Document: 525 U.S. 366119 S.Ct. 721142 L.Ed.2d 834 AT&T CORP. et al. v. IOWA UTILITIES BOARD al.Certiorari to the United States Court of Appeals for Eighth Circuit No. 97-826. Argued October 13, 1998 Decided January 25, 1999* The Telecommunications Act 1996 (1996 Act) fundamentally restructures local telephone markets, ending monopolies that historically granted exchange carriers (LECs) and subjecting incumbent LECs a host duties intended facilitate market entry, including obligation under 47 U. S. C. §251(c) share their networks with competitors. A requesting carrier can obtain such shared access by purchasing services at wholesale rates resale end-users, leasing elements incumbent's network "on an unbundled basis," interconnecting its own facilities network. After FCC issued regulations implementing Act's local-competition provisions, state commissions filed numerous challenges, which were consolidated in Circuit. Among other things, court held lacked jurisdiction promulgate rules regarding pricing, dialing parity, exemptions rural LECs, proper procedure resolving disputes, review pre-1996 interconnection agreements; that, specifying available Rule 319, reasonably implemented requirement it consider whether proprietary was "necessary" lack nonproprietary would "impair" entrant's ability provide service, see §251(d)(2); interpreted statutory definition "network element," §153(29); "all elements" rule, effectively allows competitors phone service relying solely on network, is consistent Act; 315(b), forbids incumbents separate already-combined before them competitors, must be vacated because requires those bundled rather than unbundled, i.e., physically separated, basis; FCC's "pick choose" enables demand any individual interconnection, or element arrangement same terms conditions LEC has given anyone else approved §252 agreement without having accept agreement's deter "voluntarily negotiated agreements" favors. Held: 1. general implement provisions. Since Congress expressly directed inserted into Communications 1934, since 1934 already provides "may prescribe as may necessary public interest carry out provisions this Act," §201(b), rulemaking authority extends implementation §§251 252. Section 152(b) Act, "nothing chapter shall construed apply give Commission respect . intrastate communications " does not change conclusion clearly applies matters. erred reaching respondents' challenge claim §208 gives agreements ripe. See Toilet Goods Assoc. Gardner, 387 158. Pp. 9-19. 2. governing are, exception Act. 19-28. (a) Given breadth §153(29)'s element" definition--i.e., "features, functions, capabilities ... provided means of" facility equipment used provision telecommunications service--it impossible credit incumbents' argument part physical service. It therefore 319 include operator directory assistance, operational support systems, vertical switching functions caller I.D., call forwarding, waiting within features 19-20. (b) However, did adequately §251(d)(2) "necessary impair" standards when gave blanket elements, vacated. rule implicitly regards standard been met regardless requested from source incumbent, "impairment" if failure decrease quality, increase cost, seeks offer, compared providing over LEC's cannot, statute, blind itself availability outside In addition, assumption cost (or quality) imposed denial renders "necessary," causes furnish desired services, simply accord ordinary fair meaning terms. 251(d)(2) determine rational basis made available, taking account objectives giving some substance requirements. 20-25. (c) omitted facilities-ownership requirement. imposes no limitation; anything, suggests opposite, requiring §251(c)(3) "any" carrier. P. 25. (d) interprets §251(c)(3), establishes duty nondiscriminatory rates, terms, manner combine elements. That section sabotage are discrete pieces, but say, even remotely imply, fashion. 25-28. 3. Because tracks pertinent language §252(i) almost exactly, only reasonable interpretation section, most readily apparent. 28-30. Nos. 97-826 (first judgment), 97-829 97-830, 97-831 97-1075, 97-1087, 97-1099, 97-1141, 120 F. 3d 753, reversed part, affirmed remanded; 97-826, 97-829, (second judgments), 124 934, remanded. Scalia, J., delivered opinion Court, Parts I, III-A, III-C, III-D, IV joined Rehnquist, Stevens, Kennedy, Souter, Thomas, Ginsburg, Breyer, JJ., Part II III-B JJ. concurring dissenting part. joined. O'Connor, took consideration decision these cases. 1 CORPORATION, al., PETITIONERS al.; 2 CALIFORNIA 3 MCI TELECOMMUNICATIONS PETITIONER 4 5 ASSOCIATION FOR LOCAL SERVICES, 6 FEDERAL COMMUNICATIONS COMMISSION UNITED STATES, 7 8 AMERITECH 9 GTE MIDWEST, INCORPORATED, 10 U S WEST, INC., 11 SOUTHERN NEW ENGLAND TELEPHONE COMPANY, 12 97-831, 97-1141 13 On Writs Certiorari 14 [January 1999] 15 Justice Scalia Court. 