GTE files in Federal Court of Appeals for review of the FCC's Interconnection Order

Full Transparency

Our editorial transparency tool uses blockchain technology to permanently log all changes made to official releases after publication.

More of our content is being permanently logged via blockchain technology starting [10.23.2020].

Learn more

We're committed to building trust.

Going forward more of our content will be permanently logged via blockchain technology—enabling us to provide greater transparency with authoritative verification on all changes made to official releases.

Learn more

WASHINGTON -- GTE today filed a Petition for Review in the U.S. Court of Appeals here challenging the Federal Communications Commission's (FCC) Interconnection Order.

The action follows GTE's motion filed with the FCC last week to halt the implementation of the order, pending judicial review. If the FCC fails to grant a stay, GTE said it will request a stay of the rules from the Court.

The FCC's order establishes rules for enforcing the Telecommunications Act of 1996, which Congress passed in February. Among the order's provisions is a national pricing formula for calculating wholesale prices for lease of local telephone networks to competitors. Under the order, local phone companies that have built and operated the local network would be required to wholesale both their services and parts of their network to resellers at prices substantially below actual cost.

"In our view, the FCC's Interconnection Order stands Congress' intention in passing the Act on its head," said William P. Barr, GTE senior vice president and general counsel. "Local phone companies would be required to subsidize resellers that include some of the largest corporations in the country. Here's what will happen if they are given such heavily discounted access to the existing network: the resellers will have little incentive to build networks of their own, so the Act's promise of new jobs dissipates; and the existing local companies won't have adequate capital for expanding and offering the new services customers want. Where is the consumer benefit in all of that?," asked Barr.

"Congress intended the Telecommunications Law to remove unnecessary barriers to competition and let the free market, not federal regulators, choose the winners and losers. Getting back to the original goal of the legislation is what this lawsuit is all about," said Barr.

Related Articles

02.15.2021

Virtual Reality (VR) has begun to transform medicine in profound ways. VR solutions are being used to train doctors and to plan and practice operations.

10.23.2020

Verizon’s military discounts site shows everything you need to know about Wireless offers, FiOS savings and military career opportunities, all in one place, making it simple for service members and veterans to discover what Verizon has to offer.