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

Nos. 97-2618, 97-2661, 97-2856, 97-2866, 97-2873, 97-2875, 97-2877, 97-3012, 97-3271.

153 F.3d 523 (1998)

SOUTHWESTERN BELL TELEPHONE COMPANY, Petitioner, Southern New England Telephone Company; Texas Office of Public Utility Counsel; United States Telephone Association; Ameritech Corporation; U S West, Inc.; Rural Telephone Coalition; Cincinnati Bell Telephone Company; GTE Service Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South Incorporated; GTE Southwest, Incorporated; GTE North, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota, Inc.; Contel of the South, Inc.; Missouri Public Service Commission; GTE Northwest, Incorporated; Pacific Bell; Nevada Bell, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, Association for Local Telecommunications Services; American Telephone and Telegraph Company; Telecommunications Resellers Association; The Competition Policy Institute; Information Technology Association of America; National Cable Television Association, Inc.; Internet Access Coalition; Ad Hoc Telecommunications Users Committee; WorldCom, Inc.; Sprint Corporation; Teleco Communications Group, Inc.; Excel Telecommunications, Inc.; Bell Atlantic Telephone Companies; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation; New York Telephone; New England Telephone and Telegraph Company, Intervenors on Appeal, America's Carriers Telecommunication Association, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. GTE Midwest, Incorporated, Petitioner, THE SOUTHERN NEW ENGLAND TELEPHONE COMPANY; U S West, Inc.; Ameritech Corporation; Texas Office of Public Utility Counsel; United States Telephone Association; Southwestern Bell Telephone Company; Rural Telephone Coalition; Cincinnati Bell Telephone Company; Missouri Public Service Commission; Pacific Bell; Nevada Bell, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, American Telephone and Telegraph Company; Telecommunications Resellers Association; The Competition Policy Institute; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; Sprint Corporation; WorldCom, Inc.; Ad Hoc Telecommunications Users Committee; Internet Access Coalition; National Cable Television Association, Inc.; Information Technology Association of America; Association for Local Telecommunications Services; Bell Atlantic Telephone Companies; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation; New York Telephone; New England Telephone and Telegraph Company, Intervenors on Appeal, America's Carriers Telecommunication Association, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. Bell Atlantic-Virginia, Incorporated, Petitioner, SOUTHERN NEW ENGLAND TELEPHONE COMPANY; Ameritech Corporation; Texas Office of Public Utility Counsel; United States Telephone Association; Southwestern Bell Telephone Company; U S West, Inc.; Rural Telephone Coalition; Bell Atlantic Telephone Companies; Cincinnati Bell Telephone Company; GTE Service Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated; GTE North, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota, Inc.; Contel of the South, Inc.; Missouri Public Service Commission; Pacific Bell; Nevada Bell, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, The Competition Policy Institute; America's Carriers Telecommunication Association; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; Sprint Corporation; WorldCom, Inc.; Ad Hoc Telecommunications Users Committee; Internet Access Coalition; National Cable Television Association, Inc.; Information Technology Association of America; American Telephone and Telegraph Company; Association for Local Telecommunications Services; Telecommunications Resellers Association; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation, Intervenors on Appeals Commercial Internet Exchange Association, Amicus Curiae. Cable & Wireless, Inc., Petitioner, COMPETITIVE TELECOMMUNICATIONS ASSOCIATION; America's Carriers Telecommunication Association; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; WorldCom, Inc.; Texas Office of Public Utility Counsel; Telecommunications Resellers Association; Missouri Public Service Commission, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, The Competition Policy Institute; Ameritech Corporation; Sprint Corporation; Ad Hoc Telecommunications Users Committee; Internet Access Coalition; National Cable Television Association, Inc.; Information Technology Association of America; Southwestern Bell Telephone Company; American Telephone and Telegraph Company; Association for Local Telecommunications Services; U S West, Inc.; Rural Telephone Coalition; Southern New England Telephone Company; Bell Atlantic Telephone Companies; Cincinnati Bell Telephone Company; GTE Service Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated; GTE North, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota, Inc.; Contel of the South, Inc.; Time Warner Communications Holdings, Inc.; Pacific Bell; Nevada Bell; BellSouth Corporation; BellSouth Telecommunications, Inc.; New York Telephone Company; New England Telephone and Telegraph Company, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. MCI Telecommunications Corporation; Petitioner, TELECOMMUNICATIONS RESELLERS ASSOCIATION; Allied Associated Partners, LP; GELD Information Systems; Competitive Telecommunications Association; America's Carriers Telecommunication Association; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; WorldCom, Inc.; Texas Office of Public Utility Counsel; Cable & Wireless, Inc.; Frontier Corporation; Missouri Public Service Commission, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, Association for Local Telecommunications Services; American Telephone and Telegraph Company; The Competition Policy Institute; Ameritech Corporation; Sprint Corporation; Ad Hoc Telecommunications Users Committee; Internet Access Coalition; National Cable Television Association, Inc.; Information Technology Association of America; Southwestern Bell Telephone Company, U S West, Inc.; Rural Telephone Coalition; Southern New England Telephone Company; Bell Atlantic Telephone Companies; Cincinnati Bell Telephone Company; GTE Service Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated; GTE North, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota; Contel of the South; Time Warner Communications Holdings, Inc.; Pacific Bell; Nevada Bell; BellSouth Corporation; BellSouth Telecommunications, Inc.; New York Telephone Company; New England Telephone and Telegraph Company, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. U S West, Inc., Petitioner, SOUTHERN NEW ENGLAND TELEPHONE COMPANY; Ameritech Corporation; Texas Office of Public Utility Counsel; United States Telephone Association; Southwestern Bell Telephone Company; Rural Telephone Coalition; Bell Atlantic Telephone Companies; Cincinnati Bell Telephone Company; GTE Service Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated; GTE North, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota, Inc.; Contel of the South, Inc.; Missouri Public Service Commission; Pacific Bell; Nevada Bell, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, American Telephone and Telegraph Company; The Competition Policy Institute; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; Sprint Corporation; WorldCom, Inc.; Ad Hoc Telecommunications Users Committee; Internet Access Coalition; National Cable Television Association, Inc.; Information Technology Association of America; Association for Local Telecommunications Services; Telecommunications Resellers Association; Bell Atlantic-Washington, D.C.; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation; New York Telephone Company; New England Telephone and Telegraph Company, Intervenors on Appeal, America's Carriers Telecommunication Association, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. LCI International Telecom Corporation, Petitioner, COMPETITIVE TELECOMMUNICATIONS ASSOCIATION; America's Carriers Telecommunication Association; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; WorldCom, Inc.; Texas Office of Public Utility Counsel; Telecommunications Resellers Association; Missouri Public Service Commission, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, The Competition Policy Institute; Ameritech Corporation; Sprint Corporation; Ad