In Re GCC License Corp.

2001 SD 32, 623 N.W.2d 474, 2001 S.D. LEXIS 31
CourtSouth Dakota Supreme Court
DecidedMarch 14, 2001
DocketNone
StatusPublished
Cited by5 cases

This text of 2001 SD 32 (In Re GCC License Corp.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re GCC License Corp., 2001 SD 32, 623 N.W.2d 474, 2001 S.D. LEXIS 31 (S.D. 2001).

Opinion

KONENKAMP, Justice.

[¶ 1.] In this appeal, we examine whether the South Dakota Public Utilities Commission erroneously denied a wireless telecommunications company’s application to become an eligible telecommunications carrier (ETC). To answer the question, we interpret 47 U.S.C. 214(e)(1), the federal statute governing the requirements for ETC status. The PUC read this statute to require that applicants must presently be providing or offering all enumerated services before ETC designation. On appeal, the circuit court reversed, ruling that federal law only requires applicants to show that they are capable of offering or providing the required services. The court remanded the case to the PUC solely for findings on whether ETC designation in South Dakota rural exchanges is in the public interest. We affirm the circuit court in all respects.

A.

[¶ 2.] The Telecommunications Act of 1996 accomplished the most comprehensive restructuring of telecommunications law since the Communications Act of 1934. Indeed, Congress directed that the 1996 Act, including its provisions on local competition, be inserted into the 1934 Act. Telecommunications Act of 1996 § 1(b), Pub.Law 104 — -104, 110 Stat. 56. In the main, the Act creates a framework to encourage swift deployment of new technologies, to open telecommunications markets to competition, and to reduce regulation, so that Americans can enjoy lower prices and higher quality services. Id. To attain these goals, Congress sought to end the previously monopolistic local telephone markets in part by prohibiting states from imposing legal obstacles to impede competition. AT & T Corp. v. Iowa Utilities Bd., 525 U.S. 366, 371, 119 S.Ct. 721, 726, 142 L.Ed.2d 835 (1999). “No State or local statute or regulation, or other State or local legal requirement, may prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications services.” 47 U.S.C. 253. Congress was so set on removing barriers to entry that it autho *477 rized the FCC to preempt any state infringement “to the extent necessary to correct such violation or inconsistency.” 47 U.S.C. 253(d). To be legally viable, any state regulation must be administered on a “competitively neutral basis.” 47 U.S.C. 253(b).

[¶ 3.] The 1996 Act empowers states to grant certain entities the status of “eligible telecommunications carrier.” 47 U.S.C. 214(e). 1 One of the benefits of becoming an ETC is the requirement that other carriers make available “public switched network infrastructure, technology, information, and telecommunications facilities and functions” at reasonable prices. 47 U.S.C. 259(a); 47 U.S.C. 259(b). ETCs are eligible to receive federal universal service financial support, but must use such support “only for the provision, maintenance, and upgrading of facilities and services for which the support is intended.” 47 U.S.C. 254(e). An ETC is obliged, at the risk of financial sanctions, to serve designated customers at appropriate prices. 47 U.S.C. 214(d). State utility commissions are required to ensure that telephone service providers not exclude areas more costly to serve and those commissions must “determine which common carrier or carriers are best able to provide such service to the requesting unserved community or portion thereof....” 47 U.S.C. 214(e)(3).

B.

[¶4.] On August 25, 1998, GCC License Corporation, a mobile cellular service provider, and a “common carrier” under federal law, applied for ETC status in all South Dakota counties. 2 Intervening to oppose GCC’s request were Dakota Telecommunications Group, Inc., South Dakota Independent Telephone Coalition, 3 and U.S. West Communications, Inc (now Qwest). 4 The hearing took place on December 17-18,1998.

[¶ 5.] GCC is licensed to provide cellular service throughout South Dakota and has existing signal coverage in 98% of the *478 state. In its application, GCC asserted that it currently provides or is capable of providing all the federally required services within its current mobile cellular offering. It is undisputed that GCC meets the definition of a common carrier, but it does not presently advertise a universal service offering. The latter requirement was not the focus of the case before the PUC. Instead, the dispute centered on the provision of statutorily enumerated support services. GCC admitted that it did not presently provide a universal service offering or a package containing all of the federally required enumerated services. A GCC representative testified that its universal service offering would be “shaped by consumer preferences.” GCC assumed that customers would want services and features comparable to those offered by traditional local exchanges, so access could be provided through a “wireless local loop service.” 5 This wireless local loop would be supported by GCC’s existing network infrastructure. 6 At the time of its application, GCC was not providing wireless local loop service to any customer in South Dakota.

[¶ 6.] GCC asserted that it could implement a universal service offering immediately upon designation. The PUC, however, was unconvinced of GCC’s ability to provide the required services throughout the state. The commission noted that GCC had, at the time of the hearing, applied for ETC status in thirteen states. The PUC emphasized, “GCC admitted that it could not provide service to every location in South Dakota.”

[¶ 7.] After the hearing, the commissioners unanimously voted to deny GCC’s application.

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Related

State v. Andrews
2009 SD 41 (South Dakota Supreme Court, 2009)
In Re Application of Gcc License Corp.
647 N.W.2d 45 (Nebraska Supreme Court, 2002)
Hannon v. Weber
2001 SD 146 (South Dakota Supreme Court, 2001)
City of Freeman v. Salis
2001 SD 84 (South Dakota Supreme Court, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
2001 SD 32, 623 N.W.2d 474, 2001 S.D. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-gcc-license-corp-sd-2001.