Opinion ID: 185374
Heading Depth: 2
Heading Rank: 3

Heading: The FCC Proceedings

Text: 9 On July 8, 1999 Verizon filed a complaint against GNAPs' tariff under Section 208 of the Communications Act. Verizon alleged that 1) the tariff was inconsistent with FCC rules insofar as the FCC exempted ISPs from access charges and provided for joint provision of access service to interexchange carriers, 2) the tariff preempted state determination of intercarrier compensation for interstate Internet-bound traffic, 3) the tariff made Verizon an involuntary GNAPs customer, and 4) the tariff imposed excessive rates. Specifically, Verizon alleged GNAPs has no right to circumvent the negotiation and arbitration process that the DTE and this Commission have directed it to follow by unilaterally filing a federal tariff. After a status conference, the FCC directed briefing on ten issues concerning the legality of the tariff and the applicability of specific FCC rules, including why Global NAPs filed a federal tariff and whether that was reasonable. In re Bell Atlantic-Delaware, Inc., E-99-22 (Aug. 19, 1999). 10 On December 2, 1999, the FCC declared GNAPs' tariff unlawful under section 201(b) and void ab initio. In re Bell Atlantic-Delaware, Inc., et al. v. Global NAPs, Inc., Memorandum Opinion and Order, 15 F.C.C.R. 12,946 (1999) (Order). The FCC found that the challenged tariff provisions violated the requirement of 47 C.F.R. 61.2 that tariffs be clear and explicit because those tariff provisions condition the imposition of charges on circumstances that were indeterminate when the tariff took effect and remain indeterminate today. Id. p 2. Additionally, the FCC found that the tariff impermissibly cross-referenced another document--in this case the interconnection agreement between GNAPs and Verizon--in violation of 47 C.F.R. 61.74(a). The Commission noted that at the time the tariff was filed, the parties did not know whether GNAPs would receive reciprocal compensation from Verizon for Internet-bound traffic because the DTE proceedings were still underway. 11 On January 3, 2000, GNAPs petitioned for reconsideration of the FCC's order. GNAPs raised several arguments. First, GNAPs argued that in basing its decision on grounds not raised by Verizon or briefed by either party, the FCC denied GNAPs its right to notice and due process and illegally relieved Verizon of its burden of proof. GNAPs further argued that the FCC, by voiding the tariff retroactively, illegally denied GNAPs just compensation for the interstate services it provided to Verizon. Finally, GNAPs claimed that the FCC's order was wrong on the merits and the tariff was legal under the Act and applicable FCC regulations. 12 The FCC denied GNAPs' petition on March 22. In re Bell Atlantic-Delaware, Inc., et al. v. Global NAPs, Inc., Order on Reconsideration, 15 F.C.C.R. 5,997 (2000) (Reconsideration Order). The FCC rejected GNAPs procedural claims, explaining that its initial Order was based on issues that were antecedent to those raised by Verizon's complaint, and therefore could be considered. The FCC further rejected GNAPs' contentions that the tariff was lawful and that GNAPs was due compensation for services rendered to Verizon. 13 On March 24, 2000, GNAPs petitioned for review of both orders.