Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

WorldCom, Inc. v. Federal Communications Commission

Section 251(g) of Telecommunications Act did not permit FCC to "carve out" calls made to ISPs within local calling area from reciprocal compensation arrangements between LECs.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Argued February 12, 2002

Section 251(b)(5) of the Telecommunications Act of 1996, 47 U.S.C. �� 151-714 (the “1996 Act” or the “Act”), directs all local exchange carriers (“LECs”) to “establish reciprocal compensation arrangements for the transport and termination of telecommunications.” 47 U.S.C. � 251(b)(5). In the order before us the Federal Communications Commission held that under � 251(g) of the Act it was authorized to “carve out” from � 251(b)(5) calls made to internet service providers (“ISPs”) located within the caller’s local calling area. It relied entirely on � 251(g). Because that section is worded simply as a transitional device, preserving various LEC duties that antedated the 1996 Act until such time as the Commission should adopt new rules pursuant to the Act, we find the Commission’s reliance on � 251(g) precluded. Thus we remand the case. Because there may well be other legal bases for adopting the rules chosen by the Commission for compensation between the originating and the terminating LECs in calls to ISPs, we neither vacate the order nor address petitioners’ attacks on various interim provisions devised by the Commission.

Due in part to the 1996 Act, local telephone service areas are now typically (perhaps universally) served by more than one LEC. The reciprocal compensation requirement of � 251(b)(5), quoted above, is aimed at assuring compensation for the LEC that completes a call originating within the same area. Although its literal language purports to extend reciprocal compensation to all “telecommunications,” the Commission has construed it as limited to “local” traffic only. In the Matter of Implementation of the Local Competition Provisions in the Telecommunications Act of 1996, 11 FCC Rcd 15499, 16012-13, � � 1033-34, 16015-16, � 1040 (1996) (“Local Competition Order”); 47 C.F.R. � 51.701(a). For long distance calls, by contrast, the long-distance carrier collects from the user and pays both LECs-the one originating and the one terminating the call. Local Competition Order, 11 FCC Rcd at 16013, � 1034.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
GlobeSt. Women of Influence (WOI) 2024
July 22, 2024 - July 24, 2024
Lake Tahoe, CA

GlobeSt. Women of Influence Conference celebrates the women who drive the commercial real estate industry forward.


Learn More
New York Legal Awards 2024
September 05, 2024
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
African Legal Awards 2024
September 06, 2024
Johannesburg

The African Legal Awards recognise exceptional achievement within Africa s legal community during a period of rapid change.


Learn More
Go to Events Go to Webcasts
Labor & Employment Associate Los Angeles

Description: Fox Rothschild LLP has an opening in the Los Angeles, CA office for an associate in our Labor & Employment Department. The ...


Apply Now ›
Associate Attorney

Blume Forte Fried Zerres and Molinari 1 Main Street Chatham, NJ 07945Prominent Morris County Law Firm with a state-wide personal injury prac...


Apply Now ›
eHealth Exchange In-house Legal Counsel

Reports to: Executive Director FLSA Status: Exempt, Full Time Supervisory Responsibility: N/A Location: Remote Compensation Range: $21...


Apply Now ›
Go to Lawjobs
Lawyers of Distinction
06/27/2024
The American Lawyer

Professional Announcement


View Announcement ›
SMGQ Law
06/21/2024
Daily Business Review

Full Page Announcement


View Announcement ›
Blume Forte Fried Zerres & Molinari
06/14/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›
Go to Professional Announcements