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                                   Before the

                       Federal Communications Commission

                            Washington, D.C.  20554

   In the Matter of )

   )

   Mountain Communications, Inc., )

   )

   Complainant, )

   )

   v. ) File No. EB-00-MD-017

   )

   Qwest Communications )

   International, Inc., )

   )

   Defendant. )

                     memorandum opinion and Order on Remand

   Adopted:  October 5, 2006    Released: October 6, 2006

   By the Commission:

   I. Introduction

    1. In this Memorandum Opinion and Order on Remand, we grant a formal
       complaint brought by Mountain Communications, Inc. ("Mountain")
       against Qwest Communications International, Inc. ("Qwest") pursuant to
       section 208 of the Communications Act of 1934, as amended ("Act").  In
       accordance with a decision by the United States Court of Appeals for
       the District of Columbia Circuit ("D.C. Circuit") vacating and
       remanding our earlier order, we find that Qwest violated sections
       51.703(b) and 51.709(b) of our rules by improperly charging Mountain
       for delivering one-way paging traffic that originated and terminated
       in the same Major Trading Area ("MTA") and for which no wide area
       calling arrangement had been established. In so holding, we reject
       Qwest's assertion that granting the complaint is inappropriate in
       light of the jurisdictional and limitations defenses it raises.

   II. Background

    2. Mountain is a Commercial Mobile Radio Service ("CMRS") provider that
       offers one-way paging services to customers in three Colorado cities
       located in one MTA. Qwest is the incumbent local exchange carrier
       ("LEC") serving those Colorado cities.

    3. Mountain filed a formal complaint with the Commission on September 11,
       2000. In its Complaint, Mountain asserted,  inter alia, that Qwest
       violated sections 51.703(b) and 51.709(b) of the Commission's rules by
       charging Mountain a fee for delivering to Mountain certain local
       traffic that originated on Qwest's network, i.e., local calls from
       Qwest's customers to Mountain's paging customers in the three Colorado
       cities at issue. The Enforcement Bureau denied Mountain's Complaint.
       Citing the Commission's earlier order in TSR Wireless, the Bureau
       recognized that a LEC generally could not charge CMRS providers for
       the delivery of LEC-originated traffic that originated and terminated
       within the same MTA, because such traffic constituted local traffic
       under the Commission's rules.  The Bureau further explained, however,
       that nothing prevented a LEC from charging its end users for intraLATA
       toll calls that originated on its network and terminated over
       facilities situated entirely within a single MTA. The Bureau noted
       that, if a paging carrier wanted to avoid having callers to its
       customers pay such toll charges, TSR Wireless left open the
       possibility of wide area calling or reverse billing arrangements where
       the CMRS carrier could "buy down" the cost of such calls to make it
       appear to the LEC's end users that they have made a local call rather
       than a toll call.  The Bureau then found that Mountain and Qwest
       effectively had entered into a wide area calling arrangement. Thus,
       the Bureau concluded that Qwest was entitled to collect from Mountain
       the transport fees at issue. The Commission affirmed the Bureau,
       whereupon Mountain filed a petition for review in the D.C. Circuit.

    4. The D.C. Circuit disagreed with the Commission's finding that Mountain
       had entered into a constructive wide area calling  arrangement with
       Qwest.  According to the court, the Commission wrongly "stretch[ed]
       the concept of a wide area calling arrangement" to encompass the
       situation between Mountain and Qwest, noting that Mountain had "no
       incentive to enter into a wide area calling arrangement with Qwest."
       In so finding, the Court concluded that the Commission departed,
       without explanation, from TSR Wireless (in which, the Court said, the
       "facts seem - and are conceded to be - identical, but the results are
       the opposite"),  and came into "direct conflict" with rule 51.703(b)
       (which prohibits a LEC from assessing charges on any other
       telecommunications carrier for telecommunications traffic that
       originates on the LEC's network). Accordingly, the court vacated and
       remanded the Commission's denial of Mountain's Complaint.

    5. After release of the court's opinion, and at the request of Commission
       staff, the parties and Commission staff engaged in a written and oral
       dialogue regarding whether, in light of the Court's opinion, the
       Commission should simply grant Mountain's complaint on the ground that
       the applicable rules and precedent bar Qwest from imposing the
       transport charges at issue. Qwest asserted that issues remain properly
       before the Commission in this post-remand phase of this proceeding and
       submitted a statement supporting its position.   Specifically, Qwest
       sought to brief its position that the Commission should not simply
       grant Mountain's Complaint, because (i) the Commission lacks subject
       matter jurisdiction to adjudicate disputes regarding interconnection
       negotiations, and (ii) the applicable statute of limitations bars any
       potential damages award.

