InterLATA Communication Improvements Act of 1998

InterLATA Communication Improvements Act of 1998 - Amends the Communications Act of 1934 (the Act) to authorize a State to approve the application of a Bell operating company (BOC) to provide intrastate interLATA services originating in any of its in-region States. Provides administrative authority for a State to receive, evaluate, and approve or disapprove such an application, requiring the Federal Communications Commission (FCC) to affirm a State's evaluation unless it determines that it was clearly erroneous in a material respect.

Requires the FCC, with respect to interstate interLATA service, or a State, with respect to intrastate interLATA service, to include in its decision a basis for approval or denial, together with a written determination indicating whether the BOC has complied with each competitive requirement and whether the application is in the public interest, convenience, and necessity. Requires separate affiliation for the BOCs involved. Requires a State to approve or disapprove an application within 90 days, subject to judicial review. Prohibits the FCC or a State from limiting or extending the terms used in the competitive checklist for application approval or denial. Requires both the FCC and the State to: (1) publish application determinations; and (2) enforce any conditions required for such approval.

Deems a BOC to have met the requirements for the presence of a competitor on and after February 8, 1999. States that a BOC meets such requirements before such date if: (1) the BOC is providing access and interconnection to its network facilities for the network facilities of one or more unaffiliated competing providers of telephone exchange service; or (2) a statement of the terms and conditions under which the company generally offers to provide such access and interconnection has been approved or permitted to take effect by the appropriate State commission.

Authorizes a BOC, on or after February 8, 1999, to provide interstate and intrastate interLATA services originating in any State through the purchase and resale of telecommunications services obtained from a person who is not affiliated with such BOC.

Includes data communications and international telecommunications or information services within the definition of incidental interLATA services.

Directs the FCC to revise its regulations to clarify that Internet traffic carried by local exchange carriers is interstate in nature for purposes of reciprocal compensation provisions of the Act.