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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 1554, 2908, 3021         PRINTER'S NO. 4645

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 30 Session of 2003


        INTRODUCED BY ADOLPH, PRESTON, BUNT, DeWEESE, McILHATTAN,
           LaGROTTA, FICHTER, FRANKEL, DiGIROLAMO, CRAHALLA, HARHAI,
           KENNEY, LAUGHLIN, LEH, RAYMOND, READSHAW, REICHLEY, RUBLEY,
           SAINATO, SEMMEL, TRUE, WOJNAROSKI, WRIGHT, YEWCIC, ZUG,
           ALLEN, ARMSTRONG, BAKER, BARD, BARRAR, BASTIAN, BEBKO-JONES,
           BELARDI, BELFANTI, BENNINGHOFF, BIANCUCCI, BISHOP, BOYES,
           BROWNE, BUTKOVITZ, CALTAGIRONE, CAPPELLI, CASORIO, CAUSER,
           CAWLEY, CIVERA, CLYMER, COHEN, COLEMAN, CORNELL, CORRIGAN,
           COSTA, COY, CREIGHTON, CRUZ, DAILEY, DALEY, DALLY, DeLUCA,
           DERMODY, DIVEN, DONATUCCI, EACHUS, EGOLF, FABRIZIO, FLEAGLE,
           FLICK, FORCIER, GABIG, GANNON, GEIST, GERGELY, GILLESPIE,
           GODSHALL, GOODMAN, GRUITZA, HALUSKA, HANNA, HARHART, HARPER,
           HARRIS, HASAY, HENNESSEY, HERMAN, HERSHEY, HESS, HICKERNELL,
           JAMES, KELLER, KIRKLAND, KOTIK, LEACH, LEDERER, LESCOVITZ,
           LEWIS, LYNCH, MAITLAND, MAJOR, MANN, MARKOSEK, MARSICO,
           McCALL, McGEEHAN, McGILL, McILHINNEY, McNAUGHTON, METCALFE,
           MICOZZIE, R. MILLER, S. MILLER, NAILOR, NICKOL, OLIVER,
           PALLONE, PETRI, PETRONE, PHILLIPS, PISTELLA, RIEGER, ROBERTS,
           ROEBUCK, RUFFING, SANTONI, SAYLOR, SCAVELLO, SCHRODER,
           B. SMITH, SOLOBAY, STABACK, STAIRS, STEIL, STERN,
           R. STEVENSON, T. STEVENSON, TANGRETTI, E. Z. TAYLOR,
           J. TAYLOR, TIGUE, VANCE, WALKO, WANSACZ, WASHINGTON, WATERS,
           WATSON, WEBER, WILLIAMS, YOUNGBLOOD, YUDICHAK, PICKETT,
           BIRMELIN, TRAVAGLIO, O'NEILL, ROHRER, DENLINGER, WILT,
           MACKERETH AND REED, APRIL 30, 2003

        SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL
           LICENSURE, IN SENATE, AS AMENDED, NOVEMBER 9, 2004

                                     AN ACT

     1  Amending Title 66 (Public Utilities) of the Pennsylvania          <--
     2     Consolidated Statutes, further providing for residential
     3     telephone service rates based on duration or distance of call
     4     and for local exchange service increases and limitations;
     5     adding and repealing provisions relating to alternative form
     6     of regulation of telecommunications services; establishing
     7     the Advanced Services Education and Aggregation Fund;
     8     providing for Voice Over Internet Protocol; and making a
     9     repeal.


     1  AMENDING TITLE 66 (PUBLIC UTILITIES) OF THE PENNSYLVANIA          <--
     2     CONSOLIDATED STATUTES, FURTHER PROVIDING FOR RESIDENTIAL
     3     TELEPHONE SERVICE RATES BASED ON DURATION OR DISTANCE OF CALL
     4     AND FOR LOCAL EXCHANGE SERVICE INCREASES AND LIMITATIONS;
     5     ADDING AND REPEALING PROVISIONS RELATING TO ALTERNATIVE FORM
     6     OF REGULATION OF TELECOMMUNICATIONS SERVICES; ESTABLISHING
     7     THE BROADBAND OUTREACH AND AGGREGATION FUND; PROVIDING FOR
     8     VOICE OVER INTERNET PROTOCOL; AND MAKING A REPEAL.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  Sections 1325, 3001, 3002, 3003, 3004, 3005,       <--
    12  3006, 3007, 3008 and 3009 of Title 66 of the Pennsylvania
    13  Consolidated Statutes are repealed.
    14     Section 2.  Title 66 is amended by adding sections to read:
    15  § 3010.  (Reserved).
    16  § 3011.  Declaration of policy.
    17     The General Assembly finds and declares that it is the policy
    18  of this Commonwealth to:
    19         (1)  Strike a balance between mandated deployment and
    20     market-driven deployment of broadband facilities and advanced
    21     services throughout this Commonwealth and to continue
    22     alternative regulation of local exchange telecommunications
    23     companies.
    24         (2)  Maintain universal telecommunications service at
    25     affordable rates while encouraging the accelerated provision
    26     of advanced services and deployment of a universally
    27     available, state-of-the-art, interactive broadband
    28     telecommunications network in rural, suburban and urban
    29     areas, including deployment of broadband facilities in or
    30     adjacent to public rights-of-way abutting public schools,
    31     including the administrative offices supporting public
    32     schools, industrial parks and health care facilities.
    33         (3)  Ensure that customers pay only reasonable charges

    20030H0030B4645                  - 2 -     

     1     for protected services, which shall be available on a
     2     nondiscriminatory basis.
     3         (4)  Ensure that rates for protected services do not
     4     subsidize the competitive ventures of telecommunications
     5     carriers.
     6         (5)  Provide diversity in the supply of existing and
     7     future telecommunications services and products in
     8     telecommunications markets throughout this Commonwealth by
     9     ensuring that rates, terms and conditions for protected
    10     services are reasonable and do not impede the development of
    11     competition.
    12         (6)  Ensure the efficient delivery of technological
    13     advances and new services throughout this Commonwealth in
    14     order to improve the quality of life for all Commonwealth
    15     residents.
    16         (7)  Encourage the provision of telecommunications
    17     products and services that enhance the quality of life of
    18     people with disabilities.
    19         (8)  Promote and encourage the provision of competitive
    20     services by a variety of service providers on equal terms
    21     throughout all geographic areas of this Commonwealth without
    22     jeopardizing the provision of universal telecommunications
    23     service at affordable rates.
    24         (9)  Encourage the competitive supply of any service in
    25     any region where there is market demand.
    26         (10)  Encourage joint ventures between local exchange
    27     telecommunications companies and other entities where such
    28     joint ventures accelerate, improve or otherwise assist a
    29     local exchange telecommunications company in carrying out its
    30     network modernization implementation plan.
    20030H0030B4645                  - 3 -     

     1         (11)  Establish a bona fide retail request program to
     2     aggregate and make advanced services available in areas where
     3     sufficient market demand exists and to supplement existing
     4     network modernization plans.
     5         (12)  Promote and encourage the provision of advanced
     6     services and broadband deployment in the service territories
     7     of local exchange telecommunications companies without
     8     jeopardizing the provision of universal service.
     9         (13)  Recognize that the regulatory obligations imposed
    10     upon the incumbent local exchange telecommunications
    11     companies should be reduced to levels more consistent with
    12     those imposed upon competing alternative service providers.
    13  § 3012.  Definitions.
    14     The following words and phrases when used in this chapter
    15  shall have the meanings given to them in this section unless the
    16  context clearly indicates otherwise:
    17     "Advanced service."  A retail service that, regardless of
    18  transmission medium or technology, is capable of supporting a
    19  minimum speed of 200 kilobits per second (kbps) in at least one
    20  direction at the network demarcation point of the customer's
    21  premises.
    22     "Aggregator telephone."  A telephone which is made available
    23  to the transient public, customers or patrons, including, but
    24  not limited to, coin telephones, credit card telephones and
    25  telephones located in hotels, motels, hospitals and
    26  universities.
    27     "Alternative form of regulation."  A form of regulation of
    28  telecommunications services other than the traditional rate
    29  base/rate of return regulation, including a streamlined form of
    30  regulation, as approved by the commission.
    20030H0030B4645                  - 4 -     

     1     "Alternative service provider."  An entity that provides
     2  telecommunications services in competition with a local exchange
     3  telecommunications company.
     4     "Bona fide retail request."  A written request for service
     5  which meets the requirements of section 3014(c)(1), (relating to
     6  network modernization plans), is received by a local exchange
     7  telecommunications company, and through which end users commit
     8  to subscribing to an advanced service.
     9     "Bona fide retail request program."  A program established by
    10  a local exchange telecommunications company pursuant to section
    11  3014(c) (relating to network modernization plans).
    12     "Broadband."  A communication channel using any technology
    13  and having a bandwidth equal to or greater than 1.544 megabits
    14  per second in at least one direction.
    15     "Broadband availability."  Access to broadband service by a
    16  retail telephone customer of a local exchange telecommunications
    17  company.
    18     "Central office."  A building containing one or more local
    19  exchange telecommunications company switches used to provide
    20  local exchange telecommunications service.
    21     "Community."  Those customers of a local exchange
    22  telecommunications company served by an existing or planned
    23  remote terminal or, where no remote terminal exists or is
    24  planned, a central office switch.
    25     "Competitive service."  A service or business activity
    26  declared to be competitive by the commission on or prior to
    27  December 31, 2003, and a service or business activity declared
    28  to be competitive pursuant to section 3016 (relating to
    29  competitive services).
    30     "Department."  The Department of Community and Economic
    20030H0030B4645                  - 5 -     

     1  Development of the Commonwealth.
     2     "Eligible telecommunications carrier."  A carrier designated
     3  by the Pennsylvania Public Utility Commission pursuant to 47 CFR
     4  54.201 (relating to definition of eligible telecommunications
     5  carriers, generally) or successor regulation, as eligible to
     6  receive support from the Federal Universal Service Fund.
     7     "Eligible telecommunications customer."  A customer of an
     8  eligible telecommunications carrier who qualifies for Lifeline
     9  service discounts pursuant to the requirements of 47 CFR 54.409
    10  (relating to consumer qualification for Lifeline) or successor
    11  regulation.
    12     "Fund."  The Advanced Services Education and Aggregation Fund
    13  established under section 3014 (relating to network
    14  modernization plans).
    15     "Gross Domestic Product Price Index" or "GDP-PI."  The Gross
    16  Domestic Product Fixed Weight Price Index as calculated by the
    17  United States Department of Commerce.
    18     "Health care facility."  The term shall have the same meaning
    19  given to it in the act of July 19, 1979 (P.L.130, No.48), known
    20  as the Health Care Facilities Act.
    21     "Inflation offset."  The part of the price change formula in
    22  the price stability mechanism that reflects an offset to the
    23  Gross Domestic Product Price Index.
    24     "Interexchange services."  The transmission of interLATA or
    25  intraLATA toll messages or data outside the local calling area.
    26     "Interexchange telecommunications carrier."  A carrier other
    27  than a local exchange telecommunications company authorized by
    28  the commission to provide interexchange services.
    29     "Lifeline service."  A discounted rate local service
    30  offering, as defined in 47 CFR 54.401 (relating to Lifeline
    20030H0030B4645                  - 6 -     

     1  defined) or successor regulation, but excluding any offering
     2  funded in part by Federal Universal Service Fund Tier Three
     3  funding under 47 CFR 54.403 (relating to Lifeline support
     4  amount) or successor regulation.
     5     "Local exchange telecommunications company."  An incumbent
     6  carrier authorized by the commission to provide local exchange
     7  telecommunications services. The term includes a rural
     8  telecommunications carrier and a nonrural telecommunications
     9  carrier.
    10     "Local exchange telecommunications service."  The
    11  transmission of messages or communications that originate and
    12  terminate within a prescribed local calling area.
    13     "Noncompetitive service."  A regulated service that is not
    14  declared competitive and, as to interexchange telecommunications
    15  carriers, those services included in section 3018(a) (relating
    16  to interexchange telecommunications carriers).
    17     "Nonrural telecommunications carrier."  A local exchange
    18  telecommunications company that is not a rural telephone company
    19  as defined in section 3 of the Telecommunications Act of 1996
    20  (Public Law 104-104, 110 Stat. 56).
    21     "Optional calling plan."  A discounted toll plan offered by
    22  either a local exchange telecommunications company or an
    23  interexchange telecommunications carrier.
    24     "Price stability mechanism."  A formula which may be included
    25  in a commission-approved alternative form of regulation plan
    26  that permits rates for noncompetitive services to be adjusted
    27  upward or downward.
    28     "Protected service."  The following telecommunications
    29  services provided by a local exchange telecommunications
    30  company, unless the commission determines that such service is
    20030H0030B4645                  - 7 -     

     1  competitive:
     2         (1)  Service provided to residential consumers or small
     3     business consumers subscribing to four or fewer access lines
     4     only to the extent that the service is necessary for
     5     completing any local exchange call for which dial tone is
     6     necessary.
     7         (2)  Touch-tone service.
     8         (3)  Switched access service.
     9         (4)  Special access service.
    10         (5)  Ordering, installation, restoration and
    11     disconnection of the services specified in paragraphs (1)
    12     through (4).
    13     "Remote terminal."  A structure located outside of a central
    14  office which houses electronic equipment and which provides
    15  transport for telecommunications services to and from a central
    16  office switch.
    17     "Rural telecommunications carrier."  A local exchange
    18  telecommunications company that is a rural telephone company as
    19  defined in section 3 of the Telecommunications Act of 1996
    20  (Public Law 104-104, 110 Stat. 56).
    21     "Small business."  A business consumer that subscribes to
    22  four or fewer access lines.
    23     "Special access service."  Service provided over dedicated,
    24  nonswitched facilities by local exchange telecommunications
    25  companies to interexchange carriers or other large volume users
    26  which provide connection between an interexchange carrier or
    27  private network and a customer's premises.
    28     "Switched access service."  A service which provides for the
    29  use of common terminating, switching and trunking facilities of
    30  a local exchange telecommunications company's public switched
    20030H0030B4645                  - 8 -     

     1  network. The term includes, but is not limited to, the rates for
     2  local switching, common and dedicated transport and the carrier
     3  charge.
     4     "Telecommunications Act of 1996."  The Telecommunications Act
     5  of 1996 (Public Law 104-104, 110 Stat. 56).
     6     "Telecommunications carrier."  An entity that provides
     7  telecommunications services subject to the jurisdiction of the
     8  commission.
     9     "Telecommunications service."  The offering of the
    10  transmission of messages or communications for a fee to the
    11  public.
    12     "Voice Over Internet Protocol" or "VOIP."  The provision of
    13  voice communications and related features and functions by means
    14  of encoding voice and related signals into packetized form and
    15  transmission of those packets using Internet Protocol or any
    16  successor protocol for some or all of the transmission.
    17  § 3013.  Continuation of commission-approved alternative
    18             regulation and network modernization plans.
    19     (a)  General rule.--An alternative form of regulation plan
    20  and network modernization plan approved by the commission for a
    21  local exchange telecommunications company as of December 31,
    22  2003 shall remain valid and effective, except as may be amended
    23  at the election of the local exchange telecommunications company
    24  as authorized by this chapter. The commission shall allow a
    25  previously approved plan to be amended to conform to any changes
    26  made under this chapter, and shall not require any other changes
    27  to the plan.
    28     (b)  Limitation on changes to plans.--Except for changes to
    29  existing alternative form of regulation and network
    30  modernization plans as authorized by this chapter, no change to
    20030H0030B4645                  - 9 -     

     1  any alternative form of regulation or network modernization plan
     2  may be made without the express agreement of both the commission
     3  and the local exchange telecommunications company.
     4     (c)  Grandfather provision.--All services previously declared
     5  competitive as of December 31, 2003, under a local exchange
     6  telecommunications company's alternative form of regulation plan
     7  shall remain competitive.
     8     (d)  Commission oversight.--The commission will continue to
     9  exercise oversight of alternative form of regulation and network
    10  modernization plans for local exchange telecommunications
    11  companies as provided in this chapter.
    12  § 3014.  Network modernization plans.
    13     (a)  Continuation of approved plan.--A local exchange
    14  telecommunications company that does not elect an option under
    15  subsection (b) shall remain subject to its network modernization
    16  plan in effect as of December 31, 2003, without revision or
    17  modification except by agreement under section 3013(b) (relating
    18  to continuation of commission-approved alternative regulation
    19  and network modernization plans) and as provided in this
    20  section, through December 31, 2015.
    21     (b)  Options for amendment of network modernization plan.--
    22  Local exchange telecommunications companies shall have the
    23  following options:
    24         (1)  (i)  A rural telecommunications carrier that elects
    25         to amend its network modernization plan pursuant to this
    26         subsection shall remain subject to the carrier's network
    27         modernization plan in effect as of December 31, 2003, as
    28         amended pursuant to this subsection, through December 31,
    29         2008. Prior to implementation of such election, the rural
    30         telecommunications carrier shall comply with the
    20030H0030B4645                 - 10 -     

     1         notification requirements of subsection (d).
     2             (ii)  The rural telecommunications carrier shall
     3         commit to accelerate 100% broadband availability by
     4         December 31, 2008, in its amended network modernization
     5         plan. Any rural telecommunications carrier electing this
     6         option shall not be required to offer a bona fide retail
     7         request program.
     8         (2)  (i)  A rural telecommunications carrier that elects
     9         to amend its network modernization plan pursuant to this
    10         subsection shall remain subject to the carrier's network
    11         modernization plan in effect as of December 31, 2003, as
    12         amended pursuant to this subsection, through December 31,
    13         2010. Prior to implementation of such election, the rural
    14         telecommunications carrier shall comply with the
    15         notification requirements of subsection (d).
    16             (ii)  The rural telecommunications carrier shall
    17         commit:
    18                 (A)  to accelerate broadband availability to at
    19             least 80% of its total retail access lines in its
    20             distribution network by December 31, 2010, and may
    21             also commit to further deployment by 2015 as set
    22             forth in section 3015(a) (relating to alternative
    23             forms of regulation); and
    24                 (B)  to offer a bona fide retail request program
    25             pursuant to subsection (c).
    26     Under no circumstances may the rural telecommunications
    27     carrier reduce its existing broadband availability
    28     commitment.
    29         (3)  (i)  A local exchange telecommunications company
    30         that elects to amend its network modernization plan
    20030H0030B4645                 - 11 -     

     1         pursuant to this subsection shall remain subject to such
     2         company's network modernization plan in effect as of
     3         December 31, 2003, as amended pursuant to this
     4         subsection, including meeting its 100% broadband
     5         availability commitment. Prior to implementation of such
     6         election, the local exchange telecommunications company
     7         shall comply with the notification requirements of
     8         subsection (d).
     9             (ii)  The local exchange telecommunications company
    10         shall commit:
    11                 (A)  to provide broadband availability to 100% of
    12             its total retail access lines in its distribution
    13             network by December 31, 2013 or December 31, 2015;
    14             and
    15                 (B)  to offer a bona fide retail request program
    16             pursuant to subsection (c).
    17     Under no circumstances may such local exchange
    18     telecommunications company reduce its existing broadband
    19     availability commitment.
    20         (4)  A local exchange telecommunications company that
    21     elects under paragraph (1), (2) or (3) shall also commit to
    22     universal broadband deployment in or adjacent to public
    23     rights-of-way abutting all public schools, including the
    24     administration offices supporting public schools, industrial
    25     parks and health care facilities in its service territory on
    26     or before December 31, 2004, except that a local exchange
    27     telecommunications company serving more than ten exchanges in
    28     this Commonwealth may elect to extend this commitment from
    29     December 31, 2004, to December 31, 2005, for any exchange
    30     with less than 4,000 access lines.
    20030H0030B4645                 - 12 -     

     1         (5)  A local exchange telecommunications company that
     2     elects under paragraph (1), (2) or (3) may amend its network
     3     modernization plan to define "universal broadband
     4     availability" as the provision of broadband capability within
     5     ten business days of notice to the company of the request by
     6     a bona fide customer. If a local exchange telecommunications
     7     company does not elect under paragraph (1), (2) or (3), then
     8     the provisioning interval shall remain and be within five
     9     business days after a request for broadband service is
    10     received, as stated in the company's currently effective
    11     network modernization plan. The amended network modernization
    12     plan may also be modified to remove any interim commitments
    13     contained in the network modernization plan in effect as of
    14     December 31, 2003, or as later modified.
    15         (6)  A local exchange telecommunications company that
    16     elects under paragraph (1), (2) or (3) may subsequently
    17     petition the commission for further modification of its
    18     amended network modernization plan, which the commission may
    19     grant upon good cause shown.
    20         (7)  A rural telecommunications carrier making an
    21     election pursuant to paragraph (1), (2) or (3) and filing its
    22     amended network modernization plan with the commission
    23     pursuant to subsection (d) shall be granted by the commission
    24     a suspension of its section 251(c)(2), (3), (4), (5) and (6)
    25     obligations under the Telecommunications Act of 1996. This
    26     suspension of obligations shall expire on December 31, 2010,
    27     unless extended by the commission. Should the commission,
    28     following a hearing, determine that the rural
    29     telecommunications carrier has failed to timely meet its
    30     commitments pursuant to this paragraph the suspension of
    20030H0030B4645                 - 13 -     

     1     obligations shall expire upon entry of the commission order
     2     making such determination. Expiration of the suspension of
     3     obligations shall not impact the rural telephone company
     4     exemption of the rural telecommunications carrier under
     5     section 251(f)(1) of the Telecommunications Act of 1996.
     6         (8)  A local exchange telecommunications company may
     7     accelerate its broadband availability commitment by electing
     8     an additional option pursuant to paragraph (1), (2) or (3),
     9     as applicable, at a later date. The local exchange
    10     telecommunications company shall be subject to the applicable
    11     modified inflation offset in its price stability mechanism as
    12     set forth in section 3015(a)(1), effective upon the filing of
    13     an amended network modernization plan under subsection (d).
    14     (c)  Bona fide retail request program.--A local exchange
    15  telecommunications company that elects to amend its network
    16  modernization plan pursuant to subsection (b)(1), (2) or (3)
    17  shall notify the commission no later than one year after the
    18  effective date of its election that it is implementing a bona
    19  fide retail request program which shall continue through
    20  December 31, 2015, or such earlier date as the local
    21  telecommunications company achieves 100% broadband availability
    22  throughout its service territory. A bona fide retail request
    23  program shall consist of the following:
    24         (1)  Persons or entities seeking advanced services
    25     pursuant to a bona fide retail request program shall submit a
    26     written request for such services to the local exchange
    27     telecommunications company. The written request may be in the
    28     form of a petition which includes the information required by
    29     this paragraph or in the form of individual requests each of
    30     which includes the information required by this paragraph. If
    20030H0030B4645                 - 14 -     

     1     individual requests are received, the local exchange
     2     telecommunications company shall aggregate requests for the
     3     same or comparable service and initiate appropriate action
     4     pursuant to this subsection when the required number of
     5     requests have been received. To be considered a bona fide
     6     retail request, the written request must include:
     7             (i)  a request that a minimum of 50 retail access
     8         lines be provided the same or comparable advanced service
     9         within a community or a request that 25% of retail access
    10         lines be provided the same or comparable advanced service
    11         within a community, whichever is less;
    12             (ii)  the name, address, telephone number and
    13         signature of each existing retail customer seeking the
    14         advanced service, the advanced service being requested,
    15         the number of access lines for which the advanced service
    16         is requested, a commitment by each retail customer who
    17         signs the request to subscribe to the requested advanced
    18         service for a minimum of one year at the local exchange
    19         telecommunications company's applicable rate for the
    20         service; and
    21             (iii)  the name, address and telephone number of a
    22         designated contact person.
    23     Customers making the request shall agree to take the service
    24     for a one-year period, but shall not be required to make such
    25     a commitment until the price and terms of the service are
    26     specified by the local exchange telecommunications company
    27     and shall not be required to make any payments until the
    28     service is actually provided.
    29         (2)  In administering the bona fide retail request
    30     program, the local exchange telecommunications company shall:
    20030H0030B4645                 - 15 -     

     1             (i)  establish a World Wide Web site and toll-free
     2         telephone number to address customer inquiries regarding
     3         the program;
     4             (ii)  mail a request form to a customer upon request;
     5             (iii)  confirm its receipt of any completed request
     6         in writing to the customer; such confirmation to identify
     7         the service requested, the applicable rate, the expected
     8         contract term, the status of the request and a term
     9         subscription agreement for execution; and
    10             (iv)  notify the customers in a community, within 45
    11         days, of the expected implementation date once the
    12         requisite number of requests has been received and the
    13         expected date of the availability of service.
    14         (3)  When a bona fide retail request has been received
    15     that meets the requirements of paragraph (1), the local
    16     exchange telecommunications company shall provide the
    17     requested advanced service or other reasonably comparable
    18     service that meets the data speed of the requested service to
    19     the community as soon as practicable, but in no event later
    20     than 365 days of the date the requirements of paragraph (1)
    21     have been met or within the period approved by the commission
    22     under paragraph (4) where:
    23             (i)  the local exchange telecommunications company
    24         provides the requested advanced service to other
    25         customers in its service territory;
    26             (ii)  there is no advanced service using any
    27         technology available to the requesting customers that
    28         offers data speeds reasonably comparable to that
    29         requested; and
    30             (iii)  the community is situated within the service
    20030H0030B4645                 - 16 -     