16 case, we address Federal certain pricing nonpricing 1996, well Commission's negotiation statute. 17 * Until 1990s, thought natural monopoly. typically exclusive franchise each area (LEC), owned, among loops (wires connecting telephones switches), switches (equipment directing calls destinations), transport trunks carrying between switches) constitute Technological advances, however, have competition multiple providers seem possible, recently ended longstanding regime state-sanctioned monopolies. 18 Pub. L. 104-104, 110 Stat. 56, markets. longer enforce laws impede competition, subject entry. Foremost (1994 ed., Supp. II) Under provision, three ways: purchase end users; lease basis"; interconnect network.1 When entrant through routes, negotiate regard otherwise §251(b)2 (c). §252(a)(1). But private fails, either party petition commission regulates arbitrate open issues, arbitration §251 promulgated thereunder. 19 Six months after passed, First Report Order re Implementation Local Competition Provisions Rcd 15499 (1996) (First & Order). challenges rulemaking, across country utility commissions, 20 basic attack jurisdictional. insisted primary belonged FCC. They thus argued many invalid, notably one prices based "Total Element Long Run Incremental Cost" (TELRIC)--a forward-looking historic measure.3 CFR §§51.503, 51.505 (1997). agreed, rules, several aspects Order, beyond jurisdiction. Iowa Utilities Board FCC, 800, 804, 805-806 conferred upon extended interstate matters, needed specific congressional authorization addressing telecommunications. Id., 795. found parity,4 agreements. 795-796, 802-806. Indeed, said had affirmatively commissions. 795, 802, 805. 21 holdings §152(b) (§2(b) 1934), which, said, creates presumption favor preserving communications. 3d, 796. nothing clear enough overcome presumption, described fence "hog tight, horse high, bull strong, preventing intruding states' turf." 800. 22 Incumbent also relevant here, access. II). unbundling sets forth minimum number make carriers. §51.319 complained compiling list, virtually ignored §251(d)(2). list included items (like assistance I.D.) meet element." §153(29). rebuffed both arguments, holding interpretations hence lawful Chevron A. Inc. Natural Resources Defense Council, Inc., 467 837 (1984). 809-810. 23 explicitly declined impose ownership who sought ¶ ;¶ ;328-340. so extensive, effect omission allow undermined goal encouraging entrants develop facilities. Appeals, deferred approach. Nothing ownership, view indicated "a achieve capability completely network." 814. 24 sweep went too far §51.315(b) Taken together, two allowed entire, preassembled believed render statute dead letter, entire reselling offerings, could product--finished service--at cost-based, wholesale, rate. 813. Apparently reasoning word "unbundled" meant "physically separated," 315(b) basis." Ibid. 25 Finally, objected governs competing "any arrangement" §252--without agreement. §51.809 (1997); ;1309-1310. favored, making reluctant grant quids quos, speak, fear they others receiving quos. 801. 26 Commission, MCI, petitioned Circuit's jurisdiction, rule; cross-petitioned treatment issues. We all petitions. 521 ___ (1998). 27 201(b), 1938 amendment "[t]he Act." 52 588, §201(b). along §1(b), extend provisions.5 28 Respondents argue, §201(b) limited dealing purely foreign first sentence §201(a) makes "the every common engaged communication wire radio request therefor ." understand how use qualifier "interstate foreign" §201(a), limits class reaches forward last limit implement. think what says: "provisions 252, added 1996.6 29 Our unaffected enactment), reads: 30 "Except sections 223 227 , inclusive, 332 301 title charges, classifications, practices, facilities, connection 31 identified §152(b)'s "except" clause. Seizing omission, respondents argue displace retain traditional 32 Respondents' point (necessarily) extremely subtle one. do contend construed" prevents "appl[ication]" amended precludes "Commission to" Such utterly nullify amendments, "apply" confer jurisdiction" therefore, require explicit addition conferral exist. "appl[ication]," acknowledge, effected few 33 fallacy ignores fact matters applies. avoiding pari passu expansion substantive scope reason framed alternative: (emphasis added) forbidden subjects. italicized portion operative effect, assert, "application" automatically entailed imaginative one, ultimately fails. For though always follows where "applies," (so-called "ancillary" jurisdiction) exist "apply." term reach (and concomitant jurisdiction), phrase "or limits, ancillary 34 need limitations exemplified Louisiana Serv. Comm'n 476 355 (1986), claimed issue depreciation methods applied companies.7 supported arguments. First, regulate bind commissions--i.e., "applied" ratemaking. 