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United States · Law · S

S. 652 (104th)

Telecommunications Act of 1996

enactedUnited States· United States Congress· EN

Introduced

30 March 1995

Last action

—

Status

Became Public Law No: 104-104.

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Subjects

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Source updated

9 March 2026

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Summary

TABLE OF CONTENTS: Title I: Transition to Competition Title II: Removal of Restrictions to Competition Subtitle A: Removal of Restrictions Subtitle B: Termination of Modification of Final Judgement Title III: An End to Regulation Title IV: Obscene, Harassing, and Wrongful Utilization of Telecommunications Facilities Telecommunications Competition and Deregulation Act of 1995 - Title I: Transition to Competition - Amends the Communications Act of 1934 (the Act) to require a local telephone exchange carrier (or class of such carriers) that is determined by the Federal Communications Commission (FCC) to have market power in providing telephone exchange service or telephone exchange access service to: (1) enter into good faith negotiations within 15 days with any telecommunications carrier requesting interconnection with the telephone exchange carrier in order to provide telephone exchange or exchange access service; and (2) provide such interconnection at reasonable, nondiscriminatory rates and in accordance with requirements of this title. Provides minimum standards for any interconnection agreement entered into, including nondiscriminatory access and high-quality interconnection between the carriers. Allows a local exchange carrier, upon receiving a request for interconnection, to negotiate and enter into a binding agreement with the telecommunications carrier without regard to such standards, as long as such agreement: (1) includes a schedule of itemized charges for each service, facility, or function included; and (2) is submitted to the State for approval. Provides for agreement: (1) arbitration by a State at any time during negotiations; and (2) intervention by a State when more than 135 days have passed since the original intervention request. Outlines duties and rights of parties in an intervention proceeding, including the duty to provide all appropriate information and the opportunity to respond. Requires the State proceeding to be conducted in accordance with rules promulgated by the FCC. Requires the State action to be completed no later than 10 months after the date on which the local exchange carrier received the original interconnection request. Outlines provisions concerning: (1) the determination during arbitration or intervention of the charges by the local exchange carrier for an unbundled (no unreasonable conditions on resale or sharing) element of the interconnection; (2) State approval or rejection of an interconnection agreement; (3) the required availability of an interconnection agreement to other telecommunications carriers on the same terms and conditions; (4) the collocation of equipment necessary for interconnection at the premises of the carrier at reasonable charges; (5) FCC promulgation of implementing regulations; (6) FCC authority to act if a State fails to carry out its arbitration or intervention responsibilities; (7) waiver or modification by the FCC or a State of minimum interconnection standards with respect to a rural telephone company; and (8) a State's authority to impose requirements on a telecommunications carrier for intrastate services to further competition in telephone exchange service or exchange access service. (Sec. 102) Prohibits a Bell operating company (BOC)(including any subsidiary and affiliate) which provides telephone exchange service from providing information services, manufacturing services, or interLATA (local access and transport area) services (with exceptions), unless it provides that service through a subsidiary that: (1) is separate from any BOC entity that provides telephone exchange service; and (2) meets specified structural and transactional requirements, such as books, records, officers, directors and employees separate from the BOC. Prohibits any discrimination between a BOC, its subsidiary or affiliate, and any other entity in the provision of goods, services, facilities, and information or in the establishment of standards. Prohibits a BOC subsidiary from marketing or selling telephone exchange services provided by the BOC unless that company permits other entities offering the same or similar services to market and sell its telephone exchange services. Outlines additional requirements for the provision of interLATA services by a BOC. Requires each BOC and its subsidiary or affiliate to protect the confidentiality of proprietary information relating to other common carriers, equipment manufacturers, and customers, with certain exceptions such as bill collection. Authorizes the FCC to grant an exception from any requirement of this section when determined necessary for the public interest, convenience, and necessity. Requires public utility companies which are registered holding companies that provide telecommunications services to provide such service through a separate subsidiary. Directs each State to determine whether public utility companies in their State which provide such service but are not registered holding companies will be required to provide such service through a separate subsidiary. (Sec. 103) Directs the FCC to institute and refer to a Federal- State joint board a proceeding to recommend rules regarding the implementation of provisions with regard to universal service (intra- and inter-state telecommunications services that the FCC determines should be provided at reasonable rates to all Americans, including those in rural and high-cost areas and those with disabilities). Requires the periodic (at least every four years) review of