     1         territory of the local exchange telecommunications
     2         company.
     3         (4)  Where the total number of bona fide retail requests
     4     received by any local exchange telecommunications company or
     5     affiliated companies that meet the requirements of paragraphs
     6     (1) and (3) exceed 40 customers in any 12-month period, or
     7     where there are more than 20 such requests that require
     8     property acquisition, including acquiring rights-of-way, or
     9     new construction in any 12-month period, the local exchange
    10     telecommunications company or companies may provide a
    11     verified certification to the commission that one or both of
    12     the previously stated criteria are met. Upon receipt of the
    13     certification, the commission, or the commission through its
    14     designated staff, shall permit the local exchange
    15     telecommunications company or companies to extend the time
    16     for such deployments for a period of no more than 12 months,
    17     unless the commission determines an additional time period to
    18     be just and reasonable.
    19         (5)  With regard to requests submitted under this
    20     subsection, a retail customer may challenge the action of a
    21     local exchange telecommunications company pursuant to section
    22     701 (relating to complaints).
    23         (6)  Local exchange telecommunications companies with
    24     bona fide retail request programs shall provide semiannual
    25     reports to the commission of the number of requests for
    26     advanced services received during the reporting period by
    27     exchange and the action taken on requests meeting the
    28     requirements of subsection (c). Local exchange
    29     telecommunications companies, within 30 days after initiating
    30     a bona fide retail request program, shall also provide the
    20030H0030B4645                 - 17 -     

     1     commission with the form of any advanced services term
     2     subscription agreements customers will be required to execute
     3     in connection with receiving the requested services.
     4     (d)  Notice and filing of amendments.--A local exchange
     5  telecommunications company that elects to amend its network
     6  modernization plan pursuant to subsection (b) shall notify the
     7  commission in writing of such election and, within 60 days
     8  following such notification, file its amended network
     9  modernization plan with the commission. Copies of the written
    10  notice of election and of the amended network modernization plan
    11  shall be served by the local exchange telecommunications company
    12  on the Office of Consumer Advocate and the Office of Small
    13  Business Advocate. Concurrent with the filing of the amended
    14  plan with the commission, the local exchange telecommunications
    15  company shall publish notice of such filing in a newspaper or
    16  newspapers of general circulation in its service territory or by
    17  bill message or insert. The amended network modernization plan
    18  shall become effective upon filing with the commission.
    19     (e)  Network modernization plan report.--
    20         (1)  A local exchange telecommunications company that
    21     files an amended network modernization plan with the
    22     commission shall also file with the commission a report on
    23     its provision of broadband availability. The first report
    24     shall be filed no later than April 30, 2004, and shall be
    25     based upon the 12 months ending December 31, 2003.
    26     Thereafter, reports shall be filed biennially no later than
    27     April 30. To the extent applicable to the local exchange
    28     telecommunications company's amended network modernization
    29     plan, reports shall be limited to:
    30             (i)  The status of broadband deployment in or
    20030H0030B4645                 - 18 -     

     1         adjacent to public rights-of-way abutting all public
     2         schools, including the administration offices supporting
     3         public schools, industrial parks and health care
     4         facilities.
     5             (ii)  The percentage of access lines with broadband
     6         availability from the local exchange telecommunications
     7         company.
     8             (iii)  The number of written bona fide retail
     9         requests received by exchange.
    10             (iv)  A general description of any technologies or
    11         media utilized by the local exchange telecommunications
    12         company to offer or provide advanced services and
    13         broadband availability.
    14         (2)  (i)  The report shall be submitted in the form
    15         determined by the commission. Should the commission
    16         request any additional network reports or information, a
    17         local exchange telecommunications company may oppose such
    18         requirement, by petition, on the grounds that the report
    19         or information will be detrimental to the security of its
    20         network or that the benefits of the report will not
    21         exceed the attendant expense or administrative time
    22         requirements associated therewith. The commission shall
    23         grant the petition upon such showing by the local
    24         exchange telecommunications company.
    25             (ii)  Nothing in this paragraph shall be construed to
    26         impede the ability of the commission to require the
    27         submission of further information to support the accuracy
    28         of or to seek an explanation of the reports specified in
    29         this subsection.
    30             (iii)  Under no circumstances shall the commission
    20030H0030B4645                 - 19 -     

     1         compel the public release of maps or other information
     2         describing the actual location of a local exchange
     3         communications company's facilities.
     4     (f)  Assistance to political subdivisions.--
     5         (1)  In an effort to assist political subdivisions with
     6     economic revitalization projects, a local exchange
     7     telecommunications company shall commit, in its modified
     8     alternative form of regulation plan and its network
     9     modernization plan, to make technical assistance for such
    10     projects available to political subdivisions located in its
    11     service territory in pursuing the deployment of additional
    12     telecommunications infrastructure or services by the local
    13     exchange telecommunications company.
    14         (2)  (i)  Except as otherwise provided for under
    15         subparagraph (ii), a political subdivision or any entity
    16         established by a political subdivision, including a
    17         municipal authority, may not provide any
    18         telecommunications services to the public for
    19         compensation within the service territory of a local
    20         exchange telecommunications company operating under a
    21         network modernization plan.
    22             (ii)  A political subdivision may offer advanced or
    23         broadband services if the political subdivision has
    24         submitted a written request for the provision of such
    25         service to the local exchange telecommunications company
    26         serving the area and, within six months of the request,
    27         the local exchange telecommunications company has not
    28         agreed to provide the data speeds requested. If the local
    29         exchange telecommunications company agrees to provide the
    30         data speeds requested, then it must do so within 18
    20030H0030B4645                 - 20 -     

     1         months of the request.
     2         (3)  The prohibition in paragraph (2) shall not be
     3     construed to preclude the continued provision of any
     4     municipally provided telecommunications services of the same
     5     type and scope as were being provided on the effective date
     6     of this section.
     7     (g)  Advanced Services Education and Aggregation Fund.--
     8         (1)  The Advanced Services Education and Aggregation Fund
     9     is established as a separate fund in the State Treasury and
    10     shall be funded by the payments that may be required under
    11     section 3015(c) (relating to alternative forms of
    12     regulation).
    13         (2)  The department shall authorize expenditures from the
    14     fund for two purposes:
    15             (i)  educational outreach programs for political
    16         subdivisions, economic development entities, public
    17         schools, health care facilities and businesses and for
    18         residential customers concerning the benefits, use and
    19         procurement of advanced services and broadband
    20         telecommunication services from local exchange
    21         telecommunications companies; and
    22             (ii)  seed grants to aggregate customer demand for
    23         advanced services or broadband in communities without
    24         such services and permit customers in such communities to
    25         request such services under a local exchange
    26         telecommunications company bona fide retail request
    27         program.
    28         (3)  The fund shall continue until December 31, 2015, at
    29     which time the department shall terminate the fund and return
    30     the remaining funds on a pro rata basis to the local exchange
    20030H0030B4645                 - 21 -     

     1     telecommunications companies that contributed to the fund.
     2     (h)  Balanced deployment.--A local exchange
     3  telecommunications company shall reasonably balance deployment
     4  of its broadband network between rural, urban and suburban areas
     5  within its service territory, as those areas are applicable,
     6  according to its approved network modernization plan.
     7     (i)  Impact of competition.--Notwithstanding any provision of
     8  this section or any network modernization plan to the contrary,
     9  if one or more alternative service providers, excluding service
    10  providers using satellite-based systems, have made advanced
    11  services or broadband available at reasonably comparable data
    12  speeds throughout a particular exchange served by a rural
    13  telecommunications carrier, the rural telecommunications
    14  carrier's commitment to provide advanced services and broadband
    15  availability in that exchange shall be deemed met and shall be
    16  credited to its deployment obligation. To obtain such credit,
    17  the rural telecommunications carrier must provide verification
    18  of such service availability to the commission.
    19     (j)  Study of Statewide education network.--
    20         (1)  The Legislative Budget and Finance Committee in
    21     consultation with all advanced broadband service providers,
    22     telecommunications carriers and alternative service providers
    23     operating in this Commonwealth, irrespective of the
    24     technology used, and the Department of Education shall
    25     perform a feasibility study on the development of a Statewide
    26     education network to promote the effective use of information
    27     technology that enhances education, promotes community
    28     partnerships and supports economic growth in a knowledge-
    29     based society. In conducting the study, the committee shall
    30     consider cost-benefit analyses associated with the
    20030H0030B4645                 - 22 -     

     1     development and implementation of a Statewide education
     2     network. At a minimum, the committee shall inquire into and
     3     make recommendations with respect to:
     4             (i)  The impact on public and private schools,
     5         vocational-technical schools, intermediate units and
     6         institutions of higher education in this Commonwealth
     7         that would be linked together with functional levels of
     8         broadband throughout this Commonwealth.
     9             (ii)  Competition in the telecommunications industry
    10         of this Commonwealth and the ability for the public and
    11         private schools, vocational-technical schools,
    12         intermediate units and institutions of higher education
    13         in this Commonwealth's network on intermediate units,
    14         school districts and individual schools to procure
    15         telecommunications services.
    16             (iii)  The impact on local exchange
    17         telecommunications service providers that have amended
    18         their network modernization plan to accelerate the
    19         deployment of broadband and advanced services as provided
    20         for within the provisions of this chapter.
    21             (iv)  Funding mechanisms to support the development
    22         and implementation of a Statewide education network and
    23         the availability of Federal and State funding assistance
    24         programs to rural school districts to procure high-speed
    25         telecommunications services.
    26             (v)  A comparison of the efficiency and effectiveness
    27         of Statewide education networks implemented in other
    28         states.
    29         (2)  The committee shall submit a final report with
    30     recommendations to the General Assembly no later than May 31,
    20030H0030B4645                 - 23 -     

     1     2005, and publish notice of the final report in the
     2     Pennsylvania Bulletin within 30 days of the submission of the
     3     final report.
     4     (k)  Inventory of available services.--
     5         (1)  The department shall compile, periodically update
     6     and publish, including at its World Wide Web site, a listing
     7     of advanced and broadband services, by general location,
     8     available from all advanced and broadband service providers
     9     operating in this Commonwealth irrespective of the technology
    10     used.
    11         (2)  All providers of advanced and broadband services
    12     shall cooperate with the department.
    13         (3)  The department may not disclose maps or other
    14     information describing the specific location of any
    15     provider's facilities.
    16     (l)  Construction.--Nothing in this section shall be
    17  construed:
    18         (1)  As giving the commission the authority to require a
    19     local exchange telecommunications company to provide specific
    20     services or to deploy a specific technology to retail
    21     customers seeking broadband or advanced services.
    22         (2)  As prohibiting a local exchange telecommunications
    23     company from participating in joint ventures with other
    24     entities in meeting its advanced services and broadband
    25     deployment commitments under its network modernization plan.
    26  § 3015.  Alternative forms of regulation.
    27     (a)  Inflation offset.--
    28         (1)  Except as otherwise provided in paragraphs (2) and
    29     (3), a local exchange telecommunications company with an
    30     alternative form of regulation containing a price stability
    20030H0030B4645                 - 24 -     

     1     mechanism that files an amended network modernization plan
     2     under section 3014(b)(1), (2) or (3) (relating to network
     3     modernization plans) shall be subject to a modified inflation
     4     offset in its price stability mechanism in adjusting its
     5     rates for noncompetitive services, effective upon the filing
     6     of an amended network modernization plan under section
     7     3014(d), as follows:
     8             (i)  If a nonrural telecommunications carrier files
     9         an amended network modernization plan under section
    10         3014(b)(3) that commits to deploy 100% broadband
    11         availability by December 31, 2013, then the inflation
    12         offset shall be zero.
    13             (ii)  If a nonrural telecommunications carrier files
    14         an amended network modernization plan under section
    15         3014(b)(3) that commits to deploy 100% broadband
    16         availability by December 31, 2015, then the inflation
    17         offset shall be equal to 0.5%.
    18             (iii)  If a rural telecommunications carrier files an
    19         amended network modernization plan under section
    20         3014(b)(1) or (3), then the inflation offset shall be
    21         zero.
    22             (iv)  If a rural telecommunications carrier files an
    23         amended network modernization plan under section
    24         3014(b)(2) that commits to deploy 95% broadband
    25         availability by December 31, 2013, then the inflation
    26         offset shall be equal to 10% of the inflation offset
    27         contained in the rural telecommunications carrier's
    28         original alternative regulation plan.
    29             (v)  If a rural telecommunications carrier files an
    30         amended network modernization plan under section
    20030H0030B4645                 - 25 -     

     1         3014(b)(2) that commits to deploy 90% broadband
     2         availability by December 31, 2012, then the inflation
     3         offset shall be equal to 25% of the inflation offset
     4         contained in the rural telecommunications carrier's
     5         original alternative regulation plan.
     6             (vi)  If a rural telecommunications carrier files an
     7         amended network modernization plan under section
     8         3014(b)(2) that commits to deploy 85% broadband
     9         availability by December 31, 2011, then the inflation
    10         offset shall be equal to 50% of the inflation offset
    11         contained in the rural telecommunications carrier's
    12         original alternative regulation plan.
    13             (vii)  If a rural telecommunications carrier files an
    14         amended network modernization plan under section
    15         3014(b)(2) that commits to deploy 80% or less broadband
    16         availability by December 31, 2010, then the inflation
    17         offset shall be equal to the inflation offset contained
    18         in the rural telecommunications carrier's original
    19         alternative regulation plan.
    20     In the event that a local exchange telecommunications company
    21     is found by the commission, after notice and evidentiary
    22     hearings, to have failed to meet its network commitment for
    23     final broadband availability, then the commission shall
    24     require the local exchange telecommunications company to
    25     refund to customers in its next price stability filing an
    26     amount that is just and reasonable under the circumstances,
    27     but not to exceed a revenue amount determined by multiplying
    28     the percentage shortfall of the broadband availability
    29     commitment on an access line basis times the revenue that was
    30     obtained as a result of the modified inflation offset
    20030H0030B4645                 - 26 -     

     1     provided in this section plus interest calculated under
     2     section 1308(d) (relating to voluntary changes in rates).
     3         (2)  Each protected service of a nonrural
     4     telecommunications carrier shall be subject to an inflation
     5     offset and that no rate adjustment for any such protected
     6     service shall exceed the inflation offset.
     7         (3)  Through December 31, 2015:
     8             (i)  In any year in which revenue-neutral rate
     9         changes are ordered by the commission for a nonrural
    10         telecommunications carrier, any increase in residential
    11         and small business protected service rates under that
    12         carrier's price stability mechanism in that year shall be
    13         offset against any revenue-neutral rate increase for
    14         those services.
    15             (ii)  (A)  A rural telecommunications carrier may not
    16             separately propose, as part of a rate rebalancing
    17             filing, to increase the rates for residential or
    18             small business local exchange telecommunications
    19             service in the same calendar year as rates for
    20             residential or small business local exchange
    21             telecommunications service are increased under the
    22             annual price stability index, where the rate
    23             rebalancing proposal is not submitted to the
    24             commission as part of the annual price stability
    25             mechanism filing. Any cap contained in the rate
    26             rebalancing section of a rural telecommunications
    27             carrier's existing alternative form of regulation
    28             plan that restricts the level of annual rate
    29             increases to a local exchange telecommunications
    30             service shall also be applied to limit any rate
    20030H0030B4645                 - 27 -     

     1             increase that occurs as a result of elimination of
     2             the offset.
     3                 (B)  These limitations shall not apply where
     4             rates are changed as a result of a generic
     5             investigation or when the rebalancing does not
     6             increase the weighted average rates respectively of
     7             residential and small business local exchange
     8             telecommunications service.
     9     (b)  Rate changes for rural telecommunications carriers.--
    10         (1)  In addition to the rate change provisions in its
    11     alternative form of regulation plan, a rural
    12     telecommunications carrier operating without a price
    13     stability mechanism that files with the commission an amended
    14     network modernization plan under section 3014(b)(1), (2) or
    15     (3) shall be permitted at any time to file with the
    16     commission proposed tariff changes, effective 45 days after
    17     filing, setting forth miscellaneous changes, including
    18     increases and decreases, in rates for noncompetitive
    19     services, excluding basic residential and business rates,
    20     provided such rate changes do not increase the rural
    21     telecommunications carrier's annual intrastate revenues by
    22     more than 2%.
    23         (2)  The commission tariff filing requirements and review
    24     associated with such proposed rate changes shall be limited
    25     to schedules submitted by the rural telecommunications
    26     carrier detailing the impact of the rate changes on the
    27     carrier's annual intrastate revenues.
    28         (3)  A rural telecommunications carrier that implements
    29     noncompetitive rate changes consistent with the procedure set
    30     forth in its alternative form of regulation plan shall be
    20030H0030B4645                 - 28 -     

     1     required only to file such financial and cost data with the
     2     commission to justify such changes as is required under its
     3     commission-approved alternative form of regulation plan.
     4         (4)  Notwithstanding the provisions of paragraph (1), (2)
     5     or (3), for any rural telecommunications carrier serving less
     6     than 50,000 access lines in this Commonwealth and operating
     7     under an alternative form of regulation plan, a formal
     8     complaint to deny rate changes for noncompetitive services,
     9     unless signed by at least 20 customers of the rural
    10     telecommunications carrier, shall not prevent implementation
    11     of the rate changes pending the adjudication of the formal
    12     complaint by the commission.
    13     (c)  Payments to fund.--
    14         (1)  A local exchange telecommunications company that
    15     files an amended network modernization plan under section
    16     3014(b)(2) or (3) may be required by the department to
    17     contribute up to, but no more than, 10% of the first year's
    18     annual revenue effect:
    19             (i)  of any rate increases permitted by the
    20         elimination of the offset under subsection (a); or
    21             (ii)  if the local exchange telecommunications
    22         company is operating without a price stability mechanism,
    23         of any rate increases under subsection (b)(1), to the
    24         fund established under section 3014(g).
    25         (2)  The contribution shall be payable in equal quarterly
    26     installments and calculated on projected increased revenues
    27     for the first year of the rate change. The contributions
    28     shall also be made in connection with each subsequent
    29     noncompetitive service rate increase until the local exchange
    30     telecommunications company fulfills the higher percentage
    20030H0030B4645                 - 29 -     

     1     deployment obligation set forth in its amended network
     2     modernization plan.
     3         (3)  In no event shall the fund exceed $5,000,000 and, in
     4     the event of such overfunding, the department shall credit
     5     the overcollection to the next year's contribution amount.
     6         (4)  A local exchange telecommunications company that
     7     elects to amend its network modernization plan pursuant to
     8     section 3014(b)(1) shall not be required to contribute to the
     9     fund.
    10     (d)  General filing requirements.--For a local exchange
    11  telecommunications company that files an amended network
    12  modernization plan under section 3014(b)(1), (2) or (3), the
    13  commission's filing and audit requirements shall be limited to
    14  the following submissions by the company:
    15         (1)  Network modernization plan reports filed pursuant to
    16     section 3014(e).
    17         (2)  An annual financial report consisting of a balance
    18     sheet and income statement.
    19         (3)  An annual deaf, speech-impaired and hearing-impaired
    20     relay information report.
    21         (4)  An annual service report.
    22         (5)  Universal service reports.
    23         (6)  An annual access line report.
    24         (7)  An annual statement of gross intrastate operating
    25     revenues for purposes of calculating assessments for
    26     regulatory expenses.
    27         (8)  An annual State tax adjustment computation for years
    28     in which a tax change has occurred, if applicable.
    29         (9)  For those companies with a bona fide retail request
    30     program, a bona fide retail request report under section
    20030H0030B4645                 - 30 -     

     1     3014(c)(6).
     2  These reports shall be submitted in the form determined by the
     3  commission.
     4     (e)  Other reports.--
     5         (1)  Notwithstanding any other provision of this title to
     6     the contrary, no report, statement, filing or other document
     7     or information, except as specified in subsection (d), shall
     8     be required of any local exchange telecommunications company
     9     unless the commission, upon notice to the affected local
    10     exchange telecommunications company and an opportunity to be
    11     heard, has first made specific written findings supporting
    12     conclusions in an entered order that:
    13             (i)  The report is necessary to ensure that the local
    14         exchange telecommunications company is charging rates
    15         that are in compliance with this chapter and its
    16         effective alternative form of regulation.
    17             (ii)  The benefits of the report substantially
    18         outweigh the attendant expense and administrative time
    19         and effort required of the local exchange
    20         telecommunications company to prepare it.
    21         (2)  Nothing in this subsection shall be construed to
    22     impede the ability of the commission to require the
    23     submission of further information to support the accuracy of
    24     or to seek an explanation of the reports specified in
    25     subsection (d).
    26     (f)  Rate change limitations.--Nothing in this chapter shall
    27  be construed to limit the requirement of section 1301 (relating
    28  to rates to be just and reasonable) that rates shall be just and
    29  reasonable. The annual rate change limitations set forth in a
    30  local exchange telecommunications company's effective
    20030H0030B4645                 - 31 -     

     1  commission-approved alternative form of regulation plan or any
     2  other commission-approved annual rate change limitation shall
     3  remain applicable.
     4     (g)  Small business customers.--Local exchange
     5  telecommunications companies operating under an alternative form
     6  of regulation plan with small business customers defined as
     7  "three lines or less" shall amend such definition to "four or
     8  fewer lines."
     9     (h)  Conformance of plan.--Upon the filing by a local
    10  exchange telecommunications company of network modernization
    11  plan amendments pursuant to section 3014(d), the local exchange
    12  telecommunications company's alternative form of regulation plan
    13  shall be deemed amended consistent with this section.
    14  § 3016.  Competitive services.
    15     (a)  Declaration of services as competitive.--A service or
    16  business activity provided by a local exchange
    17  telecommunications company, including a protected service, not
    18  previously declared by the commission as competitive may be
    19  declared competitive by the commission under the following
    20  provisions:
    21         (1)  The local exchange telecommunications company may
    22     petition the commission for a determination of whether a
    23     service is competitive. The commission shall enter an order
    24     approving or disapproving the petition within 60 days of the
    25     filing date or 90 days where a protest is timely filed, or
    26     the petition shall be deemed approved. In making the
    27     determination, the commission shall consider all relevant
    28     information submitted to it.
    29         (2)  Simultaneously with the filing by the local exchange
    30     telecommunications company of a petition with the commission
    20030H0030B4645                 - 32 -     

     1     for a declaration of a service as competitive, the local
     2     exchange telecommunications company shall serve a copy of the
     3     petition on the Office of Consumer Advocate and the Office of
     4     Small Business Advocate and give notice to the public of the
     5     filing of its petition in a newspaper or newspapers of
     6     general circulation in the company's service territory.
     7         (3)  In a proceeding to declare a service competitive,
     8     the commission shall consider the availability of like or
     9     substitute services or other business activities in the
    10     relevant geographic area.
    11         (4)  The burden of proving that a protected service is
    12     competitive rests on the party seeking to have the service
    13     declared competitive. Hearings shall not be required, unless
    14     a protesting party has raised relevant and material factual
    15     issues.
    16     (b)  Optional declaration of nonprotected services as
    17  competitive.--Notwithstanding the provisions of subsection (a),
    18  a local exchange telecommunications company that has filed an
    19  amended network modernization plan pursuant to section
    20  3014(b)(1), (2) or (3) (relating to network modernization
    21  plans), at its option, may declare services which are not
    22  protected as competitive by filing notice of its election of
    23  this option with the commission.
    24     (c)  Rural exchange specific pricing.--
    25         (1)  When an alternative service provider is providing
    26     local exchange telecommunications services within an exchange
    27     of a rural telecommunications carrier that has filed an
    28     amended network modernization plan under section 3014(b)(1),
    29     (2) or (3), the rural telecommunications carrier may petition
    30     the commission for approval to begin pricing its services in
    20030H0030B4645                 - 33 -     

     1     the exchange at its discretion.
     2         (2)  The commission, following public notice, shall
     3     approve the petition within 60 days if shown by the rural
     4     telecommunications carrier that the alternative service
     5     provider is providing local exchange telecommunications
     6     services in the exchange.
     7         (3)  Any party with standing shall have the right to
     8     challenge the lawfulness of any petition filed or of any rate
     9     change pursuant to section 701 (relating to complaints).
    10         (4)  Following approval of a petition, the rural
    11     telecommunications carrier shall tariff any changes in
    12     noncompetitive rates effective one day after filing.
    13         (5)  The rural telecommunications carrier shall give
    14     notice to all customers impacted by any rate increases in the
    15     form of a bill insert, bill message, written notice or
    16     newspaper notice at least ten days prior to the tariff
    17     filing.
    18     (d)  Reclassification.--
    19         (1)  The commission may reclassify a telecommunications
    20     service or other service or business activity that has
    21     previously been found to be competitive if, after notice and
    22     hearing, it determines, upon application of the criteria set
    23     forth in this chapter, that:
    24             (i)  sufficient competition is no longer present;
    25             (ii)  the local exchange telecommunications company
    26         has engaged in unfair competition with respect to the
    27         service; or
    28             (iii)  the local exchange telecommunications company
    29         has failed to provide nondiscriminatory access in the
    30         provision of the service.
    20030H0030B4645                 - 34 -     

