U.S. Cellular Corp. (USCC) and Rural Cellular Assn. (RCA) petitio...

Corr Wireless, part of rural carrier group challenging original FCC order, also is seeking D.C. Circuit review. In order, Commission had deleted carrier cost recovery precondition, which was seen as slowing down rollout of E911 services. Agency concluded carriers didn’t have to meet E911 Phase 1 and Phase 2 requirements until guaranteed state or local govt. funding was in place. Rural carriers, including USCC, had challenged FCC decision, and D.C. Circuit sided with Commission (CD July 2 p1). “Despite a directly analogous wireline model where the incumbent local telephone monopoly charges the state and local governments to provide comparable wireline E911 service, the panel decision affirmed the FCC’s orders that created this unfunded mandate on wireless carriers,” petition said. RCA and USCC argued that ruling ignored Sec. 201 of Communications Act, which limits FCC authority to regulate wireless carriers through Administrative Procedure Act and other legislative provisions. Calling decision to roll back carrier cost recovery conditions “irrational,” RCA and USCC asked court to rehear case and vacate FCC’s order. Rural carriers cited D.C. Circuit decision in 1996 in CompTel case in which court said Communications Act barred departures from principles of cost causation without compelling justification. Rural carriers contend that FCC order at issue departs from that principle because public safety answering point that orders E911 service from wireless carrier “has been excused from paying” for service. Petition said: “No reasonable court would sustain a federal order requiring ambulance makers to provide ambulances for free to state and local governments because the emergency rescue service was otherwise in the ‘public interest.’ Because the FCC orders at issue effectively require the very same thing, this court should rehear this case and vacate the FCC orders under review.” Rural carriers said issues were of “exceptional importance.” They said FCC mandate would require operators to spend billions of dollars to upgrade their networks to meet E911 Phase 2 deadline of Oct. 1.