Subject: EFF announcment of S.1086

From: [email-masked] (Grant R. Bowman)
Date: Sun, 25 Jul 1993 11:18:35 -0700

Here we go.  All hell may break loose with the cable and telephone
providers if I read this correctly.
        I have no idea what this all means, but I do know I need to know
more about this.  Does anyone else have the low-down on what this really
means?

Cheers,

>-------------------------------------------------------------------------<
   Grant Bowman                                Planning Director, SV-PAL
   [email-masked]                 Silicon Valley Public Access Link
>-------------------------------------------------------------------------<

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EFFector Online Volume 5 No. 13       7/23/1993       [email-masked]
A Publication of the Electronic Frontier Foundation   ISSN 1062-9424

                  -==--==--==-<>-==--==--==- 
                        In this issue:
             Online Congressional Hearings Postponed
             Summary of New Infrastructure Bill
             EFF Joins Telecommunications Policy Roundtable
                   -==--==--==-<>-==--==--==- 

[other items deleted]
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Telecommunications Infrastructure Act of 1993 (S. 1086)
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Introduced by Senators Danforth and Inouye on June 9, 1993
First hearing scheduled: July 14, 9:30 AM

A Summary by the Electronic Frontier Foundation

The Senate Communications Subcommittee is now in the process of 
considering legislation that would eliminate the legal monopoly that 
local telephone companies have on local phone service, allow any 
communications provider to offer local phone service, and allow local 
telephone companies to compete fully in the cable television market.  
The legislation's goal is to promote increased investment in the 
nation's telecommunications infrastructure.

The bill proposes many significant policy changes, chief among 
which is a very rapid move toward deregulating the local telephone 
companies' monopoly on local telephone service.  The policies proposed 
are laid out in broad concepts, leaving the Federal Communications 
Commission to wrestle with the actual implementation of the policies.

LOCAL EXCHANGE COMPETITION

One year after the bill is enacted, any company would be allowed 
to offer local telephone service.  Potential new entrants that would be 
allowed in the local exchange market under this bill include cable 
television companies, wireless service providers, and even Bell 
companies outside their current local exchange monopoly areas.  Any 
State laws that would preserve the current telephone company monopoly 
or limit the entry of competitors are pre-empted by the bill.

TELECOMMUNICATIONS CARRIER OBLIGATIONS

Any company that offers telecommunications service or is 
interconnected with the local exchange carrier's network has several 
obligations under this bill.  The definition of telecommunications 
service is somewhat vague, but it certainly includes voice telephone 
service, interactive data services used to carry information services, 
and possibly one-way video services such as those currently provided by 
cable television companies.  Carriers' obligations include:

1. Interconnection

All carriers that either provide telecommunications service or are 
interconnected with a carrier that provides telecommunications 
service must allow other carriers to interconnect with their network 
for the purpose of providing telecommunications or information services 
to users of either network.  Network operators must provide 
interconnection under nondiscriminatory terms, on an unbundled basis.  
Operators must also supply all necessary technical information to enable 
others to interconnect and interoperate from one network to another.

2. Universal Service

All providers of telecommunications service must contribute to the 
"preservation and advancement of universal service."  States, in 
cooperation with the FCC, are responsible to make regulations that 
establish the mechanism for supporting universal service in the newly 
competitive telephone market.  The bill does provide, however, that any 
universal service support should be given directly to "individuals and 
entities that cannot afford the cost" of telecommunications service.  
Subsidy for users' communications equipment is also allowed.

3. Number Portability

The FCC will establish regulations the provide for "portable" 
numbers from all carriers as soon as possible.  Thus, a customer could 
switch telecommunications providers without having to change telephone 
numbers.  The administration of the numbering system would be removed 
from Bellcore and placed with an "impartial entity."

INFRASTRUCTURE FOR RURAL AREAS AND NONCOMPETITIVE MARKETS

The bill recognizes that in a competitive market environment, 
rural and "noncompetitive markets" may not enjoy the level of investment 
necessary for providing advanced telecommunications services.  The 
minimum level of service desired in the bill is that which would 
"provide subscribers with sufficient network capacity to access to 
information services that provide a combination of voice, data, image, 
and video; and are available at nondiscriminatory rates that are based 
on the reasonably identifiable costs of providing such services."  It is 
not clear that such services would be interactive.  State regulators would 
be given the primary responsibility to ensure that carriers have an 
incentive to provide high-quality services to all areas.  If this 
approach fails, the FCC is empowered to take action to have necessary 
service delivered to these areas.

NETWORK STANDARDS AND PLANNING

All segments of the communications industry are encouraged to work 
together to set voluntary standards for interconnection and 
interoperability.  If the FCC determines that standards development is 
not succeeding or is proceeding too slowly, it may set incentives or 
deadlines for work to be completed.  The FCC may also impose mandatory 
standards if the voluntary process fails.  

The FCC and the States are required to ensure that advanced 
telecommunications services are designed to be accessible to people with 
disabilities.

TELEPHONE COMPANY ENTRY INTO CABLE TELEVISION MARKET

The current ban preventing local telephone companies from entering 
the cable television market is lifted, in part.  Local phone companies 
will be allowed, under the bill, to provide cable television service 
within their serving area, if the service is provided by a 
separate subsidiary and the phone company does not break any laws 
regarding improper cross-subsidization between phone service and cable 
services.  By the same token, cable companies that provide 
telecommunications service must do so through separate subsidiaries and 
obey laws regarding cross-subsidization.  Phone companies are still not 
allowed to purchase more than 5 percent interest in any cable system 
that provides services within the phone companies' service regions.

CHANGES IN LONG DISTANCE RESTRICTIONS

The restrictions on local phone companies against providing long 
distance (InterLATA) telecommunications service are lifted, in part, by 
the bill, to enable local phone companies to function more easily in the 
cable television and cellular phone markets.  Bell companies would be 
allowed to operate wireline and satellite links for the purposes of 
distributing cable television signals over long distances.  Some 
relaxation of the InterLATA restriction is also allowed to enable Bell 
companies to carry cellular phone calls from one region to another, and 
to hand off calls from one cellular system to another.  

INFORMATION SERVICES SAFEGUARDS

Bell companies that provide information services must do so 
through a separate subsidiary in order to prevent cross-subsidies that 
would be unfair to consumers of basic phone service and to information 
service competitors.  The separate subsidiary must maintain separate 
books and records, only engage in arms-length transactions with the Bell 
company, and follow other regulations that the FCC issues regarding 
accounting, tariffing, and business practices.

PRIVACY OF CUSTOMER TRANSACTION INFORMATION

Telecommunications carriers are prohibited from disclosing 
information about individual customers unless there is an affirmative, 
written request to do so by that customer.  Carriers must, however, make 
any information (Customer Proprietary Network Information) that is 
disclosed available equally to their affiliates and all competitors who 
request the information.  Customer Proprietary Network Information 
includes quantity, type, and technical characteristics of 
telecommunications service used by a customer, as well as information 
contained in bills received by the customer.

[A complete copy of S.1086 is available by anonymous ftp on ftp.eff.org.]
[Please direct any questions to [email-masked].]

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From: [email-masked] (Scott Loftesness)
Date: Sun, 25 Jul 1993 03:31:28 -0700

>more about this.  Does anyone else have the low-down on what this really

This bill appears to offer the political compromise that the
telecommmunications and cable industries have been searching for.

A couple of things are interesting, however:

1. There are only two sponsors.
2. There is no corresponding House bill.

I'd guess the odds of passage this session are low.

Scott