Saco River Cellular, Inc. v. Federal Communications Commission

133 F.3d 25, 328 U.S. App. D.C. 162
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 16, 1998
Docket91-1248, 93-1423, & 96-1439
StatusPublished
Cited by4 cases

This text of 133 F.3d 25 (Saco River Cellular, Inc. 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
Saco River Cellular, Inc. v. Federal Communications Commission, 133 F.3d 25, 328 U.S. App. D.C. 162 (D.C. Cir. 1998).

Opinion

GINSBURG, Circuit Judge:

Appellants Saco River Cellular, Inc. and Northeast Cellular Telephone Co., L.P., applicants for a license to provide cellular telephone service in the Portland, Maine area, challenge a series of decisions by the Federal Communications Commission culminating in the award of the license to Portland Cellular *28 Partnership (PortCell). In the most recent decision under review, the Commission concluded that the 1995 amendments to the Paperwork Reduction Act, 44 U.S.C. § 3501 et seq., required it to reinstate PortCell’s application, which it had previously dismissed, and consequently to award the license to Port-Cell. We agree that the 1995 amendments to the PRA obligated the Commission to reconsider its dismissal of PortCell’s application. Accordingly, we affirm the agency order awarding the license to PortCell and dismiss as moot Saco River’s challenge to the Commission’s handling of its application.

I. BACKGROUND

In 1986 the Commission held a lottery for a license to offer cellular phone service in the Portland area. Seacoast Cellular, Inc. placed first among five applicants, followed by Saco River, Community Services Telephone Co., Northeast, and NYNEX Mobile Communications Co. Shortly thereafter Seacoast amended its application to substitute PortCell, a general partnership the original partners of which were Seacoast, NYNEX Mobile, and Community, as the winning applicant. (The current partners are Seacoast, NYNEX Mobile, and Lewiston-Auburn Cellular.)

Saco River and Northeast, the remaining two applicants, objected that PortCell was ineligible for a license because it had failed to “obtain a firm financial commitment for the financing necessary to construct and operate for one year its proposed cellular system and amend its application to so demonstrate,” as required by 47 C.F.R. § 22.917(b)(1) (1986). The regulation then in force provided that:

The firm financial commitment ... shall be from a recognized bank or other financial institution and shall evidence the lender’s determination that it has assessed the creditworthiness of the loan applicant and that it is committed to providing the necessary financing, including any actions required of the applicant to continue the commitment in force. Applicants obtaining financing from other than a recognized lending institution must submit proof that the financing entity has such funds available and uncommitted to another cellular application.

47 C.F.R. § 22.917(b)(l)(i) (1986). As evidence of the financial commitment it had obtained, PortCell submitted a letter of credit from NYNEX Credit Corp.

In 1989 the Commission agreed with Saco River and Northeast that PortCell’s application was defective to the extent that the letter of credit did not include the terms of the proposed loan and failed to indicate that NYNEX Credit had assessed PortCell’s creditworthiness. Nonetheless, the Commission waived the firm-financial-commitment requirement and granted the license to Port-Cell on the basis "of the Commission’s “lengthly [sic] experience in dealing with NYNEX Corporation and its various subsidiaries and affiliates.” Portland Cellular Partnership, 4 FCC Rcd 2050, 2051 (1989).

In 1990 this court vacated that decision as arbitrary and capricious because the waiver of the firm-financial-commitment requirement “was not based on any rational waiver policy.” Northeast Cellular Telephone Co., L.P. v. FCC, 897 F.2d 1164, 1167. Upon remand the Commission, finding that it could not justify the waiver, dismissed PortCell’s application as defective. Portland Cellular Partnership, 6 FCC Rcd 2283 (1991).

The Commission also dismissed Saco River’s application as defective because Saco River’s proposed service contour extended beyond the Portland service area. The Commission determined that, because the proposed extension involved more than de minimis encroachments into adjacent service areas, Saco River would not be permitted to amend its filing to bring it into compliance with the applicable rules. Id. at 2284.

With PortCell and Saco River no longer in the running, the Commission designated Northeast as the tentative selectee. Id. Community filed a timely motion to reconsider. Nearly a year later PortCell filed its own petition to reconsider, arguing for the first time that the Commission had erred in dismissing its application because the firm-financial-commitment reporting requirement had not been approved by the Office of Management and Budget. The Paperwork Reduction Act, 44 U.S.C. § 3501 et seq., provides that “[a]n agency shall not conduct or *29 sponsor the collection of information unless in advance of the adoption or revision of the collection of information ... the Director [of the OMB] has approved the proposed collection of information.” 44 U.S.C. § 3507(a). The Commission responded that it had no authority to consider PortCell’s petition because the petition was filed too late. Portland Cellular Partnership, 8 FCC Rcd 4146, 4146 n.4 (1993).

In 1993 the Commission denied Community’s petition for reconsideration, id. at 4149-50, and granted Northeast’s application over the objections of Saco River and PortCell, id. at 4150-52. PortCell filed a timely petition for reconsideration of the grant óf Northeast’s application. In addition, PortCell and Community filed petitions for further reconsideration of the dismissal of PortCell’s application, with PortCell again raising its PRA objection.

In 1994 the Commission denied PortCell’s and Community’s petitions for further reconsideration of the order dismissing PortCell’s application. In a somewhat different analysis than it had offered when it first denied PortCell’s petition for reconsideration, the Commission explained that, because Community’s original rehearing petition had been timely, the agency was free upon reconsideration thereof to entertain any relevant argument, including the PRA argument in Port-Cell’s untimely petition. The Commission then declined to exercise its discretion to consider PortCell’s “grossly untimely” PRA objection because

Port Cell’s failure to avail itself of this argument when its compliance with [the Commission’s] financial qualifications rule was first called into question imposed a particularly heavy burden on the resources of the court, the Commission and the other parties ... litigating the issue of Port Cell’s compliance.

Portland Cellular Partnership, 9 FCC Rcd 3291, 3292 (1994). Meanwhile, the Commission deferred reconsideration of its grant of Northeast’s application, id.

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Bluebook (online)
133 F.3d 25, 328 U.S. App. D.C. 162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saco-river-cellular-inc-v-federal-communications-commission-cadc-1998.