Skybridge Spectrum Foundation v. Federal Communications Commission

842 F. Supp. 2d 65, 55 Communications Reg. (P&F) 320, 2012 WL 336160, 2012 U.S. Dist. LEXIS 12776
District Court, District of Columbia·Decided February 2, 2012·No. Civil Action No. 2010-1496·Published·Cited by 10 cases

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, District Judge.

Skybridge Spectrum Foundation (“Sky-bridge”) brings this Freedom of Information Act (“FOIA”) action against the Federal Communications Commission (“FCC”), seeking the disclosure of records relating to the finances and operations of a handful of its competitors in the telecommunications industry. Currently before the Court is the FCC’s [18] Motion for Summary Judgment. Upon careful consideration of the parties’ submissions, the relevant authorities, and the record as a whole, the Motion shall be GRANTED and a judgment shall be entered in the FCC’s favor.

I. BACKGROUND

Understanding the factual context of Skybridge’s FOIA requests clarifies the nature of the parties’ dispute. Accordingly, the Court begins there.

A. The Universal Service Administrative Company, the Universal Service Fund, and FCC Forms 499-A and 499-Q

The Universal Service Administrative Company (“USAC”) is an independent, non-profit corporation designated by the FCC to serve as the administrator of a fund, called the Universal Service Fund (“USF”), that helps provide communities across the country affordable telecommunications services. Deck of Divya S. Shenoy (“Shenoy Deck”) ¶ 3. USAC administers USF programs for companies servicing rural areas, low-income consumers, rural healthcare providers, and *69 schools and libraries. Id. USAC’s work is overseen by the FCC’s Wireline Competition Bureau (“WCB”). Id.

USF programs are funded by mandatory contributions from interstate telecommunications providers. Nearly all interstate telecommunications providers are required to submit two kinds of “Telecommunications Reporting Worksheets,” often referred to as “FCC Form 499-A” and “FCC Form 499-Q,” to report detailed revenue information to USAC. Id. ¶ 4. USAC then uses that information to calculate the providers’ mandatory contributions. Id.

FCC Form 499-A is used to report annual revenue information. Id. ¶ 9. The form requires interstate telecommunications providers to disclose, among other things: (1) revenues received from services provided for resale by other contributors to federal universal service mechanisms, broken down by the underlying service and the amounts that are attributable to interstate and international services; (2) revenues received from end-users and non-telecommunications sources, broken down by the underlying service and the amounts that are attributable to interstate and international services; and (3) for carriers and certain other entities, percentages of their revenues broken down by region and by whether the revenue is derived from a reseller or an end-user service. Id. ¶¶ 11-13, Attach. C (FCC Form 499-A) at 4-7.

Meanwhile, FCC Form 499-Q is used to report quarterly revenue information. Id. ¶ 5. The form requires telecommunications providers to disclose, among other things: (1) historical revenue received from contributing resellers, with subtotals for interstate and international revenues; (2) historical revenues received from end-users, with subtotals for interstate and international revenues; (3) historical revenues from other goods and services; (4) total revenues from the previous categories; and (5) projected gross-billed and collected end-user interstate and international revenues for the three-month period commencing sixty days from the filing deadline. Id. ¶7, Attach. B (FCC Form 499-Q) at 1.

FCC Form 499-A and FCC Form 499-Q both offer a space for providers to certify that the information they disclose is “confidential” and that its public disclosure would be likely to cause “substantial” competitive harm. Id., Attach. B (FCC Form 499-Q) at 1, Attach. C (FCC Form 499-A) at 8. Both forms also require the provider to certify that “all statements of fact ... are true” and that its disclosures reflect “an accurate statement of [its] affairs.” Id. The forms conclude by warning that “persons willfully making false statements in the worksheet can be punished by fine or imprisonment under Title 18 of the United States Code, 18 U.S.C. § 1001.” Id. (capitalization omitted).

B. Skybridge’s November 2008 Request for Records Relating to Three Major Competitors

Skybridge is a non-profit telecommunications company with its principal place of business in Berkeley, California. On November 28, 2008, it submitted a FOIA request to the FCC (“November 2008 Request”), the first of two requests at issue in this case. Def.’s Stmt, of Materials Facts as to Which There Is No Genuine Issue (“Def.’s Stmt.”) ¶ l. 1 In its No *70 vember 2008 Request, Skybridge sought an array of records relating to three related companies that Skybridge characterizes as being among its “major competitors,” PL’s Opp’n to Def.’s Mot. for Summ. J. (“PL’s Opp’n”) at 5 — namely, Maritime Communications/Land Mobile LLC (“MCLM”), Mobex Network Services, LLC (“Mobex”), and Waterway Communications System, LLC (“Watereom”) (collectively, “MCLM Group”), Def.’s Stmt. ¶ 1. Specifically, Skybridge’s FOIA request sought: (1) Mobex and Watercom’s completed FCC Form 499-A’s and FCC Form 499-Q’s for 2001 through 2006; (2) a May 8, 2006 letter from Mobex and Watereom to USAC demanding a refund; (3) a June 30, 2006 written request from USAC to Mobex and Watereom asking for additional information; and (4) an August 14, 2006 letter from MCLM providing the additional information requested by USAC. Id. In its request, Skybridge acknowledged the possibility that some of the information requested might be deemed “confidential,” but suggested that confidentiality should be “waived in the public interest.” Shenoy DecL, Attach. D (November 2008 Request) at 2.

On December 10, 2008, the FCC’s WCB forwarded Skybridge’s November 2008 Request to the MCLM Group in order to ascertain whether it had any objection to the release of the requested information. Def.’s Stmt. ¶ 2. On December 16, 2008, the MCLM Group responded by objecting to the release of certain records on the grounds that Skybridge is a “director competitor” and that information in the requested records could be used to determine: (1) the “growth and placement of competitive lines of business”; (2) “general market segmentation and positioning”; and (3) the “competitive strength” of the MCLM Group. Id. ¶ 3.

On January 22, 2009, Skybridge responded by arguing that the disclosure of the requested records would be in the public interest. Id. ¶ 4. Skybridge conceded that the requested records contained “financial information,” but suggested that the “public interest in release” outweighs the private interest in confidentiality. Shenoy Deck, Attach. G (Ltr. From Skybridge to FCC dated Jan. 22, 2009) at 1-2. Skybridge also claimed that any “publicly disclosable information” on FCC Form 499-A and FCC Form 499-Q should be released, but admitted that the FCC could redact “any information properly deemed confidential.” Id. at 3.

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Skybridge Spectrum Foundation v. Federal Communications Commission, 842 F. Supp. 2d 65, 55 Communications Reg. (P&F) 320, 2012 WL 336160, 2012 U.S. Dist. LEXIS 12776 (D.D.C. 2012).

842 F. Supp. 2d 65 (Skybridge Spectrum Foundation v. Federal Communications Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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