National Association of Telecommunications Officers and Advisors v. FCC, No. 15-1295 (D.C. Cir. 2017)Annotate this Case
Petitioners sought review of the FCC's order reversing a decades-old, rebuttable presumption that determined whether state and local franchising authorities may regulate cable rates. Under its new Order, the Commission presumes there is Competing Provider Effective Competition and places the burden upon the franchising authority that wants to regulate basic cable rates to prove there is not effective competition in its area. The D.C. Circuit denied the petition for review and held that the Commission's use of a rebuttable presumption to comply with the statutory requirement that it make a finding on the state of competition in each franchise area was a permissible construction of the statutory requirement that the Commission find effective competition before terminating rate regulation; the Commission reasonably interpreted the Communications Act to allow, after a finding of effective competition, termination of existing certifications without having to wait for a petition of the kind referenced in 47 U.S.C. 543(a)(5); and the court rejected arguments regarding the STELA Reauthorization Act. The court also held that the Commission's rule was not arbitrary nor capricious.