Northwest Public Communications Council ex rel. Oregon v. Qwest Corp.

877 F. Supp. 2d 1004, 2012 WL 2522929, 2012 U.S. Dist. LEXIS 90623
CourtDistrict Court, D. Oregon
DecidedJune 28, 2012
DocketNo. 3:12-CV-121-BR
StatusPublished
Cited by2 cases

This text of 877 F. Supp. 2d 1004 (Northwest Public Communications Council ex rel. Oregon v. Qwest Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northwest Public Communications Council ex rel. Oregon v. Qwest Corp., 877 F. Supp. 2d 1004, 2012 WL 2522929, 2012 U.S. Dist. LEXIS 90623 (D. Or. 2012).

Opinion

BROWN, District Judge.

This matter comes before the Court on the Motion (# 17) to Remand by Plaintiff Relator Northwest Public Communications Council (NPCC), Defendant Qwest Corporation’s Motion (# 14) to Dismiss for Failure to State a Claim, and Qwest’s Motion (#22) to Strike NPCC’s Response (#20) to Qwest’s Motion to Dismiss. For the reasons that follow, the Court DENIES NPCC’s Motion (# 17) to Remand, GRANTS Qwest’s Motion (# 14) to Dismiss, and DENIES as moot Qwest’s Motion (# 22) to Strike.

BACKGROUND

NPCC’s Complaint (# 1) concerns a long-running dispute between NPCC and its members against Qwest over an administrative process that, inter alia, served to set payphone tariff rates in the State of Oregon. This matter represents the third time this and related disputes have come before this Court. See NPCC v. Qwest Corp., 3:09-CV-1351-BR (NPCC I); NPCC v. Oregon Pub. Util. Comm’n, 3:10-CV-685-BR. The Court dismissed both prior actions.

I. Regulatory Background.

In 1996 Congress amended the Federal Communications Act (FCA) of 1934 in part to improve competition in the telecommunications industry in the wake of the breakup of the former AT & T into Bell Operating Companies (BOCs). See 47 U.S.C. § 151, et seq. In particular, Congress enacted §§ 201 and 276 of the FCA to promote greater competition among payphone service providers (PSPs) and to prevent Local Exchange Carriers (LECs) that were often owners of payphone lines and payphone service providers from discriminating against other PSPs in favor of their own payphone services. In Davel Communications, Inc. v. Qwest Corporation, PSPs disputed certain payphone service tariffs charged by Qwest. 460 F.3d 1075 (9th Cir.2006). In Davel the Ninth Circuit set out the following regulatory background that summarizes the numerous administrative orders issued by the Federal Communications Commission (FCC) in its implementation of the Act:

Chapter 5 of the Federal Communications Act of 1934 as amended by the 1996 Act regulates the telecommunications industry. 47 U.S.C. § 151 et seq. As a general matter, the Federal Communications Act requires common carriers subject to its provisions to charge only just and reasonable rates, id. § 201, and to file their rates for their services with the FCC or, in some cases, with state agencies. Id. § 203. As part of the 1996 Act’s general focus on improving the competitiveness of markets for telecommunications services, § 276 substantially modified the regulatory regime governing the payphone industry by providing, in general terms, that dominant carriers may not subsidize their payphone services from their other telecommunications operations and may not “prefer or discriminate in favor of [their] payphone service[s]” in the rates [1007]*1007they charge to competitors. Id. § 276(a). The 1996 Act directs the FCC to issue regulations implementing these provisions, specifying in some detail the mandatory contents of the regulations. Id. § 276(b).
Pursuant to this directive, the FCC adopted regulations requiring local exchange carriers such as Qwest to set payphone service rates and “unbundled features” rates, including rates for fraud protection, according to the FCC’s “new services test” (sometimes “NST”). The new services test requires that rates for those telecommunications services to which it applies be based on the actual cost of providing the service, plus a reasonable amount of the service provider’s overhead costs. The FCC’s regulations required local exchange carriers to develop rates for the use of public access lines by intrastate payphone service providers that were compliant with the new services test. The rates were to be submitted to the utility commissions in the states in the local exchange carriers’ territory, which would review and “file” (i.e., approve) the rates. See In re Implementation of the Pay Telephone Reclassification and Compensation Provisions of the Telecommunications Act of 1996, Report and Order, FCC 96-388, 11 F.C.C.R. 20,541 (Sept. 20, 1996); In re Implementation of the Pay Telephone Reclassification and Compensation Provisions of the Telecommunications Act of 1996, Order on Reconsideration, FCC 96-439, 11 F.C.C.R. 21,233 (Nov. 8, 1996) ¶ 163 (“Order on Recons.”)(colleetively “Payphone Orders”). Also pursuant to the regulations, local exchange carriers were required to file their “unbundled features” rates with both the state commissions and the FCC for approval. Order on Recons. ¶ 163. The FCC required the local exchange carriers to file the new tariffs for both kinds of rates by January 15, 1997, with an effective date no later than April 15, 1997. Id.
In addition, the Payphone Orders required interexchange carriers, mainly long distance telephone service providers, to pay “dial-around compensation” to payphone service providers, including Qwest, for calls carried on the carrier’s lines which originated from one of the provider’s pay telephones. If, however, the payphone service provider was also an incumbent local exchange carrier, as was Qwest, the Payphone Orders required full compliance with the new tariff filing requirements, including the filing of cost-based public access line rates and fraud protection rates, before the local exchange carrier could begin collecting dial-around compensation.
On April 15, 1997, the FCC issued an order granting a limited waiver of the new services test rate-filing requirement. In re Implementation of the Pay Telephone Reclassification and Compensation Provisions of the Telecommunications Act of 1996, Order, DA 97-805, 12 F.C.C.R. 21,370 (Apr. 15, 1997) (“Waiver Order”). Specifically, the Waiver Order granted an extension until May 19, 1997, for filing intrastate payphone service rates compliant with the new services test, while at the same time permitting incumbent local exchange carriers to begin collecting dial-around compensation as of April 15, 1997. Id. ¶ 2. The Waiver Order stated that the existing rates would continue in effect from April 15, 1997, until the new, compliant rates became effective (“the waiver period”). The NST-compliant rates were to be filed with state utility commissions, which were required to act on the filed rates “within a reasonable time.” Id. ¶ 19 n. 60; see also id. ¶¶ 2, 18-19, 25. If a local exchange carrier [1008]*1008relied on the waiver, it was required to reimburse its customers “from April 15, 1997 in situations where the newly [filed] rates, when effective, are lower than the existing [filed] rates.” Id. ¶¶ 2, 20, 25. The order emphasized that the waiver was “limited” and “of brief duration.” Id. ¶¶ 21, 23.

460 F.3d at 1081-83 (footnotes omitted).

II. Administrative Background.

NPCC is a regional trade organization that represents companies providing public payphone services. Some of its members have purchased payphone services from Qwest and are generally known as PSPs.

Qwest is a BOC as defined in 47 U.S.C. § 153

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877 F. Supp. 2d 1004, 2012 WL 2522929, 2012 U.S. Dist. LEXIS 90623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwest-public-communications-council-ex-rel-oregon-v-qwest-corp-ord-2012.