Summary: S.898 — 97th Congress (1981-1982)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Passed Senate amended (10/07/1981)

(Measure passed Senate, amended, roll call #311 (90-4))

Telecommunications Competition and Deregulation Act of 1981 - Title I: General - Amends the Communications Act of 1934 to declare that such Act applies to, and the Federal Communications Commission (FCC) has jurisdiction over: (1) all interexchange and foreign telecommunications and all radio transmissions originating or received within the United States; (2) the licensing and regulating of all radio stations; and (3) all persons engaged in such telecommunications or radio transmissions within the United States. Exempts from FCC jurisdiction carriers engaged in interexchange (long distance) or foreign telecommunications solely through physical connection with nonaffiliates. Sets forth definitions of terms used in this Act.

Directs the FCC to establish a transition plan to foster marketplace competition and to implement deregulation for interexchange telecommunications services, equipment, and carriers.

Requires such plan to provide for: (1) classification of carriers; (2) establishment and implementation of an accounting system; (3) the formation of fully separated affiliates and the monitoring of compliance with the requirements of such formation; (4) integrated rates for regulated interexchange telecommunications services; (5) the prevention of unreasonable charges for basic telecommunications services; and (6) practices and procedures for exchange access charges.

Title II: Domestic Telecommunications - Directs the FCC to revise, reduce, or eliminate rules with respect to telecommunication services or carriers operating in a competitive market, unless there is an adverse effect on the national security or on the competitiveness of U.S. suppliers or carriers. Grants the FCC continuing authority over regulated telecommunications services and carriers.

Authorizes FCC regulation to: (1) deal with cross subsidization and other anticompetitive practices between any fully separated affiliate and the dominant-regulated carrier or its affiliates; and (2) protect users of telecommunications services in connection with dealings between any dominant regulated carrier, its affiliates, and any fully separated affiliate. Permits management personnel of any dominant-regulated carrier to direct operations of such carrier, any affiliate, and any fully separated affiliate as long as the costs of such direction are properly allocated. Directs the FCC to assure that the amendments made by this Act do not result in unreasonable increases in charges for basic telephone service.

Prohibits the FCC and any State commission from preventing or limiting, except in specified cases, the use of any technology or improvement for telecommunications services. Denies the FCC the authority to include in radio licenses any condition inconsistent with its own authority over domestic telecommunications.

Authorizes the Secretary of Commerce to collect certain information on foreign and U.S. telecommunications industries.

Requires the FCC to identify those carriers which on enactment of this Act: (1) are subject to regulation; and (2) derive revenue from separations and settlements. Classifies such carriers as regulated carriers. Classifies the American Telephone and Telegraph Company (AT&T) as a dominant-regulated carrier.

Authorizes the FCC to classify or reclassify, as a regulated carrier, any carrier which offers interexchange telecommunications services or facilities, if: (1) such services or facilities are not subject to effective competition; (2) Federal regulation of such carrier is required to accomplish the purposes of this Act; and (3) the benefits of such regulation outweigh the costs. Defines effective competition as the presence of a reasonably available alternative. Sets forth factors to be considered in determining whether a reasonably available alternative exists. Requires the FCC to determine which telecommunications services or facilities offered by a newly classified or reclassified regulated carrier are not subject to effective competition. Designates such services as regulated services.

Directs the FCC to classify or reclassify as a dominant-regulated carrier any foreign government owned telecommunications carrier and any regulated carrier which is dominant in the provision of regulated telecommunications services in a substantial percentage of the markets. Authorizes the FCC to reclassify any dominant-regulated carrier as a regulated carrier and any regulated carrier as an unregulated carrier. Defines an unregulated carrier as an interexchange carrier not classified as a regulated carrier. Directs the FCC to review carrier classifications once every three years.

Prohibits the FCC from regulating the resale of any telecommunications service except resales of regulated telecommunications service by certain foreign entities. Prohibits any carrier from restricting the resale of any regulated service provided by such carrier.