Hoc Telecommunications Users Committee; Internet Access Coalition; National Cable Television Association, Inc.; Information Technology Association of America; Southwestern Bell Telephone Company; American Telephone and Telegraph Company; Association for Local Telecommunications Services; U S West, Inc.; Rural Telephone Coalition; Southern New England Telephone Company; Bell Atlantic Telephone Companies; Cincinnati Bell Telephone Company; GTE Service, Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated; GTE North, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota, Inc.; Contel of the South, Inc.; Time Warner Communications Holdings, Inc.; Pacific Bell; Nevada Bell; BellSouth Corporation; BellSouth Telecommunications, Inc.; New York Telephone Company; New England Telephone and Telegraph Company, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. GTE Service Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated; GTE North, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company; GTE West Coast, Incorporated; Contel of California, Inc.; Contel of Minnesota, Inc.; Contel of the South, Inc., Petitioners, AMERITECH CORPORATION; Texas Office of Public Utility Counsel; Rural Telephone Coalition; Southern New England Telephone Company; U S West, Inc.; Southwestern Bell Telephone Company; United States Telephone Association; Missouri Public Service Commission; Pacific Bell; Nevada Bell, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, WorldCom, Inc.; American Telephone and Telegraph Company; Telecommunications Resellers Association; Association for Local Telecommunications Services; Sprint Corporation; Ad Hoc Telecommunications Users Committee; National Cable Television Association; Internet Access Coalition; Information Technology Association of America; The Competition Policy Institute; Excel Telecommunications, Inc.; Telco communications Group, Inc.; Bell Atlantic Telephone Companies; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation; New York Telephone Company; New England Telephone and Telegraph Company, Intervenors on Appeal, America's Carriers Telecommunication Association; Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. Bell Atlantic Telephone Companies; Petitioner, AMERITECH CORPORATION; Texas Office of Public Utility Counsel; Rural Telephone Coalition; Southern New England Telephone Company; U S West, Inc.; Southwestern Bell Telephone Company; United States Telephone Association; Bell Atlantic Telephone Companies; GTE Service, Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated, GTE North, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota; Contel of the South; Missouri Public Service Commission; Pacific Bell; Nevada Bell, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, WorldCom, Inc.; American Telephone and Telegraph Company, Telecommunications Resellers Association; Association for Local Telecommunications Services; Sprint Corporation; Ad Hoc Telecommunications Users Committee; National Cable Television Association; Internet Access Coalition; Information Technology Association of America; The Competition Policy Institute; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; America's Carriers Telecommunication Association; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. New York Telephone Company; New England Telephone and Telegraph Company, Petitioners, AMERITECH CORPORATION; Texas Office of Public Utility Counsel; Rural Telephone Coalition; Southern New England Telephone Company; U S West, Inc.; Southwestern Bell Telephone Company; United States Telephone Association; Bell Atlantic Telephone Companies; GTE Service, Corporation; GTE Alaska, Incorporated; GTE Arkansas, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated; GTE North, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota; Contel of the South; Missouri Public Service Commission; Pacific Bell; Nevada Bell, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, WorldCom, Inc.; American Telephone and Telegraph Company; Telecommunications Resellers Association; Association for Local Telecommunications Services; Sprint Corporation; Ad Hoc Telecommunications Users Committee; National Cable Television Association; Internet Access Coalition; Information Technology Association of America; The Competition Policy Institute; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; America's Carriers Telecommunication Association; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. Texas Office of Public Utility Counsel; Petitioner, RURAL TELEPHONE COALITION; Missouri Public Service Commission; Missouri Office of the Public Counsel; Florida Office of the Public Counsel; Indiana Office of Utility Consumer Counselor; Iowa Office of Consumer Advocate; District of Columbia Office of Public Counsel; New Jersey Division of the Ratepayer Advocate; The Utility Reform Network; Maryland Office of People's Counsel; Minnesota Office of Attorney General; Pennsylvania Office of Consumer Advocate; Washington Office of Attorney General Public Counsel Section, Intervenors on Appeal, [VV] v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, American Telephone and Telegraph Company; WorldCom, Inc.; Ad Hoc Telecommunications Users Committee; Telecommunications Resellers Association; Association for Local Telecommunications Services; Sprint Corporation; National Cable Television Association; Internet Access Coalition; Information Technology Association of America; The Competition Policy Institute; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; America's Carriers Telecommunication Association; Time Warner Communications Holdings, Inc.; BellSouth Corporation; BellSouth Telecommunications, Inc.; GTE Service Corporation; GTE Alaska, Incorporated; GTE California, Incorporated; GTE Florida, Incorporated; GTE Midwest, Incorporated; GTE South, Incorporated; GTE Southwest, Incorporated; GTE Northwest, Incorporated; GTE Hawaiian Telephone Company, Incorporated; GTE West Coast, Incorporated; Contel of Minnesota, Inc.; Contel of the South, Inc.; Southwestern Bell Telephone Company; U S West, Inc.; Pacific Bell; Nevada Bell; MCI Telecommunications Corporation, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. Cincinnati Bell Telephone Company, Petitioner, TEXAS OFFICE OF PUBLIC UTILITY COUNSEL; Rural Telephone Coalition; United States Telephone Association; Southwestern Bell Telephone Company; Missouri Public Service Commission; Pacific Bell; Nevada Bell, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, WorldCom, Inc.; American Telephone and Telegraph Company; Telecommunications Resellers Association; Association for Local Telecommunications Services; Sprint Corporation; Ad Hoc Telecommunications Users Committee; National Cable Television Association; Internet Access Coalition; Information Technology Association of America; The Competition Policy Institute; Excel Telecommunications, Inc.; Telco Communications Group, Inc.; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation; Bell Atlantic Telephone Companies; New York Telephone Company; New England Telephone and Telegraph Company; Ameritech Corporation, Intervenors on Appeal, America's Carriers Telecommunication Association, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae. BellSouth Corporation; BellSouth Telecommunications, Inc., Petitioners, TEXAS OFFICE OF PUBLIC UTILITY COUNSEL; Rural Telephone Coalition; United States Telephone Association; Missouri Public Service Commission, Intervenors on Appeal, v. FEDERAL COMMUNICATIONS COMMISSION; United States of America, Respondents, WorldCom, Inc.; American Telephone and Telegraph Company; Telecommunications Resellers Association; Association for Local Telecommunications Services; Sprint Corporation; Ad Hoc Telecommunications Users Committee; National Cable Television Association; Internet Access Coalition; Information Technology Association of America; The Competition Policy Institute; Excel Telecommunications, Inc.; Telco Communications Group, Inc; Time Warner Communications Holdings, Inc.; MCI Telecommunications Corporation; Bell Atlantic Telephone Companies; New York Telephone Company; New England Telephone and Telegraph Company; Ameritech Corporation, Intervenors on Appeal, America's Carriers Telecommunication Association, Intervenors on Appeal, Commercial Internet Exchange Association, Amicus Curiae.

