Iowa Utilities Board v. Federal Communications Commission

135 F.3d 535, 10 Communications Reg. (P&F) 695, 1998 U.S. App. LEXIS 1043
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 22, 1998
DocketNos. 96-3321, 3406, 3410, 3414, 3416, 3418, 3424, 3430, 3436, 3444, 3450, 3453, 3460, 3507, 3519, 3520, 3603, 3608, 3696, 3708, 3709, 3756, 3901, 3906, 3982
StatusPublished
Cited by8 cases

This text of 135 F.3d 535 (Iowa Utilities Board v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iowa Utilities Board v. Federal Communications Commission, 135 F.3d 535, 10 Communications Reg. (P&F) 695, 1998 U.S. App. LEXIS 1043 (8th Cir. 1998).

Opinion

HANSEN, Circuit Judge.

I.

Several petitioners have filed motions requesting this court to issue and enforce our mandate in the case of Iowa Utils. Bd. v. FCC, 120 F.3d 753 (8th Cir.1997).1 On Octo[537]*537ber 14,1997, after granting motions for panel rehearing, we amended our July 18, 1997, decision and issued the mandate. See id. at 813 (replacing Section 11(G)(1)(f)); id. at 818 n. 38 (clarifying scope of vacatur); id. at 819 n. 39 (clarifying scope of vacatur). We expressly reserved jurisdiction over the petitioners’ motions to enforce the mandate. Today, following oral argument on the motions, we address that issue.

One of the core holdings of our July 18, 1997, decision was that the Federal Communications Commission (FCC) has no jurisdiction to issue pricing regulations for interconnection, unbundled access, resale, and transport and termination of local telecommunication services under section 252(d) of the Telecommunications Act of 1996.2 We held that the Act vests exclusive authority to establish the pricing requirements of this section in the state commissions, and we vacated the FCC’s pricing regulations in which the FCC purported to arrogate that power to itself. Today we hold that the FCC violated this central tenet of our decision when it issued its Ameritech Michigan Order of August 19, 1997.3 Because that portion of the Ameritech Order which offends our decision is, in our view, an advisory opinion of the FCC, we need not review the FCC’s denial of Ameritech’s application or even determine whether we have jurisdiction to do so. Rather, Petitioners request and we grant prospective relief in the form of a writ of mandamus. Specifically, we direct the clerk of this court to issue a writ of mandamus ordering the FCC to abide by our mandate and to refrain from subsequent attempts to apply either directly or indirectly its vacated pricing policies regarding the pricing of interconnection, unbundled access, resale, and transport and termination of local telecommunications traffic. For reasons which we explain, it has no authority to do so under section 271(d)(3)(A) or section 271(d)(3)(C) of the Act.

II.

A. The Mandate

In our July 18 decision, we held in the clearest possible terms that the state commissions have exclusive jurisdiction to regulate the prices that incumbent local exchange carriers (LECs) may charge their competitors for access to the incumbent LECs’ local telephone network facilities. After a detailed analysis of sections 251 and 252 of the Act, we concluded that “the Act plainly grants the state commissions, not the FCC, the authority to determine the rates involved in the implementation of the local competition provisions of the Act.” Iowa Utils. Bd., 120 F.3d at 796. Elsewhere we wrote that

the terms of the Act clearly indicate that Congress did not intend for the FCC to issue any pricing rules, let alone preempt state pricing rules regarding the local competition provisions of the Act. Because the Act clearly grants the states the authority to set the rates for interconnection, unbundled access, resale, and transport and termination of traffic, the FCC has no valid pricing authority over these areas of new localized competition for the states to negate .... [Sjubsections 252(e)(2) and 252(d) clearly assign jurisdiction over the rates for the local competition provisions of the Act to the state commissions!)]

[538]*538Id. at 798-799 (internal citations omitted). In short, our decision made very clear that “Congress did not envision the FCC’s participation in determining the prices that the incumbent LECs will be able to charge for opening their networks to new entrants.” Id. at 795. We held that in promulgating regulations purporting to govern the types of pricing systems state commissions were to adopt, the FCC had exceeded its statutory authority and violated the plain meaning of the 1996 Federal Communications Act. Accordingly, we vacated the national pricing rules that the FCC had promulgated.

B. The FCC’s Ameritech Order

We filed our Iowa Utils. Bd. decision on July 18, 1997. On August 19 — scarcely one month later — the FCC made clear its intention to disregard those portions of our decision with which it disagreed. It did so in the memorandum opinion and order which it issued denying Ameritech Michigan’s application to provide in-region interLATA services in Michigan. In that opinion, the FCC reasserted its authority to do precisely what we held in Iowa Utils. Bd. it had no power to do. It asserted that it had the authority to interpret section 252(d) of the Act, and it adopted a policy which will coerce state commissions to adopt its vacated TELRIC-based pricing rules for implementation of the local competition provisions of the Act in spite of our order.

The Ameritech Order denied Ameritech’s application for authorization under section 271 of the Communications Act of 1934, as amended, to provide in-region, interLATA services in the State of Michigan. It denied the application because it found that Ameri-tech had faded to satisfy section 271’s competitive checklist’s requirements of access to its operations support systems, interconnection, and access to its 911 and E911 services. Finding these three failures to be dispositive, the FCC determined that it need not and would not address whether Ameritech had satisfied the other requirements of the competitive checklist. See Ameritech Order ¶¶5-6, 280-81. Specifically, it “[did] not reach the question of whether Ameritech’s pricing of checklist items complies with the requirements of section 271[.]” Id. ¶281. Thus, paragraphs 280-297, wherein the FCC reasserts its authority to establish the prices for the local competition provisions, do not address the merits of Ameritech’s application, but instead constitute an advisory opinion. The FCC explained its issuance of such an opinion by stating that it sought to provide guidance as to what showing would be required in future applications to demonstrate full compliance with the checklist. Id. ¶¶ 6, 281.

It is not for us to address the propriety of the FCC’s issuance of an important policy statement in an advisory opinion separate from the merits determination of a section 271 order. Rather, our inquiry is limited to the question of whether the issuance of this particular advisory opinion and its content constitute a violation of our mandate. It clearly does. The FCC admits in paragraph 283 that “the Eighth Circuit has held that the Commission lacks jurisdiction to issue national rules establishing a methodology by which the states determine the rate for interconnection, unbundled network elements, resale, and transport and termination in state-arbitrated interconnection agreements pursuant to section 252.” Inexplicably, it then proceeds to establish just such a methodology, stating that the cost-based standard of § 252(d) is contained in a federal statute and is “therefore[] presumed to have a uniform meaning nationwide.” Id. ¶286. This attempt to reassert the vacated pricing rules by imposing them as conditions for entry by the Bell Operating Companies into the in-region, interLATA telecommunications business does by indirection what we told the FCC in Iowa Utils. Bd. it could not do.

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135 F.3d 535, 10 Communications Reg. (P&F) 695, 1998 U.S. App. LEXIS 1043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-utilities-board-v-federal-communications-commission-ca8-1998.