Requires the Postal Service, if it offers to operate any telecommunications service to nonaffiliates, to offer such services through a separate entity. Requires such entity to meet specified criteria. States that this Act neither authorizes nor prohibits the electronic delivery of messages to nonaffiliates by the separate entity. Authorizes the entity to conduct business with the Postal Service if specified conditions are met. Authorizes the FCC to regulate the separation of the Postal Service from the entity. Requires the entity to file cost data relating to its telecommunications services with the FCC. Authorizes the FCC to determine the costs for such services. Prohibits the Postal Rate Commission from recommending or fixing a fee below the cost determined by the FCC.

Prohibits dominant-regulated carriers, unless authorized by the FCC, from engaging in resale activity except through a fully separated affiliate.

Authorizes the FCC to prescribe different requirements for different regulated carriers and to exempt carriers from the requirements of domestic telecommunications regulations. Prohibits the FCC from imposing any requirements on unregulated carriers which are not specifically provided in such domestic telecommunications regulations. Makes a regulated carrier liable for injuries to persons caused by violations of such Act.

Requires every telecommunications carrier and the separate entity within the Postal Service to establish, upon request, interconnection of its regulated service with any: (1) telecommunications carrier; (2) telecommunications facility or private telecommunications system; and (3) customer-premises equipment which meets certain standards. Prohibits such carrier and entity from discriminating in an unreasonable or anticompetitive manner with respect to the conditions for interconnection.

Authorizes the FCC to specify or approve the rates and conditions for: (1) regulated telecommunications services by regulated carriers to other carriers or to customers of other carriers; (2) interconnection between interexchange and exchange (local) telecommunications services; and (3) interconnection between the regulated telecommunications services of a regulated carrier or an exchange carrier and any private or other telecommunications system and any customer-premises equipment. Authorizes the FCC to prohibit discrimination by regulated or exchange carriers. Exempts from FCC control interconnection required for national security.

Requires exchange carriers to offer to all interexchange carriers nondiscriminatory exchange access according to a specified schedule on an unbundled, tariff basis. Authorizes the FCC to waive the duty to provide such exchange access under specified circumstances.

Requires an exchange carrier to provide exchange access for additional carriers if, on a specified date, the exchange carrier provides exchange access for basic telephone services through only one interexchange carrier. Requires exchange carriers to provide exchange access that permits each customer to route interexchange communications to the interexchange carrier of the customer's choosing. Authorizes the FCC to waive such requirements.

Requires exchange carriers to provide exchange access to any interexchange carrier through a uniform number of digits when the national area code plan is revised to require additional digits.

Sets forth the limitations on the authorized waivers of exchange access provisions. Directs the FCC to report annually to Congress concerning the operation of the interconnection provisions. Authorizes the Attorney General to sue to obtain compliance with an interconnection provision. Sets forth the fine for violations of such provisions.

Requires every carrier providing regulated telecommunications service to furnish such service upon reasonable request and to establish through routes and charges and facilities for using such through routes. Requires such carriers to establish reasonable and nondiscriminatory tariffs (schedules of charges) for and in connection with regulated telecommunications services.

Prohibits any carrier from: (1) engaging in such services unless the tariffs have been filed and published; (2) charging a fee different from the one specified in such tariff; (3) refunding any portion of the charges so specified; and (4) extending to any person any privileges or enforcing any regulations affecting any charges except as specified in such tariff.

Prohibits any new or revised tariff from taking effect until the FCC has accepted it or accepted it with conditions. Provides for public notice and hearings on contested tariffs.

Authorizes the FCC to: (1) accept a tariff; (2) accept a tariff conditionally; (3) reject a tariff; or (4) set a hearing date and suspend a tariff filing. Requires the FCC to provide users of regulated telecommunications services with notice and an opportunity to seek rejection or a hearing concerning proposed tariffs.

