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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                          )                          
                                                                     
                                          )                          
                                                                     
                                          )                          
     North County Communications Corp.,                              
                                          )                          
     Complainant,                                                    
                                          )                          
     v.                                       File No. EB-06-MD-007  
                                          )                          
     MetroPCS California, LLC,                                       
                                          )                          
     Defendant.                                                      
                                          )                          
                                                                     
                                          )                          
                                                                     
                                          )                          


                                order on review

   Adopted: November 19, 2009 Released: November 19, 2009

   By the Commission:

   I. introduction

    1. In this Order on Review, we grant in part and otherwise deny the
       Application for Review filed pursuant to rule 1.115 by North County
       Communications Corp. ("North County") challenging one holding of the
       Bureau Merits Order in this proceeding. We also deny the similar
       Application for Review filed by MetroPCS California, LLC ("MetroPCS").
       In short, according to the parties, the Bureau Merits Order erred by
       holding that, before North County may seek to enforce whatever right
       to compensation it may have here at the Commission under rule 20.11,
       North County must first obtain from the California Public Utilities
       Commission ("California PUC") a determination of a reasonable rate for
       North County's termination of intrastate, intraMTA traffic originated
       by MetroPCS. For the reasons explained below, we affirm the finding in
       the Bureau Merits Order that under the current rules as interpreted by
       Commission precedent, the California PUC is the more appropriate forum
       for determining a reasonable rate for North County's termination of
       intrastate, intraMTA traffic originated by MetroPCS, and that North
       County should seek to obtain such a determination from the California
       PUC before seeking to enforce whatever right to compensation it may
       have here at the Commission under rule 20.11. Rather than dismiss
       North County's claim without prejudice (as the Bureau Merits Order
       did), however, we will hold the claim in abeyance (in the form of an
       informal complaint) pending the California PUC's determination of a
       reasonable termination rate to avoid any prejudice to North County's
       alleged claim for compensation.

   II. background

    2. The parties do not challenge the factual findings of the Bureau Merits
       Order (with one exception discussed below). Therefore, we incorporate
       those findings by reference. We provide a summary of those findings
       below before addressing the parties' legal arguments on review.

    3. North County is a licensed competitive local exchange carrier ("CLEC")
       that provides switched and non-switched local exchange, exchange
       access, and other telecommunications services in California. Most, if
       not all, of North County's end user customers are either chat-line
       providers or telemarketers.

    4. MetroPCS is a Commercial Mobile Radio Service ("CMRS") carrier that
       provides wireless communications services in California. MetroPCS is
       indirectly interconnected with North County in California through the
       switching facilities of other local exchange carriers ("LECs").
       MetroPCS does not have a written interconnection agreement with North
       County.

    5. The traffic exchanged between North County and MetroPCS is
       jurisdictionally intraMTA and intrastate (hereinafter "intrastate"
       traffic). Moreover, all of the traffic exchanged between the parties
       is in-bound to North County from MetroPCS. That is because North
       County's chat line provider customers generate no outbound calls, and,
       according to North County, legal restrictions preclude its
       telemarketer customers from calling wireless phones.

    6. Despite the absence of a written interconnection agreement with
       MetroPCS, North County began billing MetroPCS for the termination of
       intrastate traffic sometime in 2003. MetroPCS has not paid North
       County any amount of money for the traffic terminated by North County.
       In MetroPCS' view, a default "bill-and-keep" arrangement exists,
       whereby neither party pays the other for traffic termination. Between
       August 2005 and approximately June 2006, North County and MetroPCS
       attempted to negotiate a written interconnection agreement, without
       success.

    7. Upon reaching an impasse in its negotiations with MetroPCS regarding a
       written interconnection agreement, North County filed a formal
       complaint against MetroPCS pursuant to section 208 of the
       Communications Act of 1934, as amended (the "Act"). Count I of the
       Complaint alleged that MetroPCS is violating rule 20.11(b) by failing
       to pay North County for terminating traffic originated on MetroPCS'
       network. Count II of the Complaint alleged that MetroPCS is violating
       section 251(b)(5) of the Act and rule 51.301 by failing to negotiate
       and execute a written interconnection agreement with North County in
       good faith. Counts III and V of the Complaint alleged that MetroPCS is
       violating sections 201(b) and 202(a) of the Act, respectively, by
       refusing to enter into a written interconnection agreement with North
       County. Count IV of the Complaint alleged that MetroPCS is violating
       rule 51.715 by refusing to enter into an interim interconnection
       agreement with North County.

