Global Tel*Link v. FCC

Petitioners challenged the Commission's order that set permanent rate caps and ancillary fee caps for interstate inmate calling services (ICS) calls. After the presidential inauguration in January 2017, counsel for the FCC advised the court that, due to a change in the composition of the Commission, "a majority of the current Commission does not believe that the agency has the authority to cap intrastate rates" under section 276 of the Communications Act of 1934. Consequently, the DC Circuit granted in part and denied in part the petitions for review, remanding for further proceedings. The court also dismissed two claims as moot. The court held that the order's proposed caps on intrastate rates exceed the FCC's statutory authority under the Telecommunications Act of 1996 Act; the use of industry-averaged cost data as proposed in the Order was arbitrary and capricious because it lacked justification in the record and was not supported by reasoned decisionmaking; the order's imposition of video visitation reporting requirements was beyond the statutory authority of the Commission; and the order's proposed wholesale exclusion of site commission payments from the FCC's cost calculus was devoid of reasoned decisionmaking and thus arbitrary and capricious. View "Global Tel*Link v. FCC" on Justia Law