Prohibits the FCC and State commissions from considering revenues derived from unregulated activities when considering proposed tariffs. Authorizes State commissions, despite such prohibition, to consider for four years after enactment revenues derived from printed yellow pages for ratemaking purposes.

Authorizes the FCC to exempt carriers from the provisions relating to: (1) effective tariffs; and (2) publishing information on fees and practices.

Requires every regulated carrier to file with the FCC copies of all contracts or agreements with other carriers relating to regulated telecommunications service. Authorizes the FCC to require or exempt such carriers from filing copies of other contracts.

Authorizes the FCC to appraise any property owned or used by any regulated carrier and to require such carrier to state the original cost of such property. Repeals the provision relating to Interstate Commerce Commission valuation of such property.

Permits regulated carriers, upon notifying the FCC, to construct, acquire, or use new or extended interexchange transmission facilities. Authorizes the FCC to require a dominant-regulated carrier to obtain a certificate of public convenience and necessity before such construction, acquisition, or operation. Permits the FCC to authorize a long-term facilities construction plan for a dominant-regulated carrier, rather than requiring such carrier to obtain a separate certification for each element of such plan.

Authorizes the FCC to prohibit a regulated carrier from reducing regulated service to a community unless the FCC certifies such action will serve the public convenience.

Requires the FCC to notify the Secretaries of Defense, State, and Commerce of any application by a regulated or dominant-regulated carrier for construction, acquisition, or use of new or extended interexchange transmission facilities. Authorizes the FCC to condition or refuse such certification.

Authorizes the FCC to require, after opportunity for a hearing, a dominant-regulated carrier to extend its facilities for the expeditious and efficient performance of its services.

Authorizes the FCC to require a regulated carrier in Alaska to provide or extend its facilities for performance of basic telecommunications services. Authorizes regulated or unregulated carriers to provide interexchange service or facilities in Alaska. Directs the FCC to assure that implementation of this Act does not result in unreasonable charges for nonbasic interexchange telecommunications service in Alaska.

Authorizes temporary or emergency augmentations or reductions of facilities without regard to these provisions.

Requires any dominant-regulated carrier and regulated carrier to: (1) file with the FCC a description of the operational protocols and technical interface requirements for connection with or use of any regulated telecommunications services; and (2) report regularly to the FCC on specified changes and activities.

Prohibits a dominant-regulated carrier from disclosing information on such protocols, interface requirements, and their anticipated modifications to a fully separated affiliate.

Requires such information to be available to the public unless the FCC, after consultation with the Secretaries of State, Defense, and Commerce, determines it would be detrimental to national security, emergency preparedness, or the competitiveness of the U.S. telecommunications industry. Requires each Secretary who objected to the release of such information to notify the appropriate Congressional committee of the reasons for such objection if the information is not released to the public.

Requires the FCC to prescribe, and all regulated carriers to comply with, general records guidelines designed to allocate revenues and costs between regulated and unregulated equipment and services. Requires the FCC to establish: (1) the classes of property used by any regulated carrier which are subject to the FCC's regulatory authority; and (2) the methods by which investments in such classes of property may be recovered. Permits such recovery methods to include capital recovery schedules or percentage depreciation schedules. Requires such methods to include specified provisions.

Requires the FCC to establish a Joint Board to ascertain and apportion the costs of providing access to exchange facilities for interexchange services. Requires the FCC to establish uniform practices to ascertain and apportion such costs for comparable types of interconnections and to ensure universal availability of basic telephone service at reasonable charges.

Authorizes the FCC to consider setting rates which would provide a specified level of revenue to exchange carriers. Directs the FCC to establish the form for carrier accounts and records. Requires exchange carriers providing exchange access to file with the FCC tariffs governing conditions for exchange access.