    8. Based upon thorough and well-reasoned analyses, the Bureau Merits
       Order denied Counts II, III, IV, and V of the Complaint. Neither the
       North County AFR nor the MetroPCS AFR challenges those denials.
       Therefore, those denials are final, and we do not address them here.
       The only challenged portion of the Bureau Merits Order concerns the
       dismissal without prejudice of Count I, which we discuss below.

   III. Discussion

    9. Rule 20.11(b) provides, in pertinent part, that "[a] commercial mobile
       radio service provider shall pay reasonable compensation to a local
       exchange carrier in connection with terminating traffic that
       originates on the facilities of the commercial mobile radio service
       provider." As stated above, Count I of the Complaint alleged that
       MetroPCS is violating rule 20.11(b) by failing to pay reasonable
       compensation for North County's termination of intrastate traffic
       originated by MetroPCS. The Complaint asked the Commission to issue an
       order (i) prescribing a rate (under section 205 of the Act) for
       terminating intrastate traffic between the parties at or above the
       rate billed by North County to MetroPCS, and (ii) awarding North
       County past due amounts consistent with the Commission's prescribed
       intrastate termination rate, plus reasonable interest.

   10. The Bureau Merits Order declined to determine what constitutes
       "reasonable compensation" in this case and thus declined to prescribe
       a rate or award damages. In doing so, the Bureau Merits Order relied
       on the Commission's repeated holdings that (i) states have authority
       to establish rates charged by LECs for termination of intrastate
       traffic from CMRS providers, and (ii) the Commission has not preempted
       such state authority. Thus, according to the Bureau Merits Order, the
       more appropriate venue for determining what rate will result in
       "reasonable compensation" for North County's termination of intrastate
       traffic originated by MetroPCS is not this Commission, but rather the
       California PUC, via whatever procedural mechanism it deems appropriate
       under state law (e.g., complaint proceeding, declaratory ruling
       proceeding, generic cost or rulemaking proceeding). In turn, unless
       and until what constitutes reasonable compensation for North County's
       termination of intrastate traffic originated by MetroPCS is
       determined, the Commission cannot determine whether or to what extent
       MetroPCS has violated its duty under rule 20.11(b)(2) to pay such
       compensation. Accordingly, the Bureau Merits Order dismissed without
       prejudice Count I of the Complaint, and stated that, if after the
       California PUC prescribes a reasonable termination rate North County
       believes MetroPCS has failed to pay what is owed pursuant to that rate
       under rule 20.11(b)(2), North County may then seek resolution of such
       dispute.

   11. North County asks us to either (i) reverse the Bureau Merits Order in
       its entirety, prescribe a reasonable compensation rate under section
       205 of the Act, and award damages based on that rate; or (ii) reverse
       the Bureau Merits Order as applied to the period prior to April 29,
       2005, award damages for that period based on the rates then contained
       in North County's California tariff, and hold Count I in abeyance,
       rather than dismiss it, pending a determination by the California PUC
       of a reasonable compensation rate for the post-April 29, 2005 period;
       or (iii) hold Count I in abeyance, rather than dismiss it, pending a
       determination by the California PUC of a reasonable compensation rate
       for the whole period at issue. MetroPCS asks us to either (i) reverse
       the Bureau Merits Order and remand Count I to the Enforcement Bureau
       with instructions to prescribe a reasonable compensation rate and
       award damages (if any) based on that rate, or (ii) provide guidance to
       the California PUC about how to determine a reasonable compensation
       rate.

