U.S. West Communications, Inc. v. Washington Utilities & Transportation Commission

AT & T Wireless Services, Inc. (“AT & T”) appeals from the district court’s grant of summary judgment affirming the agreement arbitrated by the State of Washington Utilities and Transportation Commission (“the Commission”) pursuant to the Telecommunications Act of 1996 (“Act”), 47 U.S.C. §§ 251-61 . AT & T contests the agreement provision providing the reciprocal compensation rate for U.S. West Communications, Inc. (“U.S.West”) traffic transported and terminated on AT & T’s network. AT & T argues that it should be compensated at the higher tandem rate and not the lower end-office rate as determined in arbitration. The district court affirmed the Commission’s arbitrated agreement. We hold that the Commission erred when it concluded that AT & T should be compensated at the end-office rate for U.S. West traffic terminating on AT & T’s network and, therefore, we REVERSE.

I. BACKGROUND

The Telecommunications Act is designed to foster competition in local and long distance telephone markets by neutralizing the competitive advantage inherent in incumbent carriers’ ownership of the physical networks required to supply telecommunication services. Sections 251 and 252 of the Act require…