State regulators lack authority to set rates under section 271 of...
State regulators lack authority to set rates under section 271 of the Communications Act, the 11th U.S. Circuit Court of Appeals in Atlanta ruled Monday. The court affirmed a district judge’s decision granting AT&T declaratory and injunctive relief and…
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denying relief to CompSouth, an associate member of CompTel. Section 271 relates to the sale of long distance services by Bell operating companies. In 2006, BellSouth sued the Georgia Public Service Commission when it tried to set some of the company’s unbundled network element rates by invoking section 271 authority. BellSouth, since purchased by AT&T, argued that the FCC alone had Section 271 power. The district court agreed with BellSouth, prompting an appeal by CompSouth. The 11th Circuit ruling is consistent with decisions by the 1st and 8th Circuits, said Bill Magness, attorney for CompSouth. Competitors may next take their case to the FCC, because the courts have all pointed to the commission as the rulemaking authority on jurisdiction, he said.