MCI TELECOMMUNICATIONS CORP. v. F.C.C.

Nos. 82-1237, 82-1456.

750 F.2d 135 (1984)

MCI TELECOMMUNICATIONS CORPORATION, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, Aeronautical Radio, Inc., United States Independent Telephone Association, American Telephone & Telegraph Corporation, et al., Southern Pacific Communications Company, Municipality of Anchorage, d/b/a Anchorage Telephone Utility, United States Transmission Systems, Inc., Ad Hoc Telecommunications Users Committee, GTE Service Corporation, Satellite Business Systems, Rural Telephone Coalition, et al., United Telephone Systems, Inc., National Association of Regulatory Utility Commissioners, State Corporation Commission of the State of Kansas, People of the State of California, et al., International Business Machines Corporation, Intervenors. LOUISIANA PUBLIC SERVICE COMMISSION, Petitioner v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, American Telephone & Telegraph Corporation, et al., United States Transmission Systems, Inc., GTE Service Corp., et al., People of the State of California, et al., Ad Hoc Telecommunications Users Committee, Southern Pacific Communications Co., United Telephone System, Inc., MCI Telecommunications Corporation, Municipality of Anchorage, d/b/a Anchorage Telephone Utility, Satellite Business Systems, International Business Machines Corporation, Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided December 18, 1984.


Attorney(s) appearing for the Case

William J. Byrnes, Washington, D.C., with whom Michael H. Bader, Kenneth A. Cox, Raymond C. Fay, Chicago, Ill., Robert E. Conn, and Ruth S. Baker-Battist, Washington, D.C., were on the brief, for MCI Telecommunications Corp., petitioner in No. 82-1237 and intervenor in No. 82-1456. Phillip Nyborg and John M. Pelkey, Washington, D.C., also entered appearances for MCI Telecommunications Corp.

Paul L. Zimmering, New Orleans, La., of the Bar of the Supreme Court of the State of La., pro hac vice, by special leave of the court, with whom Michael R. Fontham, New Orleans, La., was on the brief, for Louisiana Public Service Com'n, petitioner in No. 82-1456.

Michael Deuel Sullivan, Counsel, F.C.C., Washington, D.C., with whom Bruce E. Fein, Gen. Counsel, Daniel M. Armstrong, Associate Gen. Counsel, and John E. Ingle, Deputy Associate Gen. Counsel, F.C.C. and Robert B. Nicholson and Neil R. Ellis, Attys., Dept. of Justice, Washington, D.C., were on the brief for respondents in Nos. 82-1237 & 82-1456. Lisa Margolis, Counsel, F.C.C., John J. Powers, III and William J. Roberts, Attys., Dept. of Justice, Washington, D.C., also entered appearances for respondents.

Jules M. Perlberg, Chicago, Ill., with whom David J. Lewis, Washington, D.C., Howard J. Trienens, Judith A. Maynes, New York City, and O. Carey Epps, Oklahoma City, Okl., were on the brief for intervenor American Telephone & Telegraph Corp. in Nos. 82-1237 & 82-1456. Alfred Winchell Whittaker, Keith E. McClintock, New York City, and Raymond F. Scully, Washington, D.C., also entered appearances for American Telegraph & Telephone Corp.

Richard McKenna and James R. Hobson, Washington, D.C., were on the brief for intervenors GTE Service Corp., et al. in Nos. 82-1237 and 82-1456.

J. Roger Wollenberg, William T. Lake, Roger M. Witten and Thomas F. Connell, Washington, D.C., were on the brief for International Business Machines Corp. in Nos. 82-1237 and 82-1456.

Thomas J. O'Reilly, Washington, D.C., was on the brief for intervenor United States Independent Telephone Ass'n in No. 82-1237.

John L. Bartlett and Howard D. Polsky, Washington, D.C., entered appearances for intervenor Aeronautical Radio, Inc. in No. 82-1237.

James M. Tobin, Daniel A. Huber, Mitchell F. Brecher and Mark P. Bresnahan, Washington, D.C., entered appearances for intervenor Southern Pacific Communications Co. in Nos. 82-1237 and 82-1456.

Michael L. Glaser, Washington, D.C., entered an appearance for intervenor Anchorage Telephone Utility in Nos. 82-1237 and 82-1456.

John A. Ligon, New York City, entered an appearance for intervenor United States Transmission Systems in Nos. 82-1237 and 82-1456.

Joseph M. Kittner and Edward P. Taptich, Washington, D.C., entered appearances for intervenor, Ad Hoc Telecommunications Committee in Nos. 82-1237 and 82-1456.

F. Thomas Tuttle, McLean, Va., Harold David Cohen, Jack N. Goodman, J. Laurent Scharff, W. Theodore Pierson and Richard M. Singer, Washington, D.C., entered appearances for intervenor Satellite Business Systems in Nos. 82-1237 and 82-1456.

Alan Y. Naftalin, Margot Smiley Humphrey, David Cosson, Amy S. Gross, David A. Irwin and Ellen S. Deutsch, Washington, D.C., entered appearances for intervenors Rural Telephone Coalition et al. in Nos. 82-1237 and 82-1456.

Carolyn C. Hill, Washington, D.C., entered an appearance for United Telephone System, Inc. in Nos. 82-1237 and 82-1456.

Paul Rodgers, Charles D. Gray and Deborah A. Dupont, Washington, D.C., entered appearances for intervenor Nat. Ass'n of Regulatory Utility Com'rs in No. 82-1237.

Donald A. Low, Topeka, Kan., entered an appearance for intervenor State Corp. Com'n of the State of Kan. in No. 82-1237.

Before WILKEY and MIKVA, Circuit Judges, and BAZELON, Senior Circuit Judge.


Opinion for the Court filed by BAZELON, Senior Circuit Judge.

BAZELON, Senior Circuit Judge:

Petitioners challenge a Federal Communications Commission's (FCC) decision modifying the formula that separates costs for telephone equipment used in both interstate and intrastate services. In these consolidated cases, two issues are raised. First, the MCI Telecommunications Corporation (MCI) and the Louisiana Public Service Commission (PSC) contest the FCC's adoption...

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