULATORY REFORM Sec. 401. Regulatory forbearance. Sec. 402. Biennial review of regulations; regulatory relief. Sec. 403. Elimination of unnecessary Commission regulations and functions. TITLE V--OBSCENITY AND VIOLENCE SUBTITLE A--OBSCENE, HARASSING, AND WRONGFUL UTILIZATION OF TELECOMMUNICATIONS FACILITIES Sec. 501. Short title. Sec. 502. Obscene or harassing use of telecommunications facilities under the Communications Act of 1934. Sec. 503. Obscene programming on cable television. Sec. 504. Scrambling of cable channels for nonsubscribers. Sec. 505. Scrambling of sexually explicit adult video service programming. Sec. 506. Cable operator refusal to carry certain programs. Sec. 507. Clarification of current laws regarding communication of obscene materials through the use of computers. Sec. 508. Coercion and enticement of minors. Sec. 509. Online family empowerment. SUBTITLE B--VIOLENCE Sec. 551. Parental choice in television programming. Sec. 552. Technology fund. SUBTITLE C--JUDICIAL REVIEW Sec. 561. Expedited review. TITLE VI--EFFECT ON OTHER LAWS Sec. 601. Applicability of consent decrees and other law. Sec. 602. Preemption of local taxation with respect to direct-to-home services. TITLE VII--MISCELLANEOUS PROVISIONS Sec. 701. Prevention of unfair billing practices for information or
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` services provided over toll-free telephone calls. Sec. 702. Privacy of customer information. Sec. 703. Pole attachments. Sec. 704. Facilities siting; radio frequency emission standards. Sec. 705. Mobile services direct access to long distance carriers. Sec. 706. Advanced telecommunications incentives. Sec. 707. Telecommunications Development Fund. Sec. 708. National Education Technology Funding Corporation. Sec. 709. Report on the use of advanced telecommunications services for medical purposes. Sec. 710. Authorization of appropriations. SEC. 3. DEFINITIONS. (a) ADDITIONAL DEFINITIONS- Section 3 (47 U.S.C. 153) is amended-- (1) in subsection (r)-- (A) by inserting `(A)' after `means'; and (B) by inserting before the period at the end the following: `, or (B) comparable service provided through a system of switches, transmission equipment, or other facilities (or combination thereof) by which a subscriber can originate and terminate a telecommunications service'; and (2) by adding at the end thereof the following: `(33) AFFILIATE- The term `affiliate' means a person that (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For purposes of this paragraph, the term `own' means to own an equity interest (or the equivalent thereof) of more than 10 percent. `(34) AT&T CONSENT DECREE- The term `AT&T Consent Decree' means the order entered August 24, 1982, in the antitrust action styled United States v. Western Electric, Civil Action No. 82-0192, in the United States District Court for the District of Columbia, and includes any judgment or order with respect to such action entered on or after August 24, 1982. `(35) BELL OPERATING COMPANY- The term `Bell operating company'-- `(A) means any of the following companies: Bell Telephone Company of Nevada, Illinois Bell Telephone Company, Indiana Bell Telephone Company, Incorporated, Michigan Bell Telephone Company, New England Telephone and Telegraph Company, New Jersey Bell Telephone Company, New York Telephone Company, U S West Communications Company, South Central Bell Telephone Company, Southern Bell Telephone and Telegraph Company, Southwestern Bell Telephone Company, The Bell Telephone Company of Pennsylvania, The Chesapeake and
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` Potomac Telephone Company, The Chesapeake and Potomac Telephone Company of Maryland, The Chesapeake and Potomac Telephone Company of Virginia, The Chesapeake and Potomac Telephone Company of West Virginia, The Diamond State Telephone Company, The Ohio Bell Telephone Company, The Pacific Telephone and Telegraph Company, or Wisconsin Telephone Company; and `(B) includes any successor or assign of any such company that provides wireline telephone exchange service; but `(C) does not include an affiliate of any such company, other than an affiliate described in subparagraph (A) or (B). `(36) CABLE SERVICE- The term `cable service' has the meaning given such term in section 602. `(37) CABLE SYSTEM- The term `cable system' has the meaning given such term in section 602. `(38) CUSTOMER PREMISES EQUIPMENT- The term `customer premises equipment' means equipment employed on the premises of a person (other than a carrier) to originate, route, or terminate telecommunications. `(39) DIALING PARITY- The term `dialing parity' means that a person that is not an affiliate of a local exchange carrier is able to provide telecommunications services in such a manner that customers have the ability to route automatically, without the use of any access code, their telecommunications to the telecommunications services provider of the customer's designation from among 2 or more telecommunications services providers (including such local exchange carrier). `(40) EXCHANGE ACCESS- The term `exchange access' means the offering of access to telephone exchange services or facilities for the purpose of the origination or termination of telephone toll services. `(41) INFORMATION SERVICE- The term `information service' means the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing, but does not include any use of any such capability for the management, control, or operation of a telecommunications system or the management of a telecommunications service. `(42) INTERLATA SERVICE- The term `interLATA service' means telecommunications between a point located in a local access and transport area and a point located outside such area. `(43) LOCAL ACCESS AND TRANSPORT AREA- The term `local access and transport area' or `LATA' means a contiguous geographic area--
