To increase penalties for common carrier violations of the Communications Act of 1934, and for other purposes.

Amends the Communications Act of 1934 to authorize the Federal Communications Commission (FCC) to order a common carrier to cease and desist from engaging in a prohibited action or to take a action required under such Act. Increases forfeiture penalties for such violations and for violations of cease and desist orders. Requires the FCC to evaluate the impact of the increased remedies.

Allows any party to an approved interconnection agreement (between a local exchange carrier and a telecommunications carrier) to petition a State commission to arbitrate any dispute arising under such agreement (allowing the nonpetitioning party to respond). Requires such commission to resolve the dispute within 60 days.

Provides that provisions of such Act concerning negotiation, arbitration, or approval of such agreements do not limit or affect a State's authority to ensure agreement compliance.