47 U.S.C. § 273 — Manufacturing by Bell operating compa-

Page 117 TITLE 47—TELECOMMUNICATIONS § 273 (B) the Commission and the State commis- sion shall have access to the working papers and supporting materials of any auditor who performs an audit under this section; and (C) the State commission shall implement appropriate procedures to ensure the protec- tion of any proprietary information sub- mitted to it under this section. (e) Fulfillment of certain requests A Bell operating company and an affiliate that is subject to the requirements of section 251(c) of this title— (1) shall fulfill any requests from an unaffili- ated entity for telephone exchange service and exchange access within a period no longer than the period in which it provides such tele- phone exchange service and exchange access to itself or to its affiliates; (2) shall not provide any facilities, services, or information concerning its provision of ex- change access to the affiliate described in sub- section (a) unless such facilities, services, or information are made available to other pro- viders of interLATA services in that market on the same terms and conditions; (3) shall charge the affiliate described in sub- section (a), or impute to itself (if using the ac- cess for its provision of its own services), an amount for access to its telephone exchange service and exchange access that is no less than the amount charged to any unaffiliated interexchange carriers for such service; and (4) may provide any interLATA or intraLATA facilities or services to its interLATA affiliate if such services or facili- ties are made available to all carriers at the same rates and on the same terms and condi- tions, and so long as the costs are appro- priately allocated. (f) Sunset (1) Manufacturing and long distance The provisions of this section (other than subsection (e)) shall cease to apply with re- spect to the manufacturing activities or the interLATA telecommunications services of a Bell operating company 3 years after the date such Bell operating company or any Bell oper- ating company affiliate is authorized to pro- vide interLATA telecommunications services under section 271(d) of this title, unless the Commission extends such 3-year period by rule or order. (2) InterLATA information services The provisions of this section (other than subsection (e)) shall cease to apply with re- spect to the interLATA information services of a Bell operating company 4 years after Feb- ruary 8, 1996, unless the Commission extends such 4-year period by rule or order. (3) Preservation of existing authority Nothing in this subsection shall be con- strued to limit the authority of the Commis- sion under any other section of this chapter to prescribe safeguards consistent with the pub- lic interest, convenience, and necessity. (g) Joint marketing (1) Affiliate sales of telephone exchange serv- ices A Bell operating company affiliate required by this section may not market or sell tele- phone exchange services provided by the Bell operating company unless that company per- mits other entities offering the same or simi- lar service to market and sell its telephone ex- change services. (2) Bell operating company sales of affiliate services A Bell operating company may not market or sell interLATA service provided by an affil- iate required by this section within any of its in-region States until such company is author- ized to provide interLATA services in such State under section 271(d) of this title. (3) Rule of construction The joint marketing and sale of services per- mitted under this subsection shall not be con- sidered to violate the nondiscrimination provi- sions of subsection (c). (h) Transition With respect to any activity in which a Bell operating company is engaged on February 8, 1996, such company shall have one year from February 8, 1996, to comply with the require- ments of this section. (June 19, 1934, ch. 652, title II, § 272, as added Pub. L. 104–104, title I, § 151(a), Feb. 8, 1996, 110 Stat. 92.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (f)(3), was in the original ‘‘this Act’’, meaning act June 19, 1934, ch. 652, 48 Stat. 1064, known as the Communications Act of 1934, which is classified principally to this chapter. For com- plete classification of this Act to the Code, see section 609 of this title and Tables. § 273. Manufacturing by Bell operating compa- nies (a) Authorization A Bell operating company may manufacture and provide telecommunications equipment, and manufacture customer premises equipment, if the Commission authorizes that Bell operating company or any Bell operating company affil- iate to provide interLATA services under sec- tion 271(d) of this title, subject to the require- ments of this section and the regulations pre- scribed thereunder, except that neither a Bell operating company nor any of its affiliates may engage in such manufacturing in conjunction with a Bell operating company not so affiliated or any of its affiliates. (b) Collaboration; research and royalty agree- ments (1) Collaboration Subsection (a) shall not prohibit a Bell oper- ating company from engaging in close collabo- ration with any manufacturer of customer premises equipment or telecommunications equipment during the design and development Page 118 TITLE 47—TELECOMMUNICATIONS § 273 of hardware, software, or combinations thereof related to such equipment. (2) Certain research