COMPUTER AND COMMUNICATIONS, ETC. v. F.C.C.

Nos. 80-1471, 81-1193, 81-1217, 81-1222, 81-1224 and 81-1226.

693 F.2d 198 (1982)

COMPUTER AND COMMUNICATIONS INDUSTRY ASSOCIATION, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, North American Telephone Association, Utilities Telecommunications Council, Tymnet, Inc., Continental Telephone Corporation, Xerox Corporation, Hazeltine Corporation, Alarm Industry Telecommunications Committee of the National Burglar & Fire Alarm Association, RCA Global Communications, Inc., Satellite Business Systems, Motorola, Inc., U.S. Telephone & Telegraph Corporation, American Petroleum Institute, Citicorp, Central Telephone & Utilities Corporation, Comsat General Corporation, American Newspaper Publishers Association, GTE Service Corporation, Sperry Univac Division of Sperry Corporation, Communications Satellite Corporation, International Business Machines Corporation, American Telephone & Telegraph Company, Computer & Business Equipment Manufacturers Association, Control Data Corporation, United Telephone System, Inc., United Computing Systems, Inc., Southern Pacific Communications Company, Western Union Telegraph Company, Aeronautical Radio, Inc., ISA Communications Services, Inc., Independent Data Communications Manufacturers Association, Inc., Association of Data Processing Service Organizations, Inc., Bunker Ramo Corporation, GTE Telenet Communications Corporation, Municipality of Anchorage d/b/a Anchorage Telephone Utility, Louisiana Public Service Commission, Intervenors. The PEOPLE OF the STATE OF CALIFORNIA and the Public Utilities Commission of the State of California, Petitioners, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, International Business Machines Corp., et al., Intervenors. INDEPENDENT DATA COMMUNICATIONS MANUFACTURERS ASSOCIATION, INC., Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, International Business Machines Corp., et al., Intervenors. NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, International Business Machines Corp., et al., Intervenors. AMERICAN NEWSPAPER PUBLISHERS ASSOCIATION, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, International Business Machines Corp., et al., Intervenors. MOTOROLA, INC., Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, International Business Machines Corp., et al., Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided November 12, 1982.


Attorney(s) appearing for the Case

John H. Chapman and Herbert E. Marks, Washington, D.C., with whom Laurel R. Bergold, Bernard M. Beerman, Brian E. Moran, and Daniel A. Huber, Washington, D.C., were on the joint briefs, for petitioners Computer and Communications Industry Ass'n and Independent Data Communications Mfrs. Ass'n, Inc., and intervenors Ass'n of Data Processing Service Organizations, Inc., Alarm Industry Telecommunications Committee of the Nat. Burglar & Fire Alarm Ass'n and Southern Pacific Communications Co.

Deborah A. Dupont, Deputy Asst. Gen. Counsel, National Association of Regulatory Utility Commissioners (NARUC), Washington, D.C., with whom William Paul Rodgers, Gen. Counsel and Charles D. Gray, Asst. Gen. Counsel, NARUC, Janice E. Kerr, J. Calvin Simpson and Gretchen Dumas, Attys., Public Utilities Commission of the State of California, San Francisco, Cal., and Michael R. Fontham, New Orleans, La., were on the briefs, for petitioners NARUC, State of Cal., and Public Utilities Com'n of the State of Cal., and for intervenor Louisiana Public Service Com'n.

Michael Yourshaw, Washington, D.C., with whom Aloysius B. McCabe, Kevin R. Jones, Robert J. Butler, W. Terry Maguire, and Pamela Riley, Washington, D.C., were on the brief, for petitioner/intervenor American Newspaper Publishers Ass'n (ANPA). Douglas R. Watts and Rodney L. Joyce, Washington, D.C., also entered appearances for ANPA.

John N. McCamish, Jr., and Andrew S. Viger, San Antonio, Tex., were on the brief for petitioner Datapoint Corp.

John L. Bartlett, Danny E. Adams, Susan Patrick Inzeo, Michael Yourshaw, Howard D. Polsky, and John F. Lyons, Washington, D.C., were on the brief for petitioner/intervenor Motorola, Inc.

