AT&T Corp. v. Federal Communications Commission, No. 18-1007 (D.C. Cir. 2020)
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The Communications Act of 1934 restricts the rates that telecommunications carriers may charge for transmitting calls across their networks, 47 U.S.C. 201(b). Iowa-based Aureon is a joint venture through which local carriers connect to long-distance carriers such as AT&T and has “subtending” agreements with participating local carriers. AT&T alleged that Aureon imposed interstate and intrastate access charges that violated the Federal Communications Commission (FCC) transitional pricing rules; improperly engaged in access stimulation (enticing high call volumes to generate increased access charges); committed an unreasonable practice by agreeing with subtending carriers to connect calls involving access stimulation; and billed for service not covered by its 2013 interstate tariff. The FCC found that Aureon violated the transitional rule.
The D.C. Circuit reversed in part. The transitional rule applies to all “competitive local exchange carriers,” and Aureon falls into that category but the rule applies to intrastate rates so Aureon’s 2013 increase of its interstate rate was not covered. The court remanded the question of whether Aureon’s subtending agreements qualify as access revenue sharing agreements. The court affirmed the FCC’s determination that Aureon’s interstate tariffs apply to traffic involving any local carriers engaged in access stimulation. The FCC erred in refusing to adjudicate AT&T’s unreasonable-practices claim.
The court issued a subsequent related opinion or order on August 13, 2020.
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