arrangements; royalty agreements Subsection (a) shall not prohibit a Bell oper- ating company from— (A) engaging in research activities related to manufacturing, and (B) entering into royalty agreements with manufacturers of telecommunications equip- ment. (c) Information requirements (1) Information on protocols and technical re- quirements Each Bell operating company shall, in ac- cordance with regulations prescribed by the Commission, maintain and file with the Com- mission full and complete information with re- spect to the protocols and technical require- ments for connection with and use of its tele- phone exchange service facilities. Each such company shall report promptly to the Com- mission any material changes or planned changes to such protocols and requirements, and the schedule for implementation of such changes or planned changes. (2) Disclosure of information A Bell operating company shall not disclose any information required to be filed under paragraph (1) unless that information has been filed promptly, as required by regulation by the Commission. (3) Access by competitors to information The Commission may prescribe such addi- tional regulations under this subsection as may be necessary to ensure that manufactur- ers have access to the information with re- spect to the protocols and technical require- ments for connection with and use of tele- phone exchange service facilities that a Bell operating company makes available to any manufacturing affiliate or any unaffiliated manufacturer. (4) Planning information Each Bell operating company shall provide, to interconnecting carriers providing tele- phone exchange service, timely information on the planned deployment of telecommuni- cations equipment. (d) Manufacturing limitations for standard-set- ting organizations (1) Application to Bell Communications Re- search or manufacturers Bell Communications Research, Inc., or any successor entity or affiliate— (A) shall not be considered a Bell oper- ating company or a successor or assign of a Bell operating company at such time as it is no longer an affiliate of any Bell operating company; and (B) notwithstanding paragraph (3), shall not engage in manufacturing telecommuni- cations equipment or customer premises equipment as long as it is an affiliate of more than 1 otherwise unaffiliated Bell oper- ating company or successor or assign of any such company. Nothing in this subsection prohibits Bell Com- munications Research, Inc., or any successor entity, from engaging in any activity in which it is lawfully engaged on February 8, 1996. Nothing provided in this subsection shall render Bell Communications Research, Inc., or any successor entity, a common carrier under this subchapter. Nothing in this subsection re- stricts any manufacturer from engaging in any activity in which it is lawfully engaged on February 8, 1996. (2) Proprietary information Any entity which establishes standards for telecommunications equipment or customer premises equipment, or generic network re- quirements for such equipment, or certifies telecommunications equipment or customer premises equipment, shall be prohibited from releasing or otherwise using any proprietary information, designated as such by its owner, in its possession as a result of such activity, for any purpose other than purposes author- ized in writing by the owner of such informa- tion, even after such entity ceases to be so en- gaged. (3) Manufacturing safeguards (A) Except as prohibited in paragraph (1), and subject to paragraph (6), any entity which certifies telecommunications equipment or customer premises equipment manufactured by an unaffiliated entity shall only manufac- ture a particular class of telecommunications equipment or customer premises equipment for which it is undertaking or has undertaken, during the previous 18 months, certification activity for such class of equipment through a separate affiliate. (B) Such separate affiliate shall— (i) maintain books, records, and accounts separate from those of the entity that cer- tifies such equipment, consistent with gen- erally acceptable accounting principles; (ii) not engage in any joint manufacturing activities with such entity; and (iii) have segregated facilities and separate employees with such entity. (C) Such entity that certifies such equip- ment shall— (i) not discriminate in favor of its manu- facturing affiliate in the establishment of standards, generic requirements, or product certification; (ii) not disclose to the manufacturing affil- iate any proprietary information that has been received at any time from an unaffili- ated manufacturer, unless authorized in writing by the owner of the information; and (iii) not permit any employee engaged in product certification for telecommuni- cations equipment or customer premises equipment to engage jointly in sales or mar- keting of any such equipment with the affili- ated manufacturer. (4) Standard-setting entities Any entity that is not an accredited stand- ards development organization and that estab- lishes industry-wide standards for tele- communications equipment or customer prem- ises equipment, or industry-wide generic net- Page 119 TITLE 47—TELECOMMUNICATIONS § 273 work requirements for such equipment, or that certifies telecommunications equipment or customer premises equipment manufac- tured by an unaffiliated entity, shall— (A) establish and publish any industry- wide