IN RE FCC 11-161

Nos. 11-9900, 11-9581, 11-9585, 11-9586, 11-9587, 11-9588, 11-9589, 11-9590, 11-9591, 11-9592, 11-9594, 11-9595, 11-9596, 11-9597, 12-9500, 12-9510, 12-9511, 12-9513, 12-9514, 12-9517, 12-9520, 12-9521, 12-9522, 12-9523, 12-9524, 12-9528, 12-9530, 12-9531, 12-9532, 12-9533, 12-9534, 12-9575.

753 F.3d 1015 (2014)

In re FCC 11-161. Direct Communications Cedar Valley, LLC, a Utah limited liability company; Totah Communications, Inc., an Oklahoma corporation; H & B Communications, Inc., a Kansas Corporation; Moundridge Telephone Company, a Kansas corporation; Pioneer Telephone Association, Inc., a Kansas corporation; Twin Valley Telephone, Inc., a Kansas corporation; Pine Telephone Company, Inc., an Oklahoma corporation; Pennsylvania Public Utility Commission; Choctaw Telephone Company; Core Communications, Inc.; National Association Of State Utility Consumer Advocates; National Telecommunications Cooperative Association d/b/a NTCA-The Rural Broadband Association; Cellular South, Inc.; AT & T Inc.; Halo Wireless, Inc.; The Voice on the Net Coalition, Inc.; Public Utilities Commission of Ohio; TW Telecom Inc.; Vermont Public Service Board; Transcom Enhanced Services, Inc.; The State Corporation Commission of the State of Kansas; Centurylink, Inc.; Gila River Indian Community; Gila River Telecommunications, Inc.; Allband Communications Cooperative; North County Communications Corporation; United States Cellular Corporation; PR Wireless, Inc.; Docomo Pacific, Inc.; Nex-Tech Wireless, LLC; Cellular Network Partnership, A Limited Partnership; U.S. Telepacific Corp.; Consolidated Communications Holdings, Inc.; National Association of Regulatory Utility Commissioners; Rural Telephone Service Company, Inc.; Adak Eagle Enterprises LLC; Adams Telephone Cooperative; Alenco Communications, Inc.; Arlington Telephone Company; Bay Springs Telephone Company, Inc.; Big Bend Telephone Company, Inc.; The Blair Telephone Company; Blountsville Telephone LLC; Blue Valley Telecommunications, Inc.; Bluffton Telephone Company, Inc.; BPM, Inc., d/b/a Noxapater Telephone Company; Brantley Telephone Company, Inc.; Brazoria Telephone Company; Brindlee Mountain Telephone LLC; Bruce Telephone Company, Inc.; Buggs Island Telephone Cooperative; Cameron Telephone Company, LLC; Chariton Valley Telephone Corporation; Chequamegon Communications Cooperative, Inc.; Chickamauga Telephone Corporation; Chickasaw Telephone Company; Chippewa County Telephone Company; Citizens Telephone Company; Clear Lake Independent Telephone Company; Comsouth Telecommunications, Inc.; Copper Valley Telephone Cooperative; Cordova Telephone Cooperative; Crockett Telephone Company, Inc.; Darien Telephone Company; Deerfield Farmers' Telephone Company; Delta Telephone Company, Inc.; East Ascension Telephone Company, LLC; Eastern Nebraska Telephone Company; Eastex Telephone Coop., Inc.; Egyptian Telephone Cooperative Association; Elizabeth Telephone Company, LLC; Ellijay Telephone Company; Farmers Telephone Cooperative, Inc.; Flatrock Telephone Coop., Inc.; Franklin Telephone Company, Inc.; Fulton Telephone Company, Inc.; Glenwood Telephone Company; Granby Telephone LLC; Hart Telephone Company; Hiawatha Telephone Company; Holway Telephone Company; Home Telephone Company (St.Jacob, Ill.); Home Telephone Company (Moncks Corner, SC); Hopper Telecommunications LLC; Horry Telephone Cooperative, Inc.; Interior Telephone Company; Kaplan Telephone Company, Inc.; KLM Telephone Company; City of Ketchikan, Alaska, d/b/a KPU Telecommunications; Lackawaxen Telecommunications Services, Inc.; Lafourche Telephone Company, LLC; La Harpe Telephone Company, Inc.; Lakeside Telephone Company; Lincolnville Telephone Company; Loretto Telephone Company, Inc.; Madison Telephone Company; Matanuska Telephone Association, Inc.; Mcdonough Telephone Cooperative; MGW Telephone Company, Inc.; Mid Century Cooperative.; Midway Telephone Company; Mid-Maine Telecom LLC; Mound Bayou Telephone & Communications, Inc.; Moundville Telephone Company, Inc.; Mukluk Telephone Company, Inc.; National Telephone of Alabama, Inc.; Ontonagon County Telephone Company; Otelco Mid-Missouri LLC; Otelco Telephone LLC; Panhandle Telephone Cooperative, Inc.; Pembroke Telephone Company, Inc.; Peoples Telephone Co.; Peoples Telephone Company; Piedmont Rural Telephone Cooperative, Inc.; Pine Belt Telephone Company, Inc.; Pine Tree Telephone LLC; Pioneer Telephone Cooperative, Inc.; Poka Lambro Telephone Cooperative, Inc.; Public Service Telephone Company; Ringgold Telephone Company; Roanoke Telephone Company, Inc.; Rock County Telephone Company; Saco River Telephone LLC; Sandhill Telephone Cooperative, Inc.; Shoreham Telephone LLC; The Siskiyou Telephone Company; Sledge Telephone Company; South Canaan Telephone Company; South Central Telephone Association; Star Telephone Company, Inc.; Stayton Cooperative Telephone Company; The North-Eastern Pennsylvania Telephone Company; Tidewater Telecom, Inc.; Tohono O'Odham Utility Authority; Unitel, Inc.; War Telephone LLC; West Carolina Rural Telephone Cooperative, Inc.; West Tennessee Telephone Company, Inc.; West Wisconsin Telcom Cooperative, Inc.; Wiggins Telephone Association; Winnebago Cooperative Telecom Association; Yukon Telephone Co., Inc.; Arizona Corporation Commission; Windstream Corporation; Windstream Communications, Inc., Petitioners, v. Federal Communications Commission; United States of America, Respondents, and Sprint Nextel Corporation; Level 3 Communications, LLC; Centurylink, Inc.; Connecticut Public Utilities Regulatory Authority; Independent Telephone & Telecommunications Alliance; Western Telecommunications Alliance; National Exchange Carrier Association, Inc.; Arlington Telephone Company; The Blair Telephone Company; Cambridge Telephone Company; Clarks Telecommunications Co.; Consolidated Telephone Company; Consolidated Telco, Inc.; Consolidated Telecom, Inc.; The Curtis Telephone Company; Eastern Nebraska Telephone Company; Great Plains Communications, Inc.; K. & M. Telephone Company, Inc.; Nebraska Central Telephone Company; Northeast Nebraska Telephone Company; Rock County Telephone Company; Three River Telco; RCA-The Competitive Carriers Association; Rural Telecommunications Group, Inc.; T-Mobile USA, Inc., Central Texas Telephone Cooperative, Inc.; Venture Communications Cooperative, Inc.; Alpine Communications, LC; Emery Telcom; Penasco Valley Telephone Cooperative, Inc.; Smart City Telecom; Smithville Communications, Inc.; South Slope Cooperative Telephone Co., Inc.; Spring Grove Communications; Star Telephone Company; 3 Rivers Telephone Cooperative, Inc.; Walnut Telephone Company, Inc.; West River Cooperative Telephone Company, Inc.; Ronan Telephone Company; Hot Springs Telephone Company; Hypercube Telecom, LLC; Virginia State Corporation Commission of the State of Kansas; Montana Public Service Commission; Verizon Wireless; Verizon; AT & T Inc.; Cox Communications, Inc.; National Telecommunications Cooperative Association d/b/a NTCA-The Rural Broadband Association; Independent Telephone & Telecommunications Alliance; National Exchange Carrier Association, Inc. (NECA), Comcast Corporation; Vonage Holdings Corporation; Rural Telecommunications Group, Inc.; National Cable & Telecommunications Association; Central Texas Telephone Cooperative, Inc.; Venture Communications Cooperative, Inc.; Alpine Communications, LC; Emery Telcom; Peñasco Valley Telephone Cooperative, Inc.; Smart City Telecom; Smithville Communications, Inc.; South Slope Cooperative Telephone Co., Inc.; Spring Grove Communications; Star Telephone Company; 3 Rivers Telephone Cooperative, Inc.; Walnut Telephone Company, Inc.; West River Cooperative Telephone Company, Inc.; Ronan Telephone Company; Hot Springs Telephone Company; Hypercube Telecom, LLC, Intervenors. State Members of the Federal-State Joint Board on Universal Service, Amicus Curiae.

United States Court of Appeals, Tenth Circuit.

May 23, 2014.