376-377. observed "[w]hile is, doubt, possible find broad position, unambiguous straightforward override command § 377. statute's intrastate, regulation enable effectuate federal policy 369. rejected because, regulatory normally justify affected commerce, id., 370; cf. Shreveport Rate Cases, 234 342, 358 (1914), prevented action furthered goal. S., 374.8 35 parties devoted effort case debating §251(d) serves jurisdictional "[w]ithin [the date enactment 1996,] complete actions establish requirements section." relies alternative arguing express job. counter time constraint exercise six subsections specifically mention §§251(b)(2), 251(c)(4)(B), 251(d)(2), 251(e), 251(g), 251(h)(2). understanding debate academic.9 36 objections addressed pertain asserted might called underlying remaining negate particular authority. With §252(c), provides: 37 "(c) Standards Arbitration 38 "In subsection issues imposing agreement, shall-- 39 "(1) ensure resolution 251, prescribed pursuant 251; 40 "(2) according (d); 41 "(3) schedule agreement." 42 TELRIC invalid §252(c)(2) entrusts task establishing attributes greater degree autonomy "establish rates" necessarily implies. prescription, requisite methodology more "Pricing standards" set §252(d). will methodology, determining concrete result circumstances. establishment rates. 43 emphasize §252(c)(1), assure compliance §251, adds "including 251," whereas §252(c)(2), (d), says about applicable (d). There undeniably parallelism seems us explained not. peculiar mandated should referenced, permitted event, mere surely hold, design methodology. 44 similar reasons, reverse Appeals' determinations pre-existing carriers, exemptions, parity. §§51.303, 51.405, 51.205-51.215 None interpret displaces While true job approving agreements, §252(e) II), granting §251(f), assignments, like rate-establishing assignment just discussed, logically preclude issuance guide state-commission judgments. And §251(b)(3), States, clearer superseded.10 45 Finally (as §208, hear complaints arising ;121-128. "perception untenable light structure operation [152(b)]." 803. When, statement, there immediate plaintiff's conduct, courts entertain pre-enforcement agency statements. Assn., 158 (1967); Lujan National Wildlife Federation, 497 871, 891 (1990). III 46 turn next come LECs' complaint must) element"--namely, systems (OSS), I. D., waiting. §§51.319(f)-(g) ;413. defines includes features, equipment, subscriber numbers, databases, signaling information sufficient billing collection transmission, routing, service." §153(29) Supp 48 definition, Operator involve live operators automation, equipment. OSS, background software system, contains essential programs manage billing, repair ordering, functions. 153(29)'s reference "databases service" ample treating system "functions switch, fall squarely definition. agree application eminently reasonable. NRDC, 866. B 49 view, others, 319. seven elements: loop, interface device, capability, interoffice transmission call-related operations assistance. If wants additional commission, case-by-case basis. §51.317.Section 50 purposes (c)(3) consider, minimum, whether-- 51 "(A) nature necessary; "(B) impair seeking offer." 53 codifies something akin "essential facilities" doctrine antitrust theory, generally 3A Areeda H. Hovenkamp, Antitrust Law ;771-773 (1996), opening up "bottleneck" unavailable elsewhere marketplace. decide whether, matter law, standard; equivalent better criterion limitation network-element mind. limiting standard, rationally related goals failed do. statement announced "requesting incumbent," "[r]equiring new duplicate unnecessarily generate delay higher costs entrants, thereby entry contrary ;283. financial administrative network," ;285 added)--which comparison self-provision, another provider, excluded. efficient hard imagine standard. asserts deliberately inquiry seek get elsewhere. be. judgment necessary, services. failing alone aside. An whose anticipated annual profits proposed reduced 100% investment 99% perhaps "impaired" amass earnings, ipso facto "impair[ed] offer"; cannot realistically enabling raise "necessary."11 world perfect marginal total equating increased decreased "necessity" reasonable; established existence ideal world. avoid wanted unrestricted scheme with, all. has) whatever provided. 54 full record proceedings examined, appears precisely said. content expansive misunderstanding directs "at technically feasible point." "impos[e] access," "conclude coextensive" duty, ;278 added). ;286 ("[w]e conclude `impairment' way significantly diminish 251(c)(3)"). As held, undoubtedly wrong: 251(c)(3) indicates "where occur, [network] unbundled." 810. point, bring our discussion colored error. began premise obliged much "technically feasible," viewed (d)(2) merely permitting soften grace: 55 "To impairment refrain ;279. 56 wrong. authorize create isolated available. latter achieved disregarding entirely "increased quality" "impair[ment]" "provide services." 