Opinion ID: 454498
Heading Depth: 2
Heading Rank: 1

Heading: Regulatory Proceedings

Text: 25 In 1979, the FCC commenced its Competitive Carrier rulemaking, a proceeding shaped with a view toward gradual deregulation of the non-dominant common carrier interstate telephone industry. The Commission's initial Notice observed that non-dominant companies--those lacking market power--had no ability to charge supra-competitive rates or to engage in predatory pricing. Notice, 77 F.C.C.2d at 334. The FCC sought comments on a broad range of options, and its First Report, issued in 1980, announced streamlined regulations for non-dominant common carriers. First Report, 85 F.C.C.2d at 30-49. 2 26 In its 1981 Further Notice, the Commission focused on whether to undertake definitional or forbearance deregulation. The definitional approach entailed classifying certain non-dominant carriers of communication services as noncommon carriers. Because Title II of the Communications Act, 47 U.S.C. Secs. 201-224 (1982), applies only to common carriers, this approach would have exempted non-dominant carriers from all Title II regulation. See Further Notice, 84 F.C.C.2d at 463-70. The forebearance approach involved abstaining from applying to non-dominant carriers certain Title II procedural requirements while maintaining the basic substantive requirements that carriers charge just and reasonable rates and not engage in unreasonable discrimination. 47 U.S.C. Secs. 201-202 (1982); see Further Notice, 84 F.C.C.2d at 471-91. 27 In its Second Report, released in 1982, the Commission adopted a forbearance position, Second Report, 91 F.C.C.2d at 61-62, which permitted resellers of basic services who owned no transmission facilities to cancel tariffs filed with the Commission and to convert to service on a private contract basis. Id. at 73. In subsequent 1983 and 1984 orders, the Commission extended permissive forbearance first to specialized common carriers (including MCI) and all resellers, Fourth Report, 95 F.C.C.2d at 557, and later to domestic satellite carriers providing domestic interstate service, miscellaneous common carriers, carriers providing domestic, interstate, and interexchange digital transmission networks, and affiliates of exchange carriers providing interstate interexchange services. Fifth Report, 98 F.C.C.2d at 1209-10.