Pub.L. 104-105 To amend the Farm Credit Act of 1971 to provide regulatory relief, and for other purposes. <> ...

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        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
                    ``(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.''.

[[Page 110 STAT. 61]]

    (b) <<NOTE: 47 USC 153 note.>>  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 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), <<NOTE: 47 USC 225.>>  by striking 
        ``section 3(h)'' and inserting ``section 3'';
            (2) in section 332(d), <<NOTE: 47 USC 332.>>  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), <<NOTE: 47 
        USC 541, 556, 557.>>  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. <<NOTE: 47 USC 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

[[Page 110 STAT. 62]]

            ``(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 
        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 Exchange Carriers.--
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

[[Page 110 STAT. 63]]

        provide such unbundled network elements in a manner that allows 
        requesting carriers to combine such elements in order to provide 
        such telecommunications service.
            ``(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) <<NOTE: Regulations.>>  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 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

[[Page 110 STAT. 64]]

                    ``(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 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

[[Page 110 STAT. 65]]

        nationwide may petition a State commission for a suspension or 

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