Attorney(s) appearing for the Case

James Bradford Ramsay , National Association of Regulatory Utility Commissioners, Washington, D.C., Russell Blau , Bingham McCutchen LLP, Washington, D.C., Robert Allen Long, Jr. , Covington & Burling, Washington, D.C., Michael B. Wallace , Wise Carter Child & Caraway, Jackson, MS, Pratik A. Shah , Akin Gump Strauss Hauer & Feld LLP, Washigton, D.C., Russell Lukas , Lukas, Nace, Gutierrez & Sachs, LLP, McLean, VA, Joseph K. Witmer , Pennsylvania Public Utility Commission, Harrisburg, PA, Christopher F. Van de Verg , Annapolis, MD, Lucas M. Walker , Molo Lamken , Washington, D.C., Don L. Keskey , Public Law Resource Center PLLC, Lansing, MI, Harvey Reiter , Stinson Leonard Street LLP, Washington, David Bergmann , Columbus, OH, E. Ashton Johnston , Communications Law Counsel, P.C., Washington, D.C., Heather M. Zachary , Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., and W. Scott McCollough , McCollough Henry , Austin, TX, Argued for Petitioners.

Richard K. Welch , James M. Carr , and Maureen Katherine Flood , Federal Communications Commission, Washington, D.C., Argued for Respondents.

Scott H. Angstreich , Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C., Washington, D.C., Howard J. Symons , Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., and Samuel L. Feder , Jenner & Block LLP, Washington, D.C., Argued for Respondents-Intervenors.

David R. Irvine , Salt Lake City, UT, and Alan L. Smith , Salt Lake City, UT, for Direct Communications Cedar Valley, LLC, Totah Communications, Inc., H & B Communications, Inc., The Moundridge Telephone Company, Pioneer Telephone Association, Inc., Twin Valley Telephone, Inc., and Pine Telephone Company, Inc., for Petitioners.

Bohdan R. Pankiw , Kathryn G. Sophy , Shaun A. Sparks , and Joseph K. Witmer , Pennsylvania Public Utility Commission, Harrisburg, PA, for Pennsylvania Public Utility Commission.

Benjamin H. Dickens, Jr. and Mary J. Sisak , Blooston, Mordkofsky, Dickens, Duffy & Prendergrast, LLP, and Craig S. Johnson , Johnson & Sporleder, Jefferson City, MO, for Choctaw Telephone Company.

James Christopher Falvey and Charles Anthony Zdebski , Eckert Seamens Cherin & Mellott, Washington, D.C., for Core Communications, Inc.

David Bergmann , Columbus, OH, Paula Marie Carmody , Maryland's Office of People's Counsel, Baltimore, MD, and Christopher J. White , New Jersey Division of Rate Counsel, Office of the Public Advocate, Newark, NJ, for National Association of State Utility Consumer Advocates.

Russell Blau and Tamar Elizabeth Finn , Bingham McCutchen LLP, Washington, D.C., for National Telecommunications Cooperative Association d/b/a NTCA-The Rural Broadband Association, U.S. Tele-Pacific Corp., and Western Telecommunications Alliance.

Rebecca Hawkins and Michael B. Wallace , Wise Carter Child & Caraway, Jackson, MS, David LaFuria and Russell Lukas , Lukas, Nace, Gutierrez & Sachs, LLP, McLean, VA, for Cellular South Inc.

Daniel T. Deacon , Kelly P. Dunbar , Jonathan E. Nuechterlein , and Heather M. Zachary , Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., and Christopher M. Hermann and Gary L. Phillips , AT & T Services, Inc., Washington, D.C., for AT & T Inc.

W. Scott McCollough , McCollough Henry , Austin, TX, Walter Harriman Sargent, II , Walter H. Sargent, a professional corporation, Colorado Springs, CO, and Steven H. Thomas , McGuire, Craddock & Strother, P.C., Dallas, TX, for Halo Wireless, Inc.

Jennifer P. Bagg and E. Ashton Johnston , Communications Law Counsel, P.C., and Donna M. Lampert , Lampert, O'Connor & Johnston, P.C., Washington, D.C., and Glenn Richards , Pillsbury Winthrop Shaw Pittman, Washington, D.C., for The Voice on the Net Coalition, Inc.

John Holland Jones , Office of the Ohio Attorney General, Columbus, Ohio, for Public Utilities Commission of Ohio.

Thomas Jones , David Paul Murray , and Nirali Patel , Willkie, Farr & Gallagher LLP, Washington, D.C, for tw telecom inc.

Bridget Asay , Office of the Attorney General for the State of Vermont, Montpelier, VT, for Vermont Public Service Board.

W. Scott McCollough , McCollough Henry , Austin, TX, Walter Harriman Sargent, II , Walter H. Sargent, a professional corporation, Colorado Springs, CO, and Steven H. Thomas , McGuire, Craddock & Strother, P.C., Dallas, TX, for Transcom Enhanced Services, Inc.

Robert A. Fox , Kansas Corporation Commission Topeka, KS, for The State Corporation Commission of the State of Kansas.

