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z?d104:SN00652:@@@D at thomas.loc.gov Page 8 of 16 Prohibits a BOC (including any affiliate) which is an LEC from providing specified services • (including manufacturing activities, origination of interLATA telecommunications services other than incidental interLATA services, out-of-region services, or previously authorized activities and interLATA information services other than electronic publishing and alarm monitoring services) unless it does so through an entity that is separate from any entities that provide telephone exchange service. Delineates structural and transactional requirements that apply to the separate subsidiary, including operating independently from the BOC, maintaining separate books and records, having separate officers, not obtaining credit under any arrangement that would permit a creditor upon default to have recourse to the BOC's assets, and conducting transactions with the BOC on an arm's length basis. Sets forth provisions regarding: (1) non-discrimination safeguards; (2) biennial audit requirements; (3) sunset of provisions of this section; and (4)joint marketing. Permits a BOC to: (1) engage in manufacturing after the FCC authorizes the company to provide interLATA services in any in-region State; (2) collaborate with a manufacturer of customer premises or telecommunications equipment during the design and development of hardware or software; and (3) engage in research activities relating to manufacturing and enter into royalty agreements with manufacturers of telecommunications equipment. Requires each BOC to maintain and file with the FCC information on protocols and technical requirements for connection with and use of its telephone exchange service facilities. Sets forth provisions regarding: (1) manufacturing limitations for standard-setting organizations; (2) alternate dispute resolution; (3) BOC equipment procurement and sales; and (4) FCC enforcement authority. Prohibits a BOC or any affiliate from engaging in the provision of electronic publishing that is disseminated by means of such BOC's or any of its affiliates' basic telephone service, but allows a separated affiliate or electronic publishing joint venture (EPN) operated in accordance with this section to engage in electronic publishing. Requires a separated affiliate or EPJV to be operated independently from the BOC and to maintain separate books and records. Prohibits the affiliate from incurring debt in a manner that would permit a creditor upon default to have recourse to the BOC's assets. Sets forth provisions governing the manner in which transactions by the affiliate must be carried out (to ensure that they are fully auditable) and governing the valuation of assets transferred to the affiliate (to prevent cross subsidies). Prohibits the affiliate and the BOC from having corporate officers or property in common. Prohibits the separate affiliate or EPJV from marketing the name, trademarks, or service marks of an existing BOC except for those that are owned by the entity that owns or controls the BOC. Prohibits a BOC from engaging in joint marketing of any promotion, marketing, sales, or Sadvertising with its affiliate, except that a BOC may: (1) provide inbound telemarketing or referral services related to the provision of electronic publishing if the BOC provides the same service on the same terms, conditions, and prices to non-affiliates as to its affiliates; (2) engage http://thomas.loc.gov/cgi-bin/bdquery/z?d104:SNO0652:@@@D 12/11/96