   12. We have carefully examined the record before the Enforcement Bureau,
       the Bureau Merits Order, and the record on review. In our view, for
       the reasons set forth in the Bureau Merits Order itself, the Bureau
       Merits Order was correct to conclude that the California PUC is the
       more appropriate forum for determining the reasonable compensation
       rate for North County's termination of intrastate, intraMTA traffic
       originated by MetroPCS. In addition, the parties' arguments on review
       regarding the forum issue largely mirror those they already made
       before the Bureau. Therefore, we deny the parties' Applications for
       Review regarding the forum issue primarily by affirming and
       incorporating by reference the reasoning and holdings of the Bureau
       Merits Order. Only a few of the parties' positions on the forum issue
       warrant further discussion, which we provide below.

   13. Most of the parties' arguments on review (that warrant express
       discussion here) rest on one fundamental proposition: the Bureau
       Merits Order allegedly misinterpreted the Commission's holdings and
       purposes in the T-Mobile Declaratory Ruling. In the T-Mobile
       Declaratory Ruling, the Commission established, inter alia, that after
       the effective date of that order, (i) LECs could not impose
       compensation obligations for non-access CMRS traffic pursuant to
       tariff, and (ii) an incumbent LEC could request interconnection from a
       CMRS carrier and invoke the negotiation and arbitration procedures set
       forth in section 252 of the Act. According to North County and
       MetroPCS, those two holdings, read together, mean that the Commission
       intended to reserve for itself, and exclude the states from, the task
       of establishing rates for a CLEC's termination of CMRS traffic. Thus,
       in the parties' view, the Bureau Merits Order conflicts with the
       Commission's T-Mobile Declaratory Ruling by allowing a state (the
       California PUC) to establish rates for North County's (a CLEC's)
       termination of MetroPCS traffic (CMRS traffic).

   14. We disagree with the parties. As the Bureau Merits Order aptly
       observes, the T-Mobile Declaratory Ruling expressly acknowledges the
       Commission's many prior orders declining to preempt state regulation
       of intrastate rates that LECs charge CMRS providers for termination,
       and then does not alter or amend those orders. Moreover, the T-Mobile
       Declaratory Ruling does not purport to limit the states' general
       authority to regulate rates for intrastate traffic as preserved by
       section 2(b) of the Act, except that LECs cannot impose compensation
       obligations for non-access CMRS traffic pursuant to state tariff.
       Therefore, the better application of the T-Mobile Declaratory Ruling
       to the situation here is the one reached by the Bureau Merits Order:
       consistent with the Commission's repeated refusals to preempt state
       authority in this regard, the California PUC is the more appropriate
       venue for determining what constitutes a "reasonable compensation"
       rate under rule 20.11 for North County's termination of intrastate
       traffic originated by MetroPCS; and the California PUC may employ
       whatever non-tariff procedural mechanism it deems appropriate under
       state law, as long as such mechanism affords interested parties an
       opportunity to be heard prior to the determination of the rate.

   15. The parties lament that the Bureau Merits Order creates the risk of
       piecemeal litigation, which could be cumbersome, time-consuming, and
       expensive. The parties point out that they (and any future parties who
       are similarly situated) may have to litigate once to establish a rate,
       and then perhaps again to establish other interconnection terms and a
       damages amount. However, as the T-Mobile Declaratory Ruling observes,
       most small LECs, such as CLECs like North County, are only indirectly
       interconnected with CMRS carriers like MetroPCS. Consequently, if and
       when CLECs and CMRS carriers have interconnection disputes, it is
       likely that those disputes will largely, if not entirely, concern only
       compensation. Indeed, North County states here that the parties have
       agreed to all interconnection terms except North County's termination
       rate. Thus, we expect that, in most instances, litigation following a
       state commission's rate determination will either be unnecessary or
       relatively limited in scope. Accordingly, we do not find persuasive
       the parties' contention that allowing state commissions to establish
       rates governing CLECs' termination of intrastate CMRS traffic will be
       procedurally onerous. 