57 above considered various seriatim. ;388-393, 419-420, 447, 481-482, 490-491, 497-499, 521-522, 539-540. Though contain statements suggesting see, e.g., ;521-522, consistently assume governed throughout. fashion, vacate C 58 renew This largely academic disposition remand fewer unconditionally requirement, able component whole refusal proper. D 59 competitor. object combined today. costs, subjects all-elements rely these, competitor complete, (allegedly very low) cost-based 60 totally inconsistent say eviscerates distinction access, amounts Government-sanctioned arbitrage. Currently, "universal subsidy. Business customers, whom relatively low, charged subsidize residential high. universal-service subsidy built retail passed enter provision. Carriers altogether lure business customers away offering closer cost. This, course, leave bag universal 61 concern score academic. Moreover, §254 subsidies phased out, possibility arbitrage remains temporary. unreasonably establishes: 62 "The provide, just, reasonable, accordance 252 order 63 "allows combine" them, contemplates pieces. text conclusion. assuredly form (which prohibit). fashion never form. Nor persuaded insistence basis" separated." dictionary given, add) matches word: "to supporting Webster's Ninth New Collegiate Dictionary 1283 (1985). 64 reality ambiguous leased rational, finding §251(c)(3)'s nondiscrimination explains, aimed "disconnect[ing] previously connected objection carrier, productive reason, wasteful reconnection entrants." Reply Brief Petitioners 23. absence less bounds opt ensuring against anticompetitive practice. 65 provides, part: 66 "An unreasonable contained 67 threatens give-and-take negotiations, concession "interconnection, (in benefit) become potential market. existing required 68 Although proposition fair, declare unlawful exactly. 252(i) 69 "A 70 respects generous itself. exempts prove (1) costly original (2) infeasible. §51.809(b) amount during requests section. §51.809(c). "legitimately related" term. ;1315. certainly demands that. approach negotiations (by favorable interconnection-service traded off unrelated provisions) expertise ken. reinstate rule. 71 72 gross understatement model clarity. important ambiguity indeed self-contradiction. unfortunate piece legislation profoundly affects crucial segment economy worth tens billions dollars. read (borrowing GTE) "most promiscuous rights" vis-a-vis incumbents--and chosen instances way. aware ambiguities chooses produce resolved agency, 842-843. contains, present invalidate 73 reasons stated, July 18, 1997 part; August 22, cases remanded opinion. 74 ordered. 75 O'Connor 76 al.;97-826 77 78 al.;97-829 79 80 al.97-830 81 al.;97-831 82 83 al.97-1075 84 al.97-108797-1099 85 al.97-1141 86 writs certiorari united states appeals eighth circuit 87 88 89 I Court's disputed deference due disagree competitors' owned Exchange Companies Ante, 17. Chevron, necessity impairment, respectfully dissent 90 question specifies "shall consider" "access necessary," §251(d)(2)(A), access" "would offer," §251(d)(2)(B). mean "prerequisite competition," sense "ability compete impaired thwarted." ;282, 15,499, 15641-15642 basis, decided unless offer another, offered LEC. ;283, 15642. 91 "diminished value," competitor's value quality decline price rise, absent question. ;285, 15643. chose "by evaluating using ibid., whenever expensive lower competitor, ibid. 92 practice, observes, ante, probably wants; unlikely want economically unjustifiable, weak economic justification interpretation, obviously falls reasonableness. 93 textual justification, certainly, faulted. words being susceptible fairly wide range meanings, doubtless meanings identified. replace bulb, stepladder install stand instead chair, milk can, eight volumes Gibbon. easily ladder my bulb These examples concepts senses, unquestionably still uses words. 94 Accordingly, goes meaning" "impair," "[a]n `impair[ed] offer'; `necessary,' 18-19. ordinary, me realize profits, delivery stops getting profit 95 Not choice sure, appeal broader comes short judgment. says, intuitive plausibility, do." eyes, trouble determine" concludes "if all." 19. 96 judges reasonableness asking likely legislated adopting criteria rationality, answers notion objective modest persuasiveness answer question, rests overlooking different answering adopted notes, 17-18, consequences follow satisfy showing except Rcd, To kind showing, encourage duplication personnel, obvious systemic costs. words, approaching inefficiency ease concluded, apparent implausibility, no, proceeded answer. 97 Before reading unreasonable, ask senses. further irrelevant (if not), defensible. sensible points direction question; why agency's responding mutually ill-fitting clues meaning. indeed, classic deference, here infected "ambiguity" "self-contradiction." accordingly primacy chose. 