Justia Government & Administrative Law Opinion Summaries

This action arose under section 628 of the Communications Act, 47 U.S.C. 151, where the Federal Communications Commission ("FCC") issued an order adopting rules to close the so-called terrestrial loophole. Petitioners contended that the FCC lacked statutory authority to regulate the withholding of terrestrial programing. The court held that given section 628's broad language and purpose, the court saw nothing in the statute that unambiguously precluded the FCC from extending its program access rules to terrestrially delivered programming. Nor could the court see any merit in petitioners' contention that the FCC's rules violated the First Amendment or in their various Administrative Procedure Act, 5 U.S.C. 500 et seq., challenges, with one exception. The court held however, that the FCC did act arbitrarily and capriciously by deciding to treat certain conduct involving terrestrial programing withholding as categorically "unfair" for purposes of section 628. Accordingly, the court vacated only that portion of the FCC's order and remanded for further proceedings.

The Telecommunications Act of 1996, 110 Stat. 56, required incumbent local exchange carriers ("LECs"), providers of local telephone service, to share their physical networks with competitive LECs at cost-based rates. This suit arose when, in the wake of the Federal Communication Commission's ("FCC") Triennial Review Remand Order, respondent notified competitive LECs that it would no longer provide entrance facilities at cost-based rates for either backhauling or interconnection, but would instead charge higher rates. At issue was whether an incumbent provider of local telephone services must make certain transmission facilities available to competitors at cost-based rates. The court held that the FCC had advanced a reasonable interpretation of its regulations, i.e., that to satisfy its duty under 47 U.S.C. 251(c)(2), an incumbent LEC must make its existing entrance facilities available to competitors at cost-based rates if the facilities were to be used for interconnection, and the Court deferred to the FCC's views.

A California local exchange carrier ("LEC") filed a complaint with the Federal Communications Commission ("FCC") alleging a violation of 47 C.F.R. 20.11(b) when the LEC unilaterally set a rate and began billing petitioner, a provider of commercial mobile radio services ("CMRS") in California, for the cost of terminating its traffic. At issue was whether the FCC erred in allowing a state agency to determine the rate for traffic that was wholly intrastate pursuant to section 20.11(b). The court held that the FCC's policy of allowing state agencies to set such rates was consistent with the dual regulatory scheme assumed in the Communications Act, 47 U.S.C. 151, which granted the FCC authority over interstate communications but reserved wholly intrastate matters for the states.