such implementation. Provides Joint Board and FCC deadlines with regard to the provision and implementation of appropriate recommendations. Requires the Joint Board and the FCC to base policies for the preservation and enhancement of universal service on specified principles, including quality services, affordable rates, and access in all regions of the country. Requires all telecommunications providers to contribute in the advancement of universal service. Prohibits telecommunications carriers from subsidizing competitive services with revenues from services that are not competitive. (Sec. 104) Directs the FCC (in the case of interstate service) or a State (in the case of intrastate service), when more than one telecommunications carrier serves a geographic area, to determine which carrier is best able to provide universal service to the community and to designate that carrier as an essential telecommunications carrier (ETC) for that community. Sets forth ETC obligations in the provision of such service. Allows multiple ETC designations for an area. Directs the FCC or a State, as appropriate, to establish rules for the resale of universal service, requiring the carrier whose facilities are being resold to be adequately compensated for their use. Allows, under specified rules, an ETC to relinquish such designation if another ETC is designated for the same area. Provides for: (1) enforcement proceedings against an ETC refusing to provide appropriate universal service; and (2) the designation of an ETC for interexchange services for any unserved community or portion thereof requesting such services. (Sec. 105) Makes provisions of the Act prohibiting foreign investment and ownership in telecommunications licenses, facilities, and equipment inapplicable to foreign representatives when the FCC determines that the foreign country of such representative provides equivalent market opportunities for common carriers to the United States or its citizens. Repeals such exemption when such equal opportunity ceases. (Sec. 106) Directs the FCC to prescribe regulations that require certain local telephone exchange carriers to make available to any qualifying carrier (an ETC) such public switched network infrastructure, technology, information, and telecommunications facilities and functions as may be requested for the provision of telecommunications services, or access to such services, in the service area of an ETC. Requires a local exchange carrier entering into an agreement under this section to provide to each party of the agreement timely information on the planned deployment of telecommunications services and equipment, including necessary software. Title II: Removal of Restrictions to Competition - Subtitle A: Removal of Restrictions - Amends the Act to prohibit any State or local statute or regulation from prohibiting the ability of any entity to provide any interstate or intrastate telecommunications services. Authorizes the FCC to immediately preempt the enforcement of any statute that is found to so interfere. Protects the rights of any cable operator engaged in the provision of telecommunications services, prohibiting any franchise or additional conditions from being imposed on such operator for such services. (Sec. 202) Authorizes a State, under certain conditions, to require a direct-to-home satellite service provider who is subject to the personal jurisdiction of the State to collect and remit a State and local sales tax with respect to the provision of such services. Provides nondiscrimination provisions. Exempts the direct-to-home satellite service from other local taxes or fees for such services. (Sec. 203) Provides that any telecommunications carrier, including a BOC, which carries or provides video programming provided by others through a common carrier video platform shall not be considered a cable operator providing cable service and therefore shall not be subject to certain cross-ownership restrictions under the Act. Requires BOCs, in order to receive such exemption, to: (1) provide facilities, services, or information to all programmers on the same terms and conditions as provided to its own video programming operations; and (2) not subsidize its video programming with revenues from its telecommunications services. Outlines provisions concerning rates, access, and certain procedural safeguards (through FCC regulations) and enforcement provisions with respect to the provision of video programming through a common carrier video platform. (Sec. 204) Authorizes the FCC to consider a rate for cable programming services as unreasonable only if it substantially exceeds the national average rate for comparable services. Includes as "effective competition" under the Act a situation where a local exchange carrier offers video programming services directly to subscribers, either over a common carrier video platform or as a cable operator, in the franchise area of an unaffiliated cable operator which is also providing cable service in that franchise area. (Sec. 205) Authorizes a cable television system to use utility pole attachments to provide cable service or any other telecommunications service. Requires a utility owning a pole to provide a cable television system with nondiscriminatory access to such pole for such purposes. Directs the FCC to prescribe regulations to ensure that such utilities charge just, reasonable, and nondiscriminatory rates for such pole attachments. (Sec. 206) Authorizes any utility and its subsidiary or affiliate (other than a public utility holding company that is an associate company of a registered holding company) to engage in any activity necessary or appropriate for the provision of telecommunications services, information services, or other services or products subject to FCC jurisdiction under the Act. Prohibits the Securities and Exchange Commission from regulating such activities. Allows the Federal Energy Regulatory Commission or a State commission