Yaron Dori , Robert Allen Long, Jr. , Gerard J. Waldron , Mark Mosier , and Michael Beder , Covington & Burling, Washington, D.C, for CenturyLink, Inc.

John Boles Capehart , Akin Gump Strauss Hauer & Feld, Dallas, TX, Sean Conway , Patricia Ann Millett , and James Edward Tysse , Akin Gump Strauss Hauer & Feld, Washington, D.C., and Michael C. Small , Akin Gump Strauss Hauer & Feld, Washington, D.C., for Gila River Indian Community and Gila River Telecommunications, Inc.

Don L. Keskey , Lansing Michigan, forAllband Communications Cooperative.

Roger Dale Dixon, Jr. , Law Offices of Dale Dixon, Carlsbad, CA, for North County Communications Corporation.

David LaFuria and Russell Lukas , Lukas, Nace, Gutierrez & Sachs, LLP, McLean, VA, for United States Cellular Corporation.

David LaFuria , Todd Bradley Lantor , and Russell Lukas , Lukas, Nace, Gutierrez & Sachs, LLP, McLean, VA, for Petitioners PR Wireless, Inc. and Docomo Pacific, Inc., Todd Bradley Lantor , and Russell Lukas , Lukas, Nace, Gutierrez & Sachs, LLP, McLean, VA, for Petitioners Nex-Tech Wireless, LLC, and Cellular Network Partnership, A Limited Partnership.

Russell Blau , Bingham McCutchen LLP, Washington, D.C., for Consolidated Communications Holdings, Inc.

James Bradford Ramsay and Holly R. Smith , National Association of Regulatory Utility Commissioners, Washington, D.C., for National Association of Regulatory Utility Commissioners.

David Cosson , Washington, D.C., H. Russell Frisby, Jr. , Dennis Lane , and Harvey Reiter , Stinson Leonard Street LLP, Washington, D.C., for Rural Independent Competitive Alliance, Rural Telephone Service Company, Inc., Adak Eagle Enterprises LLC, Adams Telephone Cooperative, Alenco Communications, Inc., Arlington Telephone Company, Bay Springs Telephone Company, Big Bend Telephone Company, The Blair Telephone Company, Blountsville Telephone LLC, Blue Valley Tele-communications, Inc., Bluffton Telephone Company, Inc., BPM, Inc., Brantley Telephone Company, Inc., Brazoria Telephone Company, Brindlee Mountain Telephone LLC, Bruce Telephone Company, Inc., Buggs Island Telephone Cooperative, Cameron Telephone Company, LLC, Chariton Valley Telephone Corporation, Chequamegon Communications Cooperative, Inc., Chickamauga Telephone Corporation, Chicksaw Telephone Company, Chippewa County Telephone Company, Clear Lake Independent Telephone Company, Comsouth Telecommunications, Inc., Copper Valley Telephone Cooperative, Cordova Telephone Cooperative, Crockett Telephone Company, Inc., Darien Telephone Company, Deerfield Famers' Telephone Company, Delta Telephone Company, Inc., East Ascention Telephone Company, LLC, Eastern Nebraska Telephone Company, Eastex Telephone Coop., Inc., Egyptian Telephone Cooperative Association, Elizabeth Telephone Company, LLC, Ellijay Telephone Company, Farmers Telephone Cooperative, Inc., Flatrock Telephone Coop., Inc., Franklin Telephone Company, Inc., Fulton Telephone Company, Inc., Glenwood Telephone Company, Granby Telephone Company LLC, Hart Telephone Company, Hiawatha Telephone Company, Holway Telephone Company, Home Telephone Company (St. Jacob Illinois), Home Telephone Company (Moncks Corner, South Carolina), Hopper Telecommunications LLC., Horry Telephone Cooperative, Inc., Interior Telephone Company, Kaplan Telephone Company, Inc., KLM Telephone Company, City of Ketchikan, Alaska, Lackawaxen Telecommunications Services, Inc., Lafourche Telephone Company, LLC, La Harpe Telephone Company, Inc., Lakeside Telephone Company, Lincolnville Telephone Company, Loretto Telephone Company, Inc., Madison Telephone Company, Matanuska Telephone Association, Inc., McDonough Telephone Coop., MGW Telephone Company, Inc., Mid Century Cooperative, Midway Telephone Company, Mid-Maine Telecom, LLC, Mound Bayou Telephone & Communications, Inc., Mondville Telephone Company, Inc., Mukluk Telephone Company, Inc., National Telephone of Alabama, Inc., Ontonagon County Telephone Company, Otelco Mid-Missouri LLC, Otelco Telephone LLC, Panhandle Telephone Cooperative, Inc., Pembroke Telephone Company, Inc., People's Telephone Company, Peoples Telephone Company, Piedmont Rural Telephone Cooperative, Inc., Pine Belt Telephone Company, Inc., Pine Tree Telephone LLC, Pioneer Telephone Cooperative, Inc., Poka Lambro Telephone Cooperative, Inc., Public Service Telephone Company, Ringgold Telephone Company, Roanoke Telephone Company, Inc., Rock County Telephone Company, Saco River Telephone LLC, Sandhill Telephone Cooperative, Inc., Shoreham Telephone LLC, The Siskiyou Telephone Company, Sledge Telephone Company, South Canaan Telephone Company, South Central Telephone Association, Star Telephone Company, Inc., Stayton Cooperative Telephone Company, The North-Eastern Pennsylvania Telephone Company, Tidewater Telecom, Inc., Tohono O'Odham Utility Authority, Unitel, Inc., War Telephone LLC, West Carolina Rural Telephone Cooperative, Inc., West Tennessee Telephone Company, Inc., West Wisconsin Telecom Cooperative, Inc., Wiggins Telephone Association, Winnebago Cooperative Telecom Association, Yukon Telephone Co., Inc.