standard for, industry-wide generic re- quirement for, or any substantial modifica- tion of an existing industry-wide standard or industry-wide generic requirement for, tele- communications equipment or customer premises equipment only in compliance with the following procedure— (i) such entity shall issue a public notice of its consideration of a proposed industry- wide standard or industry-wide generic re- quirement; (ii) such entity shall issue a public invi- tation to interested industry parties to fund and participate in such efforts on a reasonable and nondiscriminatory basis, administered in such a manner as not to unreasonably exclude any interested in- dustry party; (iii) such entity shall publish a text for comment by such parties as have agreed to participate in the process pursuant to clause (ii), provide such parties a full op- portunity to submit comments, and re- spond to comments from such parties; (iv) such entity shall publish a final text of the industry-wide standard or industry- wide generic requirement, including the comments in their entirety, of any funding party which requests to have its comments so published; and (v) such entity shall attempt, prior to publishing a text for comment, to agree with the funding parties as a group on a mutually satisfactory dispute resolution process which such parties shall utilize as their sole recourse in the event of a dis- pute on technical issues as to which there is disagreement between any funding party and the entity conducting such activities, except that if no dispute resolution process is agreed to by all the parties, a funding party may utilize the dispute resolution procedures established pursuant to para- graph (5) of this subsection; (B) engage in product certification for telecommunications equipment or customer premises equipment manufactured by unaf- filiated entities only if— (i) such activity is performed pursuant to published criteria; (ii) such activity is performed pursuant to auditable criteria; and (iii) such activity is performed pursuant to available industry-accepted testing methods and standards, where applicable, unless otherwise agreed upon by the par- ties funding and performing such activity; (C) not undertake any actions to monopo- lize or attempt to monopolize the market for such services; and (D) not preferentially treat its own tele- communications equipment or customer premises equipment, or that of its affiliate, over that of any other entity in establishing and publishing industry-wide standards or industry-wide generic requirements for, and in certification of, telecommunications equipment and customer premises equip- ment. (5) Alternate dispute resolution Within 90 days after February 8, 1996, the Commission shall prescribe a dispute resolu- tion process to be utilized in the event that a dispute resolution process is not agreed upon by all the parties when establishing and pub- lishing any industry-wide standard or indus- try-wide generic requirement for tele- communications equipment or customer prem- ises equipment, pursuant to paragraph (4)(A)(v). The Commission shall not establish itself as a party to the dispute resolution proc- ess. Such dispute resolution process shall per- mit any funding party to resolve a dispute with the entity conducting the activity that significantly affects such funding party’s in- terests, in an open, nondiscriminatory, and unbiased fashion, within 30 days after the fil- ing of such dispute. Such disputes may be filed within 15 days after the date the funding party receives a response to its comments from the entity conducting the activity. The Commis- sion shall establish penalties to be assessed for delays caused by referral of frivolous disputes to the dispute resolution process. (6) Sunset The requirements of paragraphs (3) and (4) shall terminate for the particular relevant ac- tivity when the Commission determines that there are alternative sources of industry-wide standards, industry-wide generic require- ments, or product certification for a par- ticular class of telecommunications equip- ment or customer premises equipment avail- able in the United States. Alternative sources shall be deemed to exist when such sources provide commercially viable alternatives that are providing such services to customers. The Commission shall act on any application for such a determination within 90 days after re- ceipt of such application, and shall receive public comment on such application. (7) Administration and enforcement authority For the purposes of administering this sub- section and the regulations prescribed there- under, the Commission shall have the same re- medial authority as the Commission has in ad- ministering and enforcing the provisions of this subchapter with respect to any common carrier subject to this chapter. (8) Definitions For purposes of this subsection: (A) The term ‘‘affiliate’’ shall have the same meaning as in section 153 of this title, except that, for purposes of paragraph (1)(B)— (i) an aggregate voting equity interest in Bell Communications Research, Inc., of at least 5 percent of its total voting equity, owned directly or indirectly by more than 1 otherwise unaffiliated Bell operating company, shall constitute an affiliate rela- tionship; and (ii) a voting equity interest in Bell Com- munications Research, Inc., by any other- Page 120 TITLE 47—TELECOMMUNICATIONS § 274 wise unaffiliated