MCI Telecommunications Corp. v. BellSouth Telecommunications, Inc.

7 F. Supp. 2d 674, 13 Communications Reg. (P&F) 1071, 1998 U.S. Dist. LEXIS 8303, 1998 WL 300210
CourtDistrict Court, E.D. North Carolina
DecidedMay 22, 1998
Docket5:97-cv-00425
StatusPublished
Cited by9 cases

This text of 7 F. Supp. 2d 674 (MCI Telecommunications Corp. v. BellSouth Telecommunications, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MCI Telecommunications Corp. v. BellSouth Telecommunications, Inc., 7 F. Supp. 2d 674, 13 Communications Reg. (P&F) 1071, 1998 U.S. Dist. LEXIS 8303, 1998 WL 300210 (E.D.N.C. 1998).

Opinion

ORDER

BRITT, Senior District Judge.

THIS MATTER is in the nature of an appeal by plaintiffs (“MCI”) from orders of the North Carolina Utilities Commission (“NCUC”) pursuant to the Telecommunications Act of 1996 (“the Act” or “the 1996 Act”). 47 U.S.C. §§ 151-614 (West Supp. 1997), Pub.L. No. 104-104, 110 Stat. 56 (1996). These orders set out the terms of an interconnection agreement (“the Agreement”) arbitrated by the NCUC between MCI and BellSouth Telecommunications, Inc. for access by MCI to the market for local telephone services in North Carolina. 1

As is their prerogative under the 1996 Act, MCI challenged certain terms of the arbitrated Agreement by filing a complaint in this court. 47 U.S.C. § 252(e)(6). MCI alleges that certain terms of the Agreement are inconsistent with §§ ,251 and 252-, of the Act, with the ruling of the Eighth Circuit Court of Appeals in Iowa Utilities Board v. FCC, 120 F.3d 753 (8th Cir.1997), petition for cert. granted, AT & T v. Iowa Utilities Board, — U.S. -, 118 S.Ct. 879, 139 L.Ed.2d 867 (1998), and with regulations issued by the Federal Communications Commission. A hearing was held on all issues on 13 January 1998. This matter is properly before this court pursuant to 47 U.S.C. § 252(e)(6).

The issues involved in this matter and the history of the dealings of the parties before the filing of the complaint are substantially identical, in many respects, to those addressed by the court in its order in AT & T Communications of Southern States, Inc. v. BellSouth Telecommunications, Inc., et al., No. 5:97-CV-405-BR, 1998 WL 300218(3), issued contemporaneously with this order (“the AT & T appeal”). The court refers the parties to the AT & T Appeal for further details.

I. Discussion

In its complaint, MCI challenges several terms of the Agreement.. Those issues ad *678 dressed by the challenged provisions include: recombination of unbundled network elements; resale of Contract Service Arrangements (CSAs); unbundling of dark fiber, local subloops and customized routing; resale of short-term promotions; resale of 411 services; branding of services; the date of electronic Operational Support System implementation; and the pricing structure used by the NCUC throughout the Agreement. The court now turns to an analysis of each issue.

A. Recombination of Network Elements

MCI challenges Attachment III, Section 2.3 of the Agreement, which treats any recombination of purchased unbundled network elements as a resold service when that recombination produces a service already offered by BellSouth to its customers. This section is identical in every respect to Section l.A of the agreement between AT & T and BellSouth which was struck down by this court’s order in that case. For the same reasons as expressed in the AT & T Appeal, 7 F.Supp.2d 661, Attachment III, Section 2.3 of the MCI Agreement will also be stricken.

B. Resale of Consumer Service Arrangements

MCI also challenges the NCUC’s resolution of the issue of resale of CSAs. The decision of the NCUC is reflected in Attachment II, Section 2.3.6 of the MCI Agreement. This section is identical to paragraph 25.5.1 of the AT & T Agreement. The NCUC’s treatment of CSAs, exempting those reached before 15 April 1997 from resale, and limiting resale of those reached after 15 April 1997 to resale to the original customer, is inconsistent with federal law, for the reasons set forth in the AT & T Appeal. Attachment II, Section 2.3.6 will therefore be stricken and the issue will be remanded to the NCUC for further proceedings consistent with the findings of this court in the AT & T Appeal, FCC regulations, and the decision of the Eighth Circuit Court of Appeals in Iowa Utilities Board v. FCC, 120 F.3d 753 (8th Cir.1997).

C. Violation of FCC Pricing Rules

Count Ten of the complaint purports to challenge the pricing structure implemented by the NCUC as violative of FCC regulations, including, inter alia, 47 C.F.R. §§ 51.501-51.515, 51.601-51.611, 51.701-51.715. MCI asks this court to review the Agreement and decide “whether the NCUC’s arbitration decisions and the Agreement satisfy the FCC’s implementing regulations.” (Compl., ¶ 30.) These rules were stricken by the Eighth Circuit as being beyond the FCC’s jurisdiction to implement, Iowa Utilities, 120 F.3d at 800, and are currently being reviewed on appeal by the Supreme Court. Therefore, the court will not address whether or not the NCUC’s orders and the Agreement comply with those rules.

D. Decision not to Require Unbundling of Certain Elements

MCI alleges that the NCUC erred in not requiring BellSouth to provide access to certain technologies on an unbundled basis. These technologies include: dark fiber, local subloops, and customized routing. The court’s standard of review in considering these matters was set forth by the Colorado District Court in U.S. West Communications, Inc. v. Hix, 986 F.Supp. 13 (D.Colo.1997).

The first inquiry of this Court in reviewing the interconnection agreements ... is whether the [commissionj’s action was procedurally and substantively in compliance with the Act and the implementing regulations. This is a question of law which must be reviewed de novo. If the [com-missionj’s action is found to be in compliance with federal law and regulations, then the [commission] will be given deference, through application of the arbitrary and capricious standard, as to all other issues.

Id. at 19.

The requirements of the Act and the FCC regulations were elucidated by the Eight Circuit Court of Appeals in Iowa Utilities. In that case, the court entertained challenges to the FCC’s unbundling rules. First, several parties challenged the FCC’s ruling that operational support systems, operator services and directory assistance, and vertical switch *679 ing features, such as caller I.D. and call waiting qualified as network elements and, thus, must be offered on an unbundled basis. Emphasizing the broad definition of “network element” in § .153(29), the court upheld the FCC’s classifications. Id. at 808-09. ■

Next, the court discussed the standard for determining which network elements must-be unbundled.

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U S West Communications, Inc. v. Hix
183 F. Supp. 2d 1249 (D. Colorado, 2000)
US West Communications, Inc. v. Hix
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MCI Telecommunications Corp. v. Michigan Bell Telephone Co.
79 F. Supp. 2d 768 (E.D. Michigan, 1999)
MCI v. Bell Atlantic
36 F. Supp. 2d 419 (District of Columbia, 1999)

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7 F. Supp. 2d 674, 13 Communications Reg. (P&F) 1071, 1998 U.S. Dist. LEXIS 8303, 1998 WL 300210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mci-telecommunications-corp-v-bellsouth-telecommunications-inc-nced-1998.