to exercise its authority to prohibit the cross-subsidization of such activities. Requires the maintenance of separate books and accounts with regard to such activities by any subsidiary or affiliate that is an associated company of a registered holding company. Allows for independent audits, upon State request, of such subsidiaries or affiliates with respect to such activities. (Sec. 207) Authorizes the FCC, under certain conditions, to allow licensees to make use of the advanced television spectrum for the transmission of ancillary or supplementary services. Authorizes the FCC to collect fees for the use of such spectrum from licensees that charge subscribers for advanced television spectrum services. Requires such licensee to establish that such services are in the public interest. Increases from 25 to 35 percent the amount of national audience a single broadcast licensee may reach. Increases the term of license renewal for television licenses from five to ten years and for radio licenses from seven to ten years. Revises the broadcast license renewal procedures to allow such renewal if the FCC finds that: (1) the station has served the public interest, convenience, and necessity; (2) there have been no serious violations by the licensee of the Act or FCC rules and regulations; and (3) there have been no other violations which, taken together, would constitute a pattern of abuse. Subtitle B: Termination of Modification of Final Judgment - Establishes the criteria to be used by the FCC to determine when a BOC may provide interLATA services in the region in which it is the dominant provider of wireless telephone exchange service or exchange access service. Allows such BOC to provide such services only if it has reached an interconnection agreement which meets the requirements of a competitive checklist, including nondiscriminatory access to specified services. States that, until a BOC is authorized to provide interLATA services in a telephone exchange area, a telecommunications carrier may not jointly market telephone exchange or exchange access service purchased from such a BOC with interexchange services offered by that telecommunications carrier. Prohibits the FCC from limiting or extending the requirements of the competitive checklist. Outlines provisions concerning: (1) a BOC application for the provision of interLATA services in an appropriate area; (2) FCC determination and approval of such application and publication of results in the Federal Register; and (3) judicial review and judgment with respect to an approval. Requires a BOC granted such approval to provide interLATA toll dialing parity throughout the market area coincident with its exercise of authority. Authorizes a BOC or its subsidiary or affiliate to provide interLATA services in an area where it is not the dominant provider of telephone exchange or exchange access services upon the date of enactment of this Act. Authorizes such BOC to provide certain incidental services, with limitations. Provides that a person engaged in the provision of commercial mobile services shall not be required to provide equal access to interexchange telecommunications carriers unless required to do so under the Act. (Sec. 222) Provides that a BOC authorized to provide interLATA services under this Act shall be authorized by the FCC to: (1) manufacture and provide telecommunications equipment; and (2) manufacture customer premises equipment, subject to specified requirements and related regulations. Requires such manufacturing to be carried out through a separate subsidiary or affiliate of such BOC, with appropriate requirements of separation (books, accounts, officers, and employees) maintained. Requires a manufacturing subsidiary of a BOC to make available to local exchange carriers telecommunications equipment and related software that is manufactured by such subsidiary as long as there is demand for such equipment. Prohibits a BOC from discriminating among such local exchange carriers with respect to bids for services or equipment, the standards or certification of equipment, or the sale of telecommunications equipment and software. Requires the protection of proprietary information. Allows a BOC to engage in close collaboration with manufacturers of customer premises or telecommunications equipment not affiliated with a BOC during the design and development of equipment hardware and software. Provides for the administration and enforcement of such requirements through FCC regulations and appropriate civil actions. (Sec. 223) States that nothing in this Act is intended to prohibit a BOC from engaging in any activity authorized by an order pursuant to the Modification of Final Judgment, if such order was entered on or before the date of enactment of this Act. (Sec. 224) Provides specific penalties for violations of provisions of this Act relating to interconnection authority, separate subsidiary and safeguard requirements, and the authority of a BOC to provide interLATA telecommunications services. (Sec. 225) Authorizes a BOC to provide alarm monitoring services three years after the date of enactment of this Act if the BOC has been authorized by the FCC to provide interLATA services. Requires the FCC to establish rules governing the provision of such services by a BOC. Provides an exception to the three-year waiting requirement in the case of alarm monitoring services provided by a BOC that was engaged in the provision of such services as of December 31, 1994, as long as certain conditions are met. Title III: An End to Regulation - Directs the FCC and the States to: (1) provide telecommunications carriers with pricing flexibility in the rates charged to consumers for telecommunications services; (2) ensure that residential telephone rates remain just, reasonable, and affordable as competition develops for telephone exchange service and telephone exchange access service; and (3) adopt alternative forms of regulation for