SOUTHWESTERN BELL CORPORATION, Petitioner,
v.
FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents,
Ameritech Operating Companies, et al., Bell Atlantic Telephone Companies, American Telephone and Telegraph Company, United States Telephone Association, National Association of Regulatory Commissioners, U.S. West, Inc., GTE Telephone Operating Companies, Western Union Corporation, Centel Corporation, National Cable Television Association, Independent Data Communications Manufacturers Association, North American Telecommunications Association, New York Telephone Company, et al., BellSouth Corporation, et al., International Business Machines Corporation, Contel Corporation, State of Michigan, et al., Ad Hoc Telecommunications Users Committee, Intervenors.
GTE SERVICE CORPORATION, et al., Petitioners,
v.
FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents,
Ameritech Operating Companies, et al., American Telephone and Telegraph Company, United States Telephone Association, United Telephone System Companies, BellSouth Corporation, Bell Atlantic Telephone Companies, New York Telephone Company, et al., Contel Corporation, U.S. West, Inc., Pacific Telesis Group, et al., International Business Machines Corporation, Ad Hoc Telecommunications Users Committee.
United States Court of Appeals, District of Columbia Circuit.https://leagle.com/images/logo.png
Argued February 6, 1990.
Decided March 2, 1990.
Attorney(s) appearing for the Case
Dan T. Foley, with whom James D. Ellis, Liam S. Coonan, James S. Golden, Paul G. Lane, St. Louis, Mo., and Alfred Winchell Whittaker (for Southwestern Bell Corp.), and Richard McKenna and James R. Hobson (for GTE Service Corporation, et al.), were on the joint brief, for petitioners. Edgar Mayfield, William C. Sullivan, St. Louis, Mo., Melanie S. Fannin, Austin, Tex., and Michael A. Meyer, St. Louis, Mo., also entered appearances for petitioner Southwestern Bell Corp.
John E. Ingle, Deputy Associate Gen. Counsel, F.C.C., with whom Robert L. Pettit, Gen. Counsel, and Daniel M. Armstrong, Associate Gen. Counsel, F.C.C., James F. Rill, Asst. Atty. Gen., Catherine G. O'Sullivan and Andrea Limmer, Attys., Dept. of Justice, Washington, D.C., were on the brief, for respondents. Diane S. Killory, Linda L. Oliver and Laurel R. Bergold, Counsel, F.C.C., and Robert B. Nicholson, Atty., Dept. of Justice, Washington, D.C., also entered appearances for respondents.
Arthur H. Simms and Peter G. Wolfe (for Western Union Corp.), Theodore D. Frank, Washington, D.C. (for Centel Corp.), Brenda L. Fox, Michael S. Schooler and David L. Nicoll, Washington, D.C. (for Nat. Cable Television Ass'n), Herbert E. Marks and James L. Casserly, Washington, D.C. (for Independent Data Communications Mfrs. Ass'n), Albert H. Kramer and Robert F. Aldrich, Washington, D.C. (for North American Telecommunications Ass'n), Saul Fisher, Mary McDermott and Martin J. Silverman, New York City (for New York Telephone Co., et al.), William B. Barfield and R. Frost Branon, Jr., Atlanta, Ga., (for BellSouth Corp., et al.), J. Roger Wollenberg, William T. Lake, John H. Harwood, II, Washington, D.C. and Kevin H. Cassidy, Purchase, N.Y. (for Intern. Business Machines Corp.), John Wohlstetter, Washington, D.C. (for Contel Corp.), Frank J. Kelley, Louis J. Caruso and Don L. Keskey, Lansing, Mich. (for State of Mich., et al.), James S. Blaszak and Charles C. Hunter, Washington, D.C., (for Ad Hoc Telecommunications Users Committee), Floyd S. Keene and Alfred Winchell Whittaker (for Ameritech Operating Companies, et al.), James R. Young, Thomas L. Welch and David K. Hall, Washington, D.C. (for Bell Atlantic Telephone Companies), Francine J. Berry and Marc E. Manly, Washington, D.C. (for American Tel. & Tel. Co.), Martin T. McCue (for U.S. Telephone Ass'n), Paul Rodgers and Charles D. Gray, Washington, D.C. (for Nat. Ass'n of Regulatory Utility Com'rs), Dana A. Rasmussen, Robert B. McKenna and Debra T. Yarbrough, Washington, D.C. (for U.S. West, Inc.), James R. Hobson and Richard McKenna (for GTE Telephone Operating Companies), James P. Tuthill, Lucille M. Mates and Stanley J. Moore, San Francisco, Cal., (for Pacific Telesis Group, et al.), entered appearances for intervenors.
Carolyn C. Hill, James T. Roche, Washington, D.C., and J. Richard Devlin entered appearances for intervenor United Telephone System Companies in No. 89-1020.
Before WALD, Chief Judge, EDWARDS and SILBERMAN, Circuit Judges.
United States Court of Appeals, District of Columbia Circuit.
Opinion for the Court filed by Circuit Judge SILBERMAN.
SILBERMAN, Circuit Judge:
Southwestern Bell Corporation ("Southwestern") and GTE Service Corporation ("GTE") petition this court to review Federal Communication Commission ("FCC") rules governing the transfer of assets between a regulated telephone company and its nonregulated affiliates. Petitioners challenge these rules as arbitrary and capricious and contrary to our precedents. We conclude that the...
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