Maureen A. Scott , Wesley Van Cleve , and Janet F. Wagner , Arizona Corporation Commission, Legal Division, Phoenix, AZ, for Arizona Corporation Commission.

Jeffrey A. Lamken and Lucas M. Walker , Molo Lamken, Washington, D.C., for Windstream Communications, Inc., and Windstream Corporation.

Laurence Nicholas Bourne , James M. Carr , Maureen Katherine Flood , Jacob Matthew Lewis , Joel Marcus , Matthew J. Dunne , and Richard K. Welch , Federal Communications Commission, Washington, D.C., for the Federal Communications Commission.

Robert Nicholson and Robert J. Wiggers , United States Department of Justice, Washington, D.C., for United States of America.

Thomas J. Moorman , Woods & Aitken LLP, Washington, D.C. and Paul M. Schudel , Woods & Aitken LLP, Lincoln, NE, for Arlington Telephone Company, The Blair Telephone Company. Cambridge Telephone Company, Clarks Telecommunications Co., Consolidated Telco, Inc., Consolidated Telephone Company, Inc., Consolidated Telecom, Inc., The Curtis Telephone Company, Eastern Nebraska Telephone Company, Great Plains Communications, Inc., K. & M. Telephone Company, Inc., Nebraska Central Telephone Company, Northeast Nebraska Telephone Company, Rock County Telephone Company and Three River Telco.

Yaron Dori , Robert Allen Long, Jr. , Gerard J. Waldron , Mark Mosier , and Michael Beder , Covington & Burling, Washington, D.C., for CenturyLink, Inc.

Gerard J. Duffy , Benjamin H. Dickens, Jr. , Robert M. Jackson , and Mary J. Sisak , Blooston, Mordkofsky, Dickens, Duffy & Prendergrast, LLP, Washington, D.C., for 3 Rivers Telephone Cooperative, Inc., Venture Communications Cooperative, Inc., Alpine Communications, LC, Emery Telcom, Peñasco Valley Telephone Cooperative, Inc., Smart City Telecom, Smithville Communications, Inc., South Slope Cooperative Telephone Co., Inc., Spring Grove Communications, Star Telephone Company, Walnut Telephone Company, and West River Cooperative Telephone Company, Inc.

Ivan C. Evilsizer , Evilsizer Law Office, Helena, MT, for Ronan Telephone Company and Hot Springs Telephone Company.

Helen E. Disenhaus and Ashton Johnston , Lampert, O'Connor & Johnston, P.C., Washington, D.C., for Hypercube Telecom, LLC.

Raymond L. Doggett, Jr. , Virginia State Corporation Commission, Richmond, VA, for Virginia State Corporation Commission.

Dennis Lopach , Montana Public Service Commission, Helena, MT, for Montana Public Service Commission.

Christopher M. Heimann and Gary L. Phillips , AT & T Services, Inc., Washington, D.C., and Daniel T. Deacon , Kelly P. Dunbar , Jonathan E. Nuechterlein , and Heather M. Zachary , Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., for AT & T Inc.

J.G. Harrington and David E. Mills , Cooley, LLP, Washington, D.C., for Cox Communications, Inc.

Scott H. Angstreich , Joshua D. Branson , Brendan J. Crimmins , Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C., Washington, D.C., and Michael E. Glover and Christopher M. Miller , Arlington, VA, for Verizon and Verizon Wireless.

Russell Blau , Bingham McCutchen LLP, Washington, D.C., for National Telecommunications Cooperative Association, d/b/a NTCA-The Rural Broadband Association.

