Internet Freedom and Broadband Deployment Act of 2001

February 28, 2002

HR 1542 RH

Union Calendar No. 54

107th CONGRESS

1st Session

H. R. 1542

[Report No. 107-83, Parts I and II]

To deregulate the Internet and high speed data services, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

April 24, 2001

Mr. TAUZIN (for himself, Mr. DINGELL, Mr. GOODLATTE, Mr. BOUCHER, Mr.

ENGLISH, Mr. FROST, Mr. SMITH of Washington, Mr. LUCAS of Kentucky, Mr.

WHITFIELD, Mr. MURTHA, Mr. COLLINS, Mr. BLAGOJEVICH, Mr. FOSSELLA, Mr. DICKS,

Mr. GILLMOR, Mr. BARTON of Texas, Mr. KIND, Mr. GREENWOOD, Mr. MEEKS of New

York, Mr. CAMP, Mr. BALDACCI, Mr. RAHALL, Mr. HOLDEN, Mrs. MCCARTHY of New York,

Mr. BRADY of Pennsylvania, Mr. SIMPSON, Mr. BOYD, Mrs. NORTHUP, Mr. ENGEL, Mr.

SANDLIN, Mr. EVERETT, Mr. BOEHNER, Mr. REYNOLDS, Mr. WELDON of Pennsylvania, Mr.

SESSIONS, Mr. BONIOR, Mr. MALONEY of Connecticut, Mr. BUYER, Mr. CUNNINGHAM, Mr.

MCCRERY, Mr. BISHOP, Mr. LAMPSON, Mr. VITTER, Mr. BASS, Mr. ACKERMAN, Mr. BLUNT,

Mr. MCHUGH, Mr. RYAN of Wisconsin, Mr. QUINN, Mr. BACA, Mr. GONZALEZ, Mr. BAKER,

Mr. WALSH, Mr. GREEN of Texas, Mr. WEXLER, Mr. OXLEY, Mr. RADANOVICH, Mr.

DIAZ-BALART, Mr. COOKSEY, Mr. CLEMENT, Mr. LARSEN of Washington, Mr. SCHROCK,

Mr. PETRI, Mr. WATKINS, Ms. ROS-LEHTINEN, Mr. HILLIARD, Mr. OTTER, Mr. SHADEGG,

Mr. BRYANT, Mr. PLATTS, Mr. PUTNAM, Mr. CUMMINGS, Mr. RODRIGUEZ, Mr. CONDIT, Mr.

BURR of North Carolina, and Mr. WYNN) introduced the following bill; which was

referred to the Committee on Energy and Commerce

May 24, 2001

Reported by the Committee on Energy and Commerce with an amendment

[Strike out all after the enacting clause and insert the part printed in

italic]

May 24, 2001

Referred to the Committee on the Judiciary for a period ending not later than

June 18, 2001 for consideration of such provisions of the bill and amendment

recommended by the Committee on Energy and Commerce as proposed to narrow the

purview of the Attorney General under section 271 of the Communications Act of

1934

June 18, 2001

Additional sponsors: Mr. SWEENEY, Mr. GRUCCI, Mr. TURNER, Mr. GALLEGLY, Mr.

BACHUS, Mr. FOLEY, Ms. GRANGER, Mr. CROWLEY, Mr. LEVIN, Mr. RANGEL, Mr.

VISCLOSKY, Mr. HILLEARY, Mr. BONILLA, Mr. FLETCHER, Mr. BENTSEN, Mr. RILEY, Mr.

REYES, Mr. BERRY, Mr. SHOWS, Ms. BROWN of Florida, Mr. WELDON of Florida, Ms.

BALDWIN, Mr. TANCREDO, Mrs. MEEK of Florida, Mr. HAYES, Mr. ROSS, Mr. LAHOOD,

Mr. ACEVEDO-VILA, Mr. MOLLOHAN, Mr. HASTINGS of Florida, Mr. ORTIZ, Mr. KILDEE,

Mr. ALLEN, Mr. SERRANO, Mr. BROWN of South Carolina, Mr. SMITH of Texas, and Mr.