     1         (2)  If the commission finds that a reclassification is
     2     necessary, the commission shall determine whether the rate
     3     for the telecommunications service or other service or
     4     business activity is just and reasonable in accordance with
     5     section 1301 (relating to rates to be just and reasonable).
     6         (3)  If the telecommunications service or other service
     7     or business activity subsequently becomes competitive, the
     8     local exchange telecommunications company shall petition the
     9     commission to make a determination of competitiveness for the
    10     service under the provisions of this chapter.
    11         (4)  The burden of proving that a competitive service
    12     should be declared noncompetitive rests on the party seeking
    13     to have the service declared noncompetitive.
    14     (e)  Additional requirements.--
    15         (1)  The prices which a local exchange telecommunications
    16     company charges for competitive services shall not be less
    17     than the costs to provide the services.
    18         (2)  The commission may not require tariffs for
    19     competitive service offerings to be filed with the
    20     commission.
    21         (3)  A local exchange telecommunications company, at its
    22     option, may tariff its rates, subject to rules and
    23     regulations applicable to the provision of competitive
    24     services.
    25         (4)  The commission may require a local exchange
    26     telecommunications company to maintain price lists with the
    27     commission applicable to its competitive services.
    28     (f)  Pricing flexibility and bundling.--
    29         (1)  Subject to the requirements of subsection (e)(1), a
    30     local exchange telecommunications company may price
    20030H0030B4645                 - 35 -     

     1     competitive services at the company's discretion.
     2         (2)  A local exchange telecommunications company may
     3     offer and bill to customers on one bill bundled packages of
     4     services which include nontariffed, competitive,
     5     noncompetitive or protected services, including services of
     6     an affiliate, in combinations and at a single price selected
     7     by the company.
     8         (3)  If a customer subscribes to a bundled package of
     9     services which include nontariffed, competitive,
    10     noncompetitive or protected services as provided in paragraph
    11     (2) and does not make payment on a billing due date, the
    12     local exchange telecommunications company may first suspend
    13     all of the customer's services subscribed to in the bundled
    14     package following written notice to the customer of such
    15     suspension at least seven days prior to the suspension and
    16     thereafter may terminate all the customer's bundled package
    17     services following written notice to the customer of such
    18     termination at least ten days prior to the termination.
    19     (g)  Prohibitions.--
    20         (1)  A local exchange telecommunications company shall be
    21     prohibited from using revenues earned or expenses incurred in
    22     conjunction with protected services to subsidize competitive
    23     services.
    24         (2)  Paragraph (1) shall not be construed to prevent the
    25     marketing and billing of noncompetitive and competitive
    26     services as packages to customers.
    27  § 3017.  Access charges.
    28     (a)  General rule.--The commission may not require a local
    29  exchange telecommunications company to reduce access rates
    30  except on a revenue-neutral basis and may not order decreases in
    20030H0030B4645                 - 36 -     

     1  access rates for a nonrural telecommunications carrier more than
     2  once every two years.
     3     (b)  Refusal to pay access charges prohibited.--No person or
     4  entity may refuse to pay tariffed access charges for
     5  interexchange services provided by a local exchange
     6  telecommunications company.
     7     (c)  Limitation.--No telecommunications carrier providing
     8  competitive local exchange telecommunications service may charge
     9  access rates higher than those charged by the incumbent local
    10  exchange telecommunications company in the same service
    11  territory, unless such carrier can demonstrate, by substantial
    12  evidence, that the higher access rates are cost justified.
    13  § 3018.  Interexchange telecommunications carriers.
    14     (a)  Competitive and noncompetitive services.--Interexchange
    15  services provided by interexchange telecommunications carriers
    16  shall continue to be competitive services after December 31,
    17  2003, except for the provision of the following interexchange
    18  services which shall be noncompetitive services unless declared
    19  otherwise by the commission pursuant to section 3016 (relating
    20  to competitive services):
    21         (1)  Interexchange service to aggregator telephones.
    22         (2)  Optional calling plans required by the commission to
    23     be offered when justified by usage over an interexchange
    24     route.
    25     (b)  Rate regulation.--
    26         (1)  The commission may not fix or prescribe the rates,
    27     tolls, charges, rate structures, rate base, rate of return,
    28     operating margin or earnings for interexchange competitive
    29     services or otherwise regulate interexchange competitive
    30     services except as set forth in this chapter.
    20030H0030B4645                 - 37 -     

     1         (2)  An interexchange telecommunications carrier may file
     2     and maintain tariffs or price lists with the commission for
     3     competitive telecommunications services.
     4         (3)  Nothing in this chapter shall be construed to limit
     5     the authority of the commission to regulate the privacy of
     6     interexchange service and the ordering, installation,
     7     restoration and disconnection of interexchange service to
     8     customers.
     9     (c)  Reclassification.--The commission may reclassify
    10  telecommunications services provided by an interexchange
    11  telecommunications carrier as noncompetitive if, after notice
    12  and hearing, it determines, upon application of the criteria set
    13  forth in this chapter, that sufficient competition is no longer
    14  present.
    15     (d)  Construction.--Nothing in this chapter shall be
    16  construed:
    17         (1)  To limit the authority of the commission to resolve
    18     complaints regarding the quality of interexchange
    19     telecommunications carrier service.
    20         (2)  To limit the authority of the commission to
    21     determine whether an interexchange telecommunications carrier
    22     should be extended the privilege of operating within this
    23     Commonwealth or to order the filing of such reports,
    24     documents and information as may be necessary to monitor the
    25     market for and competitiveness of interexchange
    26     telecommunications services.
    27  § 3019.  Additional powers and duties.
    28     (a)  General rule.--The commission may certify more than one
    29  telecommunications carrier to provide local exchange
    30  telecommunications service in a specific geographic location.
    20030H0030B4645                 - 38 -     

     1  The certification shall be granted upon a showing that it is in
     2  the public interest and that the applicant possesses sufficient
     3  technical, financial and managerial resources.
     4     (b)  Powers and duties retained.--The commission shall retain
     5  the following powers and duties relating to the regulation of
     6  all telecommunications carriers and interexchange
     7  telecommunications carriers:
     8         (1)  To audit the accounting and reporting systems of
     9     telecommunications carriers relating to their transactions
    10     with affiliates pursuant to Chapter 21 (relating to relations
    11     with affiliated interests). A telecommunications carrier
    12     shall file affiliated interest and affiliated transaction
    13     agreements, unless such agreements involve services declared
    14     to be competitive. The filings shall constitute notice to the
    15     commission only and shall not require approval by the
    16     commission.
    17         (2)  To review and revise quality of service standards
    18     contained in 52 Pa. Code (relating to public utilities) that
    19     address the safety, adequacy, reliability and privacy of
    20     telecommunications services and the ordering, installation,
    21     suspension, termination and restoration of any
    22     telecommunications service. Any review or revision shall take
    23     into consideration the emergence of new industry
    24     participants, technological advancements, service standards
    25     and consumer demand.
    26         (3)  Subject to the provisions of section 3015(d)
    27     (relating to alternative forms of regulation), to establish
    28     such additional requirements as are consistent with this
    29     chapter as the commission determines to be necessary to
    30     ensure the protection of customers.
    20030H0030B4645                 - 39 -     

     1         (4)  Condition the sale, merger or acquisition of a local
     2     exchange telecommunications company or any facilities used to
     3     provide telecommunications services to ensure that there is
     4     no reduction in the advanced service or broadband deployment
     5     obligations for the sold, merged or acquired property.
     6     (c)  Privacy of customer information.--
     7         (1)  Except as otherwise provided in this subsection, a
     8     telecommunications carrier may not disclose to any person
     9     information relating to any customer's patterns of use,
    10     equipment and network information and any accumulated records
    11     about customers.
    12         (2)  A telecommunications carrier may disclose such
    13     information:
    14             (i)  Pursuant to a court order or where otherwise
    15         required by law.
    16             (ii)  To the carrier's affiliates, agents,
    17         contractors or vendors and other telecommunications
    18         carriers or interexchange telecommunications carriers, as
    19         permitted by law.
    20             (iii)  Where the information consists of aggregate
    21         data which does not identify individual customers.
    22     (d)  Unreasonable preferences.--Nothing in this chapter shall
    23  be construed to limit the authority of the commission to ensure
    24  that local exchange telecommunications companies do not make or
    25  impose unreasonable preferences, discriminations or
    26  classifications for protected services and other noncompetitive
    27  services.
    28     (e)  Lifeline service.--
    29         (1)  All eligible telecommunications carriers
    30     certificated to provide local exchange telecommunications
    20030H0030B4645                 - 40 -     

     1     service shall provide Lifeline service to all eligible
     2     telecommunications customers who subscribe to such service.
     3         (2)  All eligible telecommunications customers who
     4     subscribe to Lifeline service shall be permitted to subscribe
     5     to up to two other eligible telecommunications carrier
     6     telecommunications services at the tariffed rates for such
     7     services.
     8         (3)  Whenever a prospective customer seeks to subscribe
     9     to local service from an eligible telecommunications carrier,
    10     the carrier shall explicitly advise the customer of the
    11     availability of Lifeline service and shall make reasonable
    12     efforts where appropriate to determine whether the customer
    13     qualifies for such service and, if so, whether the customer
    14     wishes to subscribe to the service.
    15         (4)  Eligible telecommunications carriers shall inform
    16     existing customers of the availability of Lifeline service
    17     twice annually by bill insert or message. The notice shall be
    18     conspicuous and shall provide appropriate eligibility,
    19     benefits and contact information for customers who wish to
    20     learn of the Lifeline service subscription requirements.
    21         (5)  No eligible telecommunications carrier shall be
    22     required to provide after the effective date of this section
    23     any new Lifeline service discount that is not fully
    24     subsidized by the Federal Universal Service Fund.
    25     (f)  Caller identification service.--
    26         (1)  A telecommunications carrier that offers a caller
    27     identification service that identifies the name and telephone
    28     number of a caller for an additional fee may not charge a
    29     residential customer within this Commonwealth more than $3.50
    30     per month for basic caller identification service that
    20030H0030B4645                 - 41 -     

     1     identifies the name and the telephone number of a caller
     2     unless:
     3             (i)  the telecommunications carrier requests a waiver
     4         from the monthly dollar limitation set forth in this
     5         paragraph; and
     6             (ii)  the commission determines that the monthly
     7         dollar limitation set forth in this paragraph is not just
     8         and reasonable in relation to the actual cost to the
     9         telecommunications carrier for the service.
    10         (2)  Paragraph (1) shall not apply to the bundling or
    11     pricing of multiple services that include caller
    12     identification service in a single offer.
    13     (g)  Method for fixing rates.--The commission may not fix or
    14  prescribe the rates, tolls, charges, rate structures, rate base,
    15  rate of return or earnings of competitive services or otherwise
    16  regulate competitive services except as set forth in this
    17  chapter.
    18     (h)  Implementation.--The terms of a local exchange
    19  telecommunications company's alternative form of regulation and
    20  network modernization plans shall govern the regulation of the
    21  local exchange telecommunications company and, consistent with
    22  the provisions of this chapter, shall supersede any conflicting
    23  provisions of this title or other laws of this Commonwealth and
    24  shall specifically supersede all provisions of Chapter 13
    25  (relating to  rates and rate making) other than sections 1301
    26  (relating to rates to be just and reasonable), 1302 (relating to
    27  tariffs; filing and inspection), 1303 (relating to adherence to
    28  tariffs), 1304 (relating to discrimination in rates), 1305
    29  (relating to advance payment of rates; interest on deposits),
    30  1309 (relating to rates fixed on complaint; investigation of
    20030H0030B4645                 - 42 -     

     1  costs of production) and 1312 (relating to refunds).
     2     (i)  Protection of employees.--
     3         (1)  No telecommunications carrier may discharge,
     4     threaten, discriminate or retaliate against an employee
     5     because the employee made a good faith report to the
     6     commission, the Office of Consumer Advocate or the Office of
     7     Attorney General regarding wrongdoing, waste or a potential
     8     violation of the commission's orders or regulations or of
     9     this title.
    10         (2)  A person who alleges a violation of this section
    11     must bring a civil action in a court of competent
    12     jurisdiction for appropriate injunctive relief or damages
    13     within 180 days after the occurrence of the alleged
    14     violation.
    15  § 3019.1.  Voice Over Internet Protocol regulation exemption.
    16     Voice Over Internet Protocol service shall not be subject to
    17  commission regulation, nor shall any provider of VOIP service be
    18  a public utility subject to commission regulation by virtue of
    19  providing such service. However, this exemption from commission
    20  regulation shall not affect the rights and obligations of any
    21  entity related to the payment of switched network access rates
    22  or other intercarrier compensation, if any, related to VOIP
    23  service.
    24  § 3019.2.  Voice Over Internet Protocol tax exemption.
    25     The provision of Voice Over Internet Protocol services by any
    26  person or corporation and the provision of telecommunications
    27  services used to provide VOIP services shall be exempt from the
    28  following taxes and fees commencing on the effective date of
    29  this section.
    30         (1)  Notwithstanding the act of December 31, 1965
    20030H0030B4645                 - 43 -     

     1     (P.L.1257, No.511), known as The Local Tax Enabling Act, no
     2     political subdivision shall impose or collect any tax, charge
     3     or other fee upon the provision of VOIP services.
     4         (2)  Notwithstanding Article XXXI-B of the act of July
     5     28, 1953 (P.L.723, No.230), known as the Second Class County
     6     Code, and the act of June 5, 1991 (P.L.9, No.6), known as the
     7     Pennsylvania Intergovernmental Cooperation Authority Act for
     8     Cities of the First Class, no local sales and use tax shall
     9     be imposed on any VOIP services.
    10  § 3020.  Expiration of chapter.
    11     (a)  Expiration.--Except as provided in subsection (b), this
    12  chapter shall expire on December 31, 2015.
    13     (b)  Exception.--A local exchange telecommunications
    14  company's alternative form of regulation in effect on December
    15  31, 2015, and the VOIP exemption from commission regulation
    16  under section 3019.1 (relating to Voice Over Internet Protocol
    17  regulation exemption) shall not expire on December 31, 2015.
    18     Section 3.  The provisions of this act are severable. If any
    19  provision of this act or its application to any person or
    20  circumstance is held invalid, the invalidity shall not affect
    21  other provisions or applications of this act which can be given
    22  effect without the invalid provision or application.
    23     Section 4.  Section 2471 of the act of February 1, 1966 (1965
    24  P.L.1656, No.581), known as The Borough Code, is repealed to the
    25  extent it is inconsistent with this act.
    26     Section 5.  This act shall take effect January 1, 2004, or
    27  immediately, whichever occurs later.
    28     SECTION 1.  SECTIONS 1325, 3001, 3002, 3003, 3004, 3005,       <--
    29  3006, 3007, 3008 AND 3009 OF TITLE 66 OF THE PENNSYLVANIA
    30  CONSOLIDATED STATUTES ARE REPEALED.
    20030H0030B4645                 - 44 -     

     1     SECTION 2.  TITLE 66 IS AMENDED BY ADDING SECTIONS TO READ:
     2  § 3010.  (RESERVED).
     3  § 3011.  DECLARATION OF POLICY.
     4     THE GENERAL ASSEMBLY FINDS AND DECLARES THAT IT IS THE POLICY
     5  OF THIS COMMONWEALTH TO:
     6         (1)  STRIKE A BALANCE BETWEEN MANDATED DEPLOYMENT AND
     7     MARKET-DRIVEN DEPLOYMENT OF BROADBAND FACILITIES AND ADVANCED
     8     SERVICES THROUGHOUT THIS COMMONWEALTH AND TO CONTINUE
     9     ALTERNATIVE REGULATION OF LOCAL EXCHANGE TELECOMMUNICATIONS
    10     COMPANIES.
    11         (2)  MAINTAIN UNIVERSAL TELECOMMUNICATIONS SERVICE AT
    12     AFFORDABLE RATES WHILE ENCOURAGING THE ACCELERATED PROVISION
    13     OF ADVANCED SERVICES AND DEPLOYMENT OF A UNIVERSALLY
    14     AVAILABLE, STATE-OF-THE-ART, INTERACTIVE BROADBAND
    15     TELECOMMUNICATIONS NETWORK IN RURAL, SUBURBAN AND URBAN
    16     AREAS, INCLUDING DEPLOYMENT OF BROADBAND FACILITIES IN OR
    17     ADJACENT TO PUBLIC RIGHTS-OF-WAY ABUTTING PUBLIC SCHOOLS,
    18     INCLUDING THE ADMINISTRATIVE OFFICES SUPPORTING PUBLIC
    19     SCHOOLS, INDUSTRIAL PARKS AND HEALTH CARE FACILITIES.
    20         (3)  ENSURE THAT CUSTOMERS PAY ONLY REASONABLE CHARGES
    21     FOR PROTECTED SERVICES, WHICH SHALL BE AVAILABLE ON A
    22     NONDISCRIMINATORY BASIS.
    23         (4)  ENSURE THAT RATES FOR PROTECTED SERVICES DO NOT
    24     SUBSIDIZE THE COMPETITIVE VENTURES OF TELECOMMUNICATIONS
    25     CARRIERS.
    26         (5)  PROVIDE DIVERSITY IN THE SUPPLY OF EXISTING AND
    27     FUTURE TELECOMMUNICATIONS SERVICES AND PRODUCTS IN
    28     TELECOMMUNICATIONS MARKETS THROUGHOUT THIS COMMONWEALTH BY
    29     ENSURING THAT RATES, TERMS AND CONDITIONS FOR PROTECTED
    30     SERVICES ARE REASONABLE AND DO NOT IMPEDE THE DEVELOPMENT OF
    20030H0030B4645                 - 45 -     

     1     COMPETITION.
     2         (6)  ENSURE THE EFFICIENT DELIVERY OF TECHNOLOGICAL
     3     ADVANCES AND NEW SERVICES THROUGHOUT THIS COMMONWEALTH IN
     4     ORDER TO IMPROVE THE QUALITY OF LIFE FOR ALL COMMONWEALTH
     5     RESIDENTS.
     6         (7)  ENCOURAGE THE PROVISION OF TELECOMMUNICATIONS
     7     PRODUCTS AND SERVICES THAT ENHANCE THE QUALITY OF LIFE OF
     8     PEOPLE WITH DISABILITIES.
     9         (8)  PROMOTE AND ENCOURAGE THE PROVISION OF COMPETITIVE
    10     SERVICES BY A VARIETY OF SERVICE PROVIDERS ON EQUAL TERMS
    11     THROUGHOUT ALL GEOGRAPHIC AREAS OF THIS COMMONWEALTH WITHOUT
    12     JEOPARDIZING THE PROVISION OF UNIVERSAL TELECOMMUNICATIONS
    13     SERVICE AT AFFORDABLE RATES.
    14         (9)  ENCOURAGE THE COMPETITIVE SUPPLY OF ANY SERVICE IN
    15     ANY REGION WHERE THERE IS MARKET DEMAND.
    16         (10)  ENCOURAGE JOINT VENTURES BETWEEN LOCAL EXCHANGE
    17     TELECOMMUNICATIONS COMPANIES AND OTHER ENTITIES WHERE SUCH
    18     JOINT VENTURES ACCELERATE, IMPROVE OR OTHERWISE ASSIST A
    19     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY IN IMPLEMENTING ITS
    20     NETWORK MODERNIZATION PLAN.
    21         (11)  ESTABLISH A BONA FIDE RETAIL REQUEST PROGRAM TO
    22     AGGREGATE AND MAKE ADVANCED SERVICES AVAILABLE IN AREAS WHERE
    23     SUFFICIENT MARKET DEMAND EXISTS AND TO SUPPLEMENT EXISTING
    24     NETWORK MODERNIZATION PLANS.
    25         (12)  PROMOTE AND ENCOURAGE THE PROVISION OF ADVANCED
    26     SERVICES AND BROADBAND DEPLOYMENT IN THE SERVICE TERRITORIES
    27     OF LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES WITHOUT
    28     JEOPARDIZING THE PROVISION OF UNIVERSAL SERVICE.
    29         (13)  RECOGNIZE THAT THE REGULATORY OBLIGATIONS IMPOSED
    30     UPON THE INCUMBENT LOCAL EXCHANGE TELECOMMUNICATIONS
    20030H0030B4645                 - 46 -     

     1     COMPANIES SHOULD BE REDUCED TO LEVELS MORE CONSISTENT WITH
     2     THOSE IMPOSED UPON COMPETING ALTERNATIVE SERVICE PROVIDERS.
     3  § 3012.  DEFINITIONS.
     4     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
     5  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
     6  CONTEXT CLEARLY INDICATES OTHERWISE:
     7     "ADVANCED SERVICE."  A RETAIL TELECOMMUNICATIONS SERVICE
     8  THAT, REGARDLESS OF TRANSMISSION MEDIUM OR TECHNOLOGY, IS
     9  CAPABLE OF SUPPORTING A MINIMUM SPEED OF 200 KILOBITS PER SECOND
    10  (KBPS) IN AT LEAST ONE DIRECTION AT THE NETWORK DEMARCATION
    11  POINT OF THE CUSTOMER'S PREMISES.
    12     "AGGREGATOR TELEPHONE."  A TELEPHONE WHICH IS MADE AVAILABLE
    13  TO THE TRANSIENT PUBLIC, CUSTOMERS OR PATRONS, INCLUDING, BUT
    14  NOT LIMITED TO, COIN TELEPHONES, CREDIT CARD TELEPHONES AND
    15  TELEPHONES LOCATED IN HOTELS, MOTELS, HOSPITALS AND
    16  UNIVERSITIES.
    17     "ALTERNATIVE FORM OF REGULATION."  A FORM OF REGULATION OF
    18  TELECOMMUNICATIONS SERVICES OTHER THAN THE TRADITIONAL RATE BASE
    19  OR RATE OF RETURN REGULATION, INCLUDING A STREAMLINED FORM OF
    20  REGULATION, AS APPROVED BY THE COMMISSION.
    21     "ALTERNATIVE SERVICE PROVIDER."  AN ENTITY THAT PROVIDES
    22  TELECOMMUNICATIONS SERVICES IN COMPETITION WITH A LOCAL EXCHANGE
    23  TELECOMMUNICATIONS COMPANY.
    24     "BONA FIDE RETAIL REQUEST."  A WRITTEN REQUEST FOR SERVICE
    25  WHICH MEETS THE REQUIREMENTS OF SECTION 3014(C)(1) (RELATING TO
    26  NETWORK MODERNIZATION PLANS), IS RECEIVED BY A LOCAL EXCHANGE
    27  TELECOMMUNICATIONS COMPANY, AND THROUGH WHICH END USERS COMMIT
    28  TO SUBSCRIBE TO AN ADVANCED SERVICE.
    29     "BONA FIDE RETAIL REQUEST PROGRAM."  A PROGRAM ESTABLISHED BY
    30  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY PURSUANT TO SECTION
    20030H0030B4645                 - 47 -     

     1  3014(C) (RELATING TO NETWORK MODERNIZATION PLANS).
     2     "BROADBAND."  A COMMUNICATION CHANNEL USING ANY TECHNOLOGY
     3  AND HAVING A BANDWIDTH EQUAL TO OR GREATER THAN 1.544 MEGABITS
     4  PER SECOND (MBPS) IN THE DOWNSTREAM DIRECTION AND EQUAL TO OR
     5  GREATER THAN 128 KILOBITS PER SECOND (KBPS) IN THE UPSTREAM
     6  DIRECTION.
     7     "BROADBAND AVAILABILITY."  ACCESS TO BROADBAND SERVICE BY A
     8  RETAIL TELEPHONE CUSTOMER OF A LOCAL EXCHANGE TELECOMMUNICATIONS
     9  COMPANY.
    10     "BROADBAND OUTREACH AND AGGREGATION PROGRAM."  A PROGRAM
    11  ESTABLISHED BY THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    12  DEVELOPMENT PURSUANT TO SECTION 3014(I) (RELATING TO NETWORK
    13  MODERNIZATION PLANS).
    14     "BUSINESS ATTRACTION OR RETENTION PROGRAM."  A PROGRAM
    15  ESTABLISHED BY A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    16  PURSUANT TO SECTION 3014(D) (RELATING TO NETWORK MODERNIZATION
    17  PLANS).
    18     "CENTRAL OFFICE."  A LOCAL EXCHANGE TELECOMMUNICATIONS
    19  COMPANY SWITCH USED TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS
    20  SERVICE.
    21     "COMMUNITY."  THOSE CUSTOMERS OF A LOCAL EXCHANGE
    22  TELECOMMUNICATIONS COMPANY SERVED BY AN EXISTING OR PLANNED
    23  REMOTE TERMINAL OR, WHERE NO REMOTE TERMINAL EXISTS OR IS
    24  PLANNED, A CENTRAL OFFICE SWITCH.
    25     "COMPETITIVE SERVICE."  A SERVICE OR BUSINESS ACTIVITY
    26  DETERMINED TO BE COMPETITIVE BY THE COMMISSION ON OR PRIOR TO
    27  DECEMBER 31, 2003, AND A SERVICE OR BUSINESS ACTIVITY DETERMINED
    28  OR DECLARED TO BE COMPETITIVE PURSUANT TO SECTION 3016 (RELATING
    29  TO COMPETITIVE SERVICES).
    30     "DEPARTMENT."  THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    20030H0030B4645                 - 48 -     