   16. The parties proffer several other policy arguments why, despite past
       Commission orders to the contrary, we should in this complaint
       proceeding effectively preempt the California PUC's authority to
       regulate North County's intrastate termination rates as applied to
       MetroPCS's traffic. The Bureau Merits Order correctly responded to
       those arguments as follows:

   Without commenting one way or another on the merits of MetroPCS's policy
   arguments, we decline MetroPCS's suggestion to preempt such state
   authority in the context of this complaint proceeding. Whether to depart
   so substantially from such long-standing and significant Commission
   precedent is a complex question better suited to a more general rulemaking
   proceeding.

   MetroPCS expresses special concern that allowing state commissions to set
   CLEC rates for termination of intrastate CMRS traffic will undermine the
   policy of promoting national uniformity of CMRS regulation. We disagree
   with MetroPCS's premise. Moreover, by ruling that incumbent LECs may
   invoke state processes under section 252 of the Act to reach
   interconnection agreements with CMRS carriers, the Commission in the
   T-Mobile Declaratory Ruling has already demonstrated that, under current
   law, other interests can sometimes take priority over complete, national
   uniformity of CMRS regulation.

   17. North County argues in the alternative that we should distinguish
       between the period before April 29, 2005 and the period after April
       29, 2005. Specifically, according to North County, we should reverse
       the Bureau Merits Order as applied to the period before April 29,
       2005, enforce the termination rates contained in North County's
       California state tariff before April 29, 2005, and award damages
       accordingly -- even if we affirm the Bureau Merits Order as applied to
       the period after April 29, 2005.

   18. We disagree with North County. The Bureau Merits Order relied on a
       long line of Commission orders dating back to 1986 in which the
       Commission declined to preempt the states' authority to set rates for
       a LEC's termination of intrastate CMRS traffic, and we find that the
       effective date of the T-Mobile Declaratory Ruling has no bearing on
       that determination. Consistent with those orders, we find that the
       California PUC is the more appropriate forum for determining a
       reasonable rate for North County's termination of MetroPCS's
       intrastate traffic. Therefore, we reject North County's assertion that
       we, rather than the California PUC, should determine a pre-April 29,
       2005 termination rate by simply enforcing the termination rates
       contained in North County's California state tariff at that time.

   19. Finally, the parties assert that we should reverse the Bureau Merits
       Order because some portion of the traffic at issue is allegedly
       interstate, intraMTA traffic and thus subject only to our exclusive
       rate-making jurisdiction. Neither party made this assertion in any of
       its numerous and voluminous filings prior to the Bureau Merits Order.
       Consequently, section 1.115 of the Commission's rules plainly
       precludes the parties from now arguing - for the first time on review
       - that any of the traffic at issue is interstate. Accordingly, we
       summarily reject this argument and dismiss it as untimely and thus not
       properly raised.

   20. In any event, even if this contention were properly before us, we
       would reject it. Based on the record before the Bureau and now before
       us on review, any assertion that the amount of interstate, intraMTA
       traffic at issue, if any, is anything but trivial is simply not
       credible. Neither party has provided specific evidence on the record
       to demonstrate that any of the traffic at issue is, in fact,
       interstate. As the Bureau Merits Order correctly notes, the record is
       replete with explicit and implicit references to the traffic at issue
       as traveling between end users within the State of California. Despite
       multiple opportunities to present evidence to the Bureau and on
       review, the parties have failed to provide any factual basis for the
       conclusory statements they now make. Moreover, the parties never
       before described any of the traffic at issue as interstate intraMTA,
       despite being directed by Commission staff to address whether the
       California PUC is a proper forum for this dispute. Even now, on
       review, the parties make their interstate assertion cursorily,
       belatedly, and with no specific evidentiary support, as required by
       our rules. Tellingly, neither party provides any indication - not even
       a rough estimate - as to the amount of traffic at issue that is
       allegedly interstate, intraMTA. Thus, the record permits no other
       conclusion than that the amount of interstate, intraMTA traffic at
       issue - if any - is de minimus. Therefore, even if the parties'
       interstate claim were properly presented, we would affirm the
       conclusion of the Bureau Merits Order that the traffic at issue is
       intrastate, intraMTA and thus subject to the general rate-making
       jurisdiction of the California PUC.