98 al.AT&T 99 100 101 102 103 104 105 106 al.97-1087 107 al.97-1099 108 109 111 Chief Breyer join, 112 Alexander Graham Bell invented 1876, been, practical purposes, exclusively responsible regulating altered century-old tradition, majority takes transferring States' Commission. unambiguously indicate transfer occur. reserves responsibility conduct mediations arbitrations approve §§252(c); (e) majority's opinion.1 113 From commercial 1877 until expiration key patents 1893 1894, Bell's company--which came known American Telephone Telegraph Company--enjoyed J. Brooks, Telephone: Hundred Years 59, 67, 71-72 (1976). decades followed, thousands independent companies emerged fill gaps left giant and, larger build rival direct it. 102-111. developed, municipalities adopt ordinances See, K. Lipartito, System Regional 177-186 (1989). 114 During 1900's, legislatures increasing pressure centralize 185-207. quasicompetitive significant drawbacks consumers' standpoint--principally interconnect--perhaps strongest advocate company's arguments naturally monopolistic resulting appealed Progressive-era legislatures. Cohen, Problem Road Regulation Policy Hist. 42, 55-57 (1991); generally, supra, By 1915, 144. Over time, Companies' buying coupled commissions' practice prohibiting competitive led back monopoly R. Garnet, Enterprise: Evolution system's Horizontal Structure, 1876-1909, 146-153 115 Early regulation, Mann-Elkins 1910, fledgling efforts contrary, Interstate Commerce (ICC) cover international services.2 result, agencies meticulously Smith Illinois Co., 282 133 (1931), invalidated city Chicago distinguish property company. doing, emphasized separation property, revenues expenses Company appropriate recognition competent governmental field regulation." 148. 116 1064, amended, §151 seq., transferred ICC newly created (FCC Commission). care preserve §2(b), §152(b). carefully guarded historical division codified §2(b). (1986). Louisiana, §2(b) precluded pre-empting regulations. §220 standards. concluded "fences matters--indeed, `in with' service," 370, breach §2(b)'s "fence" "unambiguous straightforward" 117 enacted (Act), backdrop. marked policy. Most important, maintaining §253(a) ways. describes completely, 3, n. 1, must: carriers' §251(c)(2); §251(c)(3); resell subscribers §251(c)(4). obligations §251(a), §251(b). rapid transition process fulfill §252. 118 preference §252(a). extent agree, mediating arbitrating Specifically, mediate disputes voluntary period, §252(a)(2), and--after run course--to "open issues," §252(b)(1). conducting arbitrations, §252(d), reached arbitration. §252(c). reject arbitration, §252(e)(1), guided §252(e)(2). permits intervene resort, State fails act responsibilit[ies]." §252(e)(5). preempting commission's commission." 119 "regulations [FCC] arbitrated §252(e)(2)(B). quite limited. 251(d)(1) "complete section" period. believe upon, mandate for, authority, describe below, rather, 251 identifies regulate. portability, §251(b)(2); §251(c), numbering administration, §251(e); prior effective date, §251(g); comparable incumbents, §251(h)(2). contravene disregard 100-year tradition introduction peremptorily declared "require [it] govern 252." 15544-15545 fulfilling perceived mandate, painstakingly detailed dictating challenged grounds.3 121 endorsing predates heavily relies, chapter." isolation. Harlan once observed: "[I]t familiar statutes `a passage best precedes it.' Neal Clark, 704, 708 (1878). 201(a) refers radio," "charges, "Under principle ejusdem generis, understood enumeration." Norfolk Western Co. Train Dispatchers, 499 117, 129 (1991). Applying §201(b)'s it, accompanying `unintended breath Acts Congress.' Gustafson Alloyd 513 561, 575 (1995) (quoting Jarecki G. D. Searle 367 303, 307 (1961)). 122 apparently demonstrated charged, issuing portions described, 7. believed, majority, plenary presumably 123 represents "unambiguous" fence. implies sub silentio rendered nullity extending law written disjunctive. 2(b), §152(b), (Emphasis added.) Contrary suggestion, 12, "subtle" "imaginative" "[i]n construing used. Canons construction ordinarily suggest disjunctive context dictates Reiter Sonotone Corp., 442 330, 339 (1979) (citation omitted). correct supports construction" "substantive power." 372-373. legal significance each. Thus, demonstrate "appl[ies] services; "straightforward" evidence eliminate limitation." eliminates knows exempt reach; done recently. example, 1992, "except 227"of 1934. 102-243. following year, exempted §301 purview. 103-66. neither eliminated nor honor choice. 125 Even nullity, fail approval "[w]here intention otherwise, controlled nullified one." Crawford Fitting T. Gibbons, 482 437, 445 (1987) omitted; internal quotation marks 201(b) adhere setting §252(e). expected "guide judgments." 