SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet Freedom and Broadband 
Deployment Act of 1999''.

 SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Internet access services are inherently interstate and 
        international in nature, and should therefore not be subject to 
        regulation by the States.
            (2) The imposition of regulations by the Federal 
        Communications Commission and the States has impeded the rapid 
        delivery of high speed Internet access services to the public, 
        thereby reducing consumer choice and welfare.
            (3) The Telecommunications Act of 1996 represented a 
        careful balance between the need to open up local 
        telecommunications markets to competition and the need to 
        increase competition in the provision of interLATA voice 
        telecommunications services.
            (4) In enacting the prohibition on Bell operating company 
        provision of interLATA services, Congress recognized that 
        certain telecommunications services have characteristics that 
        render them incompatible with the prohibition on Bell operating 
        company provision of interLATA services, and exempted such 
        services from the interLATA prohibition.
            (5) High speed data services and Internet access services 
        constitute unique markets that are likewise incompatible with 
        the prohibition on Bell operating company provision of 
        interLATA services.
            (6) Since the enactment of the Telecommunications Act of 
        1996, the Federal Communications Commission has construed the 
        prohibition on Bell operating company provision of interLATA 
        services in a manner that has impeded the development of 
        advanced telecommunications services, thereby limiting consumer 
        choice and welfare.
            (7) Internet users should have choice among competing 
        Internet service providers.
            (8) Internet service providers should have the right to 
        interconnect with high speed data networks in order to provide 
        service to Internet users.
    (b) Purposes.--It is therefore the purpose of this Act to provide 
market incentives for the rapid delivery of advanced telecommunications 
services--
            (1) by deregulating high speed data services and Internet 
        access services;
            (2) by clarifying that the prohibition on Bell operating 
        company provision of interLATA services does not extend to the 
        provision of high speed data services and Internet access 
        services;
            (3) by ensuring that consumers can choose among competing 
        Internet service providers; and
            (4) by ensuring that Internet service providers can 
        interconnect with competitive high speed data networks in order 
        to provide Internet access service to the public.

 SEC. 3. DEFINITIONS

    (a) Amendments.--Section 3 of the Communications Act of 1934 (47 
U.S.C. 153) is amended--
            (1) by redesignating paragraph (20) as paragraph (21);
            (2) by redesignating paragraphs (21) through (52) as 
        paragraphs (24) through (54), respectively;
            (3) by inserting after paragraph (19) the following new 
        paragraph:
            ``(20) High speed data service.--The term `high speed data 
        service' means any service that consists of or includes the 
        offering of a capability to transmit, using a packet-switched 
        or successor technology, information at a rate that is 
        generally not less than 384 kilobits per second in at least one 
        direction.'';
            (4) by inserting after paragraph (22) the following new 
        paragraphs:
            ``(23) Internet.--The term ``Internet'' means collectively 
        the myriad of computer and telecommunications facilities, 
        including equipment and operating software, which comprise the 
        interconnected world-wide network of networks that employ the 
        Transmission Control Protocol/Internet Protocol, or any 
        predecessor or successor protocols to such protocol, to 
        communicate information of all kinds by wire or radio.
            ``(24) Internet Access Service.--The term `Internet access 
        service' means (A) a service that combines computer processing, 
        information storage, protocol conversion, and routing with 
        transmission to enable users to access Internet content and 
        services, and (B) the transmission of such service, but does 
        not include the portion of such transmission from the user to 
        the provider of such service.''.
    (b) Conforming Amendments.--
            (1) Section 230(f) of the Communications Act of 1934 (47 
        U.S.C. 230(f)) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (1) through (3), respectively.
            (2) Section 223(h)(2) of such Act (47 U.S.C. 223(h)(2)) is 
        amended by striking ``230(f)(2)'' and inserting ``230(f)(1)''.

 SEC. 4. LIMITATION ON AUTHORITY TO REGULATE HIGH SPEED DATA SERVICES.

    (a) In General.--Part I of title II of the Communications Act of 
1934 (47 U.S.C. 201 et seq.) is amended by adding at the end the 
following new section:

``SEC. 232. PROVISION OF HIGH SPEED DATA SERVICES.

    ``(a) Freedom From Regulation.--Except to the extent that high 
speed data service and Internet access service are expressly referred 
to in this Act, neither the Commission, nor any State, shall have 
authority to regulate the rates, charges, terms, or conditions for, or 
entry into the provision of, any high speed data service or Internet 
access service, or to regulate the facilities used in the provision of 
either such service.
    ``(b) Savings Provision.--Nothing in this section shall be 
construed to limit or affect the authority of any State to regulate 
voice telephone exchange services, nor affect the rights of cable 
franchise authorities to establish requirements that are otherwise 
consistent with this Act.
    ``(c) Continued Enforcement of ESP Exemption, Universal Service 
Rules Permitted.--Nothing in this section shall affect the ability of 
the Commission to retain or modify--
            ``(1) the exemption from interstate access charges for 
        enhanced service providers under Part 69 of the Commission's 
        Rules; or
            ``(2) rules issued pursuant to section 254.''.
    (b) Conforming Amendment.--Section 251 of the Communications Act of 
1934 (47 U.S.C. 251) is amended by adding at the end thereof the 
following new subsection:
    ``(j) Exemption.--
            ``(1) In general.--Notwithstanding the provisions of 
        subsections (c) and (d), the Commission shall not require an 
        incumbent local exchange carrier to--
                    ``(A) provide unbundled access to any network 
                elements used in the provision of any high speed data 
                service, other than those network elements described in 
                section 51.319 of the Commission's regulations (47 
                C.F.R. 51.319), as in effect on January 1, 1999; or
                    ``(B) offer for resale at wholesale rates any high 
                speed data service.
            ``(2) Authority to reduce elements subject to 
        requirement.--Paragraph (1)(A) shall not prohibit the 
        Commission from modifying the regulation referred to in that 
        paragraph to reduce the number of network elements subject to 
        the unbundling requirement, or to forbear from enforcing any 
        portion of that regulation in accordance with the Commission's 
        authority under section 706 of the Telecommunications Act of 
        1996, notwithstanding any limitation on that authority in 
        section 10 of this Act.''.

SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE.

    Part I of title II of the Communications Act of 1934, as amended by 
section 4, is amended by adding at the end the following new section:

``SEC. 233. INTERNET CONSUMERS FREEDOM OF CHOICE.

    ``(a) Purpose.--It is the purpose of this section to ensure that 
Internet users have freedom of choice of Internet service provider.
    ``(b) Obligations of Incumbent Local Exchange Carriers.--- Each 
incumbent local exchange carrier has the duty to provide--
            ``(1) Internet users with the ability to subscribe to and 
        have access to any Internet service provider that interconnects 
        with such carrier's high speed data service;
            ``(2) any Internet service provider with the right to 
        acquire the facilities and services necessary to interconnect 
        with such carrier's high speed data service for the provision 
        of Internet access service; and
            ``(3) any Internet service provider with the ability to 
        collocate equipment in accordance with the provisions of 
        section 251, to the extent necessary to achieve the objectives 
        of paragraphs (1) and (2) of this subsection.
    ``(c) Definitions.--As used in this section--
            ``(1) Internet service provider.--The term `Internet 
        service provider' means any provider of Internet access 
        service.
            ``(2) Incumbent local exchange carrier.--The term 
        `incumbent local exchange carrier' has the same meaning as 
        provided in section 251(h).''.

SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH SPEED DATA AND INTERNET 
              ACCESS SERVICES.

    (a) Incidental InterLATA Service Premitted.--Section 271(g) of the 
Communications Act of 1934 (47 U.S.C. 271(g)) is amended--
            (1) by striking ``or'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; or''; and
            (3) by adding at the end thereof the following new 
        paragraph:
            ``(7) of high speed data service or Internet access 
        service.''.
    (b) Prohibition on Marketing Voice Services.--Section 271 of such 
Act is amended by adding at the end thereof the following new 
subsection:
    ``(k) Prohibition on Marketing Voice Telephone Services.--Until the 
date on which a Bell operating company is authorized to offer interLATA 
services originating in an in-region State in accordance with the 
provisions of this section, such Bell operating company offering any 
high speed data service or Internet access service pursuant to the 
provisions of paragraph (7) of subsection (g) may not, in such in-
region State market, bill, or collect for interLATA voice 
telecommunications service obtained by means of the high speed data 
service or Internet access service provided by such company.''.
    (c) Conforming Amendments.--
            (1) Section 272(a)(2)(B)(i) of such Act is amended to read 
        as follows:
                            ``(i) incidental interLATA services 
                        described in paragraphs (1), (2), (3), (5), 
                        (6), and (7) of section 271(g).''.
            (2) Section 272(a)(2)(C) of such Act is repealed.
Internet Freedom and Broadband Deployment Act of 1999 - Amends the Communications Act of 1934 to define "high speed data service" as a service capable of transmitting electronic information at a rate generally not less than 384 kilobits per second in at least one direction. 
Prohibits the Federal Communications Commission (FCC) and each State, except as expressly provided in this Act, from regulating the rates, charges, terms or conditions for, or entry into the provision of, any high speed data service or Internet access service, or to regulate the facilities used in the provision of such service. Prohibits the FCC from requiring an incumbent (established) local exchange carrier to: (1) provide unbundled access to any network elements used in the provision of any high speed data service, other than those elements described in FCC regulations; or (2) offer for resale at wholesale rates any high speed data service. 
States that nothing in this Act shall: (1) limit or affect the authority of any State to regulate voice telephone exchange services; (2) affect the ability of the FCC to retain or modify the exemption from interstate access charges for enhanced service providers; or (3) prohibit the FCC from modifying the regulation concerning the number of networks subject to its unbundling requirement. 
Requires each incumbent local exchange carrier to provide: (1) Internet users with the ability to subscribe to and have access to any Internet service provider that interconnects with such carrier's high speed data service; (2) any Internet service provider with the right to acquire necessary facilities and services to facilitate such interconnection; and (3) any Internet service provider with the ability to collocate equipment in order to achieve such interconnection. 
Includes high speed data service or Internet access service within the definition of "incidental interLATA services" permitted for a Bell operating company (BOC). States that, until the date a BOC is authorized to offer interLATA services originating in an in-region State, such BOC offering any high speed data service or Internet access service may not, in such State, bill or collect for interLATA voice telecommunications service obtained by means of such high speed data or Internet access service provided by such company.
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