     1  DEVELOPMENT OF THE COMMONWEALTH.
     2     "EDUCATION TECHNOLOGY FUND" OR "E-FUND."  THE FUND
     3  ESTABLISHED UNDER SECTION 3015(D) (RELATING TO ALTERNATIVE FORMS
     4  OF REGULATION).
     5     "EDUCATION TECHNOLOGY PROGRAM."  THE PROGRAM ESTABLISHED BY
     6  THE DEPARTMENT OF EDUCATION PURSUANT TO SECTION 3014(J)
     7  (RELATING TO NETWORK MODERNIZATION PLANS).
     8     "ELIGIBLE TELECOMMUNICATIONS CARRIER."  A CARRIER DESIGNATED
     9  BY THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PURSUANT TO 47 CFR
    10  54.201 (RELATING TO DEFINITION OF ELIGIBLE TELECOMMUNICATIONS
    11  CARRIERS, GENERALLY) OR SUCCESSOR REGULATION, AS ELIGIBLE TO
    12  RECEIVE SUPPORT FROM THE FEDERAL UNIVERSAL SERVICE FUND.
    13     "ELIGIBLE TELECOMMUNICATIONS CUSTOMER."  A CUSTOMER OF AN
    14  ELIGIBLE TELECOMMUNICATIONS CARRIER WHO QUALIFIES FOR LIFELINE
    15  SERVICE DISCOUNTS PURSUANT TO THE REQUIREMENTS OF 47 CFR 54.409
    16  (RELATING TO CONSUMER QUALIFICATION FOR LIFELINE) OR SUCCESSOR
    17  REGULATION.
    18     "FUND."  THE BROADBAND OUTREACH AND AGGREGATION FUND
    19  ESTABLISHED UNDER SECTION 3015(C) (RELATING TO ALTERNATIVE FORMS
    20  OF REGULATION).
    21     "GROSS DOMESTIC PRODUCT PRICE INDEX" OR "GDP-PI."  THE GROSS
    22  DOMESTIC PRODUCT FIXED WEIGHT PRICE INDEX AS CALCULATED BY THE
    23  UNITED STATES DEPARTMENT OF COMMERCE OR A SUCCESSOR PRICE INDEX.
    24     "HEALTH CARE FACILITY."  THE TERM SHALL HAVE THE SAME MEANING
    25  GIVEN TO IT IN THE ACT OF JULY 19, 1979 (P.L.130, NO.48), KNOWN
    26  AS THE HEALTH CARE FACILITIES ACT.
    27     "INDUSTRIAL DEVELOPMENT AGENCY."  AN INDUSTRIAL DEVELOPMENT
    28  AGENCY UNDER THE ACT OF MAY 17, 1956 (1955 P.L.1609, NO.537),
    29  KNOWN AS THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY ACT,
    30  THAT HAS BEEN CERTIFIED BY THE PENNSYLVANIA INDUSTRIAL
    20030H0030B4645                 - 49 -     

     1  DEVELOPMENT AUTHORITY UNDER SECTION 5.2 OF THAT ACT.
     2     "INFLATION OFFSET."  THE PART OF THE PRICE CHANGE FORMULA IN
     3  THE PRICE STABILITY MECHANISM THAT REFLECTS AN OFFSET TO THE
     4  GROSS DOMESTIC PRODUCT PRICE INDEX OR SUCCESSOR PRICE INDEX.
     5     "INTEREXCHANGE SERVICES."  THE TRANSMISSION OF INTERLATA OR
     6  INTRALATA TOLL MESSAGES OR DATA OUTSIDE THE LOCAL CALLING AREA.
     7     "INTEREXCHANGE TELECOMMUNICATIONS CARRIER."  A CARRIER OTHER
     8  THAN A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY AUTHORIZED BY
     9  THE COMMISSION TO PROVIDE INTEREXCHANGE SERVICES.
    10     "LIFELINE SERVICE."  A DISCOUNTED RATE LOCAL SERVICE
    11  OFFERING, AS DEFINED IN 47 CFR 54.401 (RELATING TO LIFELINE
    12  DEFINED) OR SUCCESSOR REGULATION, BUT EXCLUDING ANY OFFERING
    13  FUNDED IN PART BY FEDERAL UNIVERSAL SERVICE FUND TIER THREE
    14  FUNDING UNDER 47 CFR 54.403 (RELATING TO LIFELINE SUPPORT
    15  AMOUNT) OR SUCCESSOR REGULATION.
    16     "LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY."  AN INCUMBENT
    17  CARRIER AUTHORIZED BY THE COMMISSION TO PROVIDE LOCAL EXCHANGE
    18  TELECOMMUNICATIONS SERVICES. THE TERM INCLUDES A RURAL
    19  TELECOMMUNICATIONS CARRIER AND A NONRURAL TELECOMMUNICATIONS
    20  CARRIER.
    21     "LOCAL EXCHANGE TELECOMMUNICATIONS SERVICE."  THE
    22  TRANSMISSION OF MESSAGES OR COMMUNICATIONS THAT ORIGINATE AND
    23  TERMINATE WITHIN A PRESCRIBED LOCAL CALLING AREA.
    24     "NETWORK MODERNIZATION PLAN."  A PLAN FOR THE DEPLOYMENT OF
    25  BROADBAND SERVICE BY A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    26  UNDER THIS CHAPTER OR ANY PRIOR LAW OF THIS COMMONWEALTH.
    27     "NONCOMPETITIVE SERVICE."  A REGULATED TELECOMMUNICATIONS
    28  SERVICE OR BUSINESS ACTIVITY THAT HAS NOT BEEN DETERMINED OR
    29  DECLARED TO BE COMPETITIVE.
    30     "NONPROTECTED SERVICE."  ANY TELECOMMUNICATIONS SERVICE
    20030H0030B4645                 - 50 -     

     1  PROVIDED BY A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY THAT IS
     2  NOT A PROTECTED SERVICE.
     3     "NONRURAL TELECOMMUNICATIONS CARRIER."  A LOCAL EXCHANGE
     4  TELECOMMUNICATIONS COMPANY THAT IS NOT A RURAL TELEPHONE COMPANY
     5  AS DEFINED IN SECTION 3 OF THE TELECOMMUNICATIONS ACT OF 1996
     6  (PUBLIC LAW 104-104, 110 STAT. 56).
     7     "OPTIONAL CALLING PLAN."  A DISCOUNTED TOLL PLAN OFFERED BY
     8  EITHER A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY OR AN
     9  INTEREXCHANGE TELECOMMUNICATIONS CARRIER.
    10     "POLITICAL SUBDIVISION."  ANY COUNTY, CITY, BOROUGH,
    11  INCORPORATED TOWN, TOWNSHIP, MUNICIPALITY, MUNICIPAL AUTHORITY
    12  OR COUNTY INSTITUTION DISTRICT.
    13     "PRICE STABILITY MECHANISM."  A FORMULA WHICH MAY BE INCLUDED
    14  IN A COMMISSION-APPROVED ALTERNATIVE FORM OF REGULATION PLAN
    15  THAT PERMITS RATES FOR NONCOMPETITIVE SERVICES TO BE ADJUSTED
    16  UPWARD OR DOWNWARD.
    17     "PROTECTED SERVICE."  THE FOLLOWING TELECOMMUNICATIONS
    18  SERVICES PROVIDED BY A LOCAL EXCHANGE TELECOMMUNICATIONS
    19  COMPANY, UNLESS THE COMMISSION HAS DETERMINED THE SERVICE TO BE
    20  COMPETITIVE:
    21         (1)  SERVICE PROVIDED TO RESIDENTIAL CONSUMERS OR
    22     BUSINESS CONSUMERS THAT IS NECESSARY TO ORIGINATE A LOCAL
    23     EXCHANGE CALL.
    24         (2)  TOUCH-TONE SERVICE.
    25         (3)  SWITCHED ACCESS SERVICE.
    26         (4)  SPECIAL ACCESS SERVICE.
    27         (5)  ORDERING, INSTALLATION, RESTORATION AND
    28     DISCONNECTION OF THESE SERVICES.
    29     "REMOTE TERMINAL."  A STRUCTURE LOCATED OUTSIDE OF A CENTRAL
    30  OFFICE WHICH HOUSES ELECTRONIC EQUIPMENT AND WHICH PROVIDES
    20030H0030B4645                 - 51 -     

     1  TRANSPORT FOR TELECOMMUNICATIONS SERVICES TO AND FROM A CENTRAL
     2  OFFICE.
     3     "RURAL TELECOMMUNICATIONS CARRIER."  A LOCAL EXCHANGE
     4  TELECOMMUNICATIONS COMPANY THAT IS A RURAL TELEPHONE COMPANY AS
     5  DEFINED IN SECTION 3 OF THE TELECOMMUNICATIONS ACT OF 1996
     6  (PUBLIC LAW 104-104, 110 STAT. 56).
     7     "SCHOOL ENTITY."  AN INTERMEDIATE UNIT, SCHOOL DISTRICT,
     8  JOINT SCHOOL DISTRICT, AREA VOCATIONAL-TECHNICAL SCHOOL,
     9  INDEPENDENT SCHOOL, LICENSED PRIVATE ACADEMIC SCHOOL, ACCREDITED
    10  SCHOOL AND ANY OTHER PUBLIC OR NONPUBLIC SCHOOL SERVING STUDENTS
    11  IN ANY GRADE FROM KINDERGARTEN THROUGH 12TH GRADE.
    12     "SPECIAL ACCESS SERVICE."  SERVICE PROVIDED OVER DEDICATED,
    13  NONSWITCHED FACILITIES BY LOCAL EXCHANGE TELECOMMUNICATIONS
    14  COMPANIES TO INTEREXCHANGE TELECOMMUNICATIONS CARRIERS OR OTHER
    15  LARGE VOLUME USERS WHICH PROVIDE CONNECTION BETWEEN AN
    16  INTEREXCHANGE TELECOMMUNICATIONS CARRIER OR PRIVATE NETWORK AND
    17  A CUSTOMER'S PREMISES.
    18     "SWITCHED ACCESS SERVICE."  A SERVICE WHICH PROVIDES FOR THE
    19  USE OF COMMON TERMINATING, SWITCHING AND TRUNKING FACILITIES OF
    20  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY'S PUBLIC SWITCHED
    21  NETWORK. THE TERM INCLUDES, BUT IS NOT LIMITED TO, THE RATES FOR
    22  LOCAL SWITCHING, COMMON AND DEDICATED TRANSPORT AND THE CARRIER
    23  CHARGE.
    24     "TELECOMMUNICATIONS ACT OF 1996."  THE TELECOMMUNICATIONS ACT
    25  OF 1996 (PUBLIC LAW 104-104, 110 STAT. 56).
    26     "TELECOMMUNICATIONS CARRIER."  AN ENTITY THAT PROVIDES
    27  TELECOMMUNICATIONS SERVICES SUBJECT TO THE JURISDICTION OF THE
    28  COMMISSION.
    29     "TELECOMMUNICATIONS SERVICE."  THE OFFERING OF THE
    30  TRANSMISSION OF MESSAGES OR COMMUNICATIONS FOR A FEE TO THE
    20030H0030B4645                 - 52 -     

     1  PUBLIC.
     2     "UNIVERSAL BROADBAND AVAILABILITY."  ACCESS TO BROADBAND
     3  SERVICE BY EACH TELEPHONE CUSTOMER OF A LOCAL EXCHANGE
     4  TELECOMMUNICATIONS COMPANY.
     5     "VOICE-OVER-INTERNET-PROTOCOL APPLICATION."  THE USE OF
     6  SOFTWARE, HARDWARE OR NETWORK EQUIPMENT FOR REAL-TIME TWO-WAY OR
     7  MULTIDIRECTIONAL VOICE COMMUNICATIONS OVER THE PUBLIC INTERNET
     8  OR A PRIVATE NETWORK UTILIZING INTERNET PROTOCOL, OR ANY
     9  SUCCESSOR PROTOCOL, IN WHOLE OR IN PART, TO CONNECT USERS
    10  NOTWITHSTANDING THE FOLLOWING:
    11         (1)  THE UNDERLYING TRANSMISSION TECHNOLOGY USED TO
    12     TRANSMIT THE COMMUNICATIONS.
    13         (2)  WHETHER THE PACKETIZING AND DEPACKETIZING OF THE
    14     COMMUNICATIONS OCCURS AT THE CUSTOMER PREMISES OR NETWORK
    15     LEVEL.
    16         (3)  THE SOFTWARE, HARDWARE OR NETWORK EQUIPMENT USED TO
    17     CONNECT USERS.
    18  THE TERM DOES NOT INCLUDE AN APPLICATION THAT IS USED FOR VOICE
    19  COMMUNICATIONS THAT BOTH ORIGINATE AND TERMINATE ON THE PUBLIC
    20  SWITCHED TELEPHONE NETWORK.
    21  § 3013.  CONTINUATION OF COMMISSION-APPROVED ALTERNATIVE
    22             REGULATION AND NETWORK MODERNIZATION PLANS.
    23     (A)  GENERAL RULE.--AN ALTERNATIVE FORM OF REGULATION PLAN
    24  AND NETWORK MODERNIZATION PLAN APPROVED BY THE COMMISSION FOR A
    25  LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY AS OF DECEMBER 31,
    26  2003, SHALL REMAIN VALID AND EFFECTIVE, EXCEPT AS MAY BE AMENDED
    27  AT THE ELECTION OF THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    28  AS AUTHORIZED BY THIS CHAPTER. THE COMMISSION SHALL ALLOW A
    29  PREVIOUSLY APPROVED PLAN TO BE AMENDED TO CONFORM TO ANY CHANGES
    30  MADE UNDER THIS CHAPTER, AND SHALL NOT REQUIRE ANY OTHER CHANGES
    20030H0030B4645                 - 53 -     

     1  TO THE PLAN.
     2     (B)  LIMITATION ON CHANGES TO PLANS.--EXCEPT FOR CHANGES TO
     3  EXISTING ALTERNATIVE FORM OF REGULATION AND NETWORK
     4  MODERNIZATION PLANS AS AUTHORIZED BY THIS CHAPTER, NO CHANGE TO
     5  ANY ALTERNATIVE FORM OF REGULATION OR NETWORK MODERNIZATION PLAN
     6  MAY BE MADE WITHOUT THE EXPRESS AGREEMENT OF BOTH THE COMMISSION
     7  AND THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY.
     8     (C)  GRANDFATHER PROVISION.--ALL SERVICES PREVIOUSLY
     9  DETERMINED TO BE COMPETITIVE AS OF DECEMBER 31, 2003, SHALL
    10  REMAIN COMPETITIVE SERVICES UNLESS RECLASSIFIED BY THE
    11  COMMISSION UNDER SECTION 3016(C) (RELATING TO COMPETITIVE
    12  SERVICES.)
    13     (D)  COMMISSION OVERSIGHT.--THE COMMISSION WILL CONTINUE TO
    14  EXERCISE OVERSIGHT OF ALTERNATIVE FORM OF REGULATION AND NETWORK
    15  MODERNIZATION PLANS FOR LOCAL EXCHANGE TELECOMMUNICATIONS
    16  COMPANIES AS PROVIDED IN THIS CHAPTER.
    17  § 3014.  NETWORK MODERNIZATION PLANS.
    18     (A)  CONTINUATION OF APPROVED PLAN.--A LOCAL EXCHANGE
    19  TELECOMMUNICATIONS COMPANY THAT DOES NOT ELECT AN OPTION UNDER
    20  SUBSECTION (B) SHALL REMAIN SUBJECT TO ITS NETWORK MODERNIZATION
    21  PLAN IN EFFECT AS OF DECEMBER 31, 2003, WITHOUT REVISION OR
    22  MODIFICATION EXCEPT BY AGREEMENT UNDER SECTION 3013(B) (RELATING
    23  TO CONTINUATION OF COMMISSION-APPROVED ALTERNATIVE REGULATION
    24  AND NETWORK MODERNIZATION PLANS) AND AS PROVIDED IN THIS
    25  SECTION, THROUGH DECEMBER 31, 2015.
    26     (B)  OPTIONS FOR AMENDMENT OF NETWORK MODERNIZATION PLAN.--
    27  LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES SHALL HAVE THE
    28  FOLLOWING OPTIONS:
    29         (1)  (I)  A RURAL TELECOMMUNICATIONS CARRIER THAT ELECTS
    30         TO AMEND ITS NETWORK MODERNIZATION PLAN PURSUANT TO THIS
    20030H0030B4645                 - 54 -     

     1         SUBSECTION SHALL REMAIN SUBJECT TO THE CARRIER'S NETWORK
     2         MODERNIZATION PLAN IN EFFECT AS OF DECEMBER 31, 2003, AS
     3         AMENDED PURSUANT TO THIS SUBSECTION, THROUGH DECEMBER 31,
     4         2008. PRIOR TO IMPLEMENTATION OF SUCH ELECTION, THE RURAL
     5         TELECOMMUNICATIONS CARRIER SHALL COMPLY WITH THE
     6         NOTIFICATION REQUIREMENTS OF SUBSECTION (E).
     7             (II)  THE RURAL TELECOMMUNICATIONS CARRIER SHALL
     8         COMMIT TO ACCELERATE 100% BROADBAND AVAILABILITY BY
     9         DECEMBER 31, 2008, IN ITS AMENDED NETWORK MODERNIZATION
    10         PLAN. ANY RURAL TELECOMMUNICATIONS CARRIER ELECTING THIS
    11         OPTION SHALL NOT BE REQUIRED TO OFFER A BONA FIDE RETAIL
    12         REQUEST PROGRAM OR A BUSINESS ATTRACTION OR RETENTION
    13         PROGRAM.
    14         (2)  (I)  A RURAL TELECOMMUNICATIONS CARRIER THAT ELECTS
    15         TO AMEND ITS NETWORK MODERNIZATION PLAN PURSUANT TO THIS
    16         SUBSECTION SHALL REMAIN SUBJECT TO THE CARRIER'S NETWORK
    17         MODERNIZATION PLAN IN EFFECT AS OF DECEMBER 31, 2003, AS
    18         AMENDED PURSUANT TO THIS SUBSECTION, THROUGH DECEMBER 31,
    19         2013 OR DECEMBER 31, 2015, AS APPLICABLE. PRIOR TO
    20         IMPLEMENTATION OF SUCH ELECTION, THE RURAL
    21         TELECOMMUNICATIONS CARRIER SHALL COMPLY WITH THE
    22         NOTIFICATION REQUIREMENTS OF SUBSECTION (E).
    23             (II)  THE RURAL TELECOMMUNICATIONS CARRIER SHALL
    24         COMMIT:
    25                 (A)  TO ACCELERATE BROADBAND AVAILABILITY TO AT
    26             LEAST 80% OF ITS TOTAL RETAIL ACCESS LINES IN ITS
    27             DISTRIBUTION NETWORK BY DECEMBER 31, 2010, AND 100%
    28             OF ITS TOTAL RETAIL ACCESS LINES IN ITS DISTRIBUTION
    29             NETWORK BY DECEMBER 31, 2013; OR
    30                 (B)  TO ACCELERATE BROADBAND AVAILABILITY TO AT
    20030H0030B4645                 - 55 -     

     1             LEAST 80% OF ITS TOTAL RETAIL ACCESS LINES IN ITS
     2             DISTRIBUTION NETWORK BY DECEMBER 31, 2010, AND 100%
     3             OF ITS TOTAL RETAIL ACCESS LINES IN ITS DISTRIBUTION
     4             NETWORK BY DECEMBER 31, 2015; AND
     5                 (C)  TO OFFER A BONA FIDE RETAIL REQUEST PROGRAM
     6             AND A BUSINESS ATTRACTION OR RETENTION PROGRAM
     7             PURSUANT TO SUBSECTIONS (C) AND (D). UNDER NO
     8             CIRCUMSTANCES MAY THE RURAL TELECOMMUNICATIONS
     9             CARRIER REDUCE ITS EXISTING BROADBAND AVAILABILITY
    10             COMMITMENT.
    11         (3)  (I)  A NONRURAL LOCAL EXCHANGE TELECOMMUNICATIONS
    12         CARRIER THAT ELECTS TO AMEND ITS NETWORK MODERNIZATION
    13         PLAN PURSUANT TO THIS SUBSECTION SHALL REMAIN SUBJECT TO
    14         SUCH CARRIER'S NETWORK MODERNIZATION PLAN IN EFFECT AS OF
    15         DECEMBER 31, 2003, AS AMENDED PURSUANT TO THIS
    16         SUBSECTION, INCLUDING MEETING ITS 100% BROADBAND
    17         AVAILABILITY COMMITMENT. PRIOR TO IMPLEMENTATION OF SUCH
    18         ELECTION, THE NONRURAL LOCAL EXCHANGE TELECOMMUNICATIONS
    19         CARRIER SHALL COMPLY WITH THE NOTIFICATION REQUIREMENTS
    20         OF SUBSECTION (E).
    21             (II)  THE NONRURAL LOCAL EXCHANGE TELECOMMUNICATIONS
    22         CARRIER SHALL COMMIT:
    23                 (A)  TO PROVIDE BROADBAND AVAILABILITY TO 100% OF
    24             ITS TOTAL RETAIL ACCESS LINES IN ITS DISTRIBUTION
    25             NETWORK BY DECEMBER 31, 2013 OR DECEMBER 31, 2015;
    26             AND
    27                 (B)  TO OFFER A BONA FIDE RETAIL REQUEST PROGRAM
    28             AND A BUSINESS ATTRACTION OR RETENTION PROGRAM
    29             PURSUANT TO SUBSECTIONS (C) AND (D). UNDER NO
    30             CIRCUMSTANCES MAY SUCH NONRURAL LOCAL EXCHANGE
    20030H0030B4645                 - 56 -     

     1             TELECOMMUNICATIONS CARRIER REDUCE ITS EXISTING
     2             BROADBAND AVAILABILITY COMMITMENT.
     3         (4)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY THAT
     4     ELECTS UNDER PARAGRAPH (1), (2) OR (3) SHALL ALSO COMMIT TO
     5     UNIVERSAL BROADBAND DEPLOYMENT IN OR ADJACENT TO PUBLIC
     6     RIGHTS-OF-WAY ABUTTING ALL PUBLIC SCHOOLS, INCLUDING THE
     7     ADMINISTRATION OFFICES SUPPORTING PUBLIC SCHOOLS, INDUSTRIAL
     8     PARKS AND HEALTH CARE FACILITIES IN ITS SERVICE TERRITORY ON
     9     OR BEFORE DECEMBER 31, 2005, EXCEPT THAT A LOCAL EXCHANGE
    10     TELECOMMUNICATIONS COMPANY SERVING MORE THAN TEN EXCHANGES IN
    11     THIS COMMONWEALTH MAY ELECT TO EXTEND THIS COMMITMENT FROM
    12     DECEMBER 31, 2005, TO DECEMBER 31, 2006, FOR ANY EXCHANGE
    13     WITH LESS THAN 4,000 ACCESS LINES.
    14         (5)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY THAT
    15     ELECTS UNDER PARAGRAPH (1), (2) OR (3) MAY AMEND ITS NETWORK
    16     MODERNIZATION PLAN TO EXTEND THE PERIOD OF TIME WITHIN WHICH
    17     BROADBAND SERVICE MUST BE MADE AVAILABLE TO A CUSTOMER TO UP
    18     TO TEN BUSINESS DAYS AFTER THE CUSTOMER'S REQUEST FOR
    19     BROADBAND SERVICE.
    20         (6)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    21     OPERATING UNDER AN AMENDED NETWORK MODERNIZATION PLAN MAY
    22     SUBSEQUENTLY PETITION THE COMMISSION FOR APPROVAL OF FURTHER
    23     MODIFICATION OF ITS AMENDED NETWORK MODERNIZATION PLAN, WHICH
    24     THE COMMISSION MAY GRANT UPON GOOD CAUSE SHOWN.
    25         (7)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY MAY
    26     ACCELERATE ITS BROADBAND AVAILABILITY COMMITMENT BY ELECTING
    27     AN ADDITIONAL OPTION PURSUANT TO PARAGRAPH (1), (2) OR (3),
    28     AS APPLICABLE, AT A LATER DATE. THE LOCAL EXCHANGE
    29     TELECOMMUNICATIONS COMPANY SHALL BE SUBJECT TO THE APPLICABLE
    30     MODIFIED INFLATION OFFSET IN ITS PRICE STABILITY MECHANISM AS
    20030H0030B4645                 - 57 -     