LATOURETTE

June 18, 2001

Reported with amendments, adversely, from the Committee on the Judiciary,

committed to the Committee of the Whole House on the State of the Union, and

ordered to be printed

[Omit the part struck through in italic and insert the part printed in

boldface roman]

[For text of introduced bill, see copy of bill as introduced on April

24, 2001]


A BILL

To deregulate the Internet and high speed data services, and for

other purposes.

    Be it enacted by the Senate and House of Representatives of the United

    States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Internet Freedom and Broadband

    Deployment Act of 2001′.

SEC. 2. FINDINGS AND PURPOSE.

    (a) FINDINGS- Congress finds the following:

      (1) Internet access services are inherently interstate and

      international in nature, and should therefore not be subject to regulation

      by the States.

      (2) The imposition of regulations by the Federal Communications

      Commission and the States has impeded the rapid delivery of high speed

      Internet access services and Internet backbone services to the public,

      thereby reducing consumer choice and welfare.

      (3) The Telecommunications Act of 1996 represented a careful balance

      between the need to open up local telecommunications markets to competition

      and the need to increase competition in the provision of interLATA voice

      telecommunications services.

      (4) In enacting the prohibition on Bell operating company provision

      of interLATA services, Congress recognized that certain telecommunications

      services have characteristics that render them incompatible with the

      prohibition on Bell operating company provision of interLATA services, and

      exempted such services from the interLATA prohibition.

      (5) High speed data services and Internet backbone services

      constitute unique markets that are likewise incompatible with the

      prohibition on Bell operating company provision of interLATA

      services.

      (6) Since the enactment of the Telecommunications Act of 1996, the

      Federal Communications Commission has construed the prohibition on Bell

      operating company provision of interLATA services in a manner that has

      impeded the development of advanced telecommunications services, thereby

      limiting consumer choice and welfare.

      (7) Internet users should have choice among competing Internet

      service providers.

      (8) Internet service providers should have the right to interconnect

      with high speed data networks in order to provide service to Internet

      users.

    (b) PURPOSES- It is therefore the purpose of this Act to provide

    market incentives for the rapid delivery of advanced telecommunications

    services–

      (1) by deregulating high speed data services, Internet backbone

      services, and Internet access services;

      (2) by clarifying that the prohibition on Bell operating company

      provision of interLATA services does not extend to the provision of high

      speed data services and Internet backbone services;

      (3) by ensuring that consumers can choose among competing Internet

      service providers; and

      (4) by ensuring that Internet service providers can interconnect

      with competitive high speed data networks in order to provide Internet

      access service to the public.

SEC. 3. DEFINITIONS

    (a) AMENDMENTS- Section 3 of the Communications Act of 1934 (47 U.S.C.

    153) is amended–

      (1) by redesignating paragraph (20) as paragraph (21);

      (2) by redesignating paragraphs (21) through (52) as paragraphs (26)

      through (57), respectively;

      (3) by inserting after paragraph (19) the following new

      paragraph:

      `(20) HIGH SPEED DATA SERVICE- The term `high speed data service’

      means any service that consists of or includes the offering of a capability

      to transmit, using a packet-switched or successor technology, information at

      a rate that is generally not less than 384 kilobits per second in at least

      one direction. Such term does not include special access service offered

      through dedicated transport links between a customer’s premises and an

      interexchange carrier’s switch or point of presence.’;

      (4) by inserting after paragraph (21) the following new

      paragraphs:

      `(22) INTERNET- The term `Internet’ means collectively the myriad of

      computer and telecommunications facilities, including equipment and

      operating software, which comprise the interconnected world-wide network of

      networks that employ the Transmission Control Protocol/Internet Protocol, or

      any predecessor or successor protocols to such protocol, to communicate

      information of all kinds by wire or radio.