Requires a tariff for exchange access to be filed on an unbundled basis specifying each type of service. Prohibits such a tariff from requiring an interexchange carrier to pay for types of exchange access that it does not use. Requires charges for each type of exchange access to be cost justified. Requires differences in charges to be based on differences in services.

Requires exchange access rates to be the same for access offered to interexchange carriers as for access offered as part of a joint or through service. Describes a permissible method of determining exchange access costs or charges.

Limits the amount of an exchange carrier's payments to a dominant-regulated carrier under a license or contract which can be included as costs used to determine rates for exchange telecommunications or exchange access.

Directs the FCC to delegate authority over exchange access arrangements to a State commission when an exchange carrier, in such State: (1) is not classified as a regulated carrier; and (2) the State certifies that it has established a program in accordance with FCC uniform practices regulating exchange access arrangements.

Directs the FCC to issue standards for exchange access charges within a specified time. Prohibits charging a higher exchange access rate to one interexchange carrier than to another until after exchange access tariffs have been filed.

Directs the FCC to impose exchange access surcharges to assure that rates for basic telephone service will not exceed a specified amount for carriers: (1) eligible for telephone loans under the Rural Electrification Act of 1936; (2) not classified as regulated carriers; or (3) which provide Alaska's basic telephone service.

Defines exchange access, exchange services, and exchange carrier.

Requires each State commission, subject to review by the Joint Board, to establish exchange telecommunications areas within its State. Requires any change in the boundaries of such areas after enactment of this Act to meet specified criteria. Deems providing a certain mobile telecommunications service authorized by a State to be an exchange service under this Act.

Sets forth conditions concerning the relationship of a fully separated affiliate with its dominant-regulated carrier. Authorizes a fully separated affiliate to sell, market, or service exports with any U.S. entity if such activity takes place outside the United States without restraining other U.S. exports.

Prohibits any dominant-regulated carrier and its fully separated affiliates from conducting business with each other on a discriminatory or preferential basis. Deems a dominant-regulated carrier to have established a fully separated affiliate only after the FCC finds that the relationships of such carrier with such affiliate comply with specified requirements.

Prohibits a dominant-regulated carrier from disclosing to any fully separated affiliate any commercial information acquired in providing regulated telecommunications services which would provide an unfair competitive advantage. Authorizes the FCC to require specific categories of information to be made generally available.

Makes the provisions relating to the conduct of business between a fully separated affiliate and its dominant-regulated carrier inapplicable to the provision of telecommunications material during emergencies. Makes the requirements mandating the establishment of a fully separated affiliate not applicable to a carrier not under common ownership with or not owned by a dominant-regulated carrier on enactment of this Act.

Authorizes the FCC to request information about the business relationship of a dominant-regulated carrier and a fully separated affiliate. Requires a dominant-regulated carrier, if it provides certain production or marketing services for an affiliate or a fully separated affiliate, to provide such services on a compensatory and fully auditable basis. Prohibits a dominant-regulated carrier from disclosing the results of certain research or engineering studies to a fully separated affiliate that makes telecommunications products, before such results are available to the affiliate's competitors.

Sets a fine for violation of provisions relating to fully separated affiliates. Prohibits construing such provisions to permit cross-subsidization or anticompetitive behavior by a dominant- regulated carrier.

Establishes interim procedures for AT&T research, development, and manufacturing activities until AT&T establishes fully separated affiliates.

Requires AT&T to receive FCC approval of a plan demonstrating its proposed method of complying with the requirements relating to such transition before offering unregulated services. Sets forth the criteria which such plan must meet.

Requires that the following equipment-related functions and activities, which must be offered exclusively by a fully separated affiliate, be performed by a fully separate affilitate or nonaffiliate by specified dates: (1) final assembly; (2) research and development activity relating to equipment design information used in final assembly or relating to software programming; (3) subassembly within such final assembly; and (4) the manufacture of any basic component within such final assembly.