Clare Kindall , Office of the Attorney General Energy Department, New Britain, CT, for Connecticut Public Utilities Regulatory Authority.

Samuel L. Feder and Luke C. Platzer , Jenner & Block LLP, Washington, D.C., for Comcast Corporation.

Christopher J. Wright , Wiltshire & Grannis, LLP, Washington, D.C., for Level 3 Communications, LLC, Vonage Holdings Corp., and Sprint Nextel Corporation.

Rick C. Chessen , Neal M. Goldberg , Jennifer McKee , and Steven F. Morris , National Cable & Telecommunications Association, Washington, D.C., and Ernest C. Cooper , Robert G. Kidwell , and Howard J. Symons , Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Washington, D.C., for National Cable & Telecommunications Association.

Genevieve Morelli , The Independent Telephone & Telecommunications Alliance, Washington, D.C., for Independent Telephone & Telecommunications Alliance.

Gerard J. Duffy , Blooston, Mordkofsky, Dickens, Duffy & Prendergrast, LLP, Washington, D.C., for Western Telecommunications Alliance.

Gregory Jon Vogt , Law Offices of Gregory J. Vogt, PLLC, Alexandria, VA, and Richard A. Askoff, Sr. , National Exchange Carrier Association, Inc., Whippany, New Jersey for National Exchange Carrier Association.

Craig Edward Gilmore , L. Charles Keller , and David H. Solomon , Wilkinson, Barker, Knauer, LLP, Washington, D.C., for T-Mobile USA, Inc.

Caressa Davison Bennet , Kenneth Charles Johnson , Anthony Veach , and Daryl Altey Zakov, Bennet & Bennet, Bethesda, MD, for Rural Telecommunications Group, Inc. and Central Telephone Cooperative, Inc.

James Hughes Cawley , Pennsylvania Public Utility Commission, Harrisburg, Pennsylvania, and James Bradford Ramsay , National Association of Regulatory Utility Commissioners, Washington, D.C., for State Members of the Federal-State Joint Board on Universal Service.

David Cosson , H. Russell Frisby, Jr. , Dennis Lane , Harvey Reiter , Don L. Keskey , Maureen A. Scott , Wesley Van Cleve , Janet F. Wagner , Russell D. Lukas , David A. LaFuria , Todd B. Lantor , Rebecca Hawkins , Michael B. Wallace , Yaron Dori , Robert Allen Long, Jr. , Gerard J. Waldron , Benjamin H. Dickens, Jr. , Mary J. Sisak , Craig S. Johnson , James C. Falvey , Charles A. Zdebski , David R. Irvine , Alan Lange Smith , Patricia A. Millet , James Edward Tysse , Sean T. Conway , John Boles Capehart , Michael C. Small , James Bradford Ramsay , Holly R. Smith , David Bergmann , Paula Marie Carmody , Christopher J. White , Russell Blau , Tamar Finn , Roger Dale Dixon, Jr. , Bohdan R. Pankiw , Kathryn G. Sophy , Joseph K. Witmer , Shaun A. Sparks , John H. Jones , Robert A. Fox , Jennifer P. Bagg , E. Ashton Johnston , Donna N. Lampert , Glenn Richards , W. Scott McCollough , Steven H. Thomas , Bridget Asay , David P. Murray , Thomas Jones , and Nirali Patel on the Joint Preliminary Brief.

Don L. Keskey , Maureen A. Scott , Wesley Van Cleave , Janet F. Wagner , Robert Allen Long, Jr. , Gerard J. Waldron , Yaron Dori , Mark W. Mosier , Benjamin H. Dickens, Jr. , Mary J. Sisak , Craig S. Johnson , Clare E. Kindall , James C. Falvey , Charles A. Zdebski , Patricia A. Millett , James E. Tyesse , Sean Conway , John B. Capehart , Michael C. Small , Robert A. Fox , R. Dale Dixon , Paula M. Carmody , David C. Bergmann , Christopher J. White , Russell Blau , Tamar Finn , Bohdan R. Pankiw , Kathryn G. Sophy , Joseph K. Witmer , Shaun A. Sparks , John H. Jones , Raymond L. Doggett, Jr. , David Cosson , H. Russell Frisby, Jr. , Dennis Lane and Harvey Reiter , on the Joint Intercarrier Compensation Principal Brief and Reply Brief.

James C. Falvey , Charles A. Zdebski , Russell Blau , Tamar Finn , R. Dale Dickson, Jr. , David Cosson , H. Russell Frisby, Jr. , Dennis Lane , Harvey Reiter on the Additional Intercarrier Compensation Issues Principal Brief and Reply Brief.

