BellSouth Telecommunications, Inc. v. Mississippi Public Service Commission

368 F. Supp. 2d 557, 2005 U.S. Dist. LEXIS 8498, 2005 WL 1076643
CourtDistrict Court, S.D. Mississippi
DecidedApril 13, 2005
DocketCIV.A. 3:05CV173LN
StatusPublished
Cited by9 cases

This text of 368 F. Supp. 2d 557 (BellSouth Telecommunications, Inc. v. Mississippi Public Service Commission) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BellSouth Telecommunications, Inc. v. Mississippi Public Service Commission, 368 F. Supp. 2d 557, 2005 U.S. Dist. LEXIS 8498, 2005 WL 1076643 (S.D. Miss. 2005).

Opinion

MEMORANDUM OPINION AND ORDER

TOM S. LEE, District Judge.

This cause is before the court on the motion of plaintiff BellSouth Telecommuni *559 cations (BellSouth) for preliminary injunction asking that the court enjoin the March 9, 2005 order entered by the Mississippi Public Service Commission to the extent that such order allows competitors to place new UNE-Platform orders. Defendant Mississippi Public Service Commission (PSC) and the various intervenors filed responses in opposition to the motion. Based on its review of the parties’ submissions and their arguments to the court at the April 8th hearing on the motion, the court concludes that BellSouth’s motion should be granted.

On February 4, 2005, the Federal Communications Commission (FCC) released its Triennial Order on Remand (TRRO) in CC Docket No. 01-338 following remand in United States Telecom Association v. Federal Communications Commission, 359 F.3d 554 (D.C.Cir.2004). 1 In the TRRO, among other things, the FCC established new unbundling rules regarding mass market local circuit switching, high-capacity loops and dedicated interoffice transport. All that is relevant to the present motion is its ruling as to mass market switching. 2 Prior to the TRRO, the FCC, pursuant to its authority under the Telecommunications Act of 1996, had consistently held that incumbent local exchange carriers (incumbent LECS), such as BellSouth, were required to provide access to the individual parts of their network systems — switches, loops and transport — on an unbundled basis and at prescribed prices, in order that the competitive LECS would be in a position to effectively compete in the marketplace. These individual parts of the system are known as “unbundled network elements” or UNEs, and as BellSouth explains, access to unbundled switching is important because it makes it possible for competiíiYe LECs to obtain the UNE Platform (or UNE-P), which consists of all the individual or piece-parts of the BellSouth network combined.

In its TRRO, the FCC ruled that the ability of competitive LECs to compete would not be impaired without access to unbundled switching, and concluded, therefore, that incumbent LECs would no longer be required to provide competitive LECs with access to unbundled switching. It specifically recognized that immediate implementation of its new rules posed a potential for disruption in service, and therefore established a twelve-month transition period, with accompanying transition pricing, for migration of competitive LECs’ “embedded customer base” from UNE-P to alternate arrangements for service. The FCC determined that this twelve-month transition period would provide “adequate time for both competitive LECs and' incumbent’ LECs to perform the tasks necessary to an orderly transition,” and hence gave carriers twelve months from the date of the TRRO to “modify their interconnection agreements, including completing any change of law processes,” to implement the changes directed by the TRRO. 3 The FCC stated in *560 the TRRO, however, that the transition period it adopted applied “only to the embedded customer base, and does not permit competitive LECs to add new UNE-P arrangements using unbundled access to local circuit switching pursuant to section 251(c)(3)....”

Accordingly, on February 11, 2005, Bell-South sent out a “Carrier Notification” to all of its competitive LECs advising that as of March 11, 2005, the effective date of the TRRO, BellSouth would no longer accept orders for switching as a UNE item. A number of the competitive LECs responded by filing a Joint Petition for Emergency Relief with the PSC, asking that BellSouth be directed to continue to provide unbundled switching in accordance with its undertaking in its interconnection agreements until such time as the parties had completed the change of law process. In response, the PSC entered the order that is the subject of BellSouth’s present motion, ruling that the parties were required to adhere to the change of law process in their interconnection agreements and that until such time as the process, including arbitration, was completed, BellSouth would be required to continue accepting and provision competitive LECs’ orders as provided for in their interconnection agreements.

BellSouth brought this action seeking declaratory relief and a preliminary injunction pending the court’s expedited review of the PSC’s order. BellSouth takes the position that the PSC’s order is contrary to, and preempted by the FCC’s TRRO, and it thus seeks an order enjoining all defendants from seeking to enforce the PSC’s order. 4

To prevail on its request for injunctive relief, the burden is on BellSouth to show “(1) a substantial likelihood that plaintiff will prevail on the merits, (2) a substantial threat that irreparable injury will result if the injunction is not granted, (3) that the threatened injury outweighs the threatened harm to defendant, and (4) that granting the preliminary injunction will not disserve the public interest.” Mississippi Power & Light Co. v. United Gas Pipe Line Co., 760 F.2d 618, 621 (5th Cir.1985) (citing Canal Authority of State of Florida v. Callaway, 489 F.2d 567 (5th Cir.1974)).

The question of BellSouth’s likelihood of success on the merits raises two issues: First, while the FCC’s February 4, 2005 Order on Remand unequivocally provides for a “nationwide bar on [unbundled switching],” did the FCC intend that this aspect of its Order would be self-effectuating, and if so, was it within the FCC’s jurisdiction to make the bar self-effectuating.

As to the first issue, a comprehensive review of all potentially relevant provisions of the TRRO demonstrates convincingly that the FCC envisioned that the bar on new-UNE-P switching orders would be immediately effective on the date *561 established in the order, March 11, 2005, without regard to the existence of change of law provisions in parties’ Interconnection Agreements. The TRRO makes clear in unequivocal terms that the transition period applies only to the embedded customer base, and “does not permit competitive LECs to add new customers using unbundled access to local circuit switching.” 5 At ¶ 227, the Order recites, .

We require competitive LECs to submit the necessary orders to convert their mass market customers to alternative service arrangement within twelve months of the effective date of this Order. This transition period shall apply only to the embedded customer base, and does not permit competitive LECs to add new UNE-P arrangements using unbundled access to local simtching pursuant to section 251(c)(3) except as otherwise specified in this order....

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368 F. Supp. 2d 557, 2005 U.S. Dist. LEXIS 8498, 2005 WL 1076643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bellsouth-telecommunications-inc-v-mississippi-public-service-commission-mssd-2005.