Information Library Article
5/24/2002: Federal Appeals Court Overturns FCC Local Competition Rules
May 24, 2002
Federal Appeals Court Overturns FCC Local Competition Rules
May 24, 2002 - Federal appeals court overturns FCC local competition rules
The U.S. Court of Appeals for the D.C. Circuit today remanded the FCC's local competition and line-sharing orders.
Concerning the local competition order, the court took issue with the FCC's decision to make its unbundling requirements "uniformly applicable" to all elements in every geographic or customer market. The court determined that this approach unjustifiably required incumbent carriers to make UNEs available even where there "is no reasonable basis" for thinking that competition would suffer if those elements weren't available.
Regarding the FCC's expressed belief that "more unbundling is better," the court said Congress did "not authorize so open-ended a judgment" when it drafted the Telecom Act.
The court, in remanding the line sharing order - which required the unbundling of the high frequency spectrum of the copper loop in order to make it possible for CLECs to provide DSL service - criticized the commission for failing to consider the relevance of competition coming from cable and, to a lesser extent, satellite.
Disclaimer: This information is provided for informational use only. It is
not a substitute for consulting advice or individual analysis of a particular
consulting matter. Transmission and receipt of this information does not create
a consultant-client relationship. Readers should not act without proper training
or without seeking the assistance of their vendor(s). The user assumes all
responsibilities associated with changing settings in their systems and agrees
to indemnify TeleAdvice Incorporated for actions taken by the user in accordance
to the Indemnification policies of TeleAdvice Incorporated. Any dissemination
or duplication of the information contained on this web site is strictly prohibited.