     1     SET FORTH IN SECTION 3015(A)(1) (RELATING TO ALTERNATIVE
     2     FORMS OF REGULATION), EFFECTIVE UPON THE FILING OF AN AMENDED
     3     NETWORK MODERNIZATION PLAN UNDER SUBSECTION (E).
     4     (C)  BONA FIDE RETAIL REQUEST PROGRAM.--A LOCAL EXCHANGE
     5  TELECOMMUNICATIONS COMPANY THAT ELECTS TO AMEND ITS NETWORK
     6  MODERNIZATION PLAN PURSUANT TO SUBSECTION (B)(2) OR (3) SHALL NO
     7  LATER THAN 90 DAYS AFTER THE EFFECTIVE DATE OF ITS AMENDED PLAN
     8  IMPLEMENT A BONA FIDE RETAIL REQUEST PROGRAM IN AREAS WHERE IT
     9  DOES NOT PROVIDE BROADBAND. NOT LATER THAN 30 DAYS IN ADVANCE OF
    10  PROGRAM IMPLEMENTATION, THE LOCAL EXCHANGE TELECOMMUNICATIONS
    11  COMPANY SHALL FILE WITH THE COMMISSION AND PROVIDE THE
    12  DEPARTMENT WITH A WRITTEN DESCRIPTION OF THE PROGRAM, A SAMPLE
    13  REQUEST FOR ADVANCED SERVICES FORM FOR USE IN THE PROGRAM AND
    14  THE FORM OF ANY ADVANCED SERVICES TERM SUBSCRIPTION AGREEMENTS
    15  CUSTOMERS WILL BE REQUIRED TO EXECUTE IN CONNECTION WITH
    16  RECEIVING THE REQUESTED SERVICES. A BONA FIDE RETAIL REQUEST
    17  PROGRAM SHALL CONSIST OF THE FOLLOWING:
    18         (1)  ANY PERSON, BUSINESS, INDUSTRIAL DEVELOPMENT AGENCY
    19     OR OTHER ENTITY SEEKING ADVANCED SERVICES PURSUANT TO A BONA
    20     FIDE RETAIL REQUEST PROGRAM SHALL SUBMIT A WRITTEN REQUEST
    21     FOR SUCH SERVICES TO THE LOCAL EXCHANGE TELECOMMUNICATIONS
    22     COMPANY OR TO THE DEPARTMENT IN ACCORDANCE WITH SUBSECTION
    23     (D). THE WRITTEN REQUEST MAY BE IN THE FORM OF A PETITION
    24     WHICH INCLUDES THE INFORMATION REQUIRED BY PARAGRAPH (2), OR
    25     IN THE FORM PROVIDED BY THE DEPARTMENT UNDER SUBSECTION (D)
    26     WHICH INCLUDES THE INFORMATION REQUIRED BY PARAGRAPH (2), OR
    27     IN THE FORM OF INDIVIDUAL REQUESTS EACH OF WHICH INCLUDES THE
    28     INFORMATION REQUIRED BY PARAGRAPH (2). IF INDIVIDUAL REQUESTS
    29     ARE RECEIVED, THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    30     SHALL AGGREGATE REQUESTS FOR THE SAME SERVICE AND INITIATE
    20030H0030B4645                 - 58 -     

     1     APPROPRIATE ACTION PURSUANT TO THIS SUBSECTION WHEN THE
     2     REQUIRED NUMBER OF REQUESTS HAVE BEEN RECEIVED.
     3         (2)  TO BE CONSIDERED A BONA FIDE RETAIL REQUEST, THE
     4     WRITTEN REQUEST MUST INCLUDE:
     5             (I)  A REQUEST THAT A MINIMUM OF 50 RETAIL ACCESS
     6         LINES, OR 25% OF RETAIL ACCESS LINES WITHIN A COMMUNITY,
     7         WHICHEVER IS LESS, EACH BE PROVIDED THE SAME ADVANCED
     8         SERVICE OR COMPARABLE ADVANCED SERVICES HAVING A
     9         BANDWIDTH WITHIN 100 KILOBITS PER SECOND (KBPS) OF EACH
    10         OTHER. NOTWITHSTANDING THE FOREGOING COMPARABLE BANDWIDTH
    11         LIMITATION, WHERE A REQUEST INCLUDES INDIVIDUAL CUSTOMER
    12         REQUESTS FOR ADVANCED SERVICES HAVING EQUAL TO OR LESS
    13         THAN 1.544 MEGABITS PER SECOND (MBPS) BANDWIDTH IN THE
    14         DOWNSTREAM DIRECTION, ALL LINES IN THE REQUEST SHALL BE
    15         COUNTED IN MEETING THE MINIMUM LINE REQUIREMENT OF THIS
    16         SUBPARAGRAPH;
    17             (II)  THE NAME, ADDRESS, TELEPHONE NUMBER AND
    18         SIGNATURE OF EACH EXISTING RETAIL CUSTOMER REQUESTING THE
    19         ADVANCED SERVICE, THE ADVANCED SERVICE BEING REQUESTED
    20         AND THE NUMBER OF ACCESS LINES FOR WHICH THE ADVANCED
    21         SERVICE IS BEING REQUESTED;
    22             (III)  THE NAME, ADDRESS AND TELEPHONE NUMBER OF A
    23         DESIGNATED CONTACT PERSON, WHERE THE REQUEST IS MADE BY
    24         OR ON BEHALF OF MORE THAN ONE PERSON OR BUSINESS; AND
    25             (IV)  A COMMITMENT BY EACH CUSTOMER WHO SIGNS THE
    26         REQUEST TO SUBSCRIBE TO THE REQUESTED SERVICE FOR ONE
    27         YEAR, SUBJECT TO THE LOCAL EXCHANGE TELECOMMUNICATIONS
    28         COMPANY'S IDENTIFICATION OF THE PRICE AND TERMS OF THE
    29         SERVICE AND THE CUSTOMER'S AGREEMENT TO THE PRICE AND
    30         TERMS.
    20030H0030B4645                 - 59 -     

     1         (3)  IN ADMINISTERING THE BONA FIDE RETAIL REQUEST
     2     PROGRAM, THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL:
     3             (I)  ESTABLISH AN INTERNET WEBSITE AND TOLL-FREE
     4         TELEPHONE NUMBER TO ADDRESS CUSTOMER INQUIRIES REGARDING
     5         THE PROGRAM;
     6             (II)  MAIL A REQUEST FORM TO A CUSTOMER UPON REQUEST;
     7             (III)  CONFIRM ITS RECEIPT OF ANY COMPLETED REQUEST
     8         IN WRITING TO THE CUSTOMER AND IDENTIFY THE SERVICE
     9         REQUESTED;
    10             (IV)  AS PART OF THE WRITTEN CONFIRMATION, IF
    11         AVAILABLE, OR IN A SUBSEQUENT WRITTEN COMMUNICATION TO
    12         THE CUSTOMER, PROVIDE THE CUSTOMER THE APPLICABLE RATE,
    13         THE CONTRACT TERM, THE STATUS OF THE REQUEST AND A TERM
    14         SUBSCRIPTION AGREEMENT FOR EXECUTION; AND
    15             (V)  NOTIFY THE CUSTOMERS IN A COMMUNITY, WITHIN 30
    16         DAYS OF RECEIPT OF A BONA FIDE REQUEST, OF THE EXPECTED
    17         DATE OF THE AVAILABILITY OF THE REQUESTERS' SERVICE.
    18         (4)  WHEN A BONA FIDE RETAIL REQUEST HAS BEEN RECEIVED
    19     THAT MEETS THE REQUIREMENTS OF PARAGRAPH (2), THE LOCAL
    20     EXCHANGE TELECOMMUNICATIONS COMPANY SHALL PROVIDE THE
    21     REQUESTED ADVANCED SERVICE, OR OTHER REASONABLY COMPARABLE
    22     SERVICE HAVING A BANDWIDTH WITHIN 100 KILOBITS PER SECOND
    23     (KBPS) OF THE REQUESTED SERVICE, TO THE COMMUNITY AS SOON AS
    24     PRACTICABLE, BUT IN NO EVENT LATER THAN 365 DAYS OF THE DATE
    25     THE REQUIREMENTS OF PARAGRAPH (2) HAVE BEEN MET OR WITHIN THE
    26     PERIOD APPROVED BY THE COMMISSION UNDER PARAGRAPH (5) OR (6)
    27     WHERE:
    28             (I)  THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    29         PROVIDES THE REQUESTED ADVANCED SERVICE TO OTHER
    30         CUSTOMERS IN ITS SERVICE TERRITORY;
    20030H0030B4645                 - 60 -     

     1             (II)  NO SERVICE IS AVAILABLE TO THE REQUESTING
     2         CUSTOMERS FROM AN ALTERNATIVE SERVICE PROVIDER AT OR
     3         WITHIN 100 KILOBITS PER SECOND (KBPS) OF THE DATA SPEED
     4         REQUESTED OR SUCH SERVICE IS AVAILABLE AT A PRICE THAT
     5         EXCEEDS THE THEN CURRENT PRICE OFFERED BY THE LOCAL
     6         EXCHANGE TELECOMMUNICATIONS COMPANY BY MORE THAN 50%;
     7             (III)  THE COMMUNITY IS SITUATED WITHIN THE SERVICE
     8         TERRITORY OF THE LOCAL EXCHANGE TELECOMMUNICATIONS
     9         COMPANY; AND
    10             (IV)  THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    11         DOES NOT HAVE TO PROVIDE FIBER TO THE CUSTOMER'S PREMISES
    12         TO FURNISH THE REQUESTED ADVANCED SERVICE.
    13         (5)  WHERE, AS A RESULT OF PROPERTY ACQUISITION,
    14     INCLUDING ACQUIRING RIGHTS-OF-WAY, OR NEW CONSTRUCTION A
    15     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY IS UNABLE TO
    16     PROVIDE THE REQUESTED ADVANCED SERVICE WITHIN THE ONE-YEAR
    17     PERIOD SET FORTH IN PARAGRAPH (4), THE COMPANY MAY PETITION
    18     THE COMMISSION FOR AN EXTENSION OF UP TO SIX MONTHS, WITH
    19     SERVICE UPON THE CUSTOMER OR CUSTOMERS WHO MADE THE BONA FIDE
    20     RETAIL REQUEST AND THE DEPARTMENT IF THE DEPARTMENT SUBMITTED
    21     THE REQUEST ON BEHALF OF THE CUSTOMER OR CUSTOMERS. THE
    22     COMMISSION MAY DELEGATE ITS AUTHORITY TO RULE ON SUCH
    23     PETITIONS TO A BUREAU DIRECTOR OR OTHER APPROPRIATE EMPLOYEE
    24     WHO SHALL GRANT THE PETITION FOR GOOD CAUSE SHOWN.
    25         (6)  WHERE THE TOTAL NUMBER OF BONA FIDE RETAIL REQUESTS
    26     RECEIVED BY ANY LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY OR
    27     AFFILIATED COMPANIES THAT MEET THE REQUIREMENTS OF PARAGRAPHS
    28     (2) AND (4) EXCEED 40 REQUESTS IN ANY 12-MONTH PERIOD, OR
    29     WHERE THERE ARE MORE THAN 20 SUCH REQUESTS THAT REQUIRE
    30     PROPERTY ACQUISITION, INCLUDING ACQUIRING RIGHTS-OF-WAY, OR
    20030H0030B4645                 - 61 -     

     1     NEW CONSTRUCTION IN ANY 12-MONTH PERIOD, THE LOCAL EXCHANGE
     2     TELECOMMUNICATIONS COMPANY OR COMPANIES MAY PROVIDE A
     3     VERIFIED CERTIFICATION TO THE COMMISSION THAT ONE OR BOTH OF
     4     THE PREVIOUSLY STATED CRITERIA ARE MET. UPON RECEIPT OF THE
     5     CERTIFICATION, THE COMMISSION, OR THE COMMISSION THROUGH ITS
     6     DESIGNATED STAFF, SHALL PERMIT THE LOCAL EXCHANGE
     7     TELECOMMUNICATIONS COMPANY OR COMPANIES TO EXTEND THE TIME
     8     FOR SUCH DEPLOYMENTS FOR A PERIOD OF NO MORE THAN 12 MONTHS
     9     UNLESS THE COMMISSION DETERMINES AN ADDITIONAL TIME PERIOD TO
    10     BE JUST AND REASONABLE. IF A DEPLOYMENT IS EXTENDED, IT SHALL
    11     BE COUNTED IN DETERMINING THE MAXIMUM NUMBER OF DEPLOYMENTS
    12     PROVIDED FOR UNDER THIS SUBSECTION IN ANY 12-MONTH PERIOD
    13     COVERING THE MONTH TO WHICH IT IS EXTENDED.
    14         (7)  NO ADVANCED SERVICE REQUESTED AND DEPLOYED BY A
    15     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY UNDER THE BONA FIDE
    16     RETAIL REQUEST PROGRAM WHICH HAS A BANDWIDTH OF LESS THAN
    17     1.544 MEGABITS PER SECOND (MBPS) IN THE DOWNSTREAM DIRECTION
    18     SHALL BE COUNTED AS A CREDIT TOWARD THE LOCAL EXCHANGE
    19     TELECOMMUNICATIONS COMPANY'S BROADBAND DEPLOYMENT OBLIGATION
    20     UNDER ITS NETWORK MODERNIZATION PLAN AMENDED PURSUANT TO
    21     SUBSECTION (B)(2) OR (3).
    22         (8)  WITH REGARD TO REQUESTS SUBMITTED UNDER THIS
    23     SUBSECTION, A RETAIL CUSTOMER MAY CHALLENGE THE ACTION OF A
    24     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY PURSUANT TO SECTION
    25     701 (RELATING TO COMPLAINTS).
    26         (9)  LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES WITH
    27     BONA FIDE RETAIL REQUEST PROGRAMS SHALL PROVIDE SEMIANNUAL
    28     REPORTS TO THE COMMISSION AND THE DEPARTMENT OF THE NUMBER OF
    29     REQUESTS FOR ADVANCED SERVICES RECEIVED DURING THE REPORTING
    30     PERIOD BY EXCHANGE OR DENSITY CELL AND THE ACTION TAKEN ON
    20030H0030B4645                 - 62 -     

     1     REQUESTS MEETING THE REQUIREMENTS OF THIS SUBSECTION.
     2         (10)  A LOCAL EXCHANGE TELECOMMUNICATION COMPANY'S BONA
     3     FIDE RETAIL REQUEST PROGRAM ESTABLISHED UNDER THIS SUBSECTION
     4     SHALL CONTINUE THROUGH DECEMBER 31, 2015, OR SUCH EARLIER
     5     DATE AS THE LOCAL TELECOMMUNICATIONS COMPANY ACHIEVES 100%
     6     BROADBAND AVAILABILITY THROUGHOUT ITS SERVICE TERRITORY.
     7         (11)  IN ADDITION TO ADJUDICATING ANY COMPLAINTS BROUGHT
     8     BY CUSTOMERS UNDER PARAGRAPH (8), THE COMMISSION SHALL
     9     MONITOR AND ENFORCE THE COMPLIANCE OF PARTICIPATING LOCAL
    10     EXCHANGE TELECOMMUNICATIONS COMPANIES WITH THEIR OBLIGATIONS
    11     UNDER THIS SUBSECTION.
    12     (D)  BUSINESS ATTRACTION OR RETENTION PROGRAM.--
    13         (1)  NOT LATER THAN 90 DAYS AFTER AMENDING ITS NETWORK
    14     MODERNIZATION PLAN UNDER SUBSECTION (B)(2) OR (3), THE LOCAL
    15     EXCHANGE TELECOMMUNICATIONS COMPANY SHALL ESTABLISH A
    16     BUSINESS ATTRACTION OR RETENTION PROGRAM TO AGGREGATE
    17     CUSTOMER DEMAND WHERE NECESSARY AND FACILITATE THE DEPLOYMENT
    18     OF ADVANCED SERVICES TO QUALIFYING BUSINESSES WHICH THE
    19     DEPARTMENT SEEKS TO ATTRACT TO OR RETAIN IN THIS COMMONWEALTH
    20     AND WHICH SUBMIT REQUESTS FOR SUCH SERVICES THROUGH THE
    21     DEPARTMENT.
    22         (2)  THE DEPARTMENT SHALL WORK WITH INDUSTRIAL
    23     DEVELOPMENT AGENCIES AND OTHER ECONOMIC DEVELOPMENT ENTITIES
    24     IN THIS COMMONWEALTH TO AGGREGATE BUSINESS CUSTOMER DEMAND
    25     WHERE NECESSARY AND SOLICIT THE SUBMISSION OF REQUESTS FOR
    26     ADVANCED SERVICES THROUGH THE DEPARTMENT TO PARTICIPATING
    27     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES, GIVING PRIORITY
    28     ATTENTION TO BUSINESSES THAT THE DEPARTMENT WISHES TO ATTRACT
    29     TO OR RETAIN IN KEYSTONE OPPORTUNITY ZONES, KEYSTONE
    30     OPPORTUNITY EXPANSION ZONES, KEYSTONE OPPORTUNITY IMPROVEMENT
    20030H0030B4645                 - 63 -     

     1     ZONES, ENTERPRISE ZONES AND OTHER AREAS IDENTIFIED BY THE
     2     DEPARTMENT AS LACKING ADEQUATE ADVANCED SERVICES ACCESS TO
     3     PROMOTE ECONOMIC DEVELOPMENT.
     4         (3)  EACH LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY WHICH
     5     AMENDS ITS NETWORK MODERNIZATION PLAN UNDER SUBSECTION (B)(2)
     6     OR (3) NOT LATER THAN 90 DAYS AFTER THE EFFECTIVE DATE OF ITS
     7     AMENDED PLAN SHALL DESIGNATE A SINGLE POINT OF CONTACT TO
     8     RECEIVE ALL WRITTEN ADVANCED SERVICES REQUESTS FORWARDED BY
     9     THE DEPARTMENT, PROVIDE ASSOCIATED CONTACT INFORMATION TO THE
    10     DEPARTMENT AND PROVIDE THE DEPARTMENT AND THE COMMISSION WITH
    11     A WRITTEN DESCRIPTION OF ITS PARTICIPATION IN THE PROGRAM AND
    12     A SAMPLE REQUEST FOR ADVANCED SERVICES FORM FOR USE IN THE
    13     PROGRAM.
    14         (4)  BUSINESSES, WHICH ALONE OR COLLECTIVELY QUALIFY TO
    15     SUBMIT A BONA FIDE RETAIL REQUEST, MAY SUBMIT WRITTEN
    16     REQUESTS FOR ADVANCED SERVICES TO THE DEPARTMENT. THE
    17     DEPARTMENT SHALL FORWARD EACH REQUEST TO THE LOCAL EXCHANGE
    18     TELECOMMUNICATIONS COMPANY'S SINGLE POINT OF CONTACT. THE
    19     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL DETERMINE
    20     WHETHER THE REQUEST CAN BETTER BE PROCESSED AS A DEPARTMENT-
    21     ORIGINATED BONA FIDE RETAIL REQUEST OR, IF IT DEEMS THE
    22     DEMAND LARGE OR VARIED ENOUGH, AS A MAJOR ADVANCED SERVICES
    23     ORDER THAT SHOULD BE PROCESSED OUTSIDE OF THE BONA FIDE
    24     RETAIL REQUEST PROGRAM. THE SINGLE POINT OF CONTACT SHALL
    25     ADVISE THE DEPARTMENT AND THE QUALIFYING BUSINESS OR
    26     BUSINESSES OF THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY'S
    27     DECISION.
    28         (5)  QUALIFYING BUSINESS OR BUSINESSES' REQUESTS FOR
    29     ADVANCED SERVICES SUBMITTED BY THE DEPARTMENT THAT ARE
    30     PROVISIONED THROUGH THE BONA FIDE RETAIL REQUEST PROGRAM
    20030H0030B4645                 - 64 -     

     1     SHALL BE PROCESSED IN ACCORDANCE WITH SUBSECTION (C) AND
     2     SHALL BE ALLOCATED 50% OF THE MAXIMUM NUMBER OF ANNUAL
     3     DEPLOYMENTS REFERENCED IN SUBSECTION (C)(6). OTHER REQUESTS
     4     SHALL BE ALLOCATED 50% OF THE NUMBER OF SUCH DEPLOYMENTS,
     5     PROVIDED, HOWEVER, THAT ANY ALLOCATED DEPLOYMENTS THAT ARE
     6     UNUSED MAY BE UTILIZED BY THE DEPARTMENT OR NONDEPARTMENT
     7     APPLICANTS, AS APPLICABLE.
     8         (6)  FOR QUALIFYING BUSINESS OR BUSINESSES WHOSE REQUEST
     9     FOR ADVANCED SERVICES IS DETERMINED TO BE BETTER PROCESSED
    10     OUTSIDE OF THE BONA FIDE RETAIL REQUEST PROGRAM, THE LOCAL
    11     EXCHANGE TELECOMMUNICATIONS COMPANY SHALL MAKE A PROPOSAL TO
    12     THE REQUESTING BUSINESS OR BUSINESSES TO PROVIDE THE
    13     REQUESTED ADVANCED SERVICE OR SERVICES, AND SUBSEQUENTLY
    14     SHALL PROVISION SUCH SERVICE OR SERVICES WITHIN ONE YEAR
    15     AFTER THE BUSINESS OR BUSINESSES SIGN A CONTRACT FOR THE
    16     SERVICE OR SERVICES, UNLESS THE BUSINESS OR BUSINESSES AGREE
    17     TO A LONGER PERIOD, OR THE LOCAL EXCHANGE TELECOMMUNICATIONS
    18     COMPANY OBTAINS COMMISSION APPROVAL OF AN EXTENSION UNDER THE
    19     SAME PROCEDURE SET FORTH IN SUBSECTION (C)(5).
    20         (7)  NO ADVANCED SERVICE REQUESTED AND DEPLOYED BY A
    21     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY UNDER THE BUSINESS
    22     ATTRACTION OR RETENTION PROGRAM WHICH HAS A BANDWIDTH OF LESS
    23     THAN 1.544 MEGABITS PER SECOND (MBPS) IN THE DOWNSTREAM
    24     DIRECTION SHALL BE COUNTED AS A CREDIT TOWARD THE LOCAL
    25     EXCHANGE TELECOMMUNICATION COMPANY'S BROADBAND DEPLOYMENT
    26     OBLIGATION UNDER ITS NETWORK MODERNIZATION PLAN AMENDED UNDER
    27     SUBSECTION (B)(2) OR (3).
    28         (8)  EACH LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY,
    29     WHICH IS REQUIRED TO PARTICIPATE IN THE DEPARTMENT'S BUSINESS
    30     ATTRACTION OR RETENTION PROGRAM, SHALL CONTINUE ITS
    20030H0030B4645                 - 65 -     

     1     PARTICIPATION THROUGH DECEMBER 31, 2015, OR SUCH EARLIER DATE
     2     AS IT ACHIEVES 100% BROADBAND AVAILABILITY THROUGHOUT ITS
     3     SERVICE TERRITORY.
     4         (9)  THE DEPARTMENT SHALL OVERSEE LOCAL EXCHANGE
     5     TELECOMMUNICATIONS COMPANY PARTICIPATION IN THE BUSINESS
     6     ATTRACTION OR RETENTION PROGRAM, INCLUDING THE TIMELY
     7     COMPLETION OF QUALIFYING ADVANCED SERVICES REQUESTS SUBMITTED
     8     THROUGH THE DEPARTMENT, WHICH ARE PROCESSED WITHIN OR OUTSIDE
     9     OF THE PARTICIPATING LOCAL EXCHANGE TELECOMMUNICATIONS
    10     COMPANIES' BONA FIDE RETAIL REQUEST PROGRAMS.
    11         (10)  THE COMMISSION SHALL MONITOR AND ENFORCE THE
    12     COMPLIANCE OF PARTICIPATING LOCAL EXCHANGE TELECOMMUNICATIONS
    13     COMPANIES WITH THEIR OBLIGATIONS UNDER THE BUSINESS
    14     ATTRACTION OR RETENTION PROGRAM.
    15     (E)  NOTICE OF FILING OF AMENDMENTS.--A LOCAL EXCHANGE
    16  TELECOMMUNICATIONS COMPANY THAT ELECTS TO AMEND ITS NETWORK
    17  MODERNIZATION PLAN UNDER SUBSECTION (B) SHALL NOTIFY THE
    18  COMMISSION IN WRITING OF SUCH ELECTION AND, WITHIN 60 DAYS
    19  FOLLOWING SUCH NOTIFICATION, FILE ITS AMENDED NETWORK
    20  MODERNIZATION PLAN WITH THE COMMISSION. COPIES OF THE WRITTEN
    21  NOTICE OF ELECTION AND OF THE AMENDED NETWORK MODERNIZATION PLAN
    22  SHALL BE SERVED BY THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    23  ON THE OFFICE OF CONSUMER ADVOCATE AND THE OFFICE OF SMALL
    24  BUSINESS ADVOCATE. CONCURRENT WITH THE FILING OF THE AMENDED
    25  PLAN WITH THE COMMISSION, THE LOCAL EXCHANGE TELECOMMUNICATIONS
    26  COMPANY SHALL PUBLISH NOTICE OF SUCH FILING IN A NEWSPAPER OR
    27  NEWSPAPERS OF GENERAL CIRCULATION IN ITS SERVICE TERRITORY OR BY
    28  BILL MESSAGE OR INSERT. THE AMENDED NETWORK MODERNIZATION PLAN
    29  SHALL BECOME EFFECTIVE UPON FILING WITH THE COMMISSION.
    30     (F)  NETWORK MODERNIZATION PLAN REPORT.--
    20030H0030B4645                 - 66 -     

