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106th CONGRESS
2d Session
S. 2572
To amend the Communications Act of 1934 to promote deployment of
advanced services and foster the development of competition for the
benefit of consumers in all regions of the Nation by relieving
unnecessary burdens on the Nation's two percent local exchange
telecommunications carriers, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
May 16, 2000
Mr. Burns (for himself, Mr. Breaux, Mr. Enzi, Mr. Grams, and Mrs.
Lincoln) introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
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A BILL
To amend the Communications Act of 1934 to promote deployment of
advanced services and foster the development of competition for the
benefit of consumers in all regions of the Nation by relieving
unnecessary burdens on the Nation's two percent local exchange
telecommunications carriers, 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 ``Facilitating Access to Speedy
Transmissions for Networks, E-commerce, and Telecommunications Act'' or
the ``FASTNET Act''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) The Telecommunications Act of 1996 was enacted to
foster the rapid deployment of advanced telecommunications and
information technologies and services to all Americans by
promoting competition and reducing regulation in
telecommunications markets nationwide.
(2) The Telecommunications Act of 1996 specifically
recognized the unique abilities and circumstances of local
exchange carriers with fewer than two percent of the Nation's
subscriber lines installed in the aggregate nationwide.
(3) Given the markets two percent carriers typically serve,
such carriers are uniquely positioned to accelerate the
deployment of advanced services and competitive initiatives for
the benefit of consumers in less densely populated regions of
the Nation.
(4) Existing regulations are typically tailored to the
circumstances of larger carriers and therefore often impose
disproportionate burdens on two percent carriers, impeding such
carriers' deployment of advanced telecommunications services
and competitive initiatives to consumers in less densely
populated regions of the Nation.
(5) Reducing regulatory burdens on two percent carriers
will enable such carriers to devote additional resources to the
deployment of advanced services and to competitive initiatives
to benefit consumers in less densely populated regions of the
Nation.
(6) Reducing regulatory burdens on two percent carriers
will increase such carriers' ability to respond to marketplace
conditions, allowing them to accelerate deployment of advanced
services and competitive initiatives to benefit consumers in
less densely populated regions of the Nation.
(b) Purposes.--The purposes of this Act are--
(1) to accelerate the deployment of advanced services and
the development of competition in the telecommunications
industry for the benefit of consumers in all regions of the
Nation, consistent with the Telecommunications Act of 1996, by
reducing regulatory burdens on local exchange carriers with
fewer than two percent of the Nation's subscriber lines
installed in the aggregate nationwide;
(2) to improve such carriers' flexibility to undertake such
initiatives; and
(3) to allow such carriers to redirect resources from
paying the costs of such regulatory burdens to increasing
investment in such initiatives.
SEC. 3. DEFINITION.
Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is
amended by adding at the end thereof the following:
``(53) Two percent carrier.--The term `two percent carrier'
means a local exchange carrier with fewer than two percent of
the Nation's subscriber lines installed in the aggregate
nationwide, within the meaning of section 251(f)(2) and that
meets the requirements of section 251(h).''.
SEC. 4. REGULATORY RELIEF FOR TWO PERCENT CARRIERS.
Title II of the Communications Act of 1934 is amended by adding at
the end thereof a new Part IV as follows:
``PART IV--PROVISIONS CONCERNING TWO PERCENT CARRIERS
``SEC. 281. REDUCED REGULATORY REQUIREMENTS FOR TWO PERCENT CARRIERS.
``(a) Commission To Take Into Account Differences.--In adopting
rules that apply to incumbent local exchange carriers, the Commission
shall adopt separate and less burdensome regulatory, compliance, or
reporting requirements, or exemptions from such requirements, or both,
for two percent carriers that take into account the more limited
resources available to such carriers and the greater burden such rules
impose on such carriers and their customers.
``(b) Effect of Reconsideration or Waiver.--If the Commission
adopts a rule that applies to incumbent local exchange carriers and
does not adopt such separate and less burdensome regulatory,
compliance, or reporting requirements, or exemptions from such
requirements, for two percent carriers and if a two percent carrier or
carriers seek a waiver or reconsideration of the rule as adopted in
accordance with the Commission's rules, the Commission shall not
enforce the rule against such carrier or carriers unless and until the
Commission adopts separate and less burdensome requirements or
exemptions in accordance with subsection (a).
``(c) Additional Regulation Not Required.--Nothing in this section
shall be construed to require the Commission to adopt regulatory,
compliance, or reporting requirements of any kind for two percent
carriers where none currently exist. Nothing in this section shall be
construed to require any additional regulation to be imposed on
commercial mobile radio service.
``(d) Savings Clause.--Nothing in this section shall be construed
to prohibit any size-based differentiation among carriers mandated by
this Act, the Regulatory Flexibility Act, the Commission's rules, or
any other provision of law.
``(e) Effective Date.--The provisions of this section shall apply
with respect to any rule adopted on or after the date of enactment of
this section.
``SEC. 282. LIMITATION OF REPORTING REQUIREMENTS.
``The Commission shall not require a two percent carrier--
``(1) to file cost allocation manuals or to have audited or
attested such manuals; or
``(2) to file Automated Reporting and Management
Information Systems (ARMIS).
``SEC. 283. INTEGRATED OPERATION OF TWO PERCENT CARRIERS.
``The Commission shall not adopt or enforce any regulation the
purpose or effect of which is to impair the ability of a two percent
carrier to integrate its operations in one or more entities, at its
discretion. Such operations may include the provision of common carrier
and noncommon carrier services, including local and interexchange
services, commercial mobile radio services, advanced services within
the meaning of section 706 of the Telecommunications Act of 1996,
paging, Internet, information or other enhanced services, or other
services. The Commission shall not require companies to which this
paragraph applies to maintain separate officers, directors, or other
personnel, network facilities, buildings, research and development
departments, books of account, financing, marketing, provisioning, or
other operations.