Bell operating company of less than 1 percent of Bell Communica- tions Research’s total voting equity shall not be considered to be an equity interest under this paragraph. (B) The term ‘‘generic requirement’’ means a description of acceptable product attributes for use by local exchange carriers in establishing product specifications for the purchase of telecommunications equipment, customer premises equipment, and software integral thereto. (C) The term ‘‘industry-wide’’ means ac- tivities funded by or performed on behalf of local exchange carriers for use in providing wireline telephone exchange service whose combined total of deployed access lines in the United States constitutes at least 30 per- cent of all access lines deployed by tele- communications carriers in the United States as of February 8, 1996. (D) The term ‘‘certification’’ means any technical process whereby a party deter- mines whether a product, for use by more than one local exchange carrier, conforms with the specified requirements pertaining to such product. (E) The term ‘‘accredited standards devel- opment organization’’ means an entity com- posed of industry members which has been accredited by an institution vested with the responsibility for standards accreditation by the industry. (e) Bell operating company equipment procure- ment and sales (1) Nondiscrimination standards for manufac- turing In the procurement or awarding of supply contracts for telecommunications equipment, a Bell operating company, or any entity act- ing on its behalf, for the duration of the re- quirement for a separate subsidiary including manufacturing under this chapter— (A) shall consider such equipment, pro- duced or supplied by unrelated persons; and (B) may not discriminate in favor of equip- ment produced or supplied by an affiliate or related person. (2) Procurement standards Each Bell operating company or any entity acting on its behalf shall make procurement decisions and award all supply contracts for equipment, services, and software on the basis of an objective assessment of price, quality, delivery, and other commercial factors. (3) Network planning and design A Bell operating company shall, to the ex- tent consistent with the antitrust laws, en- gage in joint network planning and design with local exchange carriers operating in the same area of interest. No participant in such planning shall be allowed to delay the intro- duction of new technology or the deployment of facilities to provide telecommunications services, and agreement with such other car- riers shall not be required as a prerequisite for such introduction or deployment. (4) Sales restrictions Neither a Bell operating company engaged in manufacturing nor a manufacturing affil- iate of such a company shall restrict sales to any local exchange carrier of telecommuni- cations equipment, including software integral to the operation of such equipment and re- lated upgrades. (5) Protection of proprietary information A Bell operating company and any entity it owns or otherwise controls shall protect the proprietary information submitted for pro- curement decisions from release not specifi- cally authorized by the owner of such informa- tion. (f) Administration and enforcement authority For the purposes of administering and enforc- ing the provisions of this section and the regula- tions prescribed thereunder, the Commission shall have the same authority, power, and func- tions with respect to any Bell operating com- pany or any affiliate thereof as the Commission has in administering and enforcing the provi- sions of this subchapter with respect to any common carrier subject to this chapter. (g) Additional rules and regulations The Commission may prescribe such addi- tional rules and regulations as the Commission determines are necessary to carry out the provi- sions of this section, and otherwise to prevent discrimination and cross-subsidization in a Bell operating company’s dealings with its affiliate and with third parties. (h) ‘‘Manufacturing’’ defined As used in this section, the term ‘‘manufac- turing’’ has the same meaning as such term has under the AT&T Consent Decree. (June 19, 1934, ch. 652, title II, § 273, as added Pub. L. 104–104, title I, § 151(a), Feb. 8, 1996, 110 Stat. 95.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (d)(7), (e)(1), and (f), was in the original ‘‘this Act’’, meaning act June 19, 1934, ch. 652, 48 Stat. 1064, known as the Communica- tions Act of 1934, which is classified principally to this chapter. For complete classification of this Act to the Code, see section 609 of this title and Tables. § 274. Electronic publishing by Bell operating companies (a) Limitations No Bell operating company or any affiliate may engage in the provision of electronic pub- lishing that is disseminated by means of such Bell operating company’s or any of its affiliates’ basic telephone service, except that nothing in this section shall prohibit a separated affiliate or electronic publishing joint venture operated in accordance with this section from engaging in the provision of electronic publishing. (b) Separated affiliate or electronic publishing joint venture requirements A separated affiliate or electronic publishing joint venture shall be operated independently from the Bell operating company. Such sepa- rated affiliate or joint venture and the Bell op- erating company with which it is affiliated shall—