18. agree. consciously designed respected role dominant mechanically methodologies, formulas, mandated. areas presume control.4 126 My Several suggested inappropriate so. One petitioners Printz 898 (1997), "legitimacy delegation [to States] suspect." Petitioner p. 40. Government commandeer executive agencies. know prohibits interpreting applying law. principles federalism compel Field years ago upholding delegating compensation takings cases: 127 purpose Constitution government of, superior to, governments--one officers tribunals Yet habit using, consent officers, tribunals, institutions agents. Their deemed violative derogating sovereign government; convenience tending great saving expense." Jones, 513, 519-520 (1883). 128 attempt introduce wise take advantage developed us--or FCC--to second-guess decision. 130 precedents respecting adherence grants unbounded concern. 131 132 134 135 136 137 138 139 140 141 142 143 144 145 history illuminate language. history, purpose, precedent, Act), "model ambiguity" "self-contradiction" complains. 29. Neither permit us. 146 delegated century ratemaking norm nowhere changes, norm. Thomas' 2-5. language, his 147 help explain foresee, national rate uniformity, ratemaking--FCC views notwithstanding. ;113, 15499, 15558 recall dominated industry. long-distance substantial manufacturing. Tel. 552 131, 165 (DC 1982) (describing AT&T's "commanding position" Nation's business), aff'd nom. Maryland 460 1001 (1983). 1982, entered decree, industry dominance. Supp., 160-170. 148 decree split subsidiaries. doing so, firms Sprint. encouraged Rather, hands single state-regulated supplier, NYNEX York, Atlantic Washington, D.C. circumstance reflected belief, current wasteful, leading unwarranted requiring, unnecessary digging streets unneeded wires house series redundant switches. Elec. 673 525, 537-538 1987); Huber, M. Kellogg, Thorne, Geodesic Network II: 1993 Industry pp. 2.3-2.5 (1992). 149 At forbade suppliers entering 186-188. prohibition, willing supply risked competition. Cf. MacAvoy, Failure Establish Long-Distance Services 179-183 (1996). countervailing enjoy special advantages companies. Tel., Perhaps company unusually easy attract service; control place disadvantage. Krattenmaker, 411-412 (2d ed. 1998) (explaining rationale decree). innocent, enjoyed transcontinental airline dominates hub, unfair, helped (through service) maintain 165; Kahn, Letting Go: Deregulating Process Deregulation, or: Temptation Kleptocrats Political Economy Regulatory Disingenuousness 37-38 (1998) (discussing debate). Whether decree's trade-off sense--i.e., local-firm/long-distance-service warranted prohibition competitors--became fertile later argument. 171-177 (arguing oligopolistic markets produced supranormal sustainable competition); Robinson, Titanic Remembered: Changing World Telecommunications, Yale Reg. 517, 537 (1988) restrictions "just persuasive" 150 responds changing postdecree status quo method §271(c)(2)(B) (listing met, market). Second, supplier carrier's engage "good faith" negotiations). §§271(c)(1)(A), (B). alternatives important. alternative, actual recognizes firm has, lessening long-distance-market prohibition. 4; Fed. Comm. 15-16 second practical; places, extent, firm, least resources. Note, Telecom 1996: Necessary Steps Achieve Substantial Harv. Tech. 797, 810, 151 difficult empirical facilities? purport interaction marketplace, aims answers. particular, dismantling barriers inhibit Equally promotes "interconnect" (thereby allowing partial small area), sell "resellers," retailing), §251(c)(4); (3) elements," house-to-street lines, §251(c)(3). mentioned "unbundling" discuss below. infra, 18-21. logic imagining sole railroad City bridges, rights-of-way, tracks, hard-to-duplicate resources while facilitating A-to-B characterize about, inordinate waste, towards 152 cases, characteristic require. Those radically regulators' rate-setting powers. utility's consists complex interdependent determination depends considerations, locality importance place-specific factors, geography, demands, regulators regulators, plant, structure, pattern demand, investment, recovery undepreciated fixed 153 experience recover immediate, smaller, often huge (of loops, overhead dial tone likely, when, charges lead abandon turning technologies. technologies circumstances beneficial wasteful. communities, hence, directly confront problems benefits associated integrate old firms. technology changes rapidly, against, control, differences, differences "experimentation" long strength system. 154 most, forms interfere objectives. pre-emption tool, invoked, suited §253(d) (permitting pre-empt, notice comment, service). 