      `(23) INTERNET ACCESS SERVICE- The term `Internet access service’

      means a service that combines computer processing, information storage,

      protocol conversion, and routing with transmission to enable users to access

      Internet content and services.

      `(24) INTERNET BACKBONE- The term `Internet backbone’ means a

      network that carries Internet traffic over high-capacity long-haul

      transmission facilities and that is interconnected with other such networks

      via private peering relationships.

      `(25) INTERNET BACKBONE SERVICE- The term `Internet backbone

      service’ means any interLATA service that consists of or includes the

      transmission by means of an Internet backbone of any packets, and shall

      include related local connectivity.’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 230(f) of the Communications Act of 1934 (47 U.S.C.

      230(f)) is amended–

        (A) by striking paragraph (1); and

        (B) by redesignating paragraphs (2) through (4) as paragraphs (1)

        through (3), respectively.

      (2) Section 223(h)(2) of such Act (47 U.S.C. 223(h)(2)) is amended

      by striking `230(f)(2)’ and inserting `230(f)(1)’.

SEC. 4. LIMITATION ON AUTHORITY TO REGULATE HIGH SPEED DATA

SERVICES.

    (a) IN GENERAL- Part I of title II of the Communications Act of 1934

    (47 U.S.C. 201 et seq.) is amended by adding at the end the following new

    section:

`SEC. 232. PROVISION OF HIGH SPEED DATA SERVICES.

    `(a) FREEDOM FROM REGULATION- Except to the extent that high speed

    data service, Internet backbone service, and Internet access service are

    expressly referred to in this Act, neither the Commission, nor any State,

    shall have authority to regulate the rates, charges, terms, or conditions for,

    or entry into the provision of, any high speed data service, Internet backbone

    service, or Internet access service, or to regulate any network element to the

    extent it is used in the provision of any such service; nor shall the

    Commission impose or require the collection of any fees, taxes, charges, or

    tariffs upon such service.

    `(b) SAVINGS PROVISION- Nothing in this section shall be construed to

    limit or affect the authority of any State to regulate circuit-switched

    telephone exchange services, nor affect the rights of cable franchise

    authorities to establish requirements that are otherwise consistent with this

    Act.

    `(c) CONTINUED ENFORCEMENT OF ESP EXEMPTION, UNIVERSAL SERVICE RULES

    PERMITTED- Nothing in this

section shall affect the ability of the Commission to retain or

modify–

      `(1) the exemption from interstate access charges for enhanced

      service providers under Part 69 of the Commission’s regulations, and the

      requirements of the MTS/WATS Market Structure Order (97 FCC 2d 682, 715

      (1983)); or

      `(2) rules issued pursuant to section 254.’.

    (b) CONFORMING AMENDMENT- Section 251 of the Communications Act of

    1934 (47 U.S.C. 251) is amended by adding at the end thereof the following new

    subsection:

    `(j) EXEMPTION-

      `(1) ACCESS TO NETWORK ELEMENTS FOR HIGH SPEED DATA SERVICE-

        `(A) LIMITATION- Subject to subparagraphs (B), (C), and (D) of

        this paragraph, neither the Commission nor any State shall require an

        incumbent local exchange carrier to provide unbundled access to any

        network element for the provision of any high speed data

        service.

        `(B) PRESERVATION OF REGULATIONS AND LINE SHARING ORDER-

        Notwithstanding subparagraph (A), the Commission shall, to the extent

        consistent with subsections (c)(3) and (d)(2), require the provision of

        unbundled access to those network elements described in section 51.319 of

        the Commission’s regulations (47 C.F.R. 51.319), as–

          `(i) in effect on January 1, 1999; and

          `(ii) subject to subparagraphs (C) and (D), as modified by the

          Commission’s Line Sharing Order.

        `(C) EXCEPTIONS TO PRESERVATION OF LINE SHARING ORDER-

          `(i) UNBUNDLED ACCESS TO REMOTE TERMINAL NOT REQUIRED- An

          incumbent local exchange carrier shall not be required to provide

          unbundled access to the high frequency portion of the loop at a remote

          terminal.