     1         (1)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
     2     OPERATING UNDER A NETWORK MODERNIZATION PLAN SHALL CONTINUE
     3     TO FILE WITH THE COMMISSION, BIENNIAL REPORTS ON ITS
     4     PROVISION OF BROADBAND AVAILABILITY IN THE FORM AND DETAIL
     5     REQUIRED BY THE COMMISSION AS OF JULY 1, 2004, UNLESS SUCH
     6     REPORTING REQUIREMENTS ARE SUBSEQUENTLY REDUCED BY THE
     7     COMMISSION.
     8         (2)  NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO
     9     IMPEDE THE ABILITY OF THE COMMISSION TO REQUIRE THE
    10     SUBMISSION OF FURTHER INFORMATION TO SUPPORT THE ACCURACY OF
    11     OR TO SEEK AN EXPLANATION OF THE REPORTS SPECIFIED IN THIS
    12     SUBSECTION.
    13         (3)  UNDER NO CIRCUMSTANCES SHALL THE COMMISSION COMPEL
    14     THE PUBLIC RELEASE OF MAPS OR OTHER INFORMATION DESCRIBING
    15     THE ACTUAL LOCATION OF A LOCAL EXCHANGE COMMUNICATIONS
    16     COMPANY'S FACILITIES.
    17     (G)  ASSISTANCE TO POLITICAL SUBDIVISIONS.--A LOCAL EXCHANGE
    18  TELECOMMUNICATIONS COMPANY SHALL COMMIT, IN ITS AMENDED NETWORK
    19  MODERNIZATION PLAN, TO MAKE TECHNICAL ASSISTANCE AVAILABLE TO
    20  POLITICAL SUBDIVISIONS LOCATED IN ITS SERVICE TERRITORY IN
    21  PURSUING THE DEPLOYMENT OF ADDITIONAL TELECOMMUNICATIONS
    22  INFRASTRUCTURE OR SERVICES BY THE LOCAL EXCHANGE
    23  TELECOMMUNICATIONS COMPANY.
    24     (H)  PROHIBITION AGAINST POLITICAL SUBDIVISION ADVANCED AND
    25  BROADBAND SERVICES DEPLOYMENT.--
    26         (1)  EXCEPT AS OTHERWISE PROVIDED FOR UNDER PARAGRAPH
    27     (2), A POLITICAL SUBDIVISION OR ANY ENTITY ESTABLISHED BY A
    28     POLITICAL SUBDIVISION MAY NOT PROVIDE TO THE PUBLIC FOR
    29     COMPENSATION ANY TELECOMMUNICATIONS SERVICES, INCLUDING
    30     ADVANCED AND BROADBAND SERVICES, WITHIN THE SERVICE TERRITORY
    20030H0030B4645                 - 67 -     

     1     OF A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY OPERATING
     2     UNDER A NETWORK MODERNIZATION PLAN.
     3         (2)  A POLITICAL SUBDIVISION MAY OFFER ADVANCED OR
     4     BROADBAND SERVICES IF THE POLITICAL SUBDIVISION HAS SUBMITTED
     5     A WRITTEN REQUEST FOR THE DEPLOYMENT OF SUCH SERVICE TO THE
     6     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SERVING THE AREA
     7     AND, WITHIN TWO MONTHS OF RECEIPT OF THE REQUEST, THE LOCAL
     8     EXCHANGE TELECOMMUNICATIONS COMPANY OR ONE OF ITS AFFILIATES
     9     HAS NOT AGREED TO PROVIDE THE DATA SPEEDS REQUESTED. IF THE
    10     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY OR ONE OF ITS
    11     AFFILIATES AGREES TO PROVIDE THE DATA SPEEDS REQUESTED, THEN
    12     IT MUST DO SO WITHIN 14 MONTHS OF RECEIPT OF THE REQUEST.
    13         (3)  THE PROHIBITION IN PARAGRAPH (1) SHALL NOT BE
    14     CONSTRUED TO PRECLUDE THE CONTINUED PROVISION OR OFFERING OF
    15     TELECOMMUNICATIONS SERVICES BY A POLITICAL SUBDIVISION OF THE
    16     SAME TYPE AND SCOPE AS WERE BEING PROVIDED ON THE EFFECTIVE
    17     DATE OF THIS SECTION.
    18     (I)  BROADBAND OUTREACH AND AGGREGATION PROGRAM.--
    19         (1)  THE DEPARTMENT SHALL ESTABLISH A BROADBAND OUTREACH
    20     AND AGGREGATION PROGRAM FOR THE PURPOSE OF MAKING
    21     EXPENDITURES AND PROVIDING GRANTS FROM THE BROADBAND OUTREACH
    22     AND AGGREGATION FUND ESTABLISHED UNDER SECTION 3015(C)
    23     (RELATING TO ALTERNATIVE FORMS OF REGULATION) FOR:
    24             (I)  OUTREACH PROGRAMS FOR POLITICAL SUBDIVISIONS,
    25         ECONOMIC DEVELOPMENT ENTITIES, SCHOOLS, HEALTH CARE
    26         FACILITIES, BUSINESSES AND RESIDENTIAL CUSTOMERS
    27         CONCERNING THE BENEFITS, USE AND PROCUREMENT OF BROADBAND
    28         SERVICES; AND
    29             (II)  SEED GRANTS TO AGGREGATE CUSTOMER DEMAND FOR
    30         BROADBAND SERVICES IN COMMUNITIES OR POLITICAL
    20030H0030B4645                 - 68 -     

     1         SUBDIVISIONS WITH LIMITED ACCESS TO SUCH SERVICES AND
     2         PERMIT CUSTOMERS IN SUCH COMMUNITIES OR POLITICAL
     3         SUBDIVISIONS TO REQUEST SUCH SERVICES FROM A
     4         TELECOMMUNICATIONS PROVIDER.
     5         (2)  THE DEPARTMENT SHALL ANNUALLY REPORT TO THE
     6     COMMISSION ON ALL PAYMENTS TO AND EXPENDITURES FROM THE
     7     BROADBAND OUTREACH AND AGGREGATION FUND AND THE COMMISSION
     8     SHALL VERIFY THE ACCURACY OF THE CONTRIBUTIONS FROM THE
     9     PARTICIPATING LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES.
    10     (J)  EDUCATION TECHNOLOGY PROGRAM.--
    11         (1)  THE DEPARTMENT OF EDUCATION SHALL ESTABLISH AN
    12     EDUCATION TECHNOLOGY PROGRAM FOR THE PURPOSE OF PROVIDING
    13     GRANTS TO SCHOOL ENTITIES FROM THE EDUCATION TECHNOLOGY FUND
    14     (E-FUND) ESTABLISHED UNDER SECTION 3015(D).
    15         (2)  THE DEPARTMENT OF EDUCATION SHALL AUTHORIZE GRANTS
    16     FROM THE E-FUND FOR THE FOLLOWING PURPOSES:
    17             (I)  PURCHASE OR LEASE OF TELECOMMUNICATIONS
    18         SERVICES, INFRASTRUCTURE OR FACILITIES TO ESTABLISH AND
    19         SUPPORT BROADBAND NETWORKS BETWEEN, AMONG AND WITHIN
    20         SCHOOL ENTITIES AND NOT FOR THE PROVISION OF
    21         TELECOMMUNICATIONS SERVICES TO THE PUBLIC FOR
    22         COMPENSATION.
    23             (II)  PURCHASE OR LEASE OF PREMISES
    24         TELECOMMUNICATIONS NETWORK EQUIPMENT AND END-USER
    25         EQUIPMENT TO ENABLE THE EFFECTIVE USE OF BROADBAND
    26         NETWORKS BETWEEN, AMONG AND WITHIN SCHOOL ENTITIES AND
    27         NOT FOR THE PROVISION OF TELECOMMUNICATIONS SERVICES TO
    28         THE PUBLIC FOR COMPENSATION.
    29             (III)  DISTANCE LEARNING INITIATIVES THAT USE THE
    30         FOREGOING BROADBAND NETWORKS.
    20030H0030B4645                 - 69 -     

     1             (IV)  TECHNICAL SUPPORT SERVICES FOR THE ACTIVITIES
     2         DESCRIBED IN SUBPARAGRAPHS (I) THROUGH (III).
     3         (3)  EACH APPLICANT SCHOOL ENTITY SHALL BE REQUIRED TO
     4     PROVIDE 100% MATCHING FUNDS TO SUPPORT EACH E-FUND GRANT
     5     REQUEST. FUNDS RECEIVED FROM FEDERAL TECHNOLOGY PROGRAMS SUCH
     6     AS THE UNIVERSAL SERVICE SUPPORT MECHANISM FOR SCHOOLS AND
     7     LIBRARIES SET FORTH IN 47 CFR PT. 54 (RELATING TO UNIVERSAL
     8     SERVICE OR SUCCESSOR REGULATIONS) AND ANY OTHER TECHNOLOGY
     9     EXPENDITURES SHALL BE APPLIED TOWARD THE MATCHING FUND
    10     REQUIREMENT.
    11         (4)  NO LATER THAN 90 DAYS AFTER THE EFFECTIVE DATE OF
    12     THIS SECTION, THE DEPARTMENT OF EDUCATION SHALL PRESCRIBE THE
    13     GRANT PROCESS AND THE FORM AND MANNER OF THE E-FUND
    14     APPLICATION. GRANTS SHALL BE LIMITED TO THE FUNDS AVAILABLE
    15     IN THE EDUCATION TECHNOLOGY FUND. IN AWARDING GRANTS, THE
    16     DEPARTMENT OF EDUCATION SHALL GIVE PRIORITY TO APPLICATIONS:
    17             (I)  THAT ARE SUBMITTED BY SCHOOL ENTITIES THAT SEEK
    18         FUNDS FOR DISCOUNTED BROADBAND SERVICES UNDER SUBSECTION
    19         (L) OR FOR BROADBAND INFRASTRUCTURE, FACILITIES OR
    20         EQUIPMENT FROM LOCAL EXCHANGE TELECOMMUNICATIONS
    21         COMPANIES WHICH CONTRIBUTE TO THE E-FUND;
    22             (II)  THAT SEEK FUNDS FOR REGIONAL NETWORKS THAT
    23         SERVE MULTIPLE SCHOOL DISTRICTS WHICH ARE FILED ON BEHALF
    24         OF MULTIPLE SCHOOL DISTRICTS AND SCHOOL ENTITIES; OR
    25             (III)  THAT SEEK FUNDS FOR TELECOMMUNICATIONS
    26         SERVICES, INFRASTRUCTURE OR FACILITIES THAT PROVIDE
    27         BROADBAND BANDWIDTHS OF GREATER THAN 1.544 MEGABITS PER
    28         SECOND (MBPS).
    29     (K)  BALANCED DEPLOYMENT.--A LOCAL EXCHANGE
    30  TELECOMMUNICATIONS COMPANY SHALL REASONABLY BALANCE DEPLOYMENT
    20030H0030B4645                 - 70 -     

     1  OF ITS BROADBAND NETWORK BETWEEN RURAL, URBAN AND SUBURBAN AREAS
     2  WITHIN ITS SERVICE TERRITORY, AS THOSE AREAS ARE APPLICABLE, IN
     3  ACCORDANCE WITH ITS APPROVED NETWORK MODERNIZATION PLAN.
     4     (L)  BROADBAND DISCOUNTS TO SCHOOLS.--EACH LOCAL EXCHANGE
     5  TELECOMMUNICATIONS COMPANY THAT ELECTS TO AMEND ITS NETWORK
     6  MODERNIZATION PLAN PURSUANT TO THIS SECTION:
     7         (1)  SHALL OFFER SCHOOL CUSTOMERS WHICH MEET THE
     8     ELIGIBILITY STANDARDS DESCRIBED IN 47 CFR 54.501 (RELATING TO
     9     ELIGIBILITY FOR SERVICES PROVIDED BY TELECOMMUNICATIONS
    10     CARRIERS) AND WHICH AGREE TO ENTER INTO A MINIMUM THREE-YEAR
    11     CONTRACT, A 30% DISCOUNT, OR GREATER DISCOUNT AT THE LOCAL
    12     EXCHANGE TELECOMMUNICATIONS COMPANY'S DISCRETION, IN THE
    13     OTHERWISE APPLICABLE TARIFFED DISTANCE SENSITIVE PER-MILE
    14     RATE ELEMENT AND ALSO WILL WAIVE THE ASSOCIATED NONRECURRING
    15     CHARGES FOR AVAILABLE INTRASTATE BROADBAND SERVICES WHERE
    16     USED FOR EDUCATIONAL PURPOSES AND NOT FOR THE PROVISION OF
    17     TELECOMMUNICATIONS SERVICES TO THE PUBLIC FOR COMPENSATION.
    18     THE DISCOUNT OR WAIVER SHALL NOT BE REQUIRED WHERE
    19     APPLICATION OF IT TO A PARTICULAR SERVICE WOULD CONFLICT WITH
    20     APPLICABLE LAW.
    21         (2)  WILL ASSIST SCHOOL CUSTOMERS IN APPLYING FOR E-RATE
    22     FUNDING UNDER 47 CFR 54.505 (RELATING TO DISCOUNTS).
    23     (M)  INVENTORY OF AVAILABLE SERVICES.--
    24         (1)  THE DEPARTMENT SHALL COMPILE, PERIODICALLY UPDATE
    25     AND PUBLISH, INCLUDING AT ITS INTERNET WEBSITE, A LISTING OF
    26     ADVANCED AND BROADBAND SERVICES, BY GENERAL LOCATION,
    27     AVAILABLE FROM ALL ADVANCED AND BROADBAND SERVICE PROVIDERS
    28     OPERATING IN THIS COMMONWEALTH IRRESPECTIVE OF THE TECHNOLOGY
    29     USED.
    30         (2)  ALL PROVIDERS OF ADVANCED AND BROADBAND SERVICES
    20030H0030B4645                 - 71 -     

     1     SHALL COOPERATE WITH THE DEPARTMENT.
     2         (3)  THE DEPARTMENT MAY NOT DISCLOSE MAPS OR OTHER
     3     INFORMATION DESCRIBING THE SPECIFIC LOCATION OF ANY
     4     TELECOMMUNICATIONS CARRIER'S OR ALTERNATIVE SERVICE
     5     PROVIDER'S FACILITIES.
     6     (N)  CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE
     7  CONSTRUED:
     8         (1)  AS GIVING THE COMMISSION THE AUTHORITY TO REQUIRE A
     9     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY TO PROVIDE SPECIFIC
    10     SERVICES OR TO DEPLOY A SPECIFIC TECHNOLOGY TO RETAIL
    11     CUSTOMERS SEEKING BROADBAND OR ADVANCED SERVICES.
    12         (2)  AS PROHIBITING A LOCAL EXCHANGE TELECOMMUNICATIONS
    13     COMPANY FROM PARTICIPATING IN JOINT VENTURES WITH OTHER
    14     ENTITIES IN MEETING ITS ADVANCED SERVICES AND BROADBAND
    15     DEPLOYMENT COMMITMENTS UNDER ITS NETWORK MODERNIZATION PLAN.
    16  § 3015.  ALTERNATIVE FORMS OF REGULATION.
    17     (A)  INFLATION OFFSET.--
    18         (1)  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPHS (2) AND
    19     (3), A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY WITH AN
    20     ALTERNATIVE FORM OF REGULATION CONTAINING A PRICE STABILITY
    21     MECHANISM THAT FILES AN AMENDED NETWORK MODERNIZATION PLAN
    22     UNDER SECTION 3014(B)(1), (2) OR (3) (RELATING TO NETWORK
    23     MODERNIZATION PLANS) SHALL BE SUBJECT TO A MODIFIED INFLATION
    24     OFFSET IN ITS PRICE STABILITY MECHANISM IN ADJUSTING ITS
    25     RATES FOR NONCOMPETITIVE SERVICES, EFFECTIVE UPON THE FILING
    26     OF AN AMENDED NETWORK MODERNIZATION PLAN UNDER SECTION
    27     3014(E), AS FOLLOWS:
    28             (I)  IF A NONRURAL TELECOMMUNICATIONS CARRIER FILES
    29         AN AMENDED NETWORK MODERNIZATION PLAN UNDER SECTION
    30         3014(B)(3) THAT COMMITS TO DEPLOY 100% BROADBAND
    20030H0030B4645                 - 72 -     

     1         AVAILABILITY BY DECEMBER 31, 2013, THEN THE CARRIER'S
     2         INFLATION OFFSET SHALL BE ZERO.
     3             (II)  IF A NONRURAL TELECOMMUNICATIONS CARRIER FILES
     4         AN AMENDED NETWORK MODERNIZATION PLAN UNDER SECTION
     5         3014(B)(3) THAT COMMITS TO DEPLOY 100% BROADBAND
     6         AVAILABILITY BY DECEMBER 31, 2015, THEN THE CARRIER'S
     7         INFLATION OFFSET SHALL BE EQUAL TO 0.5%.
     8             (III)  IF A RURAL TELECOMMUNICATIONS CARRIER FILES AN
     9         AMENDED NETWORK MODERNIZATION PLAN UNDER SECTION
    10         3014(B)(1) THAT COMMITS TO DEPLOY 100% BROADBAND
    11         AVAILABILITY BY DECEMBER 31, 2008, OR UNDER SECTION
    12         3014(B)(2)(II)(A) THAT COMMITS TO DEPLOY 100% BROADBAND
    13         AVAILABILITY BY DECEMBER 31, 2013, THEN THE CARRIER'S
    14         INFLATION OFFSET SHALL BE ZERO.
    15             (IV)  IF A RURAL TELECOMMUNICATIONS CARRIER FILES AN
    16         AMENDED NETWORK MODERNIZATION PLAN UNDER SECTION
    17         3014(B)(2)(II)(B) THAT COMMITS TO DEPLOY 100% BROADBAND
    18         AVAILABILITY BY DECEMBER 31, 2015, THEN THE CARRIER'S
    19         INFLATION OFFSET SHALL BE EQUAL TO 0.5%.
    20         (2)  IN THE EVENT THAT A LOCAL EXCHANGE
    21     TELECOMMUNICATIONS COMPANY IS FOUND BY THE COMMISSION, AFTER
    22     NOTICE AND EVIDENTIARY HEARINGS, TO HAVE FAILED TO MEET ITS
    23     COMMITMENT FOR BROADBAND AVAILABILITY UNDER ITS AMENDED
    24     NETWORK MODERNIZATION PLAN, THEN THE COMMISSION SHALL REQUIRE
    25     THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY TO REFUND TO
    26     CUSTOMERS IN ITS NEXT PRICE STABILITY FILING, AN AMOUNT THAT
    27     IS JUST AND REASONABLE UNDER THE CIRCUMSTANCES, BUT NOT TO
    28     EXCEED AN AMOUNT DETERMINED BY MULTIPLYING THE PERCENTAGE
    29     SHORTFALL OF THE BROADBAND AVAILABILITY COMMITMENT ON AN
    30     ACCESS LINE BASIS TIMES THE INCREASED REVENUE THAT WAS
    20030H0030B4645                 - 73 -     

     1     OBTAINED AS A RESULT OF THE MODIFIED INFLATION OFFSET
     2     PROVIDED IN THIS SECTION THAT REDUCED THE INFLATION OFFSET
     3     APPLICABLE IN THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY'S
     4     ALTERNATIVE REGULATION PLAN IN EFFECT ON THE EFFECTIVE DATE
     5     OF THIS SECTION, PLUS INTEREST CALCULATED UNDER SECTION
     6     1308(D) (RELATING TO VOLUNTARY CHANGES IN RATES).
     7         (3)  WHERE ANNUAL RATE ADJUSTMENTS MADE UNDER A NONRURAL
     8     TELECOMMUNICATIONS CARRIER'S PRICE STABILITY MECHANISM ARE
     9     CALCULATED USING ONLY REVENUES FROM PROTECTED SERVICES, AN
    10     AVERAGE RATE ADJUSTMENT FOR PROTECTED RESIDENTIAL CUSTOMER
    11     LOCAL EXCHANGE TELECOMMUNICATIONS SERVICE LINES SHALL BE
    12     DETERMINED BY DIVIDING THE TOTAL PROTECTED SERVICE REVENUES
    13     ASSOCIATED WITH SUCH LINES, AS ADJUSTED BY THE PRICE
    14     STABILITY FORMULA, BY THE NUMBER OF SUCH LINES, AND THE RATE
    15     ADJUSTMENT FOR ANY INDIVIDUAL LINE SHALL NOT VARY FROM THIS
    16     AVERAGE RATE ADJUSTMENT BY MORE THAN 20%.
    17     (B)  RATE CHANGES FOR RURAL TELECOMMUNICATIONS CARRIERS.--
    18         (1)  IN ADDITION TO THE RATE CHANGE PROVISIONS IN ITS
    19     ALTERNATIVE FORM OF REGULATION PLAN, A RURAL
    20     TELECOMMUNICATIONS CARRIER OPERATING WITHOUT A PRICE
    21     STABILITY MECHANISM THAT FILES WITH THE COMMISSION AN AMENDED
    22     NETWORK MODERNIZATION PLAN UNDER SECTION 3014(B)(1) OR (2)
    23     SHALL BE PERMITTED AT ANY TIME TO FILE PROPOSED TARIFF
    24     CHANGES WITH THE COMMISSION, EFFECTIVE 45 DAYS AFTER FILING,
    25     SETTING FORTH MISCELLANEOUS CHANGES, INCLUDING INCREASES AND
    26     DECREASES, IN RATES FOR NONCOMPETITIVE SERVICES, EXCLUDING
    27     BASIC RESIDENTIAL AND BUSINESS RATES, PROVIDED SUCH RATE
    28     CHANGES DO NOT INCREASE THE RURAL TELECOMMUNICATIONS
    29     CARRIER'S ANNUAL INTRASTATE REVENUES BY MORE THAN 3%.
    30         (2)  THE COMMISSION TARIFF FILING REQUIREMENTS AND REVIEW
    20030H0030B4645                 - 74 -     

     1     ASSOCIATED WITH SUCH PROPOSED RATE CHANGES SHALL BE LIMITED
     2     TO SCHEDULES SUBMITTED BY THE RURAL TELECOMMUNICATIONS
     3     CARRIER DETAILING THE IMPACT OF THE RATE CHANGES ON THE
     4     CARRIER'S ANNUAL INTRASTATE REVENUES.
     5         (3)  A RURAL TELECOMMUNICATIONS CARRIER THAT IMPLEMENTS
     6     NONCOMPETITIVE RATE CHANGES CONSISTENT WITH THE PROCEDURE SET
     7     FORTH IN ITS ALTERNATIVE FORM OF REGULATION PLAN SHALL BE
     8     REQUIRED ONLY TO FILE SUCH FINANCIAL AND COST DATA WITH THE
     9     COMMISSION TO JUSTIFY SUCH CHANGES AS IS REQUIRED UNDER ITS
    10     COMMISSION-APPROVED ALTERNATIVE FORM OF REGULATION PLAN.
    11         (4)  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1), (2)
    12     OR (3), FOR ANY RURAL TELECOMMUNICATIONS CARRIER SERVING LESS
    13     THAN 50,000 ACCESS LINES IN THIS COMMONWEALTH AND OPERATING
    14     UNDER AN ALTERNATIVE FORM OF REGULATION PLAN, A FORMAL
    15     COMPLAINT TO DENY RATE CHANGES FOR NONCOMPETITIVE SERVICES,
    16     UNLESS SIGNED BY AT LEAST 20 CUSTOMERS OF THE RURAL
    17     TELECOMMUNICATIONS CARRIER, SHALL NOT PREVENT IMPLEMENTATION
    18     OF THE RATE CHANGES PENDING THE ADJUDICATION OF THE FORMAL
    19     COMPLAINT BY THE COMMISSION.
    20     (C)  BROADBAND OUTREACH AND AGGREGATION FUND.--
    21         (1)  THERE IS HEREBY ESTABLISHED WITHIN THE STATE
    22     TREASURY A SPECIAL FUND TO BE KNOWN AS THE BROADBAND OUTREACH
    23     AND AGGREGATION FUND FOR THE PURPOSES ENUMERATED IN SECTION
    24     3014(I).
    25         (2)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY THAT
    26     FILES AN AMENDED NETWORK MODERNIZATION PLAN UNDER SECTION
    27     3014(B)(2) OR (3) SHALL CONTRIBUTE TO THE FUND UP TO, BUT NOT
    28     MORE THAN, 10% OF THE FIRST YEAR'S ANNUAL REVENUE EFFECT:
    29             (I)  OF ANY RATE INCREASE PERMITTED BY THE
    30         ELIMINATION OR REDUCTION OF THE OFFSET UNDER SUBSECTION
    20030H0030B4645                 - 75 -     

