Opinion ID: 454498
Heading Depth: 2
Heading Rank: 2

Heading: Sixth Report

Text: 28 The Sixth Report, target of MCI's petition for review, changed the permissive forbearance arrangement to a mandatory one. Under the previous orders, forborne carriers could elect to continue offering service pursuant to filed tariffs, or to cancel their filed tariffs and convert to private contracts. Many new entrants apparently chose not to file tariffs, but the vast majority of existing forborne carriers opted to maintain their services under the tariff system. The Commission's Fourth Further Notice requested comment on whether forborne carriers should be required to cancel their tariffs and convert to a carrier-customer individual contract system. Fourth Further Notice, 49 Fed.Reg. at 11,857. 29 In the Sixth Report the Commission replied to the comments of numerous parties. The principal arguments confronting the FCC were these: (1) the Commission lacks authority to abolish tariffs, Sixth Report, 50 RAD.REG.2d at 1393; (2) the abolition of tariffs would eliminate the repository of information consumers need to detect discriminatory practices, id. at 1394; (3) conversion to private contracts would impose an excessive burden on carriers, id. at 1394-95; and (4) there are less drastic alternatives, id. at 1395-96. 30 The Commission responded first that it found in section 203(b)(2) of the Communications Act, 47 U.S.C. Sec. 203(b)(2) (1982), express authority to exempt carriers from tariff filing requirements where appropriate. Sixth Report, 57 RAD.REG.2d at 1398. Consumers would benefit in several ways, the Commission reported. Dropping tariff filings would eliminate delay and opportunities for collusive pricing tactics. Furthermore, the absence of filed tariffs could be expected to stimulate the development of customer-specific and innovative service offerings. Id. at 1399-400. The Commission acknowledged that carriers might perceive some increased administrative burdens, at least initially, id. at 1400, but it considered this prospect outweighed by the positive features of detariffing non-dominant carriers. Sufficient information would be available to consumers, the FCC said, because carriers seeking to preserve their competitive position will make their rates and other information, formerly contained in tariffs, available to the public. Id. at 1401. For these reasons, the Commission declared that forborne carriers henceforth would be prohibited from filing tariffs and that forborne carriers with tariffs on file would be required to abolish those tariffs and convert to private contracts within six months. See id. at 1393. 31 On January 11, 1985, MCI petitioned for review. 3 We stayed the challenged Commission action and have considered this case on an expedited basis. See supra p. 1. In the discussion that follows, we explain why MCI's petition is timely and why, in obedience to the basic statutory command at stake, we vacate the Sixth Report.