Opinion ID: 3021849
Heading Depth: 4
Heading Rank: 4

Heading: The Meaning of the Word “Distance”

Text: Finally, with respect to the application of § 4252(b)(1), the Government argues that because the rates for the Reese Services varied depending on whether the communications were intrastate, interstate, or international, they were in fact based on both “distance and elapsed transmission time.” The District Court held that the charges vary by “jurisdictional classification,” not distance, and therefore, were not covered by § 4252(b)(1). We agree with the District Court’s determination. According to the Government, “distance” means “the quality or state of being distant or spatially remote,” and therefore, a charge need not vary directly with linear distance to meet the definition in § 4252(b)(1). The characterization of a communication as interstate, intrastate, and international does not directly correlate to distance, however, as a call between states, or even countries, may be shorter in distance than a call within the same state. Moreover, as the American Bankers court explained, “The jurisdictional boundaries–interstate, intrastate, and international–are divisions of regulatory authority between the Federal Communications Commission and state regulators.” 408 F.3d at 1336. In other words, the different rate structures 18 are not related to how far a call travels, but rather, which governmental body regulates the communication. Accordingly, the charges for the Reese Services–which are based on their characterization as intrastate, interstate, or international–do not vary by distance and, therefore, are not covered by § 4252(b)(1).