     1         (A) AND PLACED INTO EFFECT; OR
     2             (II)  OF ANY RATE INCREASE PLACED INTO EFFECT UNDER
     3         SUBSECTION (B)(1), IF THE LOCAL EXCHANGE
     4         TELECOMMUNICATIONS COMPANY IS OPERATING WITHOUT A PRICE
     5         STABILITY MECHANISM.
     6         (3)  THE CONTRIBUTION SHALL BE PAYABLE IN EQUAL QUARTERLY
     7     INSTALLMENTS AND CALCULATED ON PROJECTED INCREASED REVENUES
     8     FOR THE FIRST YEAR OF THE RATE CHANGE. THE CONTRIBUTIONS
     9     SHALL ALSO BE MADE IN CONNECTION WITH EACH SUBSEQUENT
    10     NONCOMPETITIVE SERVICE RATE INCREASE UNTIL THE LOCAL EXCHANGE
    11     TELECOMMUNICATIONS COMPANY ACHIEVES 100% BROADBAND
    12     AVAILABILITY THROUGHOUT ITS SERVICE TERRITORY.
    13         (4)  IN NO EVENT SHALL THE TOTAL AMOUNT OF THE FUND
    14     EXCEED $5,000,000 ANNUALLY AND IN THE EVENT OF SUCH
    15     OVERFUNDING, THE DEPARTMENT SHALL CREDIT THE OVERCOLLECTION
    16     TO THE NEXT YEAR'S CONTRIBUTION AMOUNT.
    17         (5)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY THAT
    18     ELECTS TO AMEND ITS NETWORK MODERNIZATION PLAN PURSUANT TO
    19     SECTION 3014 (B)(1) SHALL NOT BE REQUIRED TO CONTRIBUTE TO
    20     THE FUND.
    21         (6)  THE MONEYS IN THE BROADBAND OUTREACH AND AGGREGATION
    22     FUND ARE HEREBY APPROPRIATED, UPON APPROVAL OF THE GOVERNOR,
    23     TO THE DEPARTMENT FOR THE PURPOSES ENUMERATED IN PARAGRAPH
    24     (1). THE DEPARTMENT MAY USE UP TO 3% OF THE MONEY IN THE FUND
    25     FOR ADMINISTRATION.
    26         (7)  THE FUND SHALL CONTINUE UNTIL JULY 1, 2016, AT WHICH
    27     TIME THE FUND SHALL TERMINATE, AND THE DEPARTMENT SHALL
    28     RETURN ANY FUNDS REMAINING IN THE FUND, ON A PRO RATA BASIS,
    29     TO THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES THAT
    30     CONTRIBUTED TO THE FUND.
    20030H0030B4645                 - 76 -     

     1     (D)  EDUCATION TECHNOLOGY FUND (E-FUND).--
     2         (1)  THERE IS HEREBY ESTABLISHED WITHIN THE STATE
     3     TREASURY A SPECIAL FUND TO BE KNOWN AS THE EDUCATION
     4     TECHNOLOGY FUND (E-FUND) FOR THE PURPOSES ENUMERATED IN
     5     PARAGRAPH (4).
     6         (2)  ALL ASSESSMENTS COLLECTED BY THE COMMISSION UNDER
     7     PARAGRAPH (3), MONEYS SPECIFICALLY APPROPRIATED BY THE
     8     GENERAL ASSEMBLY FOR THE PURPOSES OF THIS SUBSECTION, AND ANY
     9     FUNDS, CONTRIBUTIONS OR PAYMENTS WHICH MAY BE MADE AVAILABLE
    10     TO THE FUND BY THE FEDERAL GOVERNMENT, ANOTHER STATE AGENCY
    11     OR ANY PUBLIC OR PRIVATE SOURCE FOR THE PURPOSE OF
    12     IMPLEMENTING THIS SUBSECTION SHALL BE DEPOSITED IN THE E-
    13     FUND.
    14         (3)  BEGINNING IN 2005 AND CONTINUING THROUGH 2010, THE
    15     COMMISSION SHALL, NO LATER THAN JUNE 30, ANNUALLY ASSESS EACH
    16     NONRURAL TELECOMMUNICATIONS CARRIER THAT FILES AN AMENDED
    17     NETWORK MODERNIZATION PLAN UNDER SECTION 3014(B)(3), AN
    18     AMOUNT TO BE DEPOSITED IN THE E-FUND. EACH CARRIER'S ANNUAL
    19     ASSESSMENT SHALL BE PAYABLE IN TWO EQUAL INSTALLMENTS DUE ON
    20     OCTOBER 31 OF EACH YEAR, AND JANUARY 31 OF THE FOLLOWING
    21     YEAR, AND SHALL BE BASED ON THE RELATIVE PROPORTION OF THE
    22     RETAIL ACCESS LINES SERVED BY THE NONRURAL TELECOMMUNICATIONS
    23     CARRIER IN RELATION TO THE NUMBER OF RETAIL ACCESS LINES
    24     SERVED BY ALL NONRURAL TELECOMMUNICATIONS CARRIERS THAT HAVE
    25     FILED AN AMENDED NETWORK MODERNIZATION PLAN UNDER SECTION
    26     3014(B)(3). A RURAL TELECOMMUNICATIONS CARRIER SHALL NOT BE
    27     REQUIRED TO CONTRIBUTE TO THE E-FUND. FOR FISCAL YEARS 2005
    28     AND 2006, THE TOTAL ANNUAL ASSESSMENT AMOUNT SHALL BE
    29     $7,000,000. FOR FISCAL YEARS 2007 THROUGH 2010, THE TOTAL
    30     ANNUAL ASSESSMENT AMOUNT SHALL BE THE DIFFERENCE BETWEEN
    20030H0030B4645                 - 77 -     

     1     $7,000,000 AND ANY AMOUNT REMAINING IN THE E-FUND FROM PRIOR
     2     FISCAL YEARS WHICH REMAINS UNENCUMBERED OR UNEXPENDED. A
     3     NONRURAL TELECOMMUNICATIONS CARRIER'S ASSESSMENTS REQUIRED
     4     UNDER THIS PARAGRAPH MAY NOT BE RECOVERED VIA A SURCHARGE ON
     5     CUSTOMERS' BILLS OR IN RATES FOR NONCOMPETITIVE SERVICES AS
     6     EXOGENOUS CHANGE ADJUSTMENT UNDER THE PROVISIONS OF THE
     7     CARRIER'S PRICE STABILITY MECHANISM AND SUBSECTION (A)(3)
     8     WHERE APPLICABLE.
     9         (4)  THE DEPARTMENT OF EDUCATION SHALL EXPEND THE MONEYS
    10     OF THE E-FUND FOR THE PURPOSE OF PROVIDING GRANTS TO SCHOOL
    11     ENTITIES AS PRESCRIBED BY SECTION 3014(J).
    12         (5)  THE MONEYS OF THE EDUCATION TECHNOLOGY FUND ARE
    13     HEREBY APPROPRIATED, UPON APPROVAL OF THE GOVERNOR, TO THE
    14     DEPARTMENT OF EDUCATION FOR THE PURPOSES ENUMERATED IN
    15     PARAGRAPH (4). THE DEPARTMENT OF EDUCATION MAY USE UP TO 3%
    16     OF THE MONEY FOR ADMINISTRATION. APPROPRIATIONS BY THE
    17     GENERAL ASSEMBLY TO THE FUND SHALL BE CONTINUING
    18     APPROPRIATIONS AND SHALL NOT LAPSE AT THE CLOSE OF ANY FISCAL
    19     YEAR.
    20         (6)  THE E-FUND SHALL CONTINUE UNTIL JUNE 30, 2011, AT
    21     WHICH TIME THE FUND SHALL TERMINATE AND THE DEPARTMENT OF
    22     EDUCATION SHALL RETURN ANY FUNDS REMAINING THEREIN, ON A PRO
    23     RATA BASIS, TO THE LOCAL EXCHANGE TELECOMMUNICATIONS
    24     COMPANIES THAT CONTRIBUTED TO THE FUND.
    25     (E)  GENERAL FILING REQUIREMENTS.--THE COMMISSION'S FILING
    26  REQUIREMENTS FOR A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    27  THAT IS OPERATING UNDER AN AMENDED NETWORK MODERNIZATION PLAN
    28  SHALL BE LIMITED TO THE FOLLOWING:
    29         (1)  NETWORK MODERNIZATION PLAN REPORTS FILED PURSUANT TO
    30     SECTION 3014(F).
    20030H0030B4645                 - 78 -     

     1         (2)  AN ANNUAL FINANCIAL REPORT CONSISTING OF A BALANCE
     2     SHEET AND INCOME STATEMENT.
     3         (3)  AN ANNUAL DEAF, SPEECH-IMPAIRED AND HEARING-IMPAIRED
     4     RELAY INFORMATION REPORT.
     5         (4)  AN ANNUAL SERVICE REPORT.
     6         (5)  UNIVERSAL SERVICE REPORTS.
     7         (6)  AN ANNUAL ACCESS LINE REPORT.
     8         (7)  AN ANNUAL STATEMENT OF GROSS INTRASTATE OPERATING
     9     REVENUES FOR PURPOSES OF CALCULATING ASSESSMENTS FOR
    10     REGULATORY EXPENSES.
    11         (8)  AN ANNUAL STATE TAX ADJUSTMENT COMPUTATION FOR YEARS
    12     IN WHICH A TAX CHANGE HAS OCCURRED, IF APPLICABLE.
    13         (9)  FOR THOSE COMPANIES WITH A BONA FIDE RETAIL REQUEST
    14     PROGRAM, A BONA FIDE RETAIL REQUEST REPORT UNDER SECTION
    15     3014(C)(9). THESE REPORTS SHALL BE SUBMITTED IN THE FORM
    16     DETERMINED BY THE COMMISSION.
    17     (F)  OTHER REPORTS.--
    18         (1)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE TO
    19     THE CONTRARY, NO REPORT, STATEMENT, FILING OR OTHER DOCUMENT
    20     OR INFORMATION, EXCEPT AS SPECIFIED IN SUBSECTION (E), SHALL
    21     BE REQUIRED OF ANY LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
    22     UNLESS THE COMMISSION, UPON NOTICE TO THE AFFECTED LOCAL
    23     EXCHANGE TELECOMMUNICATIONS COMPANY AND AN OPPORTUNITY TO BE
    24     HEARD, HAS FIRST MADE SPECIFIC WRITTEN FINDINGS SUPPORTING
    25     CONCLUSIONS IN AN ENTERED ORDER THAT:
    26             (I)  THE REPORT IS NECESSARY TO ENSURE THAT THE LOCAL
    27         EXCHANGE TELECOMMUNICATIONS COMPANY IS CHARGING RATES
    28         THAT ARE IN COMPLIANCE WITH THIS CHAPTER AND ITS
    29         EFFECTIVE ALTERNATIVE FORM OF REGULATION.
    30             (II)  THE BENEFITS OF THE REPORT SUBSTANTIALLY
    20030H0030B4645                 - 79 -     

     1         OUTWEIGH THE ATTENDANT EXPENSE AND ADMINISTRATIVE TIME
     2         AND EFFORT REQUIRED OF THE LOCAL EXCHANGE
     3         TELECOMMUNICATIONS COMPANY TO PREPARE IT.
     4         (2)  NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO
     5     IMPEDE THE ABILITY OF THE COMMISSION TO REQUIRE THE
     6     SUBMISSION OF FURTHER INFORMATION TO SUPPORT THE ACCURACY OF
     7     OR TO SEEK AN EXPLANATION OF THE REPORTS SPECIFIED IN
     8     SUBSECTION (E).
     9     (G)  RATE CHANGE LIMITATIONS.--NOTHING IN THIS CHAPTER SHALL
    10  BE CONSTRUED TO LIMIT THE REQUIREMENT OF SECTION 1301 (RELATING
    11  TO RATES TO BE JUST AND REASONABLE) THAT RATES SHALL BE JUST AND
    12  REASONABLE. THE ANNUAL RATE CHANGE LIMITATIONS SET FORTH IN A
    13  LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY'S EFFECTIVE
    14  COMMISSION-APPROVED ALTERNATIVE FORM OF REGULATION PLAN OR ANY
    15  OTHER COMMISSION-APPROVED ANNUAL RATE CHANGE LIMITATION SHALL
    16  REMAIN APPLICABLE AND SHALL BE DEEMED JUST AND REASONABLE UNDER
    17  SECTION 1301.
    18     (H)  CONFORMANCE OF PLAN.--UPON THE FILING BY A LOCAL
    19  EXCHANGE TELECOMMUNICATIONS COMPANY OF NETWORK MODERNIZATION
    20  PLAN AMENDMENTS PURSUANT TO SECTION 3014(E), THE LOCAL EXCHANGE
    21  TELECOMMUNICATIONS COMPANY'S ALTERNATIVE FORM OF REGULATION PLAN
    22  SHALL BE DEEMED AMENDED CONSISTENT WITH THIS SECTION.
    23  § 3016.  COMPETITIVE SERVICES.
    24     (A)  COMMISSION DETERMINATION OF PROTECTED, NONPROTECTED AND
    25  NONCOMPETITIVE SERVICES AS COMPETITIVE.--
    26         (1)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY MAY
    27     PETITION THE COMMISSION FOR A DETERMINATION OF WHETHER A
    28     PROTECTED OR NONCOMPETITIVE SERVICE OR OTHER BUSINESS
    29     ACTIVITY IN ITS SERVICE TERRITORY OR A PARTICULAR GEOGRAPHIC
    30     AREA, EXCHANGE OR GROUP OF EXCHANGES, OR DENSITY CELL WITHIN
    20030H0030B4645                 - 80 -     

     1     ITS SERVICE TERRITORY IS COMPETITIVE BASED ON THE
     2     DEMONSTRATED AVAILABILITY OF LIKE OR SUBSTITUTE SERVICES OR
     3     OTHER BUSINESS ACTIVITIES PROVIDED OR OFFERED BY ALTERNATIVE
     4     SERVICE PROVIDERS. THE COMMISSION, AFTER NOTICE AND HEARING,
     5     SHALL ENTER AN ORDER GRANTING OR DENYING THE PETITION WITHIN
     6     60 DAYS OF THE FILING DATE, OR WITHIN 90 DAYS OF THE FILING
     7     DATE WHERE A PROTEST IS TIMELY FILED, OR THE PETITION SHALL
     8     BE DEEMED GRANTED.
     9         (2)  THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL
    10     SERVE A COPY OF ITS PETITION ON THE OFFICE OF CONSUMER
    11     ADVOCATE, THE OFFICE OF SMALL BUSINESS ADVOCATE AND EACH OF
    12     THE PARTIES TO THE COMMISSION'S PROCEEDING IN WHICH THE
    13     COMPANY'S NETWORK MODERNIZATION PLAN THAT WAS IN EFFECT ON
    14     DECEMBER 31, 2003, WAS APPROVED BY THE COMMISSION.
    15         (3)  IN MAKING ITS DETERMINATION, THE COMMISSION SHALL
    16     CONSIDER ALL RELEVANT INFORMATION SUBMITTED TO IT, INCLUDING
    17     THE AVAILABILITY OF LIKE OR SUBSTITUTE SERVICES OR OTHER
    18     BUSINESS ACTIVITIES, AND SHALL LIMIT ITS DETERMINATION TO THE
    19     SERVICE TERRITORY OR THE PARTICULAR GEOGRAPHIC AREA, EXCHANGE
    20     OR GROUP OF EXCHANGES OR DENSITY CELL IN WHICH THE SERVICE OR
    21     OTHER BUSINESS ACTIVITY HAS BEEN PROVED TO BE COMPETITIVE.
    22         (4)  THE BURDEN OF PROVING THAT A PROTECTED OR
    23     NONCOMPETITIVE SERVICE OR OTHER BUSINESS ACTIVITY IS
    24     COMPETITIVE RESTS ON THE LOCAL EXCHANGE TELECOMMUNICATIONS
    25     COMPANY.
    26     (B)  DECLARATION OF NONPROTECTED SERVICES AS COMPETITIVE.--
    27  NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A), A LOCAL
    28  EXCHANGE TELECOMMUNICATIONS COMPANY MAY DECLARE ANY NONPROTECTED
    29  SERVICE AS COMPETITIVE BY FILING ITS DECLARATION WITH THE
    30  COMMISSION AND SERVING IT ON THE OFFICE OF CONSUMER ADVOCATE,
    20030H0030B4645                 - 81 -     

     1  OFFICE OF SMALL BUSINESS ADVOCATE AND EACH OF THE PARTIES TO THE
     2  COMMISSIONS PROCEEDING IN WHICH THE COMPANY'S NETWORK
     3  MODERNIZATION PLAN THAT WAS IN EFFECT ON DECEMBER 31, 2003, WAS
     4  APPROVED BY THE COMMISSION, PROVIDED THAT A LOCAL EXCHANGE
     5  TELECOMMUNICATIONS COMPANY MAY NOT USE THIS DECLARATION PROCESS
     6  FOR ANY SERVICE THAT THE COMMISSION PREVIOUSLY HAS RECLASSIFIED
     7  AS NONCOMPETITIVE UNDER EITHER SUBSECTION (C) OR PRIOR LAW. A
     8  DECLARATION OF A NONPROTECTED SERVICE AS COMPETITIVE SHALL BE
     9  EFFECTIVE UPON FILING BY THE LOCAL EXCHANGE TELECOMMUNICATIONS
    10  COMPANY WITH THE COMMISSION.
    11     (C)  RECLASSIFICATION.--
    12         (1)  A PARTY MAY PETITION THE COMMISSION FOR A
    13     DETERMINATION OF WHETHER A SERVICE OR OTHER BUSINESS ACTIVITY
    14     PREVIOUSLY DETERMINED OR DECLARED TO BE COMPETITIVE IS
    15     NONCOMPETITIVE. THE COMMISSION, AFTER NOTICE AND HEARING,
    16     SHALL ENTER AN ORDER DECIDING THE PETITION WITHIN 60 DAYS OF
    17     THE FILING DATE OR 90 DAYS OF THE FILING DATE WHERE A PROTEST
    18     IS TIMELY FILED, OR THE PETITION SHALL BE APPROVED.
    19         (2)  THE PETITIONER SHALL SERVE A COPY OF THE PETITION ON
    20     THE AFFECTED LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY, IF
    21     THE PETITIONER IS NOT THE COMPANY, THE OFFICE OF CONSUMER
    22     ADVOCATE, THE OFFICE OF SMALL BUSINESS ADVOCATE, AND EACH OF
    23     THE PARTIES TO THE COMMISSION'S PROCEEDING IN WHICH THE
    24     COMPANY'S NETWORK MODERNIZATION PLAN THAT WAS IN EFFECT ON
    25     DECEMBER 31, 2003, WAS APPROVED BY THE COMMISSION.
    26         (3)  IN MAKING ITS DETERMINATION, THE COMMISSION SHALL
    27     CONSIDER ALL RELEVANT INFORMATION SUBMITTED TO IT, INCLUDING
    28     THE AVAILABILITY OF LIKE OR SUBSTITUTE SERVICES OR OTHER
    29     BUSINESS ACTIVITIES, AND SHALL LIMIT ITS DETERMINATION TO THE
    30     PARTICULAR GEOGRAPHIC AREA, EXCHANGE OR DENSITY CELL IN WHICH
    20030H0030B4645                 - 82 -     

     1     THE SERVICE OR OTHER BUSINESS ACTIVITY HAS BEEN PROVED TO BE
     2     NONCOMPETITIVE.
     3         (4)  THE BURDEN OF PROVING THAT A COMPETITIVE SERVICE OR
     4     OTHER BUSINESS ACTIVITY SHOULD BE RECLASSIFIED AS
     5     NONCOMPETITIVE RESTS ON THE PARTY SEEKING THE
     6     RECLASSIFICATION.
     7         (5)  IF THE COMMISSION RECLASSIFIES A SERVICE OR OTHER
     8     BUSINESS ACTIVITY AS NONCOMPETITIVE, THE COMMISSION SHALL
     9     DETERMINE A JUST AND REASONABLE RATE FOR THE RECLASSIFIED
    10     SERVICE OR BUSINESS ACTIVITY IN ACCORDANCE WITH SECTION 1301
    11     (RELATING TO RATES TO BE JUST AND REASONABLE).
    12     (D)  ADDITIONAL REQUIREMENTS.--
    13         (1)  THE PRICES WHICH A LOCAL EXCHANGE TELECOMMUNICATIONS
    14     COMPANY CHARGES FOR COMPETITIVE SERVICES SHALL NOT BE LESS
    15     THAN THE COSTS TO PROVIDE THE SERVICES.
    16         (2)  THE COMMISSION MAY NOT REQUIRE TARIFFS FOR
    17     COMPETITIVE SERVICE OFFERINGS TO BE FILED WITH THE
    18     COMMISSION.
    19         (3)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY, AT ITS
    20     OPTION, MAY TARIFF ITS RATES, SUBJECT TO RULES AND
    21     REGULATIONS APPLICABLE TO THE PROVISION OF COMPETITIVE
    22     SERVICES.
    23         (4)  THE COMMISSION MAY REQUIRE A LOCAL EXCHANGE
    24     TELECOMMUNICATIONS COMPANY TO MAINTAIN PRICE LISTS WITH THE
    25     COMMISSION APPLICABLE TO ITS COMPETITIVE SERVICES. PRICE
    26     CHANGES THAT ARE FILED IN A COMPANY'S TARIFF FOR COMPETITIVE
    27     SERVICES WILL GO INTO EFFECT ON A ONE-DAY NOTICE.
    28     (E)  PRICING FLEXIBILITY AND BUNDLING.--
    29         (1)  SUBJECT TO THE REQUIREMENTS OF SUBSECTION (D)(1), A
    30     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY MAY PRICE
    20030H0030B4645                 - 83 -     

     1     COMPETITIVE SERVICES AT THE COMPANY'S DISCRETION.
     2         (2)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY MAY
     3     OFFER AND BILL TO CUSTOMERS ON ONE BILL BUNDLED PACKAGES OF
     4     SERVICES WHICH INCLUDE NONTARIFFED, COMPETITIVE,
     5     NONCOMPETITIVE OR PROTECTED SERVICES, INCLUDING SERVICES OF
     6     AN AFFILIATE, IN COMBINATIONS AND AT A SINGLE PRICE SELECTED
     7     BY THE COMPANY. A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
     8     MAY FILE AN INFORMATIONAL TARIFF FOR A BUNDLED PACKAGE
     9     EFFECTIVE ON A ONE-DAY NOTICE.
    10         (3)  IF A CUSTOMER SUBSCRIBES TO A BUNDLED PACKAGE OF
    11     SERVICES WHICH INCLUDE NONTARIFFED, COMPETITIVE,
    12     NONCOMPETITIVE OR PROTECTED SERVICES AS PROVIDED IN PARAGRAPH
    13     (2) AND DOES NOT MAKE PAYMENT OF THE PACKAGE CHARGES ON OR
    14     BEFORE A BILLING DUE DATE, THE LOCAL EXCHANGE
    15     TELECOMMUNICATIONS COMPANY MAY SUSPEND ALL OF THE CUSTOMER'S
    16     SERVICES SUBSCRIBED TO IN THE BUNDLED PACKAGE FOLLOWING
    17     WRITTEN NOTICE TO THE CUSTOMER OF SUCH SUSPENSION AT LEAST
    18     SEVEN DAYS PRIOR TO THE SUSPENSION AND THEREAFTER MAY
    19     TERMINATE ALL THE CUSTOMER'S BUNDLED PACKAGE SERVICES
    20     FOLLOWING WRITTEN NOTICE TO THE CUSTOMER OF SUCH TERMINATION
    21     AT LEAST TEN DAYS PRIOR TO THE TERMINATION, PROVIDED THAT THE
    22     CUSTOMER HAS NOT ADVISED THE LOCAL EXCHANGE
    23     TELECOMMUNICATIONS COMPANY THAT THE CUSTOMER IS REASONABLY
    24     DISPUTING ALL OR PART OF THE PACKAGE CHARGES. IN THE EVENT
    25     THAT THE CUSTOMER LODGES SUCH A DISPUTE, THE LOCAL EXCHANGE
    26     TELECOMMUNICATIONS COMPANY SHALL NOT INITIATE OR CONTINUE
    27     SUSPENSION OR TERMINATION ACTION PENDING RESOLUTION OF THE
    28     DISPUTE.
    29         (4)  WHEN AN ALTERNATIVE SERVICE PROVIDER IS OFFERING
    30     LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES WITHIN AN EXCHANGE
    20030H0030B4645                 - 84 -     