   21. Recognizing that we might affirm the Bureau Merits Order, MetroPCS
       asks, in the alternative, that we provide guidance to the California
       PUC about how to establish a reasonable termination rate under the
       particular facts of this case. MetroPCS focuses especially on the
       facts that the traffic at issue is unidirectional towards North County
       and routed entirely to chat-lines. We decline MetroPCS's request. We
       believe that the California PUC is fully equipped to determine a
       reasonable termination rate under the specific circumstances
       presented.

   22. Notwithstanding all of the foregoing, we do believe that one aspect of
       the Bureau Merits Order warrants modification. The Bureau Merits Order
       dismissed without prejudice Count I of the Complaint, stating that the
       California PUC is the more appropriate venue for determining a
       reasonable rate for terminating MetroPCS's traffic, and that if North
       County believes that MetroPCS has failed to pay what is owed pursuant
       to that rate, it may seek enforcement of any payment obligation under
       rule 20.11. Instead, to prevent the possibility that North County may
       be prejudiced in any way during the pendency of its proceeding to seek
       a rate determination from the California PUC, we believe the better
       course is to hold Count I in abeyance rather than dismiss it without
       prejudice.

   23. To effectuate the abeyance, Count I of the Complaint will be converted
       to an informal complaint, with the File Number of EB-09-MDIC-0041.
       This conversion is for internal administrative purposes only, and has
       no effect on the rights of the parties. Once the California PUC
       determines a reasonable termination rate and its decision is final and
       no longer subject to judicial review, North County may convert the
       informal complaint back to a formal complaint by notifying the
       Commission of its intent to do so within 90 days of the California PUC
       decision's finality (subject to waiver and extension of such deadline
       for good cause).

   24. We note that the purpose of converting North County's claim back into
       a formal complaint would not be to review the propriety of the
       termination rate prescribed by the California PUC. Such a review, if
       any, of the California PUC's rate prescription would proceed according
       to whatever mechanism is provided by applicable California law. The
       purpose of any conversion of North County's claim back into a formal
       complaint would, instead, be limited to determining whether, despite
       the application of the termination rate prescribed by California law,
       MetroPCS has still failed to pay North County "reasonable
       compensation" under rule 20.11. Such a dispute could arise from a
       myriad of factors, including but not limited to a continuing
       disagreement between the parties about whether and to what extent (i)
       North County's recovery should be limited by the statute of
       limitations, or (ii) North County is entitled to an award of
       prejudgment interest.

   25. Finally, we note that, in a cursory e-mail submitted long after the
       formal pleading cycle concluded, North County apparently suggests that
       the D.C. Circuit's decision in AT&T Corp. v. FCC, 978 F.2d 727 (D.C.
       Cir. 1992) ("AT&T v. FCC") establishes a statutory duty on the
       Commission's part to determine in this section 208 complaint
       proceeding what a reasonable termination rate would be for traffic
       that MetroPCS delivers to North County. Because neither party
       presented this argument predicated upon AT&T v. FCC to the Bureau in
       advance of the Bureau Merits Order, this argument is not properly
       before the Commission in this review proceeding.

   26. AT&T v. FCC would not be controlling here, in any event. That case
       involved a section 208 complaint for injunctive relief and damages
       that AT&T filed against MCI alleging that MCI had violated the
       Communications Act by charging rates that were not filed in federal
       tariffs. The FCC had dismissed that complaint without determining
       whether AT&T's conduct violated the Act (and, thus, without
       determining whether damages were warranted), concluding instead that
       the lawfulness of MCI's conduct should be resolved in a broader
       rulemaking proceeding. The Court of Appeals set the Commission's order
       aside, holding that because the agency's contemplated rulemaking
       proceeding, by definition, could develop rules that would "operate[]
       only prospectively," it was "a logical non sequitur" to address in
       such a proceeding a complaint challenging the lawfulness of (and
       seeking damages for) conduct "under present law." Here, by contrast,
       we are not dismissing North County's complaint at all, but rather
       holding it in abeyance while the parties seek a determination by the
       California PUC of what is a reasonable rate under Rule 20.11. Unlike
       in AT&T v. FCC, that determination will be made under existing law,
       and North County may later seek redress (and possible retrospective
       relief) - again under existing law - if MetroPCS has not been paying
       the rate that the California PUC determines to be reasonable.

