Summary of S 1312
Telecommunications Competition Enforcement Act of 1999

Sponsor. Sen. Ernest Hollings (D-SC). Cosponsors. Daniel Inouye (D-HI).

Summary. S 1312 IS is a draconian approach to providing more competition in local telephone markets. It seeks to force the Bell companies to interconnect with and provide network access to new entrants.

It is based on two premises. The first premise, which is supported by Federal Communications Commission rulings, is that none of the regional Bell operating companies (RBOCs) has been adequately opening their networks to competitors. (The RBOCs dispute this, of course.) The Telecom Act of 1996 took an incentive approach to opening up local markets. The RBOCs were not allowed to provide interLATA long distance telephone service in their service region until that had opened their networks, as measured by compliance with the 14 point checklist of Section 271.

The second premise of S 1312 is that this incentive approach is not sufficient to lead the RBOCs to open their networks. Hence, S 1312 takes a punishment approach. The bill provides that if RBOCs do not open up, they will be fined $100,000 per day. And if they persist, they will be forced to divest their network facilities.

The key clauses of the bill provide that:

"If the Commission finds that a Bell operating company has not fully implemented the competitive checklist in section 271(c)(2)(B) for all telecommunications (including voice, video, and data) for at least one-half of the States in its region by February 8, 2001 ... the Commission shall assess on such company a forfeiture penalty of $100,000 for each day of the continuing violation until the Commission determines that the Bell operating company has fully implemented section 271(c)(2)(B)."

and

"If the Commission finds that a Bell operating company has not fully implemented the competitive checklist in section 271(c)(2)(B) for all telecommunications (including voice, video, and data) in all States in its region by February 8, 2003 ... the Commission shall order the Bell operating company to divest itself of its telecommunications network facilities within 180 days in States in which it has not fully implemented the requirements of section 271(c)(2)(B)."

The bill also provides a related set of penalties for incumbent local exchange carriers (ILECS) which are not RBOCs which fail to open their networks.

Status. This bill was introduced on July 1, 1999, and referred to the Commerce Committee.

Legislative History with Links to Related Materials.

• 7/1/99. S 1312 IS introduced in the Senate. See also:
  • Statement and Summary of S 1312 by Sen. Hollings in Congressional Record.
  • Press release of Sen. Hollings.
  • TLJ story.
• 7/1/99. S 1312 referred to the Senate Commerce Committee.