At & T Inc. v. Federal Communications Commission

452 F.3d 830, 371 U.S. App. D.C. 454, 38 Communications Reg. (P&F) 1128, 2006 U.S. App. LEXIS 16068, 2006 WL 1735900
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 27, 2006
Docket05-1186
StatusPublished
Cited by17 cases

This text of 452 F.3d 830 (At & T Inc. v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
At & T Inc. v. Federal Communications Commission, 452 F.3d 830, 371 U.S. App. D.C. 454, 38 Communications Reg. (P&F) 1128, 2006 U.S. App. LEXIS 16068, 2006 WL 1735900 (D.C. Cir. 2006).

Opinions

Opinion for the Court filed by Circuit Judge TATEL.

Concurring opinion filed by Circuit Judge RANDOLPH.

TATEL, Circuit Judge.

Invoking section 10 of the Communications Act of 1934, SBC Communications Inc. filed a petition with the Federal Communications Commission requesting that the Commission “forbear from applying Title II common carrier regulation to IP platform services.” Fifteen months later, the Commission denied the request for two independent reasons: (1) the petition was “procedurally defective” because the Commission had yet to determine whether common carrier regulations even applied to IP platform services, and (2) SBC failed to “identify with sufficient precision” the regulations and services it intended the petition to cover. Arguing that the first rationale conflicts with section 10 and the second is arbitrary and capricious, SBC— recently renamed AT & T Inc. — petitions for review. Because we agree that the Commission lacks section 10 authority to reject a petition as procedurally improper just because it requests forbearance from uncertain regulatory obligations, we reject the Commission’s first rationale for denying SBC’s petition. And because the Commission has failed to explain how its second rationale is consistent with the specificity standard it has applied in other contexts, we remand the case for further explanation and consideration consistent with this opinion.

I.

Congress enacted the Telecommunications Act of 1996 to “encourage the rapid deployment of new telecommunications technologies” by “promot[ingj competition and redue[ing] regulation” among telecommunications providers. Telecommunications Act of 1996, Pub.L. No. 104-104, pmbl., 110 Stat. 56, 56. Critical to Congress’s deregulation strategy, the Act added section 10 to the Communications Act of 1934. That section requires the Federal Communications Commission to “forbear” from enforcing communications statutes and regulations in certain specified circumstances. In particular; section 10(a) provides that

the Commission shall forbear from applying any regulation or any provision of [federal telecommunications law] to a telecommunications carrier or telecommunications service, or class of telecommunications carriers or telecommunica[833]*833tions services, in any or some of its or their geographic markets, if the Commission determines that—
(1) enforcement of such regulation or provision is not necessary to ensure that the charges, practices, classifications, or regulations by, for, or in connection with that telecommunications carrier or telecommunications service are just and reasonable and are not unjustly or unreasonably discriminatory;
(2) enforcement of such regulation or provision is not necessary for the protection of consumers; and
(3) forbearance from applying such provision or regulation is consistent with the public interest.

47 U.S.C. § 160(a). Section 10(b) requires that in determining whether forbearance is “consistent with the public interest,” the Commission “shall consider whether forbearance from enforcing the provision or regulation will promote competitive market conditions, including the extent to which such forbearance will enhance competition among [telecommunications] providers.” Id. § 160(b). Section 10(c) allows telecommunications carriers to petition the Commission for forbearance with respect to particular services or facilities. Id. § 160(c). Should the Commission fail to respond within one year, the petition “shall be deemed granted,” although the Commission may extend the one-year period by an additional 90 days if it “finds that an extension is necessary to meet the requirements of subsection (a).” Id.

On February 5, 2004, SBC Communications Inc. filed a section 10 petition requesting forbearance from “Title II common carrier regulation” for “IP platform services,” Petition of SBC Communications Inc. for Forbearance, WC Docket No. 04-29, at 1 (filed Feb. 5, 2004) (“forbearance petition”), which it defined as “those services that enable any customer to send or receive communications in IP format over an IP platform, and the IP platforms on which those services are provided,” id. at i. Acknowledging some general uncertainty as to whether Title II actually covers these services, SBC urged the Commission to “eliminate any doubt concerning the unregulated status of IP platform services by expressly forbearing from applying Title II regulation ... to the extent that such regulation might otherwise' be found to apply.” Id. at 2. In a second, simultaneously filed petition, SBC requested a declaratory ruling “confirming] that IP platform services ... are not subject to Title II regulation.” Petition of SBC Communications Inc. for a Declaratory Ruling i (filed Feb. 5, 2004) (“Declaratory Ruling Petition”).

One month after SBC filed its two petitions, the Commission issued an “IP-Enabled Services” Notice of Proposed Rule-making (NPRM) raising many of the same issues presented in SBC’s petitions. See IP-Enabled Services, 2004 WL 439260, 19 F.C.C.R. 4863 (FCC 2004) (proposed Mar. 10, 2004). The Commission consolidated SBC’s declaratory ruling request with the rulemaking proceedings and, given the “substantial overlap between the issues presented in the SBC forbearance petition and the IP-Enabled Services NPRM,” extended the period for comment on the forbearance petition to coincide with the NPRM’s comment cycle. Wireline Competition Bureau Extends Comment Deadlines for SBC’s “IP Platform Services” Forbearance Petition, 2004 WL 626263, 19 F.C.C.R. 5607, 5607 (Mar. 30, 2004) (public notice). During the following year, SBC and other interested parties filed comments and ex parte submissions relating to both the rulemaking proceeding and SBC’s two petitions.

After extending the one-year period by an additional ninety days,, the Commission [834]*834denied SBC’s forbearance petition. The Commission’s order explains:

We find that the petition is procedurally defective because it asks us to forbear from the application of statutory provisions and regulations that “may or may not” apply to the telecommunications carrier or telecommunications service at issue. In addition, the evidence and arguments -set out in SBC’s petition and subsequent pleadings are insufficiently specific to permit a finding that forbearance is appropriate.

In re: Petition of SBC Commc’ns Inc. for Forbearance from the Application of Title II Common Carrier Regulation to IP Platform Servs., 2005 WL 1075974, 20 F.C.C.R. 9361, 9361 (May 5, 2005) (“Forbearance Order”).

SBC filed a petition for review with this court, see 47 U.S.C. § 402(a) (allowing parties aggrieved by a Commission order to appeal to this court) and, during briefing, merged with AT & T Corp. to form a new company, AT & T Inc.

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452 F.3d 830, 371 U.S. App. D.C. 454, 38 Communications Reg. (P&F) 1128, 2006 U.S. App. LEXIS 16068, 2006 WL 1735900, Counsel Stack Legal Research, https://law.counselstack.com/opinion/at-t-inc-v-federal-communications-commission-cadc-2006.