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` `(A) established before the date of enactment of the Telecommunications Act of 1996 by a Bell operating company such that no exchange area includes points within more than 1 metropolitan statistical area, consolidated metropolitan statistical area, or State, except as expressly permitted under the AT&T Consent Decree; or `(B) established or modified by a Bell operating company after such date of enactment and approved by the Commission. `(44) LOCAL EXCHANGE CARRIER- The term `local exchange carrier' means any person that is engaged in the provision of telephone exchange service or exchange access. Such term does not include a person insofar as such person is engaged in the provision of a commercial mobile service under section 332(c), except to the extent that the Commission finds that such service should be included in the definition of such term. `(45) NETWORK ELEMENT- The term `network element' means a facility or equipment used in the provision of a telecommunications service. Such term also includes features, functions, and capabilities that are provided by means of such facility or equipment, including subscriber numbers, databases, signaling systems, and information sufficient for billing and collection or used in the transmission, routing, or other provision of a telecommunications service. `(46) NUMBER PORTABILITY- The term `number portability' means the ability of users of telecommunications services to retain, at the same location, existing telecommunications numbers without impairment of quality, reliability, or convenience when switching from one telecommunications carrier to another. `(47) RURAL TELEPHONE COMPANY- The term `rural telephone company' means a local exchange carrier operating entity to the extent that such entity-- `(A) provides common carrier service to any local exchange carrier study area that does not include either-- `(i) any incorporated place of 10,000 inhabitants or more, or any part thereof, based on the most recently available population statistics of the Bureau of the Census; or `(ii) any territory, incorporated or unincorporated, included in an urbanized area, as defined by the Bureau of the Census as of August 10, 1993; `(B) provides telephone exchange service, including exchange access, to fewer than 50,000 access lines; `(C) provides telephone exchange service to any local exchange carrier study area with fewer than 100,000 access lines; or
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` `(D) has less than 15 percent of its access lines in communities of more than 50,000 on the date of enactment of the Telecommunications Act of 1996. `(48) TELECOMMUNICATIONS- The term `telecommunications' means the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received. `(49) TELECOMMUNICATIONS CARRIER- The term `telecommunications carrier' means any provider of telecommunications services, except that such term does not include aggregators of telecommunications services (as defined in section 226). A telecommunications carrier shall be treated as a common carrier under this Act only to the extent that it is engaged in providing telecommunications services, except that the Commission shall determine whether the provision of fixed and mobile satellite service shall be treated as common carriage. `(50) TELECOMMUNICATIONS EQUIPMENT- The term `telecommunications equipment' means equipment, other than customer premises equipment, used by a carrier to provide telecommunications services, and includes software integral to such equipment (including upgrades). `(51) TELECOMMUNICATIONS SERVICE- The term `telecommunications service' means the offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.'. (b) COMMON TERMINOLOGY- Except as otherwise provided in this Act, the terms used in this Act have the meanings provided in section 3 of the Communications Act of 1934 (47 U.S.C. 153), as amended by this section. (c) STYLISTIC CONSISTENCY- Section 3 (47 U.S.C. 153) is amended-- (1) in subsections (e) and (n), by redesignating clauses (1), (2), and (3), as clauses (A), (B), and (C), respectively; (2) in subsection (w), by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively; (3) in subsections (y) and (z), by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (4) by redesignating subsections (a) through (ff) as paragraphs (1) through (32); (5) by indenting such paragraphs 2 em spaces; (6) by inserting after the designation of each such paragraph-- (A) a heading, in a form consistent with the form of the heading of this subsection, consisting of the term defined by such paragraph, or the first term so defined if such
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` paragraph defines more than one term; and (B) the words `The term'; (7) by changing the first letter of each defined term in such paragraphs from a capital to a lower case letter (except for `United States', `State', `State commission', and `Great Lakes Agreement'); and (8) by reordering such paragraphs and the additional paragraphs added by subsection (a) in alphabetical order based on the headings of such paragraphs and renumbering such paragraphs as so reordered. (d) CONFORMING AMENDMENTS- The Act is amended-- (1) in section 225(a)(1), by striking `section 3(h)' and inserting `section 3'; (2) in section 332(d), by striking `section 3(n)' each place it appears and inserting `section 3'; and (3) in sections 621(d)(3), 636(d), and 637(a)(2), by striking `section 3(v)' and inserting `section 3'. TITLE I--TELECOMMUNICATION SERVICES SUBTITLE A--TELECOMMUNICATIONS SERVICES SEC. 101. ESTABLISHMENT OF PART II OF TITLE II. (a) AMENDMENT- Title II is amended by inserting after section 229 (47 U.S.C. 229) the following new part: `PART II--DEVELOPMENT OF COMPETITIVE MARKETS `SEC. 251. 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
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` 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 EXCHANGECARRIERS- 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.
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` `(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
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` 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
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` implementation schedule for compliance with the request that is consistent in time and manner with Commission regulations. `(C) LIMITATION ON EXEMPTION- The exemption provided by this paragraph shall not apply with respect to a request under subsection (c) from a cable operator providing video programming, and seeking to provide any telecommunications service, in the area in which the rural telephone company provides video programming. The limitation contained in this subparagraph shall not apply to a rural telephone company that is providing video programming on the date of enactment of the Telecommunications Act of 1996. `(2) SUSPENSIONS AND MODIFICATIONS FOR RURAL CARRIERS- A local exchange carrier with fewer than 2 percent of the Nation's subscriber lines installed in the aggregate 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 ANDINTERCONNECTION 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
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` interconnection restrictions and obligations (including receipt of compensation) that apply to such carrier on the date immediately precedi