Vermont Public Service Board, et al. v. FCC, et al.

Justia.com Opinion Summary: This case involved the FCC's Universal Service Program, which provided subsidies to ensure that low-income consumers, schools, health care providers, and libraries have access to advanced telecommunications services and that rates and services in rural areas were "reasonably comparable" to rates and services in urban areas pursuant to the Telecommunications Act of 1996, 47 U.S.C. 254. At issue was the FCC's order declining to increase subsidies under the rural rates and services component of the Universal Services Program. Here, the FCC explained that "reasonable comparability" between rural and urban areas had been largely accomplished and that expansion of the high-cost support fund would "jeopardize other statutory mandates," such as extending services to schools, hospitals, and libraries, and "ensuring affordable rates in all parts of the country." Because of this, and because the FCC had promised to address state-specific issues, like those presented by Vermont and Maine, through the waiver process, its decision to leave the high-cost support mechanism unchanged was neither arbitrary nor capricious. Thus, the court denied the petition for review.

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