|
OFFERED BY (Substitute) Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Internet Freedom and 2 Broadband Deployment Act of 2001’’. 3 SEC. 2. FINDINGS AND PURPOSE. 4 (a) FINDINGS.—Congress finds the following: 5 (1) Internet access services are inherently inter- 6 state and international in nature, and should there- 7 fore not be subject to regulation by the States. 8 (2) The imposition of regulations by the Fed- 9 eral Communications Commission and the States 10 has impeded the rapid delivery of high speed Inter- 11 net access services and Internet backbone services to 12 the public, thereby reducing consumer choice and 13 welfare. 14 (3) The Telecommunications Act of 1996 rep- 15 resented a careful balance between the need to open 16 up local telecommunications markets to competition 17 and the need to increase competition in the provision 18 of interLATA voice telecommunications services. 19 2 (4) In enacting the prohibition on Bell oper- 1 ating company provision of interLATA services, 2 Congress recognized that certain telecommunications 3 services have characteristics that render them in- 4 compatible with the prohibition on Bell operating 5 company provision of interLATA services, and ex- 6 empted such services from the interLATA prohibi- 7 tion. 8 (5) High speed data services and Internet back- 9 bone services constitute unique markets that are 10 likewise incompatible with the prohibition on Bell 11 operating company provision of interLATA services. 12 (6) Since the enactment of the Telecommuni- 13 cations Act of 1996, the Federal Communications 14 Commission has construed the prohibition on Bell 15 operating company provision of interLATA services 16 in a manner that has impeded the development of 17 advanced telecommunications services, thereby lim- 18 iting consumer choice and welfare. 19 (7) Internet users should have choice among 20 competing Internet service providers. 21 (8) Internet service providers should have the 22 right to interconnect with high speed data networks 23 in order to provide service to Internet users. 24 3 (b) PURPOSES.—It is therefore the purpose of this 1 Act to provide market incentives for the rapid delivery of 2 advanced telecommunications services— 3 (1) by deregulating high speed data services, 4 Internet backbone services, and Internet access serv- 5 ices; 6 (2) by clarifying that the prohibition on Bell op- 7 erating company provision of interLATA services 8 does not extend to the provision of high speed data 9 services and Internet backbone services; 10 (3) by ensuring that consumers can choose 11 among competing Internet service providers; and 12 (4) by ensuring that Internet service providers 13 can interconnect with competitive high speed data 14 networks in order to provide Internet access service 15 to the public. 16 SEC. 3. DEFINITIONS 17 (a) AMENDMENTS.—Section 3 of the Communica- 18 tions Act of 1934 (47 U.S.C. 153) is amended— 19 (1) by redesignating paragraph (20) as para- 20 graph (21); 21 (2) by redesignating paragraphs (21) through 22 (52) as paragraphs (26) through (54), respectively; 23 (3) by inserting after paragraph (19) the fol- 24 \4 ‘‘(20) HIGH SPEED DATA SERVICE.—The term 1 ‘high speed data service’ means any service that con- 2 sists of or includes the offering of a capability to 3 transmit, using a packet-switched or successor tech- 4 nology, information at a rate that is generally not 5 less than 384 kilobits per second in at least one di- 6 rection. Such term does not include special access 7 service offered through dedicated transport links be- 8 tween a customer’s premises and an interexchange 9 carrier’s switch or point of presence.’’; 10 (4) by inserting after paragraph (21) the fol- 11 lowing new paragraphs: 12 ‘‘(22) INTERNET.