GTE and MTC v. FCC and the United States, Respondents; MCI Communications Corporation, et. al., Intervenors
Apr 04, 2000OUTCOME: Pacific rate integration substantially upheld.
Under the FCC’s rate integration policy, telephone companies operating in the Commonwealth of the Northern Marianas Islands (“CNMI”) and other Pacific insular areas are required to integrate their rate ... s with mainland U.S. rates, including those of their affiliates. When the policy was first implemented in 1997, calling rates from the CNMI to the mainland fell dramatically. The legal challenge began in August 1997 when the telecommunications provider GTE filed an appeal of the FCC’s 1996 and 1997 rate integration orders before the U.S. Court of Appeals, DC Circuit. In its appeal, GTE sought to overturn the policy, rolling rates back to high, pre-1997 levels. GTE argued that its CNMI affiliate should be allowed to set its rates independent of, and therefore higher than, rates charged by affiliated GTE companies in the U.S. mainland. The court confirmed that GTE and other telephone companies operating in the CNMI must integrate rates with those of affiliated mainland service providers. The ruling was a victory for CNMI consumers, keeping calling rates at a low and integrated level.
