Competitive Telecommunications Ass'n v. Federal Communications Commission

309 F.3d 8, 353 U.S. App. D.C. 356, 27 Communications Reg. (P&F) 950, 2002 U.S. App. LEXIS 22407
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 25, 2002
DocketNo. 00-1272
StatusPublished
Cited by20 cases

This text of 309 F.3d 8 (Competitive Telecommunications Ass'n 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
Competitive Telecommunications Ass'n v. Federal Communications Commission, 309 F.3d 8, 353 U.S. App. D.C. 356, 27 Communications Reg. (P&F) 950, 2002 U.S. App. LEXIS 22407 (D.C. Cir. 2002).

Opinion

Opinion for the Court filed by Senior Circuit Judge WILLIAMS.

STEPHEN F. WILLIAMS, Senior Circuit Judge:

The Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (codified at 47 U.S.C. § 151 (2000)), requires “incumbent” Local Exchange Carriers (“ILECs”) — the Bell Operating Companies and their successors, inheritors of AT&T’s local exchange facilities and services — to lease unbundled network elements (“UNEs”) to their competitors, the competitive Local Exchange Carriers (“CLECs”). See § 251(c)(3) of the Act, 47 U.S.C. § 251(c)(3). The object is to enable CLECs to provide telecommunications services in competition with the ILECs. Petitioner Competitive Telecommunications Association (“CompTel”) is composed of CLECs, many of whom — perhaps all — are also interexchange carriers (“IXCs”). CompTel seeks review of two interim Federal Communications Commission orders, In re Implementation of the Local Competition Provisions of the Telecommunications Act of 1996, Supplemental Order, 15 FCC Red 1760, 1999 WL 1065185 (1999) (“Supplemental Order”), and In re Implementation of the Local Competition Provisions of the Telecommunications Act of 1996, Supplemental Order Clarification, 15 FCC Red 9587, 2000 WL 713746 (2000) (“Clarification”), which impose some limits on CompTel’s members’ access to certain UNEs.

Specifically, the orders address CLECs’ access to a combination of UNEs known as the enhanced extended link (“EEL”). EELs consist of unbundled loops and transport network elements. Clarification, 15 FCC Rcd 9587 at ¶ 2. A loop is a telephone line that runs from the customer’s premises to the ILEC “end office,” which houses switches used to route calls to their destination. A transport then takes the traffic to the IXC or CLEC office, which will route the call to its final [11]*11destination. Leasing this combination of facilities enables new entrants to compete without building their own local loops and transport facilities. And it is especially desirable for them to acquire EELs as UNEs because as such they are priced under a formula of the Commission’s known as “total-element long run incremental cost,” or “TELRIC.” By contrast, the same functions are more costly if they are purchased as a part of the ILEC’s tariffed services (evidently under mandates imposed by the Commission pursuant to § 201), and known in this guise as Special Access services.

An EEL is useful both for the provision of long distance and local service, and the Commission here sought to channel CLECs’ use of EELs toward local service. In the Supplemental Order it limited access to firms who would use EELs to provide “a significant amount of local exchange service.” Supplemental Order, 15 FCC Red 1760 at ¶ 2. In the Clarification it refined this concept and embodied it in numerically defined safe harbors. Clarification, 15 FCC Red 9587 at ¶ 22.

CompTel contests the restriction favoring provision of local service, stating that the 1996 Act does not allow the FCC to make that sort of distinction (referred to as a use or a service-by-service restriction). It further argues that none of the FCC’s justifications for the interim rules makes it acceptable. Finally, it argues that the safe harbor provisions of the order are arbitrary and capricious, mainly asserting that they impose tracking burdens that are difficult or impossible for the CLECs to fulfill and that they impose needless restrictions against commingling of local and long distance traffic. We first address the timeliness of this appeal. Once having found jurisdiction, however, we are unpersuaded by CompTel’s merits claims.

* * *

A petition for judicial review of a final order of the FCC must be filed “within 60 days after its entry.” 28 U.S.C. § 2344 (2000); see also 47 U.S.C. § 402(a). In this case, the petition for review was filed within 60 days of the Clarification but not within 60 days of the Supplemental Order. Respondent argues that it is timely only as to claims that arose from the Clarification, not as to ones essentially aimed at the Supplemental Order.

But the Clarification radically changed the Supplemental Order in a way we have not yet mentioned. In the Supplemental Order the Commission said that it would issue a final decision on the EELs restriction in the Fourth Further Notice of Proposed Rulemaking (“FNPRM”), which notice “will occur on or before June 30, 2000.” Supplemental Order, 15 FCC Red 1760 at ¶ 2 (emphasis added). In its Clarification, the FCC freed itself of this deadline, continuing to state that the order would last until the Fourth FNPRM but giving no time period in which that would occur. Clarification, 15 FCC Rcd 9587, at ¶ ¶ 1, 35.

We hold that this extension newly aggrieved CompTel and thus made its petition timely. See Sam Rayburn Dam Elec. Coop. v. Fed. Power Comm’n, 515 F.2d 998, 1007 (D.C.Cir.1975) (stating that where a party was “aggrieved” by a later interpretation of a rule that it could not have reasonably anticipated, the time limit starts to run at the later event). Cases have held that extension of a temporary order may entitle the parties to seek judicial review of the order. See Public Citizen v. Nuclear Regulatory Comm’n, 901 F.2d 147, 151 (D.C.Cir.1990) (holding that where a temporary order is later made permanent, the permanent order may be challenged); Illinois Cent. Gulf R.R. v. [12]*12Interstate Commerce Comm’n, 720 F.2d 958, 961 (7th Cir.1983) (holding that a temporary order with no fixed time period had lasted so long as to make judicial review timely).

Here the initial order appeared to present CompTel with the prospect of enduring an interim order for a period of no more than six months. After six months, another order was issued extending the time period and setting no ultimate date of resolution. The rules have now been in place for over two and a half years. If we were to hold that such a petition is not timely, a party that found an order not worth litigating because of its apparently short term would have to sue for fear that it might drag on indefinitely. And we might also create a temptation for the FCC to let its deadlines slip. Thus we find the petition for review timely.

CompTel finds in the language of the 1996 Act a bar on the Commission’s making a service-by-service distinction in deciding under what circumstances an ILEC is required to lease UNEs. We review, of course, under the usual standard of Chevron U.S.A. Inc. v. Natural Resources Defense Council, 467 U.S. 837, 842-43, 104 S.Ct. 2778, 2781-82, 81 L.Ed.2d 694 (1984), under which the court must give effect to the clearly expressed intent of Congress, and must if the statute is ambiguous defer to any reasonable construction by the agency. The parties appear to assume that neither the Act as a whole nor § 251(d)(2)(B) in particular requires

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Bluebook (online)
309 F.3d 8, 353 U.S. App. D.C. 356, 27 Communications Reg. (P&F) 950, 2002 U.S. App. LEXIS 22407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/competitive-telecommunications-assn-v-federal-communications-commission-cadc-2002.