Tier 1 telecommunications carriers as part of a plan that includes the advancement of competition and other measures designed to protect the consumer. Authorizes the FCC and the States to establish: (1) rates for services included within universal service; and (2) a residential telephone rate where only a single carrier provides such service in a market, but to cease such rate regulation when determined no longer necessary for the protection of consumers. Provides for a transition plan. Requires local telephone exchange carriers to provide subscriber list information to anyone, upon request, on a timely, unbundled, and nondiscriminatory basis. (Sec. 302) Directs the FCC (with respect to Federal regulations) and a Federal-State Joint Board (with respect to State regulations) to biennially review and make appropriate determinations with respect to all regulations applicable to telecommunications services. (Sec. 303) Authorizes the FCC, upon making certain determinations, to forbear from applying any regulation or provision of the Act to a telecommunications carrier or service in any or some of their geographic markets. Requires the FCC, within those determinations, to consider whether such forbearance will promote competitive market conditions. (Sec. 304) Requires the FCC and each State telecommunications commission to encourage the deployment of advanced telecommunications capability to all Americans. Requires the FCC to regularly initiate a notice of inquiry concerning such availability. (Sec. 305) Directs the FCC to undertake the termination or modification of regulations and provisions of the Act as necessary to implement the changes made under this Act. (Sec. 306) Provides that any ship documented under U.S. laws operating under the Global Maritime Distress and Safety System provisions of the Safety of Life at Sea Convention shall not be required to be equipped with a radio telegraphy station operated by one or more radio officers or operators. (Sec. 307) Requires local exchange carriers to make available: (1) interim telecommunications number portability beginning on the date of enactment of this Act; and (2) final number portability when the FCC determines such to be technically feasible. Requires the neutral administration of a nationwide numbering system, with costs to be borne by all telecommunications carriers. (Sec. 308) Requires the manufacturer of telecommunications and customer premises equipment or a provider of telecommunications service to ensure that the equipment is designed, developed, and fabricated to be accessible to and usable by individuals with disabilities, if readily achievable. Sets forth standards. Requires closed captioning when readily achievable. Provides exemptions from such requirements. Provides for: (1) studies; (2) regulations; and (3) enforcement. (Sec. 309) Prohibits a State, except for the adoption of specified minimally restrictive statutes or regulations, from waiving or modifying the requirements of this Act concerning interconnection agreements. Authorizes the FCC to preempt any State statute or regulation found to be inconsistent with FCC regulations or unreasonably discriminatory in their application. (Sec. 310) Requires designated ETCs, upon request, to provide at affordable and reasonable rates: (1) telecommunications services necessary for the provision of health care services to persons residing in rural areas; and (2) universal service to elementary and secondary schools and libraries for the provision or receipt of educational services. Directs the FCC to establish rules for the enhancement of the availability of advanced telecommunications and information services to elementary and secondary school classrooms, health care providers, and libraries. Requires appropriate interconnection. (Sec. 311) Prohibits any BOC that provides payphone or telemessaging service from: (1) subsidizing such services with revenues from its telephone exchange or exchange access service; or (2) preferring or discriminating in favor of its payphone or telemessaging service. Requires implementing regulations. Title IV: Obscene, Harassing, and Wrongful Utilization of Telecommunications Facilities - Communications Decency Act of 1995 - Amends the Act to prohibit the use of any telecommunications device (currently, only the telephone) by a person not disclosing his or her identity in order to annoy, abuse, threaten, or harass any person. Prohibits the repeated use of a telecommunications device solely for harassment purposes. Prohibits a person from allowing the use of any telecommunications facility (currently, telephone facility) in his or her control for such purposes. Prohibits the use of a telecommunication device (currently, telephone) for making indecent communications for commercial purposes to children under age 18. Increases the fine and maximum sentence for such violations. Provides defenses to such violations, including one for persons whose actions are limited solely to the provision of access to certain communications. (Sec. 403) Increases from $10,000 to $100,000 the maximum fine for: (1) transmission over a cable system of obscene or otherwise unprotected material; and (2) broadcasting obscene language on the radio. (Sec. 405) Includes digital communications among those communications protected by the Act from unauthorized interception and disclosure. (Sec. 406) Prohibits a party calling a toll-free telephone number from being assessed a charge by virtue of being asked to connect or otherwise transfer to a pay-per-call service. (Sec. 407) Requires cable television operators, upon subscriber request and at no charge, to fully scramble or otherwise block the audio and video portions of programs unsuitable for children. (Sec. 408) Authorizes a cable operator to refuse to transmit any public access or leased access program or portion thereof which contains obscenity, indecency, or nudity.

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