JUDGES ROUGH UP FCC IN APPEAL OF VERIZON FORBEARANCE REJECTION

摘要

The FCC got tough questioning from federal appeals judges for denying Verizon unbundling forbearance in six markets last year. In oral argument at the U.S. Court of Appeals for the District of Columbia Circuit, Judges David Sentelle, Thomas Griffith and Harry Edwards spent most of their time asking why the FCC used only a market-share test to assess competition levels. The judges asked Verizon's attorney few questions, ending the argument with 10 minutes to spare in Verizon's rebuttal time. Verizon is challenging a December FCC order denying the carrier's petition for forbearance from loop and transport unbundling requirements in Virginia Beach, Providence and four other markets. The FCC decided there wasn't enough competition in the markets. Verizon wants the appeals court to throw out the order and give the agency 30 days to issue a new one. nn" There's a good probability" that the court will side with Verizon and send the order back to the FCC, Stifel Nicolaus said in a note to investors. Verizon could still have an uphill battle, because the commission that would redo the order would have a Democratic majority. "FCC Democrats have been more skeptical about giving the Bells forbearance relief," the firm said. Verizon believes the FCC set too high a hurdle for showing that the markets weren't competitive enough, the carrier's attorney, Scott Angstreich, said during the argument. The FCC denied Verizon relief because competitors didn't have half the market among them. But under court rulings, the commission should use an impairment test: Whether rivals can compete without access to shared facilities, Angstreich said.