David Cosson , H. Russell Frisby, Jr. , Dennis Lane , Harvey Reiter , Don L. Keskey , Maureen A. Scott , Wesley Van Cleve , Janet F. Wagner , Rebecca Hawkins , Michael B. Wallace , Benjamin H. Dickens, Jr. , Mary J. Sisak , Craig S. Johnson , David R. Irvine , Alan Lange Smith , Patricia A. Millet , James Edward Tysse , Sean T. Conway , John Boles Capehart , Michael C. Small , James Bradford Ramsay , David Bergmann , Paula Marie Carmody , Christopher J. White , Russell Blau , Tamar Finn , Bohdan R. Pankiw , Kathryn G. Sophy , Joseph K. Witmer , Shaun A. Sparks , Holly Rachel Smith , and Bridget Asay , on the Joint Universal Service Fund Principal Brief and Reply Brief.

David Cosson , H. Russell Frisby, Jr. , Harvey Reiter , Don L. Keskey , Maureen A. Scott , Wesley Van Cleve , Janet F. Wagner , James Bradford Ramsay , Russell Blau , Tamar Finn , and Bridget Asay , Elisabeth H. Ross , Robert Allen Long, Jr. , Gerard J. Waldron , Yaron Dori , Michael P. Beder , Benjamin H. Dickens, Jr. , and Holly Rachel Smith , on the Additional Universal Service Fund Issues Principal Brief.

Russell D. Lukas , David A. LaFuria , and Todd B. Lantor , on the Wireless Carrier Universal Service Fund Principal Brief and Reply Brief.

Christopher M. Hermann , Gary L. Phillips , Peggy Garber , Heather M. Zachary , and Daniel T. Deacon , on the AT & T Inc. Principal Brief and Reply Brief.

E. Ashton Johnston , Jennifer P. Bagg , and Glenn S. Richards , on the Voice on the Net Coalition, Inc. Principal Brief and Reply Brief.

Steven H. Thomas , and W. Scott McCollough , on the Transcom Principal and Reply Briefs.

Michael C. Small , Patricia A. Millett , James E. Tysse , Sean T. Conway , John B. Capehart , on the Tribal Carriers Principal Brief.

Paula M. Carmody , Christopher J. White , and David C. Bergmann , on the National Association of State Utility Consumer Advocates Principal Brief and Reply Brief.

Thomas J. Moorman , Paul M. Schudel , Genevieve Morelli , Gregory J. Vogt , Richard A. Askoff , Ivan C. Evilsizer , Benjamin H. Dickens, Jr. , Mary J. Sisak , Robert M. Jackson , Gerard J. Duffy , Russell M. Blau , Tamar E. Finn on Incumbent Local Exchange Carrier Intervenors' Brief and Reply Brief in Support of Petitioners.

Jeffrey A. Lamken and Lucas M. Walker , on the Windstream Principal Brief and Reply Brief.

William J. Baer , Robert B. Nicholson , Robert J. Wiggers , Joel Marcus , Richard K. Welch , Laurence N. Bourne , James M. Carr , Maureen K. Flood , and Matthew J. Dunne , on the briefs for Respondents.

James H. Cawley on the Amicus Brief of the State Members of the Federal-State Joint Board on Universal Service in Support of Petitioners.

Heather M. Zachary and Kelly P. Dunbar , Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., Cathy Carpino , Gary L. Phillips , and Peggy Garber , AT & T Services, Inc., Washington, D.C., Scott H. Angstreich , Brendan J. Crimmins , and Joshua D. Branson , Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C, Washington, D.C., and Michael E. Glover , Christopher M. Miller , and Curtis L. Groves , Verizon, Arlington, VA, J.G. Harrington and David E. Mills , Cooley, LLP, Washington, D.C., and Rick C. Chessen , Neal M. Goldberg , Jennifer McKee , and Steven F. Morris , National Cable & Telecommunications Association, Washington, D.C., Christopher J. Wright , Timothy J. Simeone , and Brita D. Strandberg , Wiltshire & Grannis, LLP, Washington, D.C., Ernest C. Cooper , Robert G. Kidwell , and Howard J. Symons , Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Washington, D.C., L. Charles Keller , and David H. Solomon , Wilkinson, Barker, Knauer, LLP, Washington, D.C., and Brendan Kasper , Vonage Holdings Corporation, Holmdel, NJ, on the Intervenors Supporting Respondents in Response to the Joint Intercarrier Compensation Brief.