—The term ‘Internet’ means 13 collectively the myriad of computer and tele- 14 communications facilities, including equipment and 15 operating software, which comprise the inter- 16 connected world-wide network of networks that em- 17 ploy the Transmission Control Protocol/Internet 18 Protocol, or any predecessor or successor protocols 19 to such protocol, to communicate information of all 20 kinds by wire or radio. 21 ‘‘(23) INTERNET ACCESS SERVICE.—The term 22 ‘Internet access service’ means a service that com- 23 bines computer processing, information storage, pro- 24 5 tocol conversion, and routing with transmission to 1 enable users to access Internet content and services. 2 ‘‘(24) INTERNET BACKBONE.—The term ’Inter- 3 net backbone’ means a network that carries Internet 4 traffic over high-capacity long-haul transmission fa- 5 cilities and that is interconnected with other such 6 networks via private peering relationships. 7 ‘‘(25) INTERNET BACKBONE SERVICE.—The 8 term ’Internet backbone service’ means any 9 interLATA service that consists of or includes the 10 transmission by means of an Internet backbone of 11 any data or packets, including any writing, signs, 12 signals, pictures, sounds, voice, or video related to 13 the transmission of such data or packets, and shall 14 include related local connectivity.’’. 15 (b) CONFORMING AMENDMENTS.— 16 (1) Section 230(f) of the Communications Act 17 of 1934 (47 U.S.C. 230(f)) is amended— 18 (A) by striking paragraph (1); and 19 (B) by redesignating paragraphs (2) 20 through (4) as paragraphs (1) through (3), re- 21 spectively. 22 (2) Section 223(h)(2) of such Act (47 U.S.C. 23 223(h)(2)) is amended by striking ‘‘230(f)(2)’’ and 24 inserting ‘‘230(f)(1)’’. 25 6 SEC. 4. LIMITATION ON AUTHORITY TO REGULATE HIGH 1 SPEED DATA SERVICES. 2 (a) IN GENERAL.—Part I of title II of the Commu- 3 nications Act of 1934 (47 U.S.C. 201 et seq.) is amended 4 by adding at the end the following new section: 5 ‘‘SEC. 232. PROVISION OF HIGH SPEED DATA SERVICES. 6 ‘‘(a) FREEDOM FROM REGULATION.—Except to the 7 extent that high speed data service, Internet backbone 8 service, and Internet access service are expressly referred 9 to in this Act, neither the Commission, nor any State, 10 shall have authority to regulate the rates, charges, terms, 11 or conditions for, or entry into the provision of, any high 12 speed data service, Internet backbone service, or Internet 13 access service, or to regulate any network element to the 14 extent it is used in the provision of any such service; nor 15 shall the Commission impose or require the collection of 16 any fees, taxes, charges, or tariffs upon such service. 17 ‘‘(b) SAVINGS PROVISION.—Nothing in this section 18 shall be construed to limit or affect the authority of any 19 State to regulate circuit-switched telephone exchange serv- 20 ices, nor affect the rights of cable franchise authorities 21 to establish requirements that are otherwise consistent 22 with this Act. 23 ‘‘(c) CONTINUED ENFORCEMENT OF ESP EXEMP- 24 TION, UNIVERSAL SERVICE RULES PERMITTED.—Noth- 25 7 ing in this section shall affect the ability of the Commis- 1 sion to retain or modify— 2 ‘‘(1) the exemption from interstate access 3 charges for enhanced service providers under Part 4 69 of the Commission’s regulations, and the require- 5 ments of the MTS/WATS Market Structure Order 6 (97 FCC 2d 682, 715 (1983)); or 7 ‘‘(2) rules issued pursuant to section 254.’’. 8 (b) CONFORMING AMENDMENT.—Section 251 of the 9 Communications Act of 1934 (47 U.S.C. 251) is amended 10 by adding at the end thereof the following new subsection: 11 ‘‘(j) EXEMPTION.— 12 ‘‘(1) ACCESS TO NETWORK ELEMENTS FOR 13 HIGH SPEED DATA SERVICE.— 14 ‘‘(A) LIMITATION.—Subject to subpara- 15 graphs (B), (C), and (D) of this paragraph, nei- 16 ther the Commission nor any State shall require 17 an incumbent local exchange carrier to provide 18 unbundled access to any network element for 19 the provision of any high speed data service. 