N. Frank Wiggins, Washington, D.C., with whom Edwin B. Spievack, David M. Rickless, Washington, D.C., and Victor J. Toth, Reston, Va., were on the brief, for intervenors North American Telephone Ass'n (NATA) and Wisconsin Telecommunications Contractors Ass'n (WTCA). Ian D. Volner, Washington, D.C., also entered an appearance for NATA and WTCA.

James H. Laskey, Atty., U.S. Dept. of Justice, Washington, D.C., with whom Barry Grossman, Atty. U.S. Dept. of Justice, Washington, D.C., was on the brief, for respondent USA.

John E. Ingle, Deputy Associate Gen. Counsel, F.C.C., Washington, D.C., with whom Stephen A. Sharp, Gen. Counsel, Daniel M. Armstrong, Associate Gen. Counsel, Jane E. Mago and Michael D. Sullivan, Counsel, FCC, Washington, D.C., were on the brief, for respondent FCC. Jack David Smith, Counsel, FCC, Washington, D.C., also entered an appearance for respondent FCC.

Joseph Mordecai Kittner, Washington, D.C., with whom Carl R. Ramey, Edward P. Taptich, Lawrence J. Movshin and John S. Voorhees, Washington, D.C., were on the brief, for intervenor Computer & Business Equipment Mfrs. Ass'n (CBEMA). Virginia S. Carson, Washington, D.C., also entered an appearance for CBEMA.

Michael Boudin, Washington, D.C., with whom J. Mark Iwry, Carolyn F. Corwin, Washington, D.C., Alfred A. Green and Howard J. Trienens, New York City, were on the brief, for intervenor American Tel. & Tel. Co. (AT & T). Stuart A. Stock, Washington, D.C., also entered an appearance for AT & T.

J. Roger Wollenberg, Washington, D.C., with whom David R. Anderson, William T. Lake, Roger M. Witten, Jane Tucker Dana and Jonathan Becker, Washington, D.C., were on the brief, for intervenor IBM Corp.

James R. Hobson, Washington, D.C., was on the brief for intervenors GTE Service Corp. and GTE Telenet Communications Corp. Philip M. Walker, Donald E. Ward, Washington, D.C., William R. Malone, Huntsville, Tex., and Richard McKenna, Washington, D.C., also entered appearances for intervenor GTE Telenet Communications Corp.

Joseph P. Markoski, Washington, D.C., was on the brief for intervenor Honeywell, Inc. Thomas J. Gallagher, Washington, D.C., also entered an appearance for Honeywell, Inc.

Arthur B. Sackler, Washington, D.C., was on the brief for intervenor Nat. Newspaper Ass'n.

Bernard M. Beerman and Brian E. Moran, Washington, D.C., were on the brief for intervenor Alarm Industry Telecommunications Committee of the National Burglar & Fire Alarm Ass'n (AITC).

Stephen R. Bell, Washington, D.C., entered an appearance for intervenor Tymnet, Inc.

Charles M. Meehan and Shirley S. Fujimoto, Washington, D.C., entered appearances for intervenor Utilities Telecommunications Council.

Thomas L. Jones and John Wohlstetter, Washington, D.C., entered appearances for intervenor Continental Telephone Corp.

John R. Murphy and Lawrence W. Secrist, III, Washington, D.C., entered appearances for intervenor Xerox Corp.

Lawrence M. DeVore, Washington, D.C., entered an appearance for intervenor Communications Satellite Corp.

John B. Gantt, Washington, D.C., entered an appearance for intervenor COMSAT Gen. Corp.

Alan Raywid, Washington, D.C., entered an appearance for intervenor Sperry Univac Div. of Sperry Corp.

Victor E. Ferrall, Jr., and Linda K. Smith, Washington, D.C., entered appearances for intervenors Control Data Corp. and Hazeltine Corp.

John M. Lathschuetz, Carolyn C. Hill and John W. Hunter, Washington, D.C., entered appearances for intervenor United Computing Systems, Inc. and United Telephone Systems, Inc.

