WASHINGTON-A federal appeals court here ordered the Federal Communications Commission to fix inconsistencies in paging interconnection rules, setting the stage for rule revisions that could benefit the wireless industry.
Mountain Communications Inc., a Colorado paging carrier, had challenged the FCC’s dismissal of an interconnection complaint filed against Qwest Communications International Inc.
In its Jan. 16 ruling, the U.S. Court of Appeals for District of Columbia Circuit did not overrule the agency, but-calling the rejection of the paging firm’s complaint “arbitrary and capricious”-remanded the matter to the commission to reconcile the Mountain Communications decision with a previous interconnection ruling involving TSR Wireless L.L.C.
“The court did exactly what it telegraphed at oral argument it was going to do and found that the Mountain Communications decision was 180 degrees from the TSR Wireless decision without any change in circumstance,” said Kenneth Hardman, a top paging attorney.
The case was argued on Nov. 18.
“In any case, this is an important case for wireless because it will prevent the FCC from expanding on its bogus `wide-area calling theory’ to create wireless exemptions from the interconnection rules,” Hardman stated.
While the facts of the case are peculiar to paging interconnection, the case has major implications for the entire wireless industry. That is why T-Mobile U.S.A. and other mobile-phone carriers filed with the court in support of Mountain Communications.
Robert Schwaninger Jr., whose law firm represents Mountain Communications, said the appeals court opinion limits the FCC’s options and effectively forces the agency to bring its rules in line with interconnection pricing sought by the Colorado paging carrier.
“The FCC got it right the first time when it ruled in Metrocall’s and TSR’s favor on these complaints against certain phone companies. The Telecommunications Act and the FCC’s rules say that LECS [local exchange companies] cannot charge paging carriers for local interconnection traffic, period,” said Vince Kelly, Metrocall Wireless’ president and chief executive officer.
Metrocall is the No. 2 paging carrier in the United States.
“We’re confident,” said Kelly, “that the FCC will clarify its Mountain Communications decision on remand from the court in a way that preserves these fundamental statutory rights of the paging industry.”
