Friday, August 26, 2005

 

Not-Best is OK: Supreme Court in Brand X

A comment by Frank (not sure which Frank) [Updata: Frank Muto, Co-founder of the Washington Bureau for ISP Advocacy] on a previous post on the Brand X decision says,
Show me where in the [Supreme Court] opinion, they gave the FCC any authority above and beyond the scope of the Telco Act?
We can argue about whether, "above and beyond" is the best operative phrase, but the decision says that a lower court must defer to a federal agency's interpretation of law, "even if it differs from what the court believes to be the best interpretation," as long as the law leaves some, "room for agency discretion."

To me, this means that if the law says that, "One is a bun and two is a shoe," this non-best interpretation part of the Brand X Decision means that an agency can say that since it is possible to tie a bun to your foot with shoelaces, it can be a shoe.

The Telecom Act defines:
(41) INFORMATION SERVICE- The term `information service'
means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or
making available information via telecommunications, and
includes electronic publishing, but does not include any use of
any such capability for the management, control, or operation
of a telecommunications system or the management of a
telecommunications service.

(51) TELECOMMUNICATIONS SERVICE- The term
`telecommunications service' means the offering of
telecommunications for a fee directly to the public, or to such
classes of users as to be effectively available directly to the
public, regardless of the facilities used.'.


To me, the best interpretation would have cable modem service fitting the definition of "Telecommunications Services," such a definition would take cognizance of the twin facts that (a) cable modems are dumb connections offered for a fee directly to the public, and (b) the capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information" is done in intelligent devices at the edge of the network that are connected by a dumb telecommunications service "regardless of facilities used."

Brand X allows the FCC to adopt a non-best interpretation of the law. This ipso facto lets them call cable model service what they want to call it because the law does have "room for agency discretion."

Myself, if there were clearly a best interpretation, as there is in this case, I would want to hold that the agency to that best interpretation. For years, the Supreme Court has been in the business of deciding the best interpretation of the law. Now, it seems, they're giving it up.

Is this going above and beyond the Telecom Act of 1996? Dunno. But I don't think it is best; it is not even very good.

Disclaimer: I am not a lawyer; I assume that legal documents like Supreme Court decisions have understandable meaning anyway.

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Comments:
Frank Muto - WBIA

My concerns about the Brand X case is not about if the FCC's ruling back then applied or not, whereas the SC said in their opinion their ruling stands over the lower court, that was a no-brainer.

The point being is that the FCC is using this outdated decision and different technology and expanding it to a different technology and market with a different set of policies.

As far as I know, the FCC is still mandated to govern the Telcom Act in way that promotes competition. In following that train of thought, how has the FCC really complied with Sec 706 or Sec 10?

How does eliminating competition as such the recent DSL ruling and how was line-sharing a barrier to infrastructure investment?

What possible explanation is there, [other] than the BOC's claiming lost profits on the tariff providing UNE-P when they set the pricing and sell under those prices on a retail level such as DSL?

The BOC/LECs, ISP and CLECs are all on the same page when up against the MSO competition, in providing Internet Access and Telephony. So, what is their point?

All in all, it is Payola to those that supported the current administration being elected and now getting their return on that investment. Just follow the money like always, though I feel it's never been more blatantly open with the help of the Internet's readily available information.
 
I agree 100% with you Frank. Brand X is just like that scam we pull together a few years ago.

C.J. Brown III
 
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