Authorizes the FCC to permit a dominant-regulated carrier to sell subassemblies or basic components to a fully separated affiliate on the same terms as to nonaffiliates.

Establishes an assets evaluation board to determine the value of assets transferred from the affected dominant-regulated carrier and its affiliates to a fully separated affiliate. Makes decisions of such board binding upon the FCC and State commissions unless the FCC determines the decision is not consistent with the policies of this Act.

Permits the FCC to waive AT&T's transition schedule if certain intervening events render AT&T incapable of compliance.

Requires research services and equipment transferred to a fully separated affiliate to be furnished for a fully compensatory amount not less than the amount charged to nonaffiliates for similar services and equipment. Requires business conducted in connection with such service or equipment to be conducted under terms the same as those between nonaffiliates. Exempts from such requirement any terms for such business which AT&T can demonstrate to the FCC result from more efficient operation and lower direct costs and not from the allocation of common overhead or other similar factors.

Prohibits the FCC from establishing requirements inconsistent with this Act which relate to: (1) the structure of any affiliate or fully separated affiliate; (2) activities of a dominant- regulated carrier whcih this Act requires to be conducted by a fully separated affiliate; or (3) the conduct of business between any dominant-regulated carrier or affiliate and any fully separated affiliate.

Requires a fully separated affiliate to own certain manufacturing facilities the construction of which began after FCC approval of AT&T's transition schedule. Requires a fully separated affiliate to perform or to acquire from nonaffiliates certain research and development which began after the approval of such schedule. Prohibits a fully separated affiliate from providing certain interexchange telecommunications service or facility until two years after enactment of this Act.

Exempts transactions involving commodities or services sold for use or reseale outside the United States and emergency services from provisions relating to the transition of AT&T to full separation.

States that the 1956 consent decree involving AT&T shall not bar AT&T and any affiliates or other persons subject to such decree from providing telecommunications service or equipment, customer-premises equipment, or information service so long as such activities are conducted by fully separated affiliates.

Prohibits interpretation of such decree from requiring AT&T to license its patents to foreign controlled businesses or to certain domestic affiliates of such businesses.

Prohibits such decree from having any force or effect on any lawful business activity of AT&T or any affiliate in a foreign market.

Prohibits, with specified exceptions, AT&T or any affiliate of AT&T from providing cable service, alarm service, mass media service, or mass media product through any facility owned or controlled by AT&T or any affiliate within any area in which AT&T is providing exchange telecommunications service. Authorizes AT&T or its affiliates to: (1) provide facilities for such service to a nonaffiliate; (2) provide any information service not involving program origination or mass media service; (3) transmit television or radio broadcasting signals as a carrier. Requires AT&T, any affiliate, or fully separate affiliate to make facilities available for the provision of such services on a nondiscriminatory basis.

Prohibits this Act from being construed to affect: (1) FCC authority to establish rules relating to exchange carriers offering cable service directly to certain subscribers; and (2) FCC rules relating to such service which are already in effect.

Prohibits the AT&T consent decree from being construed to require a fully separated affiliate to license patents or provide technical information which it developed independently.

Prohibits a dominant-regulated carrier from transferring to a fully separated affiliate any patents or related technical information held or developed by the carrier. Permits the carrier to license such patents or information to a fully separated affiliate. Permits limitations on the terms of certain patent licenses required in the AT&T consent decree.

Authorizes AT&T through a fully separated affiliate to provide: (1) weather or time information; (2) any audio or printed information service in which AT&T or any affiliate was engaged on a specified date; and (3) printed or electronic directory advertising.

Authorizes the FCC to permit AT&T under certain conditions to provide alarm service in an area where AT&T provides exchange telecommunications service.

Sets forth the benefits, rights, and entitlements of an employee transferred from a dominant-regulated carrier or an affiliate to a fully separated affiliate. Permits a fully separated affiliate and any union representing the employees of such unit to enter into a collective bargaining agreement which will supersede any such agreement between such carriers and the transferred employee.

