FCC Rule Requiring Cell Phone Providers to Sell Internet Access to Competitors on Commercially Reasonable Terms Upheld

In Cellco Partnership vs. Federal Communications Commission et al., a panel of the District of Columbia Circuit rejected Verizon’s challenge to an FCC rule that required mobile internet providers to negotiate roaming agreements with their rivals.  The rule was intended to enable cell phone users to access the internet in areas not served by their own carriers.

Verizon argued that the Commission had exceeded its regulatory authority in imposing this rule by essentially treating mobile providers as common carriers required to provide service to all.  A unanimous three-judge appeals panel disagreed, upholding the FCC rule that forced mobile Web providers, such as Verizon, to offer data-roaming deals to competitors on “commercially reasonable” terms.  The court explained that the 1934 Communications Act “plainly empowers the commission to promulgate the data-roaming rule.”  The court explained that although the rule “bears some marks of common carriage,” it “does not on its face impose a common carriage obligation.”  If the rule is applied in a way that does impose common carrier obligations on the plaintiffs, the panel commented, Verizon could return to court.

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