   IV. ordering clauses

   27. IT IS ORDERED, pursuant to sections 4(i), 4(j), 201, 208, and 332 of
       the Communications Act of 1934, as amended, 47 U.S.C. S:S: 154(i),
       154(j), 201, 208, and 332, and sections 1.115, 1.721-1.736, and 20.11,
       of the Commission's rules, 47 C.F.R. S:S: 1.115, 1.721-1.736, and
       20.11, that North County's Application for Review is GRANTED in part
       and otherwise DENIED, as described herein.

   28. IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), 201, 208, and
       332 of the Communications Act of 1934, as amended, 47 U.S.C. S:S:
       154(i), 154(j), 201, 208, and 332, and sections 1.115, 1.721-1.736,
       and 20.11, of the Commission's rules, 47 C.F.R. S:S: 1.115,
       1.721-1.736, and 20.11, that MetroPCS's Application for Review is
       DENIED.

   29. IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), 201, 208, and
       332 of the Communications Act of 1934, as amended, 47 U.S.C. S:S:
       154(i), 154(j), 201, 208, and 332, and sections 1.115, 1.721-1.736,
       and 20.11, of the Commission's rules, 47 C.F.R. S:S: 1.115,
       1.721-1.736, and 20.11, that the Bureau Merits Order in MODIFIED in
       part and otherwise AFFIRMED, as described herein.

   30. IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), 201, 208, and
       332 of the Communications Act of 1934, as amended, 47 U.S.C. S:S:
       154(i), 154(j), 201, 208, and 332, and sections 1.115, 1.711-1.736,
       and 20.11, of the Commission's rules, 47 C.F.R. S:S: 1.115,
       1.711-1.736, and 20.11, that (i) Count I of the Complaint shall be
       held in abeyance pending the California PUC's determination of a
       reasonable rate for North County's termination of MetroPCS's
       intrastate traffic; (ii) such abeyance is hereby effectuated by
       converting Count I of the Complaint into an informal complaint with
       the File Number of EB-09-MDIC-0041; and (iii) once North County has
       exhausted its administrative remedies with the California PUC and the
       California PUC's order is no longer subject to judicial review, North
       County may convert the informal complaint back to a formal complaint
       by notifying the Commission of its intent to do so within 90 days of
       the California PUC's final action.

   FEDERAL COMMUNICATIONS COMMISSION

   Marlene H. Dortch

   Secretary

   Application for Review, File No. EB-06-MD-007 (filed Apr. 29, 2009)
   ("North County AFR"). See North County Communications Corp.'s Response to
   MetroPCS California, LLC's Application for Review, File No. EB-06-MD-007
   (filed May 14, 2009) ("North County Response"); North County
   Communications Corp.'s Reply to Response of MetroPCS of California, LLC,
   File No. EB-06-MD-007 (filed May 26, 2009) ("North County Reply").

   47 C.F.R. S: 1.115.

   North County Communications Corp. v. MetroPCS California, LLC, Memorandum
   Opinion and Order, 24 FCC Rcd 3807 (Enf. Bur. rel. Mar. 30, 2009) ("Bureau
   Merits Order").

   Application for Review of MetroPCS California, LLC, File No. EB-06-MD-007
   (filed Apr. 29, 2009) ("MetroPCS AFR"). See Response of MetroPCS
   California, LLC to the Application for Review of North County
   Communications Corp., File No. EB-06-MD-007 (filed May 14, 2009)
   ("MetroPCS Response"); Reply of MetroPCS California, LLC to the North
   County Communications Corp. Response to MetroPCS California, LLC's
   Application for Review, File No. EB-06-MD-007 (filed May 26, 2009)
   ("MetroPCS Reply").

   47 C.F.R. S: 20.11.

   See, e.g., 47 C.F.R. S: 24.202(a) (defining "MTA").

