New Edge Network, Inc. v. Federal Communications Commission

T.G. NELSON, Circuit Judge.

I. Introduction

These petitions arise from the Federal Communications Commission’s (“FCC”) report and order changing its interpretation of a provision of the Telecommunications Act of 1996, Pub.L. 104-104,110 Stat. 56. In 2004, the FCC adopted a new rule replacing its so-called “pick-and-choose” interpretation of 47 U.S.C. § 252 (i) with an “all-or-nothing” interpretation. Petitioners in various circuits challenged the new rule, and the Judicial Panel on Multidis-trict Litigation consolidated the petitions in this court. We have jurisdiction pursuant to 28 U.S.C. § 2342 (1) and 47 U.S.C. § 402 (a). We conclude that § 252(i) is ambiguous and that the FCC’s all-or-nothing interpretation is reasonable. We also conclude that the FCC did not abuse its discretion by adopting new rule. Accordingly, we deny the petitions for review.

II. Background

In passing the Telecommunications Act of 1996, Congress fundamentally restructured local telephone markets to promote competition. States can “no longer enforce laws that impede competition,” and incumbent local exchange carriers (“ILECs”), which had been state-sanctioned monopolies, are “subject to a host of…