Sets forth the rights of a transferred employee who is laid off or fired within seven years of being transferred. Requires a laid off employee to have a preferential right of rehire under certain circumstances.

Permits a fully separated affiliate to offer an employee a lower rated job as an alternative to being laid off. Requires a dominant-regulated carrier that intends to transfer a work group in which union members are employed to notify the union before the transfer. Sets forth the manner of enforcing employee rights through court action.

Directs AT&T to implement, within a specified time, a policy for purchasing telecommunications products on a fair and nondiscriminatory basis. Sets forth percentages of telecommunications equipment that must be purchased by AT&T from nonaffiliates within a specified time. Authorizes the FCC and the Attorney General to ensure compliance with the procurement requirements. Requires the FCC to report annually to Congress on the procurement requirements.

Authorizes the President to require Federal agencies and telecommunications carriers to establish arrangements for mutual backup, restoration, and interconnection of telecommunications facilities or services necessary to avert public disaster and to ensure national security.

Authorizes the President to require any carrier or fully separated affiliate to furnish, for compensation, telecommunications services or national security or emergency preparedness; and (A) war, the threat of war or a public disaster occurs; or (B) the national defense requires such services or facilities and there is no other source of supply. Directs the President to coordinate any government program for enhancing the survivability of exchange, interexchange, and international telecommunications facilities and protecting against the unauthorized interception of telecommunications traffic.

Directs the Chairman of the FCC to designate a "National Security Emergency Preparedness Commissioner" to represent the FCC to the President regarding national defense, security, and emergency preparedness matters. Directs the President to appoint an advisory council to examine the Federal telecommunications management for national security and emergency preparedness under deregulation and to ensure the viability of the U.S. telecommunications industry. Directs the President to establish a National Communications System to protect and restore essential telecommunications.

Prohibits the FCC or any State from regulating the production, marketing, or other provision of customer-premises equipment or information services. Prohibits regulating inside wiring installed within a specified period of time after enactment of this Act. Prohibits a dominant-regulated carrier from providing such inside wiring. Prohibits a person controlling inside wiring from restricting the interconnection of such wiring with any carrier or customer-premises equipment that meets certain standards.

Directs the FCC to prescribe regulations for separate pricing of such equipment or services or cable services offered in conjunction with a regulated service by a regulated service by a regulated carrier or an exchange carrier.

Permits the FCC to establish and enforce minimum uniform technical standards for customer-premises equipment. Authorizes the FCC to: (1) establish labeling requirements for such equipment; (2) establish model technical standards for adding hearing aids to such equipment; and (3) deny certification of such equipment if more than half the equipment's value added was manufactured in a country that does not extend reciprocal rights to U.S. telecommunications equipment manufacturers.

Declares the use of any information processing capability in support of a telecommunications service or system not to be an information service within the meaning of this Act.

Prohibits any dominant-regulated carrier or affiliate from providing any customer-premises equipment, except through a fully separated affiliate after a specified time.

Authorizes the FCC to require any unregulated carrier to continue to interconnect its telecommunications facilities with any person or to continue services provided under tariff on the date of enactment of this Act if withdrawal of such interconnection or service would result in hardship or ineffective competition.

Requires each regulated carrier to continue to provide under tariff, for a specified time, any telecommunications service which such carrier is providing upon the enactment of this Act. Directs the FCC to determine which of such services are subject to effective competition and which are not. Requires any service subject to effective competition to be deregulated after a transition period. Requires the FCC to review any determination that a service is not subject to effective competition at least once every two years. Requires any customer premises equipment provided under tariff on the date of enactment of this Act to continue to be available tariff for a specified time.

Authorizes the FCC to determine what basic telecommunications service should be universally available. Permits any person to petition the FCC to classify any interexchange telecommunications service as basic. Directs the FCC to hold a hearing upon granting such petition to determine the terms and conditions of such service. Presumes that unregulated marketplace competition will universally provide such service, unless it is clearly and convincingly demonstrated that regulation is necessary. Permits the FCC to review any such determination and terminate regulation of service when regulation is no longer necessary.