20 ‘‘(B) PRESERVATION OF REGULATIONS 21 AND LINE SHARING ORDER.—Notwithstanding 22 subparagraph (A), the Commission shall, to the 23 extent consistent with subsections (c)(3) and 24 (d)(2), require the provision of unbundled ac- 25 8 cess to those network elements described in sec- 1 tion 51.319 of the Commission’s regulations 2 (47 C.F.R. 51.319), as— 3 ‘‘(i) in effect on January 1, 1999; and 4 ‘‘(ii) subject to subparagraphs (C) 5 and (D), as modified by the Commission’s 6 Line Sharing Order. 7 ‘‘(C) EXCEPTIONS TO PRESERVATION OF 8 LINE SHARING ORDER.— 9 ‘‘(i) UNBUNDLED ACCESS TO REMOTE 10 TERMINAL NOT REQUIRED.—An incumbent 11 local exchange carrier shall not be required 12 to provide unbundled access to the high 13 frequency portion of the loop at a remote 14 terminal. 15 ‘‘(ii) CHARGES FOR ACCESS TO HIGH 16 FREQUENCY PORTION.—The Commission 17 and the States shall permit an incumbent 18 local exchange carrier to charge requesting 19 carriers for the high frequency portion of 20 a loop an amount equal to which such in- 21 cumbent local exchange carrier imputes to 22 its own high speed data service. 23 ‘‘(D) LIMITATIONS ON REINTERPRETATION 24 OF LINE SHARING ORDER.—Neither the Com- 25 9 mission nor any State Commission shall con- 1 strue, interpret, or reinterpret the Commission’s 2 Line Sharing Order in such manner as would 3 expand an incumbent local exchange carrier’s 4 obligation to provide access to any network ele- 5 ment for the purpose of line sharing. 6 ‘‘(E) AUTHORITY TO REDUCE ELEMENTS 7 SUBJECT TO REQUIREMENT.—This paragraph 8 shall not prohibit the Commission from modi- 9 fying the regulation referred to in subparagraph 10 (B) to reduce the number of network elements 11 subject to the unbundling requirement, or to 12 forbear from enforcing any portion of that reg- 13 ulation in accordance with the Commission’s 14 authority under section 706 of the Tele- 15 communications Act of 1996, notwithstanding 16 any limitation on that authority in section 10 of 17 this Act. 18 ‘‘(F) PROHIBITION ON DISCRIMINATORY 19 SUBSIDIES.—Any network element used in the 20 provision of high speed data service that is not 21 subject to the requirements of subsection (c) 22 shall not be entitled to any subsidy, including 23 any subsidy pursuant to section 254, that is not 24 provided on a nondiscriminatory basis to all 25 10 providers of high speed data service and Inter- 1 net access service. This prohibition on discrimi- 2 natory subsidies shall not be interpreted to au- 3 thorize or require the extension of any subsidy 4 to any provider of high speed data service or 5 Internet access service. 6 ‘‘(2) RESALE.—For a period of three years 7 after the enactment of this subsection, an incumbent 8 local exchange carrier that provides high speed data 9 service shall have a duty to offer for resale any such 10 service at wholesale rates in accordance with sub- 11 section (c)(4). After such three-year period, such 12 carrier shall offer such services for resale pursuant 13 to subsection (b)(1). 14 ‘‘(3) DEFINITIONS.—For purposes of this 15 subsection— 16 ‘‘(A) the ‘Commission’s Line Sharing 17 Order’ means the Third Report and Order in 18 CC Docket No. 98-147 and the Fourth Report 19 and Order in CC Docket 96-98 (FCC 99-355), 20 as adopted November 18, 1999, and without re- 21 gard to any clarification or interpretation in the 22 further notice of proposed rulemaking in such 23 Dockets adopted January 19, 2001 (FCC 01- 24 26); and 25 11 ‘‘(B) the term ‘remote terminal’ means an 1 accessible terminal located outside of the cen- 2 tral office to which analog signals are carried 3 from customer premises, in which such signals 4 are converted to digital, and from which such 5 signals are carried, generally over fiber, to the 6 central office.’’