13-17, outer envelope prevent going far. supplant regulator's work. 155 Read foresees retention, replacement, allocation state-federal 6-7 (Thomas, part). Sections obligations, 156 lists incumbents. interconnnect, unbundle, "number portability," "dialing parity," good faith, obligations. ("[T]he unbundled); §251(b)(2) (local portability Commission"); regulator §251's leaves question--which 157 implemented, ambivalent. Its followed fail. §§252(a), (b). Certain §252's concede, majority--in results 251." §252(c)(1). "regulations" 13-14. immediately beginning subsequent nine paragraphs, speaks separately, specifically, §§252(c)(2), "State commission[s]" rates." "according subsection, "subsection (d)." headed focusing "charges," "[d]eterminations [S]tate rate" (which, adds, "nondiscriminatory" "based cost"), 252's references detail, silence earlier excludes, includes, 159 silent power. state, federal, read, foresee authority--an assumes regulators. 160 recognize finds containing 9-10 (citing §201(b)). 1938, 588. power contemplates. 355, 376-377, explained, reservation 161 linguistic ambiguity. precedent faced ambiguity, Cipollone Liggett Group, 505 504, 518 (1992) ("presumption police regulations"); Rice Santa Fe Elevator 331 218, 230 (1947) (requiring "clear manifest" intent powers). itself, concerned, equipped instruction "construe" 162 "giv[ing] communication." 163 Thomas 10, surprising denying rate-related practices face helpful anything here. supra. 164 raised identical us: Does (there, rules) primarily (i.e., rules)? Writing Brennan stated "rule quoted States. 373. Hence, write insofar Consider similarities construction--the presumptions favoring retention authority--are same. 369 (asking "Congress supersede law" citing supra); 371-373 (relying §152(b)). highly similar--both calls. Compare 36-38, 374-376. affect competition's impact, ;84, 15544, less) stringent replacement calls, 362-363. 166 Consider, too, differences. commission[s]," contrast, sought. "prescribe" companies, prohibited [FCC]," §220(b); "unlawful keep [depreciation] accounts approved" §220(g); ordered §220(i); authorized §220(h). 366-367. stronger, weaker, Louisiana. 167 "unaffected" 11. Congress' not, initially amending inapplicable majority's, now exercise. 652, 104th Cong., 1st Sess., §101(c)(2) (1995); 1555, §101(e)(1) (1995). final legislation, "intend[ed] enact ha[d] discarded language." INS Cardoza-Fonseca, 480 421, 442-443 (internal citation 168 argument, actually authority; creating marking version "requisite methodology" "no `Pricing standards' §252(d)." 16. That, done. 169 §252(d)'s as, cost," "nondiscriminatory," reasonable." Terms methodological leeway; little "method employed" FPC Hope Gas 320 591, 602 (1944). hand, general. dozens pages detailed. ;672-715, 15844-15862. deprive leeway. instructions freedom choose rate-determining State's policy-related judgments, assessing community need. fix rate, restaurant chef menu restricting him dish, omelette, favorite recipe. 170 successfully contain. "forward-looking," bases charge (say, switch) hypothetical costs--the center, assuming (not use). ;682, 685, 15847-15849. (though ruling kinds rate-of-return proceedings, §252(d)(1)(A)(i) II)) forces denies, namely, nationwide Supra, 7-8; compare ;114, 15558-15559 uniform administration Act). 171 favors tends reflect E.g., ;672, 15844. show compels other. How it? process, result; tries mimic 172 importantly, embody circumscribe realm policy-oriented caps, prohibit. examples, weaknesses preferred illustrate, weighing considerations (for example considerations) differently rules: 173 --Consider deny historic, forward-looking, ;705, 15857-15858. Brandeis, Holmes, pointed drawback ago. wrote theoretical merits "reproduction cost" (a bearing uncanny resemblance choice), judgments administratively unworkable. Missouri ex rel. Southwestern Public Mo., 262 276, 292-296 (1923) (Brandeis, dissenting). 174 outdated Brandeis Holmes criticism. Modern critics accurately "efficient" supplying group Manhattan office buildings, hypothetically up-to-date York connect NYNEX's (nonhypothetical) center. Go, 93, 135. draws major aim--expeditious (rather actual) delay, 4-5. disfavors satisfactorily arbitrary unreasonable. 175 prohibit "efficient rule." ;708-711, 15859-15860. Where supplies Entrant Old Customer A, roughly speaking, measured element's price, sold (2), (including net revenue loses foregoing sale A). W. Baumol Sidak, Toward Telephony 95-97 (1994). contribution, overhead, made. Many experts prefer Sidak Spulber, Tragedy Telecommons: Pricing Unbundled Elements Colum. Rev. 1081, 1111-1113, nn. 75-85 Kahn Taylor, Inputs Sold Competitors: Comment, 225, 228-230 claim, 1095-1098. 176 forbid "Ramsey pricing," ;696, 15852-15853. Ramsey classical assigns helps not) pay prices. Economics Regulation: Principles Institutions 137-141 (reprint 1988). strongly 1109 "minimize maximize consumer welfare"). conflict 177 themselves us, matter. surrounding choices; instead, 178 179 Two constitutionally sheriff buyer gun. 898, 935 Dissenters noted deprived significance. 961 (Stevens, dissenting); 977 (Breyer, Today's practically power, camel Printz's gnat. reveals manifest purpose," Rice, 230, intent. History, contrary. hold ratesetting, exceeded grasp. 