
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 47USC273]

 
          TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
 
                 CHAPTER 5--WIRE OR RADIO COMMUNICATION
 
                     SUBCHAPTER II--COMMON CARRIERS
 
    Part III--Special Provisions Concerning Bell Operating Companies
 
Sec. 273. Manufacturing by Bell operating companies


(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 affiliate to provide interLATA services under 
section 271(d) of this title, subject to the requirements of this 
section and the regulations prescribed 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 agreements

                          (1) Collaboration

        Subsection (a) of this section shall not prohibit a Bell 
    operating company from engaging in close collaboration with any 
    manufacturer of customer premises equipment or telecommunications 
    equipment during the design and development of hardware, software, 
    or combinations thereof related to such equipment.

        (2) Certain research arrangements; royalty agreements

        Subsection (a) of this section shall not prohibit a Bell 
    operating company from--
            (A) engaging in research activities related to 
        manufacturing, and
            (B) entering into royalty agreements with manufacturers of 
        telecommunications equipment.

(c) Information requirements

       (1) Information on protocols and technical requirements

        Each Bell operating company shall, in accordance with 
    regulations prescribed by the Commission, maintain and file with the 
    Commission full and complete information with respect to the 
    protocols and technical requirements for connection with and use of 
    its telephone exchange service facilities. Each such company shall 
    report promptly to the Commission 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 additional regulations under 
    this subsection as may be necessary to ensure that manufacturers 
    have access to the information with respect to the protocols and 
    technical requirements for connection with and use of telephone 
    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 telephone exchange service, timely information on 
    the planned deployment of telecommunications equipment.

(d) Manufacturing limitations for standard-setting organizations

         (1) Application to Bell Communications Research or 
                                manufacturers

        Bell Communications Research, Inc., or any successor entity or 
    affiliate--
            (A) shall not be considered a Bell operating 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 telecommunications equipment or customer premises 
        equipment as long as it is an affiliate of more than 1 otherwise 
        unaffiliated Bell operating company or successor or assign of 
        any such company.

    Nothing in this subsection prohibits Bell Communications 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 restricts 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 
    requirements 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 authorized in writing 
    by the owner of such information, even after such entity ceases to 
    be so engaged.

                    (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 manufacture 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 certifies such equipment, consistent 
        with generally 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 equipment shall--
            (i) not discriminate in favor of its manufacturing affiliate 
        in the establishment of standards, generic requirements, or 
        product certification;
            (ii) not disclose to the manufacturing affiliate any 
        proprietary information that has been received at any time from 
        an unaffiliated manufacturer, unless authorized in writing by 
        the owner of the information; and
            (iii) not permit any employee engaged in product 
        certification for telecommunications equipment or customer 
        premises equipment to engage jointly in sales or marketing of 
        any such equipment with the affiliated manufacturer.

                    (4) Standard-setting entities

        Any entity that is not an accredited standards development 
    organization and that establishes industry-wide standards for 
    telecommunications equipment or customer premises equipment, or 
    industry-wide generic network requirements for such equipment, or 
    that certifies telecommunications equipment or customer premises 
    equipment manufactured by an unaffiliated entity, shall--
            (A) establish and publish any industry-wide standard for, 
        industry-wide generic requirement for, or any substantial 
        modification of an existing industry-wide standard or industry-
        wide generic requirement for, telecommunications 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 requirement;
                (ii) such entity shall issue a public invitation 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 industry 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 
            opportunity to submit comments, and respond 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 dispute 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 paragraph (5) of this subsection;

            (B) engage in product certification for telecommunications 
        equipment or customer premises equipment manufactured by 
        unaffiliated 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 parties 
            funding and performing such activity;

            (C) not undertake any actions to monopolize or attempt to 
        monopolize the market for such services; and
            (D) not preferentially treat its own telecommunications 
        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 equipment.

                  (5) Alternate dispute resolution

        Within 90 days after February 8, 1996, the Commission shall 
    prescribe a dispute resolution process to be utilized in the event 
    that a dispute resolution process is not agreed upon by all the 
    parties when establishing and publishing any industry-wide standard 
    or industry-wide generic requirement for telecommunications 
    equipment or customer premises equipment, pursuant to paragraph 
    (4)(A)(v). The Commission shall not establish itself as a party to 
    the dispute resolution process. Such dispute resolution process 
    shall permit any funding party to resolve a dispute with the entity 
    conducting the activity that significantly affects such funding 
    party's interests, in an open, nondiscriminatory, and unbiased 
    fashion, within 30 days after the filing 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 Commission 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 activity when the Commission determines that 
    there are alternative sources of industry-wide standards, industry-
    wide generic requirements, or product certification for a particular 
    class of telecommunications equipment or customer premises equipment 
    available 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 
    receipt of such application, and shall receive public comment on 
    such application.

            (7) Administration and enforcement authority

        For the purposes of administering this subsection and the 
    regulations prescribed thereunder, the Commission shall have the 
    same remedial authority as the Commission has in administering 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 relationship; and
                (ii) a voting equity interest in Bell Communications 
            Research, Inc., by any otherwise unaffiliated Bell operating 
            company of less than 1 percent of Bell Communications 
            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 activities 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 percent of all access lines deployed by 
        telecommunications carriers in the United States as of February 
        8, 1996.
            (D) The term ``certification'' means any technical process 
        whereby a party determines 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 development 
        organization'' means an entity composed 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 procurement and sales

          (1) Nondiscrimination standards for manufacturing

        In the procurement or awarding of supply contracts for 
    telecommunications equipment, a Bell operating company, or any 
    entity acting on its behalf, for the duration of the requirement for 
    a separate subsidiary including manufacturing under this chapter--
            (A) shall consider such equipment, produced or supplied by 
        unrelated persons; and
            (B) may not discriminate in favor of equipment 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 extent consistent with 
    the antitrust laws, engage 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 
    introduction of new technology or the deployment of facilities to 
    provide telecommunications services, and agreement with such other 
    carriers 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 affiliate of such a company shall restrict sales to 
    any local exchange carrier of telecommunications equipment, 
    including software integral to the operation of such equipment and 
    related 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 
    procurement decisions from release not specifically authorized by 
    the owner of such information.

(f) Administration and enforcement authority

    For the purposes of administering and enforcing the provisions of 
this section and the regulations prescribed thereunder, the Commission 
shall have the same authority, power, and functions with respect to any 
Bell operating company or any affiliate thereof as the Commission has in 
administering and enforcing the provisions of this subchapter with 
respect to any common carrier subject to this chapter.

(g) Additional rules and regulations

    The Commission may prescribe such additional rules and regulations 
as the Commission determines are necessary to carry out the provisions 
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 ``manufacturing'' has the same 
meaning as such term has under the AT&T Consent Decree.

(June 19, 1934, ch. 652, title II, Sec. 273, as added Pub. L. 104-104, 
title I, Sec. 151(a), Feb. 8, 1996, 110 Stat. 95.)

                       References in Text

    The antitrust laws, referred to in subsec. (e)(3), are classified 
generally to chapter 1 (Sec. 1 et seq.) of Title 15, Commerce and Trade.

                  Section Referred to in Other Sections

    This section is referred to in sections 271, 272 of this title.