   III. Discussion

    6. As explained below, we grant Mountain's complaint and find that
       Qwest's imposition of charges for transporting to Mountain the
       Qwest-originated one-way paging traffic at issue violated section
       51.703(b) and 51.709(b) of the Commission's rules. Accordingly, we
       reject Qwest's contentions that the Commission cannot grant this
       complaint because we lack subject matter jurisdiction in this matter
       or because the statute of limitations bars any potential damages
       award.

    7. First, Qwest's position on jurisdiction seems directed exclusively at
       disputes concerning the negotiation of an interconnection agreement.
       The Enforcement Bureau, however, already dismissed Mountain's claims
       relating to the negotiation of interconnection agreements.  We,
       therefore, find that the jurisdictional issue Qwest raises is moot.
       Moreover, to the extent that Qwest challenges Mountain's use of the
       Commission's section 208 complaint procedure to resolve disputes over
       the charges at issue, that jurisdictional question has long since been
       resolved in favor of Commission jurisdiction.  Indeed, the Bureau
       Order so held, and Qwest did not challenge that holding in court.

    8. Second, as a factual matter, Qwest's defense that the statute of
       limitations has expired on any damages award is not justified at
       present, because Mountain exercised its right under section 1.722 of
       the Commission's rules to reserve damages issues for a subsequent
       proceeding. Moreover, even if Qwest's statute of limitations defense
       were valid, it would bar neither the non-damages claim for relief
       resolved in this Order nor Mountain's claim for damages arising from
       "economic harm" and other injuries allegedly incurred since September
       11, 1998. Thus, it is appropriate to defer briefing on Qwest's statute
       of limitations defense until the subsequent damages proceeding, if
       any, commences. Accordingly, Qwest may raise the statute of
       limitations defense in its answer to any supplemental complaint for
       damages filed by Mountain.

    9. Qwest concedes that, aside from the two issues discussed above, there
       is nothing further for us to adjudicate in the liability phase of the
       instant proceeding.  We agree. The record demonstrates that Qwest
       charged Mountain a fee for delivering one-way paging traffic that
       originated and terminated in the same MTA. And, as the D.C. Circuit
       noted, Mountain did not enter into a wide area calling arrangement
       with Qwest that might have permitted Qwest to charge for the traffic
       at issue. Absent such an arrangement, we conclude, consistent with the
       D.C. Circuit's reasoning, that Qwest's charges for transporting
       one-way paging telecommunications traffic to Mountain from Qwest's own
       customers are unlawful.

   IV. Ordering Clause

   10. Accordingly, IT IS ORDERED that, pursuant to sections 4(i), 4(j), and
       208 of the Communications Act of 1934, as amended, 47 U.S.C. SS
       154(i), 154(j), and 208, and sections 1.720-1.736, 51.703(b), and
       51.709(b) of the Commission's rules, 47 C.F.R. SS 1.720-1.736,
       51.703(b), and 51.709(b), Mountain's claim that Qwest's charges for
       transporting traffic to Mountain from Qwest's own customers are
       unlawful IS GRANTED.

   FEDERAL COMMUNICATIONS COMMISSION

   Marlene H. Dortch

   Secretary

   Formal Complaint, File No. EB-00-MD-017 (filed Sept. 12, 2000)
   ("Complaint").

   47 U.S.C. S 208.

   See Mountain Communications, Inc. v. FCC, 355 F.3d 644 (D.C. Cir. 2004)
   ("Mountain v. FCC").

   47 C.F.R. SS 51.703(b) (prohibiting a LEC from assessing charges on
   another carrier for telecommunications traffic that originates on the
   LEC's own network), 51.709(b)  ("The rate of a carrier providing
   transmission facilities dedicated to the transmission of traffic between
   two carriers' networks shall recover only the costs of the proportion of
   that trunk capacity used by an interconnecting carrier to send traffic
   that will terminate on the providing carrier's network.").

   Mountain  v. FCC, 355 F.3d at 647 n.2;  Mountain Communications, Inc. v.
   Qwest Communications International, Inc., Memorandum Opinion and Order, 17
   FCC Rcd 2091, 2096, P 11 (Enf. Bur. 2002) ("Bureau Order"), aff'd,
   Mountain  Communications, Inc. v.  Qwest Communications International,
   Inc., Order on Review, 17 FCC Rcd 15135 (2002) ("Commission Order"),
   vacated  and remanded, Mountain v. FCC, supra.

   Mountain v. FCC, 355 F.3d at 645-46;  Bureau Order, 17 FCC Rcd at 2091, P
   2.

   Complaint at 9-10, PP 36-40; Mountain v. FCC, 355 F.3d at 646; 47 C.F.R. S
   51.703(b); 47 C.F.R. S 51.709(b).

   Bureau Order, 17 FCC Rcd at 2097-98, PP 13-14.