Prohibits any regulated telecommunications carrier, except carriers serving rural areas, from also engaging in providing cable services in the same operating area unless the FCC finds that such provision by a regulated carrier will provide significant additional media diversity and competition.

Makes it lawful for telecommunications carrier to plan to agree jointly to the development of: (1) any network of telecommunications services or facilities; (2) technical standards applicable to such services or facilities; and (3) technical standards for customer-premises services for handicapped people.

Requires the carriers to give the FCC an opportunity to monitor such meeting. Requires the carriers to file a transcript of such meeting with the FCC. Exempts routine nondiscriminatory meetings and meetings of noncompetitors from the notification and filing requirements. Directs the FCC to require all telecommunications carriers to meet to assure: (1) the maintenance of telecommunications networks necessary for national security and emergency preparedness; (2) the establishment of plans necessary for the protection and restoration of essential services.

Sets a policy for assigning channels for very high frequency (VHF) television broadcasting. Requires the FCC to ensure that each State has at least one VHF commercial television station if it is technically feasible.

Sets penalties for various violations of the Communications Act of 1934.

Authorizes the FCC to establish policies and rules on the entry into the U.S. market of foreign carriers or persons supplying telecommunications or information services. Requires terms of entry which are reciprocal with the terms under which U.S. persons are permitted entry into the foreign nation.

Requires the Office of the U.S. Trade Representative to list the foreign countries that do not provide reciprocal rights to U.S. telecommunications equipment manufacturers. Requires the Department of Commerce to keep the list current.

Prohibits deeming a country to have provided reciprocity in market access unless the country meets specified conditions. States that it is U.S. policy to encourage procurement of necessary telecommunications equipment from countries that extend reciprocity to U.S. manufacturers.

Authorizes the Secretary of Commerce to monitor the implementation of policies relating to listing countries with reciprocal rights to market access and relating to the entry into the United States of foreign telecommunications carriers and information suppliers. Authorizes the FCC and the Department of Commerce to issue regulations to implement the reciprocal rights provisions.

Authorizes the President to veto FCC decisions on permitting foreign carriers or suppliers to enter the United States.

Limits the gross annual sales of telecommunications products and the internal sales of an equipment category of such products to a dominant-regulated carrier by its affiliate or fully separated affiliate.

Requires the terms of the internal sales to be as favorable as the terms extended to nonaffiliated entities.

States that the purpose of these limitations is to provide a market test for the terms of purchases of telecommunications products by dominant-regulated carriers from an affiliate or fully separated affiliate.

Directs the FCC to: (1) issue regulations requiring reports of such sales; (2) define equipment categories narrowly; (3) vary the limitations on internal sales if it is in the public interest; and (4) make the calculations required for such limitations annually.

Authorizes the Attorney General to sue to enjoin violations and to obtain compliance with such limitations.

Directs the FCC to report annually to Congress on the telecommunications products sales provisions.

Title III: Miscellaneous Provisions - Makes certain technical amendments. Prohibits the FCC from licensing or permitting satellite facilities to be located in a specified orbital area unless such facilities can provide essentially the same services nationwide.

Title IV: Conforming Amendments - Makes certain conforming amendments to the Criminal Code and the Clayton Act.Disavows any intent to affect the applicability of the antitrust laws and any pending litigation. Prohibits, with a specified exception, the provisions of this Act from applying to international services or facilities.

Prohibits foreign telecommunications carriers or foreign information suppliers from being deemed to include carriers which meet specified criteria.

Requires every FCC final significant rule or order affecting international competition to be accompanied by an analysis of international economic competition. Directs a specified Senate committee to conduct oversight hearings at least once each session to review implementation of this Act.