   See P:P: 19-20, infra (discussing the parties' cursory, belated, and
   scantily supported assertion that some unspecified portion of the traffic
   at issue is jurisdictionally interstate).

   See Bureau Merits Order, 24 FCC Rcd at 3808-3810, P:P: 3-7.

   Bureau Merits Order, 24 FCC Rcd at 3808, P: 3.

   Id. For purposes of this Order, a "chat-line provider" offers a service
   that "combine[s] multiple incoming calls that happen to arrive in a common
   time frame, but are otherwise unscheduled by the parties and may result in
   connecting callers who are unknown to one another." Bureau Merits Order,
   24 FCC Rcd at 3808, n.7.

   Bureau Merits Order, 24 FCC Rcd at 3808, P: 4. See 47 C.F.R. S: 20.3
   (defining "commercial mobile radio service").

   Bureau Merits Order, 24 FCC Rcd at 3808, P: 4.

   Id.

   Bureau Merits Order, 24 FCC Rcd at 3808-3809, P: 5 and nn.11-12. See P:P:
   19-20, infra.

   Bureau Merits Order, 24 FCC Rcd at 3808-3809, P: 5 and n.13.

   Bureau Merits Order, 24 FCC Rcd at 3808-3809, P: 5 and n.14. See 47 U.S.C.
   S: 227(b)(1)(A)(iii); Rules and Regulations Implementing the Telephone
   Consumer Protection Act (TCPA) of 1991, Report and Order, 18 FCC Rcd 14014
   (2003) (subsequent history omitted); 47 C.F.R. S: 64.1200(a)(1)(iii).

   Bureau Merits Order, 24 FCC Rcd at 3809, P: 6 and n.15.

   Bureau Merits Order, 24 FCC Rcd at 3809, P: 6 and n.16.

   Bureau Merits Order, 24 FCC Rcd at 3809, P: 6 and n.17.

   Bureau Merits Order, 24 FCC Rcd  at 3809, P: 6.

   See, e.g., Second Amended Complaint, File No. EB-06-MD-007 (filed Aug. 24,
   2006) ("Complaint").

   47 U.S.C. S: 208. See Bureau Merits Order, 24 FCC Rcd at 3809-3810, P: 7.

   See, e.g., 47 C.F.R. S: 20.11(b) (providing that "[l]ocal exchange
   carriers and commercial mobile radio service providers shall comply with
   principles of mutual compensation"); 47 C.F.R. S: 20.11(b)(2) (providing
   that "[a] commercial mobile radio service provider shall pay reasonable
   compensation to a local exchange carrier in connection with terminating
   traffic that originates on the facilities of the commercial mobile radio
   service provider").

   See, e.g., Complaint at 15-16, P:P: 64-68.

   47 U.S.C. S: 251(b)(5) (providing that "[e]ach local exchange carrier has
   ... [t]he duty to establish reciprocal compensation arrangements for the
   transport and termination of telecommunications").

   47 C.F.R. S: 51.301 (providing, in pertinent part, that "[a]n incumbent
   LEC shall negotiate in good faith the terms and conditions of agreements
   to fulfill the duties established by sections 251(b) and (c) of the Act").

   See, e.g., Complaint at 16-19, P:P: 69-76.

   47 U.S.C. S:S: 201(b) (barring any "unjust and unreasonable" practice in
   connection with communication service), 202(a) (barring "unjust and
   unreasonable discrimination" by any carrier "in connection with like
   communication service").

   See, e.g., Complaint at 19-20, P:P: 77-86; 22-23, P:P: 95-103.

   47 C.F.R. S: 51.715(b) (providing, in pertinent part, that "an incumbent
   LEC must, without unreasonable delay, establish an interim arrangement for
   transport and termination of telecommunications traffic at symmetrical
   rates").

   See, e.g., Complaint at 20-22, P:P: 87-94.

   See, e.g., Bureau Merits Order, 24 FCC Rcd at 3814-3817, P:P: 16-23.

   See, e.g., 47 C.F.R. S:S: 0.203(b), 1.102(b), 1.115.