   TSR Wireless, LLC v. U S West Communications, Inc., Memorandum Opinion and
   Order, 15 FCC Rcd 11166 (2000) (rejecting similar effort by LEC to charge
   paging carrier for delivering local calls that originated on LEC's
   network) ("TSR Wireless"), aff'd sub nom.  Qwest Corp. v. FCC, 252 F.3d
   462 (D.C. Cir. 2001) ("Qwest v. FCC").

   Bureau Order, 17 FCC Rcd at 2094-96 PP 8, 11.

   Bureau Order, 17 FCC Rcd at 20946, P 11.

   Bureau Order, 17 FCC Rcd at 2096, P 11.

   Bureau Order, 17 FCC Rcd at 2096-97, PP 12-13.

   Bureau Order, 17 FCC Rcd at 2097-98, PP 13-14.

   Commission Order, supra.

   Mountain v. FCC, 355 F.3d at 645.

   Mountain v. FCC, 355 F.3d at 647-48.

   Mountain v. FCC, 355 F.3d at 647-48.

   Mountain v. FCC, 355 F.3d at 647-48 (citing TSR Wireless, 15 FCC Rcd at
   11184, P 31; 47 C.F.R. S 51.703(b)).

   Mountain v. FCC, 355 F.3d at 647-49.

   See  Joint Statement of Mountain Communications, Inc. and Qwest
   Corporation Regarding Proceeding on Remand, File. No. EB-00-MD-017 (filed
   Feb. 20, 2004); Supplement to Joint Statement of Mountain Communications,
   Inc. and Qwest Corporation Regarding Proceeding on Remand, File. No.
   EB-00-MD-017 (filed Mar. 9, 2004). Conference calls involving Commission
   staff and the parties occurred on April 8, 2004, April 30, 2004, and May
   7, 2004.

   Statement of Issues to be Addressed on Remand by Qwest Communications
   International, Inc., File No. EB-00-MD-017 (filed May 17, 2004) ("Qwest
   Statement of Issues"). See Letter from Radhika V. Karmarkar, Deputy Chief,
   Market Disputes Resolution Division, Enforcement Bureau, Federal
   Communications Commission, to Robert B. McKenna, Jr., Qwest Corporation,
   and Benjamin J. Aron, Schwaninger & Associates, P.C., counsel for
   Mountain, File No. EB-00-MD-017 (May 13, 2004); Mountain Communications,
   Inc.'s Reply to Statement of Issues to be Addressed on Remand by Qwest
   Communications International, Inc., File. No. EB-00-MD-017 (filed May 17,
   2004) ("Mountain's Reply").

   Qwest Statement of Issues at 1-2.

   Qwest Statement of Issues at 2.

   Qwest Statement of Issues at 1-2 ("Because the Act specifies that disputes
   over an interconnection negotiation belong before state regulatory
   authorities, Mountain's claims must be addressed in a state arbitration
   proceeding rather than in a complaint proceeding before this
   Commission.").

   Letter Ruling from Frank G. Lamancusa, Deputy Chief, Market Disputes
   Resolution Division, Enforcement Bureau, Federal Communications
   Commission, to Michael L. Higgs, counsel for Mountain, and Blair A.
   Rosenthal, Qwest Corporation, File No. EB-00-MD-017 at 2 (Sept. 19, 2001).

   See, e.g.,  Qwest v. FCC, 252 F.3d at 463-64 (upholding Commission's use
   of complaint procedure under sections 208 and 332 of the Act to resolve
   paging carrier's claims alleging violation of rule 51.703(b)).

   Bureau Order, 17 FCC Rcd at 2094, P 7.

   47 C.F.R. S 1.722(d) (identifying the steps a complainant must take if it
   "wishes a determination of damages to be made in a proceeding that is
   separate from and subsequent to the proceeding in which the determinations
   of liability and prospective relief are made").

   Complaint at 19, P 83.

   See  AT&T Corp. v. BellSouth Telecommunications, Inc., Memorandum Opinion
   and Order, 19 FCC Rcd 23898, 23915, P 45  (2004) (declining to consider
   statute  of  limitations defense during liability phase of bifurcated
   proceeding in which complainant sought both prospective relief and
   damages).

   Complaint at 19, P 82.

   Qwest Statement of Issues at 3.

   Joint Statement of Mountain Communications and Qwest Corporation, File No.
   EB-00-MD-017 at 8, P 22 (filed Oct. 16, 2000). See  Mountain v. Qwest, 355
   F.3d at 645.

   Mountain v. Qwest, 355 F.3d at 647-48.

   This Order concerns application of our existing rules only, and expresses
   no opinion with regard to formulation of new or revised intercarrier
   compensation rules.

                                 Federal Communications Commission FCC 06-147

   2

                                 Federal Communications Commission FCC 06-147