Telecommunications Equipment and Information Services Act of 1987

Telecommunications Equipment and Information Services Act of 1987 - Authorizes the Bell operating companies to provide information services (excluding electronic publishing) and to manufacture telecommunications equipment, subject to certain limitations.

Conditions such authority on the Federal Communications Commission's determination that such activity by a Bell operating company would not harm competition in the industry, customers of telephone service, or the public interest. Requires the Commission to develop rules ensuring that the Bell companies provide comparable opportunities for both their own affiliates and outside information service providers and manufacturers for interconnection with, and sales to, Bell operating company facilities.

Prohibits cross subsidies between telephone service and the lines of business authorized by this Act. Requires the Commission to establish rules for allocating costs of factors of production between telephone service and such other lines of business. Requires the Commission to ensure that telephone service ratepayers shall not be assigned any investments or debts originally assigned to such other lines of business. Requires each Bell operating company that engages in such other lines of business to provide to the Commission the results of an annual audit of compliance with cost allocation and assignment rules. Requires the Commission to convene a joint board on principles of cost assignment and allocation to be used by the Commission and by State commissions.