     1     OF A RURAL TELECOMMUNICATIONS CARRIER, THE RURAL
     2     TELECOMMUNICATIONS CARRIER MAY REDUCE ITS PRICES ON SERVICES
     3     OFFERED WITHIN THE EXCHANGE BELOW THE RATES SET FORTH IN ITS
     4     OTHERWISE APPLICABLE TARIFF IN ORDER TO MEET SUCH
     5     COMPETITION. A RURAL TELECOMMUNICATIONS CARRIER MAY NOT
     6     OFFSET REVENUE REDUCTIONS RESULTING FROM SUCH COMPETITIVE
     7     PRICING BY INCREASING RATES CHARGED TO OTHER CUSTOMERS
     8     THROUGH ITS PRICE STABILITY MECHANISM OR OTHERWISE.
     9     (F)  PROHIBITIONS.--
    10         (1)  A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL BE
    11     PROHIBITED FROM USING REVENUES EARNED OR EXPENSES INCURRED IN
    12     CONJUNCTION WITH NONCOMPETITIVE SERVICES TO SUBSIDIZE
    13     COMPETITIVE SERVICES.
    14         (2)  PARAGRAPH (1) SHALL NOT BE CONSTRUED TO PREVENT THE
    15     MARKETING AND BILLING OF PACKAGES CONTAINING BOTH
    16     NONCOMPETITIVE AND COMPETITIVE SERVICES TO CUSTOMERS.
    17  § 3017.  ACCESS CHARGES.
    18     (A)  GENERAL RULE.--THE COMMISSION MAY NOT REQUIRE A LOCAL
    19  EXCHANGE TELECOMMUNICATIONS COMPANY TO REDUCE ACCESS RATES
    20  EXCEPT ON A REVENUE-NEUTRAL BASIS AND MAY NOT ORDER DECREASES IN
    21  ACCESS RATES FOR A NONRURAL TELECOMMUNICATIONS CARRIER.
    22     (B)  REFUSAL TO PAY ACCESS CHARGES PROHIBITED.--NO PERSON OR
    23  ENTITY MAY REFUSE TO PAY TARIFFED ACCESS CHARGES FOR
    24  INTEREXCHANGE SERVICES PROVIDED BY A LOCAL EXCHANGE
    25  TELECOMMUNICATIONS COMPANY.
    26     (C)  LIMITATION.--NO TELECOMMUNICATIONS CARRIER PROVIDING
    27  COMPETITIVE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICE MAY CHARGE
    28  ACCESS RATES HIGHER THAN THOSE CHARGED BY THE INCUMBENT LOCAL
    29  EXCHANGE TELECOMMUNICATIONS COMPANY IN THE SAME SERVICE
    30  TERRITORY, UNLESS SUCH CARRIER CAN DEMONSTRATE THAT THE HIGHER
    20030H0030B4645                 - 85 -     

     1  ACCESS RATES ARE COST JUSTIFIED.
     2  § 3018.  INTEREXCHANGE TELECOMMUNICATIONS CARRIERS.
     3     (A)  COMPETITIVE AND NONCOMPETITIVE SERVICES.--INTEREXCHANGE
     4  SERVICES PROVIDED BY INTEREXCHANGE TELECOMMUNICATIONS CARRIERS
     5  SHALL BE COMPETITIVE SERVICES.
     6     (B)  RATE REGULATION.--
     7         (1)  THE COMMISSION MAY NOT FIX OR PRESCRIBE THE RATES,
     8     TOLLS, CHARGES, RATE STRUCTURES, RATE BASE, RATE OF RETURN,
     9     OPERATING MARGIN OR EARNINGS FOR INTEREXCHANGE COMPETITIVE
    10     SERVICES OR OTHERWISE REGULATE INTEREXCHANGE COMPETITIVE
    11     SERVICES EXCEPT AS SET FORTH IN THIS CHAPTER.
    12         (2)  AN INTEREXCHANGE TELECOMMUNICATIONS CARRIER MAY FILE
    13     AND MAINTAIN TARIFFS OR PRICE LISTS WITH THE COMMISSION FOR
    14     COMPETITIVE TELECOMMUNICATIONS SERVICES.
    15         (3)  NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO LIMIT
    16     THE AUTHORITY OF THE COMMISSION TO REGULATE THE PRIVACY OF
    17     INTEREXCHANGE SERVICE AND THE ORDERING, INSTALLATION,
    18     RESTORATION AND DISCONNECTION OF INTEREXCHANGE SERVICE TO
    19     CUSTOMERS.
    20     (C)  RECLASSIFICATION.--THE COMMISSION MAY RECLASSIFY
    21  TELECOMMUNICATIONS SERVICES PROVIDED BY AN INTEREXCHANGE
    22  TELECOMMUNICATIONS CARRIER AS NONCOMPETITIVE IF, AFTER NOTICE
    23  AND HEARING, IT DETERMINES, UPON APPLICATION OF THE CRITERIA SET
    24  FORTH IN THIS CHAPTER, THAT SUFFICIENT COMPETITION IS NO LONGER
    25  PRESENT.
    26     (D)  CONSTRUCTION.--NOTHING IN THIS CHAPTER SHALL BE
    27  CONSTRUED:
    28         (1)  TO LIMIT THE AUTHORITY OF THE COMMISSION TO RESOLVE
    29     COMPLAINTS REGARDING THE QUALITY OF INTEREXCHANGE
    30     TELECOMMUNICATIONS CARRIER SERVICE.
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     1         (2)  TO LIMIT THE AUTHORITY OF THE COMMISSION TO
     2     DETERMINE WHETHER AN INTEREXCHANGE TELECOMMUNICATIONS CARRIER
     3     SHOULD BE EXTENDED THE PRIVILEGE OF OPERATING WITHIN THIS
     4     COMMONWEALTH OR TO ORDER THE FILING OF SUCH REPORTS,
     5     DOCUMENTS AND INFORMATION AS MAY BE NECESSARY TO MONITOR THE
     6     MARKET FOR AND COMPETITIVENESS OF INTEREXCHANGE
     7     TELECOMMUNICATIONS SERVICES.
     8  § 3019.  ADDITIONAL POWERS AND DUTIES.
     9     (A)  GENERAL RULE.--THE COMMISSION MAY CERTIFY MORE THAN ONE
    10  TELECOMMUNICATIONS CARRIER TO PROVIDE LOCAL EXCHANGE
    11  TELECOMMUNICATIONS SERVICE IN A SPECIFIC GEOGRAPHIC LOCATION.
    12  THE CERTIFICATION SHALL BE GRANTED UPON A SHOWING THAT IT IS IN
    13  THE PUBLIC INTEREST AND THAT THE APPLICANT POSSESSES SUFFICIENT
    14  TECHNICAL, FINANCIAL AND MANAGERIAL RESOURCES.
    15     (B)  POWERS AND DUTIES RETAINED.--THE COMMISSION SHALL RETAIN
    16  THE FOLLOWING POWERS AND DUTIES RELATING TO THE REGULATION OF
    17  ALL TELECOMMUNICATIONS CARRIERS AND INTEREXCHANGE
    18  TELECOMMUNICATIONS CARRIERS, INCLUDING THE POWER TO SEEK
    19  INFORMATION NECESSARY TO FACILITATE THE EXERCISE OF THESE POWERS
    20  AND DUTIES:
    21         (1)  TO AUDIT THE ACCOUNTING AND REPORTING SYSTEMS OF
    22     TELECOMMUNICATIONS CARRIERS RELATING TO THEIR TRANSACTIONS
    23     WITH AFFILIATES PURSUANT TO CHAPTER 21 (RELATING TO RELATIONS
    24     WITH AFFILIATED INTERESTS). A TELECOMMUNICATIONS CARRIER
    25     SHALL FILE AFFILIATED INTEREST AND AFFILIATED TRANSACTION
    26     AGREEMENTS UNLESS SUCH AGREEMENTS INVOLVE SERVICES DECLARED
    27     TO BE COMPETITIVE. THE FILINGS SHALL CONSTITUTE NOTICE TO THE
    28     COMMISSION ONLY AND SHALL NOT REQUIRE APPROVAL BY THE
    29     COMMISSION.
    30         (2)  TO REVIEW AND REVISE QUALITY OF SERVICE STANDARDS
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     1     CONTAINED IN 52 PA. CODE (RELATING TO PUBLIC UTILITIES) THAT
     2     ADDRESS THE SAFETY, ADEQUACY, RELIABILITY AND PRIVACY OF
     3     TELECOMMUNICATIONS SERVICES AND THE ORDERING, INSTALLATION,
     4     SUSPENSION, TERMINATION AND RESTORATION OF ANY
     5     TELECOMMUNICATIONS SERVICE. ANY REVIEW OR REVISION SHALL TAKE
     6     INTO CONSIDERATION THE EMERGENCE OF NEW INDUSTRY
     7     PARTICIPANTS, TECHNOLOGICAL ADVANCEMENTS, SERVICE STANDARDS
     8     AND CONSUMER DEMAND.
     9         (3)  SUBJECT TO THE PROVISIONS OF SECTION 3015(E)
    10     (RELATING TO ALTERNATIVE FORMS OF REGULATION), TO ESTABLISH
    11     SUCH ADDITIONAL REQUIREMENTS AS ARE CONSISTENT WITH THIS
    12     CHAPTER AS THE COMMISSION DETERMINES TO BE NECESSARY TO
    13     ENSURE THE PROTECTION OF CUSTOMERS.
    14         (4)  TO CONDITION THE SALE, MERGER OR ACQUISITION OF A
    15     LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY OR ANY FACILITIES
    16     USED TO PROVIDE TELECOMMUNICATIONS SERVICES TO ENSURE THAT
    17     THERE IS NO REDUCTION IN THE ADVANCED SERVICE OR BROADBAND
    18     DEPLOYMENT OBLIGATIONS FOR THE SOLD, MERGED OR ACQUIRED
    19     PROPERTY.
    20     (C)  AUDITS OF NONRURAL TELECOMMUNICATIONS CARRIERS.--AUDITS
    21  OF NONRURAL TELECOMMUNICATIONS CARRIERS SHALL BE CONDUCTED ONCE
    22  EVERY FOUR YEARS UNLESS THE COMMISSION FINDS THAT A SPECIFIC
    23  AUDIT IS UNNECESSARY, BUT IN NO EVENT SHALL SUCH AUDITS BE
    24  CONDUCTED LESS THAN ONCE EVERY SEVEN YEARS. AUDITS OF NONRURAL
    25  TELECOMMUNICATIONS CARRIERS SHALL INCLUDE AN EXAMINATION OF THE
    26  COMPANIES' COMPLIANCE WITH COMMISSION ORDERS AND REGULATIONS,
    27  AND AT LEAST ONE SUCH AUDIT SHALL BE CONDUCTED FOR EACH COMPANY
    28  BEFORE THE COMPLETION OF THE COMPANY'S NETWORK MODERNIZATION
    29  PLAN, UNLESS AN AUDIT OF THE COMPANY HAS BEEN COMPLETED WITHIN
    30  ONE YEAR PRIOR TO THE COMPANY'S COMPLETION OF ITS PLAN.
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     1  NOTWITHSTANDING ANY LAW TO THE CONTRARY, RURAL
     2  TELECOMMUNICATIONS CARRIERS AS DEFINED IN SECTION 3012 (RELATING
     3  TO DEFINITIONS) SHALL NOT BE SUBJECT TO ANY AUDIT. A SUMMARY OF
     4  THE AUDITS MANDATED BY THIS SUBSECTION SHALL BE RELEASED TO THE
     5  PUBLIC, AND A COMPLETE COPY OF THE AUDITS SHALL BE PROVIDED TO
     6  THE OFFICE OF TRIAL STAFF AND THE OFFICE OF CONSUMER ADVOCATE,
     7  OFFICE OF SMALL BUSINESS ADVOCATE, THE CHAIRMAN OF THE CONSUMER
     8  PROTECTION AND PROFESSIONAL LICENSURE COMMITTEE OF THE SENATE
     9  AND CHAIRMAN OF THE CONSUMER AFFAIRS COMMITTEE OF THE HOUSE OF
    10  REPRESENTATIVES.
    11     (D)  PRIVACY OF CUSTOMER INFORMATION.--
    12         (1)  EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A
    13     TELECOMMUNICATIONS CARRIER MAY NOT DISCLOSE TO ANY PERSON
    14     INFORMATION RELATING TO ANY CUSTOMER'S PATTERNS OF USE,
    15     EQUIPMENT AND NETWORK INFORMATION AND ANY ACCUMULATED RECORDS
    16     ABOUT CUSTOMERS WITH THE EXCEPTION OF NAME, ADDRESS AND
    17     TELEPHONE NUMBER.
    18         (2)  A TELECOMMUNICATIONS CARRIER MAY DISCLOSE SUCH
    19     INFORMATION:
    20             (I)  PURSUANT TO A COURT ORDER OR WHERE OTHERWISE
    21         REQUIRED BY FEDERAL OR STATE LAW.
    22             (II)  TO THE CARRIER'S AFFILIATES, AGENTS,
    23         CONTRACTORS OR VENDORS AND OTHER TELECOMMUNICATIONS
    24         CARRIERS OR INTEREXCHANGE TELECOMMUNICATIONS CARRIERS, AS
    25         PERMITTED BY FEDERAL OR STATE LAW.
    26             (III)  WHERE THE INFORMATION CONSISTS OF AGGREGATE
    27         DATA WHICH DOES NOT IDENTIFY INDIVIDUAL CUSTOMERS.
    28     (E)  UNREASONABLE PREFERENCES.--NOTHING IN THIS CHAPTER SHALL
    29  BE CONSTRUED TO LIMIT THE AUTHORITY OF THE COMMISSION TO ENSURE
    30  THAT LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES DO NOT MAKE OR
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     1  IMPOSE UNREASONABLE PREFERENCES, DISCRIMINATIONS OR
     2  CLASSIFICATIONS FOR PROTECTED SERVICES AND OTHER NONCOMPETITIVE
     3  SERVICES.
     4     (F)  LIFELINE SERVICE.--
     5         (1)  ALL ELIGIBLE TELECOMMUNICATIONS CARRIERS
     6     CERTIFICATED TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS
     7     SERVICE SHALL PROVIDE LIFELINE SERVICE TO ALL ELIGIBLE
     8     TELECOMMUNICATIONS CUSTOMERS WHO SUBSCRIBE TO SUCH SERVICE.
     9         (2)  ALL ELIGIBLE TELECOMMUNICATIONS CUSTOMERS WHO
    10     SUBSCRIBE TO LIFELINE SERVICE SHALL BE PERMITTED TO SUBSCRIBE
    11     TO UP TO TWO OTHER ELIGIBLE TELECOMMUNICATIONS CARRIER
    12     TELECOMMUNICATIONS SERVICES AT THE TARIFFED RATES FOR SUCH
    13     SERVICES.
    14         (3)  WHENEVER A PROSPECTIVE CUSTOMER SEEKS TO SUBSCRIBE
    15     TO LOCAL SERVICE FROM AN ELIGIBLE TELECOMMUNICATIONS CARRIER,
    16     THE CARRIER SHALL EXPLICITLY ADVISE THE CUSTOMER OF THE
    17     AVAILABILITY OF LIFELINE SERVICE AND SHALL MAKE REASONABLE
    18     EFFORTS WHERE APPROPRIATE TO DETERMINE WHETHER THE CUSTOMER
    19     QUALIFIES FOR SUCH SERVICE AND, IF SO, WHETHER THE CUSTOMER
    20     WISHES TO SUBSCRIBE TO THE SERVICE.
    21         (4)  ELIGIBLE TELECOMMUNICATIONS CARRIERS SHALL INFORM
    22     EXISTING CUSTOMERS OF THE AVAILABILITY OF LIFELINE SERVICE
    23     TWICE ANNUALLY BY BILL INSERT OR MESSAGE. THE NOTICE SHALL BE
    24     CONSPICUOUS AND SHALL PROVIDE APPROPRIATE ELIGIBILITY,
    25     BENEFITS AND CONTACT INFORMATION FOR CUSTOMERS WHO WISH TO
    26     LEARN OF THE LIFELINE SERVICE SUBSCRIPTION REQUIREMENTS.
    27         (5)  WHEN A PERSON ENROLLS IN A LOW-INCOME PROGRAM
    28     ADMINISTERED BY THE DEPARTMENT OF PUBLIC WELFARE THAT
    29     QUALIFIES THE PERSON FOR LIFELINE SERVICE, THE DEPARTMENT OF
    30     PUBLIC WELFARE SHALL AUTOMATICALLY NOTIFY THAT PERSON AT THE
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     1     TIME OF ENROLLMENT OF HIS OR HER ELIGIBILITY FOR LIFELINE
     2     SERVICE. THIS NOTIFICATION ALSO SHALL PROVIDE INFORMATION
     3     ABOUT LIFELINE SERVICE INCLUDING A TELEPHONE NUMBER OF AND
     4     LIFELINE SUBSCRIPTION FORM FOR THE PERSON'S CURRENT ELIGIBLE
     5     TELECOMMUNICATIONS CARRIER OR, IF THE PERSON DOES NOT HAVE
     6     TELEPHONE SERVICE, TELEPHONE NUMBERS OF ELIGIBLE
     7     TELECOMMUNICATIONS CARRIERS SERVING THE PERSON'S AREA, THAT
     8     THE PERSON CAN CALL TO OBTAIN LIFELINE SERVICE. ELIGIBLE
     9     TELECOMMUNICATIONS CARRIERS SHALL PROVIDE THE DEPARTMENT OF
    10     PUBLIC WELFARE WITH LIFELINE SERVICE DESCRIPTIONS AND
    11     SUBSCRIPTION FORMS, CONTACT TELEPHONE NUMBERS, AND A LISTING
    12     OF THE GEOGRAPHIC AREA OR AREAS THEY SERVE, FOR USE BY THE
    13     DEPARTMENT OF PUBLIC WELFARE IN PROVIDING THE NOTIFICATIONS
    14     REQUIRED BY THIS PARAGRAPH.
    15         (6)  NO ELIGIBLE TELECOMMUNICATIONS CARRIER SHALL BE
    16     REQUIRED TO PROVIDE AFTER THE EFFECTIVE DATE OF THIS SECTION
    17     ANY NEW LIFELINE SERVICE DISCOUNT THAT IS NOT FULLY
    18     SUBSIDIZED BY THE FEDERAL UNIVERSAL SERVICE FUND.
    19     (G)  METHOD FOR FIXING RATES.--THE COMMISSION MAY NOT FIX OR
    20  PRESCRIBE THE RATES, TOLLS, CHARGES, RATE STRUCTURES, RATE BASE,
    21  RATE OF RETURN OR EARNINGS OF COMPETITIVE SERVICES OR OTHERWISE
    22  REGULATE COMPETITIVE SERVICES EXCEPT AS SET FORTH IN THIS
    23  CHAPTER.
    24     (H)  IMPLEMENTATION.--THE TERMS OF A LOCAL EXCHANGE
    25  TELECOMMUNICATIONS COMPANY'S ALTERNATIVE FORM OF REGULATION AND
    26  NETWORK MODERNIZATION PLANS SHALL GOVERN THE REGULATION OF THE
    27  LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY AND, CONSISTENT WITH
    28  THE PROVISIONS OF THIS CHAPTER, SHALL SUPERSEDE ANY CONFLICTING
    29  PROVISIONS OF THIS TITLE OR OTHER LAWS OF THIS COMMONWEALTH AND
    30  SHALL SPECIFICALLY SUPERSEDE ALL PROVISIONS OF CHAPTER 13
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     1  (RELATING TO RATES AND RATE MAKING) OTHER THAN SECTIONS 1301
     2  (RELATING TO RATES TO BE JUST AND REASONABLE), 1302 (RELATING TO
     3  TARIFFS; FILING AND INSPECTION), 1303 (RELATING TO ADHERENCE TO
     4  TARIFFS), 1304 (RELATING TO DISCRIMINATION IN RATES), 1305
     5  (RELATING TO ADVANCE PAYMENT OF RATES; INTEREST ON DEPOSITS),
     6  1309 (RELATING TO RATES FIXED ON COMPLAINT; INVESTIGATION OF
     7  COSTS OF PRODUCTION) AND 1312 (RELATING TO REFUNDS).
     8     (I)  PROTECTION OF EMPLOYEES.--
     9         (1)  NO TELECOMMUNICATIONS CARRIER MAY DISCHARGE,
    10     THREATEN, DISCRIMINATE OR RETALIATE AGAINST AN EMPLOYEE
    11     BECAUSE THE EMPLOYEE MADE A GOOD FAITH REPORT TO THE
    12     COMMISSION, THE OFFICE OF CONSUMER ADVOCATE OR THE OFFICE OF
    13     ATTORNEY GENERAL REGARDING WRONGDOING, WASTE OR A POTENTIAL
    14     VIOLATION OF THE COMMISSION'S ORDERS OR REGULATIONS OR OF
    15     THIS TITLE.
    16         (2)  A PERSON WHO ALLEGES A VIOLATION OF THIS SECTION
    17     MUST BRING A CIVIL ACTION IN A COURT OF COMPETENT
    18     JURISDICTION FOR APPROPRIATE INJUNCTIVE RELIEF OR DAMAGES
    19     WITHIN 180 DAYS AFTER THE OCCURRENCE OF THE ALLEGED
    20     VIOLATION.
    21  § 3020.  VOICE OVER INTERNET PROTOCOL REGULATION EXEMPTION.
    22     A PROVIDER OF VOIP SERVICE SHALL NOT BE A PUBLIC UTILITY NOR
    23  OTHERWISE SUBJECT TO COMMISSION REGULATION, EXCEPT WHERE
    24  REQUIRED OR EXPRESSLY PERMITTED BY FEDERAL LAW OR REGULATION.
    25  HOWEVER, THIS EXEMPTION FROM COMMISSION REGULATION SHALL NOT
    26  AFFECT ANY RIGHTS AND OBLIGATIONS THAT ANY ENTITY HAD AS OF THE
    27  EFFECTIVE DATE OF THIS SECTION PERTAINING TO THE PAYMENT OF
    28  SWITCHED NETWORK RATES OR OTHER INTERCARRIER COMPENSATION
    29  RELATED TO VOIP SERVICE. IN NO EVENT SHALL ANY SUCH INTERCARRIER
    30  COMPENSATION BE REQUIRED TO BE PAID BY VOIP PROVIDERS FOR VOIP
    20030H0030B4645                 - 92 -     

     1  CALLS WHICH DO NOT USE THE PUBLIC SWITCHED TELEPHONE NETWORK.
     2  § 3021.  VOICE OVER INTERNET PROTOCOL TAX EXEMPTION.
     3     THE PROVISION OF VOIP SERVICES BY ANY PERSON OR CORPORATION
     4  AND THE PROVISION OF TELECOMMUNICATIONS SERVICES USED TO PROVIDE
     5  VOIP SERVICES SHALL BE EXEMPT FROM THE FOLLOWING TAXES AND FEES
     6  COMMENCING ON THE EFFECTIVE DATE OF THIS SECTION.
     7         (1)  NOTWITHSTANDING THE ACT OF DECEMBER 31, 1965
     8     (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, NO
     9     POLITICAL SUBDIVISION SHALL IMPOSE OR COLLECT ANY TAX, CHARGE
    10     OR OTHER FEE UPON THE PROVISION OF VOIP SERVICES.
    11         (2)  NOTWITHSTANDING ARTICLE XXXI-B OF THE ACT OF JULY
    12     28, 1953 (P.L.723, NO.230), KNOWN AS THE SECOND CLASS COUNTY
    13     CODE, AND THE ACT OF JUNE 5, 1991 (P.L.9, NO.6), KNOWN AS THE
    14     PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR
    15     CITIES OF THE FIRST CLASS, NO LOCAL SALES AND USE TAX SHALL
    16     BE IMPOSED ON ANY VOIP SERVICES.
    17     SECTION 3.  THE PROVISIONS OF THIS ACT ARE SEVERABLE. IF ANY
    18  PROVISION OF THIS ACT OR ITS APPLICATION TO ANY PERSON OR
    19  CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY SHALL NOT AFFECT
    20  OTHER PROVISIONS OR APPLICATIONS OF THIS ACT, WHICH CAN BE GIVEN
    21  EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION.
    22     SECTION 4.  SECTION 2471 OF THE ACT OF FEBRUARY 1, 1966 (1965
    23  P.L.1656, NO.581), KNOWN AS THE BOROUGH CODE, IS REPEALED TO THE
    24  EXTENT IT IS INCONSISTENT WITH THIS ACT.
    25     SECTION 5.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.




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