          `(ii) CHARGES FOR ACCESS TO HIGH FREQUENCY PORTION- The

          Commission and the States shall permit an incumbent local exchange

          carrier to charge requesting carriers for the high frequency portion of

          a loop an amount equal to which such incumbent local exchange carrier

          imputes to its own high speed data service.

        `(D) LIMITATIONS ON REINTERPRETATION OF LINE SHARING ORDER-

        Neither the Commission nor any State Commission shall construe, interpret,

        or reinterpret the Commission’s Line Sharing Order in such manner as would

        expand an incumbent local exchange carrier’s obligation to provide access

        to any network element for the purpose of line sharing.

        `(E) AUTHORITY TO REDUCE ELEMENTS SUBJECT TO REQUIREMENT- This

        paragraph shall not prohibit the Commission from modifying the regulation

        referred to in subparagraph (B) to reduce the number of network elements

        subject to the unbundling requirement, or to forbear from enforcing any

        portion of that regulation in accordance with the Commission’s authority

        under section 706 of the Telecommunications Act of 1996, notwithstanding

        any limitation on that authority in section 10 of this Act.

        `(F) PROHIBITION ON DISCRIMINATORY SUBSIDIES- Any network element

        used in the provision of high speed data service that is not subject to

        the requirements of subsection (c) shall not be entitled to any subsidy,

        including any subsidy pursuant to section 254, that is not provided on a

        nondiscriminatory basis to all providers of high speed data service and

        Internet access service. This prohibition on discriminatory subsidies

        shall not be interpreted to authorize or require the extension of any

        subsidy to any provider of high speed data service or Internet access

        service.

      `(2) RESALE- For a period of three years after the enactment of this

      subsection, an incumbent local exchange carrier that provides high speed

      data service shall have a duty to offer for resale any such service at

      wholesale rates in accordance with subsection (c)(4). After such three-year

      period, such carrier shall offer such services for resale pursuant to

      subsection (b)(1).

      `(3) DEFINITIONS- For purposes of this subsection–

        `(A) the `Commission’s Line Sharing Order’ means the Third Report

        and Order in CC Docket No. 98-147 and the Fourth Report and Order in CC

        Docket 96-98 (FCC 99-355), as adopted November 18, 1999, and without

        regard to any clarification or interpretation in the further notice of

        proposed rulemaking in such Dockets adopted January 19, 2001 (FCC 01-26);

        and

        `(B) the term `remote terminal’ means an accessible terminal

        located outside of the central

office to which analog signals are carried from customer premises, in

which such signals are converted to digital, and from which such signals are

carried, generally over fiber, to the central office.’.

    (c) PRESERVATION OF EXISTING INTERCONNECTION AGREEMENTS- Nothing in

    the amendments made by this section–

      (1) shall be construed to permit or require the abrogation or

      modification of any interconnection agreement in effect on the date of

      enactment of this section during the term of such agreement, except that

      this paragraph shall not apply to any interconnection agreement beyond the

      expiration date of the existing current term contained in such agreement on

      the date of enactment of this section, without regard to any extension or

      renewal of such agreement; or

      (2) affects the implementation of any change of law provision in any

      such agreement.

SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE.

    Part I of title II of the Communications Act of 1934, as amended by

    section 4, is amended by adding at the end the following new section:

`SEC. 233. INTERNET CONSUMERS FREEDOM OF CHOICE.

    `(a) PURPOSE- It is the purpose of this section to ensure that

    Internet users have freedom of choice of Internet service provider.

