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SOUTHWESTERN BELL TELEPHONE CO. v. F.C.C.

No. 93-1202.

10 F.3d 892 (1993)

SOUTHWESTERN BELL TELEPHONE COMPANY, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, MCI Telecommunications Corporation; American Telephone and Telegraph Company, Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided December 17, 1993.

Attorney(s) appearing for the Case

John I. Stewart, Jr., Washington, DC, argued the cause for petitioner. With him on the briefs were Jennifer N. Waters, Washington, DC, Martin E. Grambow, James E. Taylor, Richard C. Hartgrove and Thomas A. Pajda, St. Louis, MO.

John E. Ingle, Deputy Associate Gen. Counsel, F.C.C., Washington, DC, argued the cause for respondents. With him on the brief were Renee Licht, Acting Gen. Counsel, F.C.C., Daniel M. Armstrong, Associate Gen. Counsel, F.C.C., and James M. Carr, Counsel, F.C.C., Anne K. Bingaman, Asst. Atty. Gen., U.S. Dept. of Justice, Catherine G. O'Sullivan and Robert J. Wiggers, Attys., U.S. Dept. of Justice, Washington, DC.

Frank W. Krogh and Donald J. Elardo, Washington, DC, entered appearances for intervenor MCI Telecommunications Corp.

Marc E. Manly, Washington, DC, entered an appearance for intervenor American Telephone and Telegraph Co.

Before MIKVA, Chief Judge, WALD and GINSBURG, Circuit Judges.

Opinion for the Court filed by Circuit Judge WALD.

WALD, Circuit Judge:

On October 4, 1990, the Federal Communications Commission ("FCC" or "Commission") released its LEC Price Cap Order, 5 F.C.C. Red. 6786, which ushered in a new era in the regulation of major local exchange telephone carriers ("LECs"). Unlike the prior rate-of-return scheme, under which LECs were allowed to recover costs plus a designated rate of return, the price cap system, which...

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