180 rules. removing sharing, "unbundling," 6; §§251(c)(2)-(4), 253(a) expresses last-mentioned sharing reflecting uncertainty compelled waste. Will wireless cable television lines house? 181 Despite uncertainties, clear. practical, 6-7. although describing refer analogous (an adopted), unbundling. convincing explanation "unbundled") facility, Areeda, Essential Facilities: Epithet Need Limiting Principles, 841, 852-853 182 limits. compulsory social simplest tunnels, track, someone oversee sharing. owner's incentive improve depriving owner fruits value-creating research, labor. moves separable administrable research management, technical capacities, severe. locomotives, fuel, workforce. guarantee undertake technological innovations knowing deriving dissipated central relation firm's managerial responsibilities, extensive demanded, serious. Demsetz, Ownership, Control, Firm: Organization Economic Activity 207 (1988). serious become, offset gain provide. burden, foresees. 5. 183 Increased unshared, shared, enterprise meaningful emerge. Rules force resource create, pervasive 184 upshot, requirements, balance. go far, expanding proves advantageous risk objectives, game candle. 185 sufficiently explore side coin. Motor Vehicle Mfrs. Assn. Farm Mut. Automobile Ins. 463 29, why, "call waiting," forced aspect business. 22-23, assume, explanation, unbundles, better. Were objective, seen sales (since result)? competition? world--a including, advertising, staff, work charges)--is little, about. 186 difficulty them. §251(d)(1) considerable leeway Pierce, Shapiro, Verkuil, Administrative §7.4, 353 1992). But, justified purposes. §706(2). opinion, FOOTNOTES 187 Together Corp. California (see 12.4), Association Ameritech Midwest West, Southern England court. NOTES 188 follows: 189 "Additional Obligations Carriers. 190 duties: 191 Duty Negotiate 192 faith paragraphs (5) subsection. 193 Interconnection 194 network-- 195 routing access; 196 network; 197 "(C) equal subsidiary, affiliate, interconnection; 198 "(D) nondiscriminatory, title. 199 Access 200 201 "(4) Resale 202 duty-- 203 carriers; 204 prohibit, discriminatory on, may, reseller obtains category subscribers. 205 "(5) Notice Changes 206 networks, interoperability networks. "(6) Collocation 208 collocation premises virtual demonstrates space limitations." 209 251(b) incumbents: 210 211 212 Number Portability 213 feasible, 214 Dialing Parity 215 parity toll listing, delays. 216 Rights-of-Way 217 afford poles, ducts, conduits, rights-of-way 224 218 Reciprocal Compensation 219 reciprocal arrangements termination telecommunications." 220 operating Incumbents below stranded underestimated issue, 221 code, Second Order. 19392 today, People 943 222 post, [the] [of §201(b)] 1938," confers "general contemplates." true. determined, speculating 1938) "foresees," adopted, freestanding enactment, plausibly assert unaware §251(i) "[n]othing 201." `presumption regulations,' quoting (1992), `clear manifest' powers," (1947). taken has. participation federal-agency "presumption" arise program administered surpassing strange. loosely "States' peculiar, heel. bottom, thing, draw hew. restrictive drawn courts--but spark passionate detail. 225 sheds course Breyer's contention, 11, "raised us." involved involves 226 "give jurisdiction," asserts, 9-10, nullity. 9. effect. Congress, removed control. Insofar remained silent, continues function. theory admits, he must, inflexibility strain gets plainly conferrals (we think, (assigning Commission."); (setting factors (c)(3)"); §251(g) "regulation, order, Commission" remain "explicitly superseded Commission"). produces chopped-up conferring curious 7, strange hodgepodge. And, Thomas's analysis criticism levels 10: Just amend five upon. 228 "[i]f regulations." Post, 9, designate impartial entities administer numbering," opposed authorizes chooses. 251(h)(2) "may, [§251]" satisfies §201(b); saddled nonincumbent burdens status. 229 notes settled (1883), leads constitutional impediment uncontrolled specified discussed. 12-13. impediments aside, policymaking turned broadly telecommunications, (ratemaking, etc.) implications extension determined which--within agencies--are decidedly novel, attendant questions, defer novel well. Souter ladder, "could Gibbon." True nicely put), analogy presence tall job, stretching one's arm extension. one-half inch taller "within word," 4, similarly services--even "in impairment," 4--when receives handsome denied handsomer 231 pick-and-choose grounds. 232 provided, telegraph, telephone, sending messages State, Territory, District Territory country, June ch. 309, §7, 544-545. 233 assertion ripe review. me, lacks carries force. trump suspensions, modification, §251(f); predating §252(a); dictates, §251(d)(3).

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