. 7 SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE. 8 Part I of title II of the Communications Act of 1934, 9 as amended by section 4, is amended by adding at the 10 end the following new section: 11 ‘‘SEC. 233. INTERNET CONSUMERS FREEDOM OF CHOICE. 12 ‘‘(a) PURPOSE.—It is the purpose of this section to 13 ensure that Internet users have freedom of choice of Inter- 14 net service provider. 15 ‘‘(b) OBLIGATIONS OF INCUMBENT LOCAL EX- 16 CHANGE CARRIERS.—Each incumbent local exchange car- 17 rier has the duty to provide— 18 ‘‘(1) Internet users with the ability to subscribe 19 to and have access to any Internet service provider 20 that interconnects with such carrier’s high speed 21 data service; 22 ‘‘(2) any Internet service provider with the 23 right to acquire the facilities and services necessary 24 to interconnect with such carrier’s high speed data 25 12 service for the provision of Internet access service; 1 and 2 ‘‘(3) any Internet service provider with the abil- 3 ity to collocate equipment in accordance with the 4 provisions of section 251, to the extent necessary to 5 achieve the objectives of paragraphs (1) and (2) of 6 this subsection. 7 ‘‘(c) DEFINITIONS.—As used in this section— 8 ‘‘(1) INTERNET SERVICE PROVIDER.—The term 9 ‘Internet service provider’ means any provider of 10 Internet access service. 11 ‘‘(2) INCUMBENT LOCAL EXCHANGE CAR- 12 RIER.—The term ‘incumbent local exchange carrier’ 13 has the same meaning as provided in section 14 251(h).’’. 15 SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH 16 SPEED DATA AND INTERNET ACCESS SERV- 17 ICES. 18 (a) INCIDENTAL INTERLATA SERVICE 19 PREMITTED.—Section 271(g) of the Communications Act 20 of 1934 (47 U.S.C. 271(g)) is amended— 21 (1) by striking ‘‘or’’ at the end of paragraph 22 (5); 23 (2) by striking the period at the end of para- 24 graph (6) and inserting ‘‘; or’’; and 25 13 (3) by adding at the end thereof the following 1 new paragraph: 2 ‘‘(7) of high speed data service or Internet 3 backbone service.’’. 4 (b) PROHIBITION ON PROVISION OF VOICE SERV- 5 ICES.—Section 271 of such Act is amended by adding at 6 the end thereof the following new subsection: 7 ‘‘(k) PROHIBITION ON PROVISION OF VOICE TELE- 8 PHONE SERVICES.—Until the date on which a Bell oper- 9 ating company is authorized to offer interLATA services 10 originating in an in-region State in accordance with the 11 provisions of this section, such Bell operating company of- 12 fering any high speed data service or Internet backbone 13 service pursuant to the provisions of paragraph (7) of sub- 14 section (g) may not, in such in-region State provide 15 interLATA voice telecommunications service, regardless of 16 whether there is a charge for such service, by means of 17 the high speed data service or Internet backbone service 18 provided by such company.’’. 19 (c) CONFORMING AMENDMENTS.— 20 (1) Section 272(a)(2)(B)(i) of such Act is 21 amended to read as follows: 22 ‘‘(i) incidental interLATA services de- 23 scribed in paragraphs (1), (2), (3), (5), 24 (6), and (7) of section 271(g).’’. 25 14 (2) Section 272(a)(2)(C) of such Act is re- 1 pealed. 2 SEC. 7. COMMISSION AUTHORIZED TO PRESCRIBE JUST 3 AND REASONABLE CHARGES. 4 The Federal Communications Commission may im- 5 pose penalties under section 503 of the Communications 6 Act of 1934 not to exceed $1,000,000 for any violation 7 of provisions contained in, or amended by, section 5 or 8 6 (or both) of this Act. Each distinct violation shall be 9 a separate offense, and in the case of a continuing viola- 10 tion, each day shall be deemed a separate offense, except 11 that the amount assessed for any continuing violation shall 12 not exceed a total of $10,000,000 for any single act or 13 failure to act described in section 5 or 6 (or both) of this 14 Act. 15 |