Christopher J. Wright and Timothy J. Simeone , Wiltshire & Grannis, LLP, Washington, D.C., Jonathan E. Nuechterlein , Heather M. Zachary and Kelly P. Dunbar , Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., Cathy Carpino , Gary L. Phillips , and Peggy Garber , AT & T Services, Inc., Washington, D.C., Scott H. Angstreich , Brendan J. Crimmins , and Joshua D. Branson , Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C., Washington, D.C., and Michael E. Glover , Christopher M. Miller , and Curtis L. Groves , Verizon, Arlington, VA, and Rick C. Chessen , Neal M. Goldberg , Jennifer McKee , and Steven F. Morris , National Cable & Telecommunications Association, Washington, D.C., Ernest C. Cooper , Robert G. Kidwell , and Howard J. Symons , Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Washington, D.C., L. Charles Keller , and David H. Solomon , Wilkinson, Barker, Knauer, LLP, Washington, D.C., on the Intervenors' Brief in Support of the Response of the Respondents to the Additional Intercarrier Compensation Issues Brief.

Scott H. Angstreich , Brendan J. Crimmins , and Joshua D. Branson , Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C, Washington, D.C., and Michael E. Glover , Christopher M. Miller , and Curtis L. Groves , Verizon, Arlington, VA, Heather M. Zachary and Kelly P. Dunbar , Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., Cathy Carpino , Gary L. Phillips , and Peggy Garber , AT & T Services, Inc., Washington, D.C., Robert Allen Long, Jr. , Gerard J. Waldron , Yaron Dori , and Michael Beder , Covington & Burling, Washington, D.C., Howard J. Symons , Robert G. Kidwell , and Ernest C. Cooper , Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Washington, D.C., Rick C. Chessen , Neal M. Goldberg , Jennifer McKee , and Steven F. Morris , National Cable & Telecommunications Association, Washington, D.C., Christopher J. Wright , and Brita D. Strandberg , Wiltshire & Grannis, LLP, Washington, D.C., Brendan Kasper , Vonage Holdings Corporation, Holmdel, NJ, on the Intervenors' Brief Supporting Respondents Re: The Joint Universal Service Fund Principal Brief.

Samuel L. Feder and Luke C. Platzer , Jenner & Block, LLP, Washington, D.C., J.G. Harrington and David E. Mills , Cooley, LLP, Washington, D.C., Christopher J. Wright and John T. Nakahata , Wiltshire & Grannis, LLP, Washington, D.C., Rick C. Chessen , Neal M. Goldberg , Jennifer McKee , and Steven F. Morris , National Cable & Telecommunications Association, Washington, D.C., E. Ashton Johnson and Helen E. Diesenhaus , Lampert, O'Connor & Johnston, P.C., Washington, D.C., Ernest C. Cooper , Robert G. Kidwell , and Howard J. Symons , Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Washington, D.C., on the Final Brief of Intervenors in Support of Federal Respondents in Response to the AT & T Principal Brief.

Russell M. Blau and Tamar E. Finn , Bingham McCutchen, LLP, Washington, D.C., on the Brief of Intervenor National Telecommunications Cooperative Association in Support of the FCC's Response to the Voice on the Net Coalition, Inc. Brief.

Heather M. Zachary and Kelly P. Dunbar , Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., Cathy Carpino , Gary L. Phillips , and Peggy Garber , AT & T Services, Inc., Washington, D.C., Scott H. Angstreich , Brendan J. Crimmins , and Joshua D. Branson , Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C, Washington, D.C., and Michael E. Glover , Christopher M. Miller , and Curtis L. Groves , Verizon, Arlington, VA, on the Brief of Intervenors Supporting Respondents in Response to the Brief of the National Association of State Utility Consumer Advocates.

David E. Mills and J.G. Harrington , Cooley, LLP, Washington, D.C., Howard J. Symons , Robert G. Kidwell , and Ernest C. Cooper , Mintz Levin Cohn Ferris Glovsky and Popeo, P.C., Washington, D.C., Scott H. Angstreich , Brendan J. Crimmins , and Joshua D. Branson , Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C, Washington, D.C., Michael E. Glover , Christopher M. Miller , and Curtis L. Groves , Verizon, Arlington, VA, Rick Chessen , Neal M. Goldberg , Steven Morris , and Jennifer McKee , The National Cable & Telecommunications Association, Washington, D.C., on the Brief of Interveners Supporting Respondents in Response to the Windstream Principal Brief.

Before BRISCOE, Chief Judge, HOLMES and BACHARACH, Circuit Judges.


BRISCOE, Chief Judge.

In late 2011, the Federal Communications Commission (FCC or Commission) issued a Report and Order and Further Notice of Proposed Rulemaking (Order) comprehensively reforming and modernizing its universal service and intercarrier compensation systems. Petitioners, each of whom were parties to the FCC's rulemaking proceeding below, filed petitions for judicial review of the FCC's Order. The Judicial Panel on Multidistrict Litigation consolidated...

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