Florida Cellular Mobil Communications Corp. v. Federal Communications Commission

28 F.3d 191, 307 U.S. App. D.C. 324
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 15, 1994
DocketNo. 92-1664
StatusPublished
Cited by5 cases

This text of 28 F.3d 191 (Florida Cellular Mobil Communications Corp. 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
Florida Cellular Mobil Communications Corp. v. Federal Communications Commission, 28 F.3d 191, 307 U.S. App. D.C. 324 (D.C. Cir. 1994).

Opinion

Opinion for the Court filed by Senior Circuit Judge MaeKINNON.

MaeKINNON, Senior Circuit Judge:

Florida Cellular Mobil Communications Corporation (“Florida Cellular”) appeals from decisions of the Federal Communications Commission (“Commission” or “FCC”) that dismissed the company’s application for a license to construct and operate a cellular communications system in southern Maryland and along Maryland’s Eastern Shore. The Commission dismissed the application as “unacceptable for filing” because one of Florida Cellular’s shareholders held an interest in [193]*193a competing applicant in violation of the FCC’s multiple ownership regulations. Because the regulations clearly provided that multiple ownership interests in competing applicants were prohibited, and Florida Cellular was on notice that its application was subject to dismissal for non-compliance with FCC regulations, we affirm the Commission’s decisions.

I. BACKGROUND

In the early 1980’s the Commission established procedures to determine which applicants would be issued licenses to construct and operate cellular communications systems in the larger metropolitan areas within the United States. The Commission refers to these areas as Metropolitan Service Areas. The Commission permitted parties to these applications to have multiple ownership interests of less than 1% in competing applicants in order to provide some latitude for the parties to form business relationships. Cellular Lottery Order, 98 F.C.C.2d 175, 217-18 (1984), recon., 101 F.C.C.2d 577 (1985), further recon., 59 Rad.Reg.2d (P & F) 407 (1985). The procedures adopted by the Commission allow for licenses to be issued to two carriers within each of the Service Areas, with one license reserved for “wireline” carriers (telephone companies) and the other reserved for “nonwireline” carriers (applicants other than telephone companies).

In order to streamline the licensing process and to provide cellular service to the public in a more timely manner, the Commission has since 1984 selected the tentative licensee from among competing applicants through a lottery, as authorized by section 309(i) of the Communications Act, 47 U.S.C. § 309(f) (1988), rather than through competitive hearings. Each facially complete application is qualified to be included in a lottery for a particular Service Area license upon the applicant’s certification that the application is complete and contains all the information required by the application form and the FCC regulations. Cellular Lotteries Further Reconsideration Order, 59 Rad.Reg.2d (P & F) 407, 410 & n. 16 (1985). To speed the selection process, however, once the application is filed, the FCC rules prohibit applicants from filing amendments to their applications until the lottery produces the tentative selectee for the relevant market.1 Cellular Lottery Order, 98 F.C.C.2d 175, 220 (1984); 47 C.F.R. § 22.918(b) (1993). Once filed, the Commission does not review the applications further until the lottery is completed.

When the lottery produces a tentative se-lectee, the Commission reviews only the selected application to determine whether it is “acceptable for filing,” i.e., whether it complies with the FCC procedural and substantive rules and regulations. 47 C.F.R. § 22.-20(a)(2) (1993). One of the Commission’s principal cellular rulemaking orders states that “the tentative selectee’s application will be carefully reviewed to ensure its compliance with the cellular application standards and will be dismissed for failure to do so.” Cellular Lotteries Further Reconsideration Order, 59 Rad.Reg.2d (P & F) 407, 410 (1985). The FCC rules also provide:

(a) Unless the Commission shall otherwise permit, an application will be unacceptable for filing and will be returned to the applicant ... if:
(2) The application does not comply with the Commission’s rules, regulations, specific requirements for additional information or other requirements.

47 C.F.R. § 22.20(a)(2) (1993). If it determines that the application is acceptable, the Commission provides public notice as to the identity of the tentative licensee. Competing applicants are then entitled to challenge the application of the tentative licensee by filing petitions to deny the application.

In 1985, the Commission established procedures for processing applications for cellular licenses in the remaining areas of the country, the so-called Rural Service Areas. Although most of the procedures established for the Metropolitan Service Area application process applied, the Commission’s experience [194]*194in processing the applications for the Metropolitan Service Areas convinced the Commission to change some of the regulations for the processing of the applications for the Rural Service Areas. The Commission amended its regulations concerning partial settlements, multiple ownership interests in more than one applicant for the same Rural Service Area license, and transfers of interests in Rural Service Area applications. See Amendment of the Commission’s Buies for Rural Cellular Service, 64 Rad.Reg.2d (P & F) 1382, 1383 (1988) [hereinafter “Cellular Amendment”]. The Commission found that allowing multiple ownership interests of less than 1% in competing cellular applications encouraged applicants to enter into partial settlements2 whereby the applicants made mutual promises to convey a portion of their interests to other members of the settlement group upon being selected as the tentative selectee. In turn these partial settlements delayed the inauguration of service to the public because they encouraged losing applicants to file petitions to deny the winning applications alleging that the tentative selec-tees were not the real parties in interest. To prevent this delay in inaugurating cellular service in the Rural Service Areas, the Commission adopted 47 C.F.R. § 22.921 which in relevant part provides:

For Rural Service Areas, no party to a non-wireline application shall have an ownership interest, direct or indirect, in more than one application for the same Rural Service Area, including an interest of less than one percent.

47 C.F.R. § 22.921(b) (1993). The Commission also acted to prevent the delay associated with the pre-licensing transfer or assignment of cellular applications. Noting that such transfers required the Commission to restart the application processing cycle and to issue a new public notice which “results in the disruption of orderly processing, slows the initiation of service to the public, and is not in the public interest,” Cellular Amendment, 64 Rad.Reg.2d at 1387, the Commission also adopted 47 C.F.R. § 22.922 which at the relevant time provided:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
28 F.3d 191, 307 U.S. App. D.C. 324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/florida-cellular-mobil-communications-corp-v-federal-communications-cadc-1994.