    `(b) OBLIGATIONS OF INCUMBENT LOCAL EXCHANGE CARRIERS- Each incumbent

    local exchange carrier has the duty to provide–

      `(1) Internet users with the ability to subscribe to and have access

      to any Internet service provider that interconnects with such carrier’s high

      speed data service;

      `(2) any Internet service provider with the right to acquire the

      facilities and services necessary to interconnect with such carrier’s high

      speed data service for the provision of Internet access service;

      `(3) any Internet service provider with the ability to collocate

      equipment in accordance with the provisions of section 251, to the extent

      necessary to achieve the objectives of paragraphs (1) and (2) of this

      subsection; and

      `(4) any provider of high speed data services, Internet backbone

      service, or Internet access service with special access for the provision of

      Internet access service within a period no longer than the period in which

      such incumbent local exchange carrier provides special access to itself or

      any affiliate for the provision of such service.

    `(c) DEFINITIONS- As used in this section–

      `(1) INTERNET SERVICE PROVIDER- The term `Internet service provider’

      means any provider of Internet access service.

      `(2) INCUMBENT LOCAL EXCHANGE CARRIER- The term `incumbent local

      exchange carrier’ has the same meaning as provided in section

      251(h).

      `(3) SPECIAL ACCESS SERVICE- The term `special access service’ means

      the provision of dedicated transport links between a customer’s premises and

      the switch or point of presence of a high speed data service provider,

      Internet backbone service provider, or Internet service

      provider.’.

SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH SPEED DATA AND INTERNET

BACKBONE SERVICES.

    (a) INCIDENTAL INTERLATA SERVICE PERMITTED- Section 271(g) of the

    Communications Act of 1934 (47 U.S.C. 271(g)) is amended–

      (1) by striking `or’ at the end of paragraph (5);

      (2) by striking the period at the end of paragraph (6) and inserting

      `; or’; and

      (3) by adding at the end thereof the following new

      paragraph:

      `(7) of high speed data service or Internet backbone

      service, subject to subsection (l).’.

    (b) PROHIBITION ON PROVISION OF VOICE TELEPHONE SERVICES- Section 271

    of such Act is amended by adding at the end thereof the following new

    subsection:

    `(k) PROHIBITION ON PROVISION OF VOICE TELEPHONE SERVICES- Until the

    date on which a Bell operating company is authorized to offer interLATA

    services originating in an in-region State in accordance with the provisions

    of this section, such Bell operating company offering any high speed data

    service or Internet backbone service pursuant to the provisions of paragraph

    (7) of subsection (g) may not, in such in-region State provide interLATA voice

    telecommunications service, regardless of whether there is a charge for such

    service, by means of the high speed data service or Internet backbone service

    provided by such company.’.

    (c) APPLICATION PREREQUISITE TO PROVIDING HIGH SPEED DATA SERVICE OR

    INTERNET BACKBONE SERVICE- Section 271 of the Communications Act of 1934 (47

    U.S.C. 271), as amended by subsection (b), is amended by adding at the end the

    following:

    `(l) APPLICATION PREREQUISITE TO PROVIDING HIGH SPEED DATA SERVICE OR

    INTERNET BACKBONE SERVICE-

      `(1) REQUIREMENT TO FILE APPLICATION WITH ATTORNEY GENERAL OF THE UNITED

      STATES- Neither a Bell operating company, nor any affiliate of a Bell

      operating company, may begin providing high speed data service or Internet

      backbone service in any in-region State under the authority of subsection

      (g)(7)–

        `(A) unless it files with the Attorney General of the United States an

        application to provide such service; and

        `(B) until the Attorney General —

          `(i) approves such application before the expiration of the 90-day

          period beginning on the date such application is filed; or

          `(ii) fails to approve or to disapprove such application during such

          90-day period.

      `(2) AUTHORITY OF ATTORNEY GENERAL- The Attorney General of the United

      States–

        `(A) may issue rules to establish requirements applicable to the form

        and contents of applications filed under paragraph (1);

        `(B) may make recommendations to an applicant regarding–

          `(i) withdrawal of an application filed under paragraph (1);

          or

          `(ii) filing of an application under paragraph (1), with or without

          modifications, subsequent to the withdrawal of an application filed

          under such paragraph; and

        `(C) may not approve an application filed in compliance with this

        subsection unless the Attorney General determines that the applicant has

        demonstrated that it meets the substantive requirements of subsections (c)

        and (d) with respect to high speed data service or Internet backbone

        service in the State for which such application is filed.