John V. Kenny, Washington, D.C., entered an appearance for intervenor Southern Pacific Communications Co.

Joel Yohalem, Washington, D.C., entered an appearance for intervenor Western Union Telegraph Co.

John L. Bartlett, Washington, D.C., entered an appearance for intervenor Aeronautical Radio, Inc.

Norman P. Leventhal, Washington, D.C., entered an appearance for intervenor ISA Communications Services, Inc.

Tedson J. Meyers, Michael W. Faber and Robert J. Miller, Washington, D.C., entered appearances for intervenors Bunker Ramo Corp. and Citicorp.

Michael L. Glaser, Kathy J. Bible and Francis E. Fletcher, Jr., Washington, D.C., entered appearances for intervenor Municipality of Anchorage d/b/a Anchorage Telephone Utility.

Theodore D. Frank, Washington, D.C., entered an appearance for intervenor Central Telephone & Utilities Corp.

Wayne V. Black, Larry S. Solomon, Stark Ritchie and David E. Lindgren, Washington, D.C., entered appearances for intervenor American Petroleum Institute.

John A. Ligon, New York City, entered an appearance for intervenor U.S. Tel. & Tel. Corp.

William D. English, Harold David Cohen and Jack N. Goodman, Washington, D.C., entered appearances for intervenor Satellite Business System.

Alexander P. Humphrey, IV, Washington, D.C., entered an appearance for intervenor RCA Global Communications, Inc.

William J. Byrnes, John M. Pelkey and Ruth S. Baker Battist, Washington, D.C., entered appearances for intervenor MCI Telecommunications Corp.

Stephen M. Feldman, Washington, D.C., entered an appearance for intervenor American Business Press, Inc.

Nathan M. Norton, Jr., Chairman, Arkansas Public Service Com'n, Washington, D.C., was on the brief for amicus curiae State of Ark., urging that the FCC's decision be set aside.

Philip J. Mause, Norman A. Pedersen, Washington, D.C., and Steven M. Schur, Madison, Wis., were on the brief for amicus curiae The Public Service Com'n of Wis., urging that the FCC's decision be set aside.

Horace S. Libby and David Moskovitz, Augusta, Maine, were on the brief for amicus curiae The Maine Public Utilities Com'n, urging that the FCC's decision be set aside.

Carl L. Evans, Stanley W. Foy and Gary A. Tomlin, Montgomery, Ala., were on the brief for amicus curiae Alabama Public Service Com'n, urging that the FCC's order be reversed and remanded with instructions.

Henry Geller, Washington, D.C., was on the brief for amicus curiae Henry Geller, urging affirmance.

Warren Spannaus, Atty. Gen. of the State of Minn., St. Paul, Minn., was on the statement in lieu of brief for amicus curiae Dept. of Public Service of the State of Minn., urging that the FCC's decision be set aside.

Evan Wilner and Sandra Minch Hodes, Baltimore, Md., were on the statement in lieu of brief for amicus curiae Office of People's Counsel of Md., urging that the FCC's decision be set aside.

Donald A. Law, Asst. Gen. Counsel for the State of Kan., Topeka, Kan., was on the brief for amicus curiae The State Corp. Com'n of the State of Kan., urging that the FCC's decision be set aside.

William B. Gundling and Robert S. Golden, Jr., Asst. Attys. Gen. for the State of Conn., Hartford, Conn., were on the statement in lieu of brief for amicus curiae Dept. of Public Utility Control of the State of Conn., urging that the FCC's decision be set aside.

Before TAMM and EDWARDS, Circuit Judges, and JAMES F. GORDON, U.S. Senior District Judge for the Western District of Kentucky.


Opinion for the court filed by Circuit Judge TAMM.

TAMM, Circuit Judge:

This is a review of a Federal Communications Commission (Commission) rulemaking proceeding known throughout the telecommunications industry as the Second Computer Inquiry or simply Computer II.1 Responding to monumental changes in the technological and economic conditions of the communications marketplace, the Commission in Computer II...

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