AT&T Corp. v. FCC, No. 15-1059 (D.C. Cir. 2016)Annotate this Case
In this case, the court addresses the fees that local exchange carriers (LECs) can charge inter-exchange carriers (IXCs) for certain services they provide, in coordination with providers of Voice over Internet Protocol (VoIP), for the completion of “inter-exchange” calls. The FCC concluded that the disputed services are end-office switching services. Petitioner AT&T says that they are tandem switching services. In 2011, the Commission made a broad effort to update its system for regulating intercarrier compensation (the Transformation Order). The Commission, in In re Connect America Fund, ruled that the disputed services are indeed end-office access under subsection (3) of 47 C.F.R. 51.903(d). AT&T challenges the Declaratory Ruling. The court found that the Declaratory Ruling does not disclose the Commission’s reasoning with the requisite clarity to enable it to sustain such a conclusion. Therefore, the court vacated and remanded the order to the Commission for further explanation. The court need not reach AT&T's second challenge.