      `(3) WITHDRAWAL OF APPLICATION- An application filed under paragraph (1)

      may be withdrawn by the applicant at any time before the Attorney General

      approves or disapproves such application, but may not be modified after

      being filed.’.

    [Struck out->] (c) [<-Struck out] (d) Conforming

    Amendments

      (1) Section 272(a)(2)(B)(i) of such Act is amended to read as

      follows:

          `(i) incidental interLATA services described in paragraphs (1),

          (2), (3), (5), (6), and (7) of section 271(g);’.

      (2) Section 272(a)(2)(C) of such Act is repealed.

    (e) CONTINUED FULL APPLICATION OF THE ANTITRUST LAWS TO MATTERS INVOLVED

    IN THE TELECOMMUNICATIONS INDUSTRY- Section 601(b) of the Telecommunications

    Act of 1996 (47 U.S.C. 152 note) is amended by adding at the end the

    following:

      `(4) CONTINUING OPERATION OF THE ANTITRUST LAWS- The rights,

      obligations, powers, and remedies provided under the antitrust laws are in

      addition to, and are–

        `(A) not preempted by;

        `(B) not inconsistent with; and

        `(C) not incompatible with;

      any of the rights, obligations, powers, and remedies provided under the

      Communications Act of 1934 (47 U.S.C. 151 et seq.), under this Act, or under

      any law amended by either such Act, regardless of the progress of

      competition in any market.’.

SEC. 7. DEPLOYMENT OF BROADBAND SERVICES.

    Part III of title II of the Communications Act of 1934 is amended by

    inserting after section 276 (47 U.S.C. 276) the following new section:

`SEC. 277. DEPLOYMENT OF BROADBAND SERVICES.

    `(a) DEPLOYMENT REQUIRED- Each Bell operating company and its

    affiliates shall deploy high speed data services in each State in which such

    company or affiliate is an incumbent local exchange carrier (as such term is

    defined in section 251(h)) in accordance with the requirements of this

    section.

    `(b) DEPLOYMENT REQUIREMENTS-

      `(1) MILEPOSTS FOR DEPLOYMENT- A Bell operating company or its

      affiliate shall deploy high speed data services by attaining high speed data

      capability in its central offices in each State to which subsection (a)

      applies. Such company or affiliate shall attain such capability in

      accordance with the following schedule:

        `(A) Within one year after the date of enactment of this section,

        such company or affiliate shall attain high speed data capability in not

        less than 20 percent of such central offices in such State.

        `(B) Within 2 years after the date of enactment of this section,

        such company or affiliate shall attain high speed data capability in not

        less than 40 percent of such central offices in such State.

        `(C) Within 3 years after the date of enactment of this section,

        such company or affiliate shall attain high speed data capability in not

        less than 70 percent of such central offices in such State.

        `(D) Within 5 years after the date of enactment of this section,

        such company or affiliate shall attain high speed data capability in not

        less than 100 percent of such central offices in such State.

      `(2) HIGH SPEED DATA CAPABILITY- For purposes of paragraph (1), a

      central office shall be considered to have attained high speed capability

      if–

        `(A)(i) such central office is equipped with high speed data

        multiplexing capability; and

        `(ii) each upgradeable customer loop that originates or terminates

        in such central office is upgraded promptly upon receipt of a customer

        request for such upgrading, as necessary to permit transmission of high

        speed data service (including any conditioning of the loop);

        `(B) each customer served by such central office (without regard

        to the upgradeability or length of the customer’s loop) is able to obtain

        the provision of high speed data service from such Bell operating company

        or its affiliate by means of an alternative technology that does not

        involve the use of the customer’s loop; or

        `(C) each such customer is able to obtain the provision of high

        speed data service by one or the other of the means described in

        subparagraphs (A) and (B).