``SEC. 284. PARTICIPATION IN TARIFF POOLS AND PRICE CAP REGULATION.
``(a) NECA Pool.--The participation or withdrawal from
participation by a two percent carrier of one or more study areas in
the common line tariff administered and filed by the National Exchange
Carrier Association or any successor tariff or administrator shall not
obligate such carrier to participate or withdraw from participation in
such tariff for any other study area.
``(b) Price Cap Regulation.--A two percent carrier may elect to be
regulated by the Commission under price cap rate regulation, or elect
to withdraw from such regulation, for one or more of its study areas at
any time. The Commission shall not require a carrier making an election
under this paragraph with respect to any study area or areas to make
the same election for any other study area.
``SEC. 285. REVIEW OF MERGERS.
``Except as required by section 310(f), the Commission shall have
no authority to approve, disapprove, delay, condition, or modify the
terms of any merger between two percent carriers or their affiliates,
or any acquisition, directly or indirectly, by a two percent carrier or
its affiliate of the securities or assets of another two percent
carrier or its affiliate, if after the merger, the resulting entry
would still be a two percent carrier.
``SEC. 286. DEPLOYMENT OF NEW TELECOMMUNICATIONS SERVICES BY TWO
PERCENT COMPANIES.
``Two percent carriers shall be permitted to introduce new
interstate telecommunications services by filing a tariff on one day's
notice showing the charges, classifications, regulations and practices
therefor, without obtaining a waiver, or make any other showing before
the Commission in advance of the tariff filing. The Commission shall
not have authority to approve or disapprove the rate structure for such
services shown in such tariff.
``SEC. 287. ENTRY OF COMPETING CARRIER.
``(a) Pricing Flexibility.--Notwithstanding any other provision of
this Act, any two percent carrier shall be permitted to deaverage its
interstate switched or special access rates, file tariffs on one day's
notice and file contract-based tariffs for interstate switched or
special access services immediately upon certifying to the Commission
that a telecommunications carrier unaffiliated with such carrier has
engaged in facilities-based entry or resale-based entry within such
carrier's service area.
``(b) Pricing Deregulation.--Notwithstanding any other provision of
this Act, the Commission shall have no authority to regulate the rates
for interstate services provided by a two percent carrier immediately
upon certifying to the Commission by such carrier that a local exchange
carrier that is not a two percent carrier has engaged in facilities-
based entry within such two percent carrier's service area.
``(c) Participation in Exchange Carrier Association Tariff.--A two
percent carrier that meets the requirements of subsection (a) or (b) of
this section with respect to one or more study areas shall be permitted
to participate in the common line tariff administered and filed by the
National Exchange Carrier Association or any successor tariff or
administrator, by electing to include one or more of its study areas in
such tariff.
``(d) Definitions.--For purposes of this section:
``(1) Facilities-based entry.--The term `facilities-based
entry' means, within the service area of a two percent
carrier--
``(A) the provision or procurement of local
telephone exchange switching capability; and
``(B) the provision of local exchange service to at
least one unaffiliated customer.
``(2) Resale-based entry.--The term `resale-based entry'
means, within the service area of a two percent carrier, the
provision of telecommunications service using resale offered
under section 251(c).
``(3) Contract-based tariff.--The term `contract-based
tariff' shall mean a tariff based on a service contract entered
into between a two percent carrier and one or more customers of
such carrier. Such tariff shall include--
``(A) the term of the contract, including any
renewal options;
``(B) a brief description of each of the services
provided under the contract;
``(C) minimum volume commitments for each service,
if any;
``(D) the contract price for each service or
services at the volume levels committed to by the
customer or customers;
``(E) a brief description of any volume discounts
built into the contract rate structure; and
``(F) a general description of any other
classifications, practices, and regulations affecting
the contract rate.
``(4) Service area.--The term `service area' has the same
meaning as in section 214(e)(5).
``SEC. 288. SAVINGS PROVISION.
``Nothing in this part shall be construed to diminish the rights of
rural telephone companies otherwise accorded by this Act, or the rules,
policies, procedures, guidelines, and standards of the Commission as of
the date of enactment of this section.''.
SEC. 5. LIMITATION ON MERGER REVIEW.
(a) Amendment.--Section 310 of the Communications Act of 1934 (47
U.S.C. 310) is amended by adding at the end the following:
``(f) Deadline for Making Public Interest Determination.--
``(1) Time limit.--In connection with any merger between
two percent carriers, or the acquisition, directly or
indirectly, by a two percent carrier or its affiliate of the
securities or assets of another two percent carrier or its
affiliate, the Commission shall make the determination required
by subsection (d) of this section not later than 45 days after
the date the application is submitted to the Commission.
``(2) Approval absent action.--If the Commission does not
approve or deny an application as described in paragraph (1) by
the end of the period specified, the application shall be
deemed approved on the day after the end of such period. Any
such application deemed approved under this subsection shall be
deemed approved without conditions.''.
(b) Effective Date.--The provisions of this section shall apply
with respect to any application that is submitted to the Commission on
or after the date of enactment of this Act. Applications pending with
the Commission on the date of enactment of this Act shall be subject to
the requirements of this section as if they had been filed with the
Commission on the date of enactment of this Act.
SEC. 6. TIME LIMITS FOR ACTION ON PETITIONS FOR RECONSIDERATION OR
WAIVER.
(a) Amendment.--Section 405 of the Communications Act of 1934 (47
U.S.C. 405) is amended by adding to the end the following:
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