To require the Federal Communications Commission to establish procedures to prevent price-cap regulation from leading to degradation in the quality of the telephone network.

Amends the Communications Act of 1934 to direct the Federal Communications Commission to establish a joint board to develop standards to maintain and enhance the quality of telephone exchange service by local carriers to be enforced by the Commission and State commissions. Requires the joint board to: (1) direct local carriers to submit to the Commission and State commissions quarterly uniform data reports regarding compliance with such standards; (2) recommend periodic independent audits of local exchange carrier compliance; and (3) recommend penalties to ensure compliance.