      `(3) UPGRADEABLE LOOPS- For purposes of paragraph (2), a customer

      loop is upgradeable if–

        `(A) such loop is less than 15,000 feet in length (from the

        central office to the customer’s premises along the line);

        and

        `(B) such loop can, with or without conditioning, transmit high

        speed data services without such transmission on such loop causing

        significant degradation of voice service.

    `(c) AVAILABILITY OF REMEDIES-

      `(1) FORFEITURE PENALTIES- A Bell operating company or its affiliate

      that fails to comply with this section shall be subject to the penalties

      provided in section 503(b)(2). In determining whether to impose a forfeiture

      penalty, and in determining the amount of any forfeiture penalty under

      section 503(b)(2)(D), the Commission shall take into consideration the

      extent to which the requirements of this section are technically

      infeasible.

      `(2) JURISDICTION- The Commission shall have exclusive jurisdiction

      to enforce the requirements of this section, except that any State

      commission may file a complaint with the Commission seeking the imposition

      of penalties as provided in paragraph (1).

    `(d) ANNUAL REPORT ON DEPLOYMENT-

      `(1) ANALYSIS REQUIRED- The Commission shall include in each of its

      annual reports submitted no more than 18 months after the date of enactment

      of this section an analysis of the deployment of high speed data service to

      underserved areas. Such report shall include–

        `(A) a statistical analysis of the extent to which high speed data

        service has been deployed to central offices and customer loops, or is

        available using different technologies, as compared with the extent of

        such deployment and availability prior to such date and in prior reports

        under this subsection;

        `(B) a breakdown of the delivery of high speed data service by

        type of technology and class or category of provider;

        `(C) an identification of impediments to such deployment and

        availability, and developments in overcoming such impediments during the

        intervening period between such reports; and

        `(D) recommendations of the Commission, after consultation with

        the National Telecommunications and Information Administration, for

        further extending such deployment and availability and overcoming such

        impediments.

      `(2) DEFINITION OF UNDERSERVED AREA- For purposes of paragraph (1),

      the term `underserved areas’ means areas that–

        `(A) are high cost areas that are eligible for services under

        subpart D of part 54 of the Commission’s regulations (47 C.F.R. 54.301 et

        seq.); or

        `(B) are within or comprised of any census tract–

          `(i) the poverty level of which is at least 30 percent (based on

          the most recent census data); or

          `(ii) the median family income of which does not

          exceed–

            `(I) in the case of a census tract located in a metropolitan

            statistical area, 70 percent of the greater of the metropolitan area

            median family income or the statewide median family income;

            and

            `(II) in the case of a census tract located in a

            nonmetropolitan statistical area, 70 percent of the nonmetropolitan

            statewide median family income.

      `(3) DESIGNATION OF CENSUS TRACTS- The Commission shall, not later

      than 90 days after the date of the enactment of this section, designate and

      publish those census tracts meeting the criteria described in paragraph

      (2)(B).’.

SEC. 8. COMMISSION AUTHORIZED TO PRESCRIBE JUST AND REASONABLE

CHARGES.

    The Federal Communications Commission may impose penalties under

    section 503 of the Communications Act of 1934 not to exceed $1,000,000 for any

    violation of provisions contained in, or amended by, section 5, 6, or 7 (or

    any combination thereof) of this Act. Each distinct violation shall be a

    separate offense, and in the case of a continuing violation, each day shall be

    deemed a separate offense, except that the amount assessed for any continuing

    violation shall not exceed a total of $10,000,000 for any single act or

    failure to act described in section 5, 6, or 7 (or any combination thereof) of

    this Act.

Union Calendar No. 54

107th CONGRESS

1st Session

H. R. 1542

[Report No. 107-83, Parts I and II]

A BILL

To deregulate the Internet and high speed data services, and for other

purposes.


June 18, 2001

Reported with amendments, adversely, from the Committee on the

Judiciary, committed to the Committee of the Whole House on the State of the

Union, and ordered to be printed