Business Services Industry
A tale of two decisions: so you thought telecom regulation didn't matter? Well, guess again.(Supreme Court and DC Court of Appeals decision conflict)
Business Communications Review, July, 2002 by Weingarten, Michael
May 2002 will go down in telecom regulatory annals as a particularly schizophrenic month: * On May 13, the Supreme Court affirmed the FCC's right to apply total element long-run incremental cost (TELRIC) pricing rules as the basis for wholesale rates for unbundled network elements (UNEs).
TELRIC rules are based on the cost of building a new network today, using current (presumably less expensive) technology. In making its ruling, the Court rejected ILEC arguments that: a.) Pricing should be based on historical (and presumably higher) costs; b.) TELRIC was an unconstitutional "taking of property" without just compensation (in violation of the Fifth Amendment to the U.S. Constitution). * Then, on May 24, the Washington, DC Court of Appeals found...
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