United States Court of Appeals, Eighth Circuit.

Decided August 19, 1998.


Attorney(s) appearing for the Case

Michael K. Kellogg, Washington, DC, argued, for Bell South.

Mark L. Evans, Washington, DC, argued, for Bell Atlantic.

Nory Miller, Washington, DC, argued, for MCI.

Danny E. Adams, Washington, DC, argued, for LCI.

Martha S. Hogerty, Jefferson City, MO, argued, for State Consumers.

Rick Guzman, Austin, TX, argued, for Texas Public Utilities.

Laurence N. Bourne & John E. Ingle, Washington, DC, argued, for the FCC.

Gene C. Schaerr, Washington, DC, argued, for AT&T.

Richard G. Taranto, Washington, DC, argued, for Bell Atlantic.

Jonathan J. Nadler, Washington, DC, argued, for Information Technology Assoc.

Before BOWMAN, WOLLMAN, and HANSEN, Circuit Judges.


BOWMAN, Circuit Judge.

In these consolidated cases,2 referred to this Court by order of the Judicial Panel on Multidistrict Litigation, numerous petitioners challenge an order of the Federal Communications Commission ("FCC" or "Commission") issued pursuant to the Telecommunications Act of 1996, Pub.L. No. 104-104, 110 Stat. 56 (to be codified as amended in scattered sections of 47 U.S.C.) [hereinafter Act or 1996 Act], revising the regulatory...

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