   47 C.F.R. S: 20.11(b)(2) (emphasis added).

   See, e.g., Complaint at 15-16, P:P: 64-68. For purposes of this Order
   only, we assume, without deciding, that a violation of rule 20.11 would be
   a violation of the Act cognizable under section 208 of the Act. See Center
   for Communications Management Information v. AT&T Corporation, Memorandum
   Opinion and Order, 23 FCC Rcd 12249, 12253 at P: 11, n.29 (2008); Global
   Crossing Telecommunications, Inc. v. Metrophones Telecommunications, Inc.,
   550 U.S. 45 (2007); Alexander v. Sandoval, 532 U.S. 275, 284 (2001).

   47 U.S.C. S: 205.

   See, e.g., Complaint at 23-26, P:P: 104-119; Bureau Merits Order, 24 FCC
   Rcd at 3809-3810, P: 7.

   Bureau Merits Order, 24 FCC Rcd at 3810-3811, P: 9.

   Bureau Merits Order, 24 FCC Rcd  at 3810-3811, P: 9, citing In the Matter
   of Developing a Unified Intercarrier Compensation Regime; T-Mobile et al.
   Petition for Declaratory Ruling Regarding Incumbent LEC Wireless
   Termination Tariffs, Declaratory Ruling and Report and Order, 20 FCC Rcd
   4855, 4861 at P: 10 n.41 (2005) ("T-Mobile Declaratory Ruling")
   (subsequent history omitted) (stating that "the Commission preempted state
   and local regulations governing the kind of interconnection to which CMRS
   providers are entitled, but it specifically declined to preempt state
   regulation of LEC intrastate interconnection rates applicable to CMRS
   providers"); Airtouch Cellular v. Pacific Bell, Memorandum Opinion and
   Order, 16 FCC Rcd 13502, 13507 at P: 14 (2001) (stating that the
   determination of the actual rates charged for intrastate LEC-CMRS
   interconnection is left to the states); In the Matter of Interconnection
   Between Local Exchange Carriers and Commercial Mobile Radio Service
   Providers, Notice of Proposed Rulemaking, 11 FCC Rcd 5020, 5072 at P: 109
   (1996) (subsequent history omitted) (stating that the Commission's
   LEC-CMRS mutual compensation rules do not preclude the states from setting
   the actual interconnection rates that LECs and CMRS providers charge);
   Equal Access and Interconnection Obligations Pertaining to CMRS, Notice of
   Proposed Rulemaking and Notice of Inquiry, 9 FCC Rcd 5408, 5451 at P: 104
   (1994) (noting that the Commission has declined to preempt state
   regulation of LEC rates for intrastate interconnection with cellular
   carriers); In the Matter of Implementation of Sections 3(N) and 332 of the
   Communications Act, Regulatory Treatment of Mobile Services,  Second
   Report and Order, 9 FCC Rcd 1411, 1498 at P:P: 231-232 (1994) (subsequent
   history omitted) (adopting rule 20.11, but declining to preempt state
   regulation of LEC intrastate interconnection rates); The Need To Promote
   Competition and Efficient Use of Spectrum for Radio Common Carrier
   Services, Memorandum Opinion and Order on Reconsideration, 4 FCC Rcd 2369,
   2372 at P: 25 (1989) (noting that compensation arrangements regarding
   intrastate traffic between landline telephone companies and cellular
   carriers are subject to state regulatory jurisdiction); The Need To
   Promote Competition and Efficient Use of Spectrum for Radio Common Carrier
   Services, Declaratory Ruling, 2 FCC Rcd 2910, 2912 at P: 18, 2915 at P:P:
   44-45 (1987) (noting that intrastate charges for cellular interconnection
   with landline carriers is subject to intrastate regulation); Indianapolis
   Telephone Company v. Indiana Bell Telephone Company Inc., Memorandum
   Opinion and Order, 1 FCC Rcd 228, 229-30 at P: 10 (1986) (stating that
   financial arrangements between cellular and landline carriers regarding
   intrastate traffic fall with the purview of state regulatory authorities).
   See Rural Iowa Independent Telephone Association v. Iowa Utilities Board,
   385 F. Supp.2d 797, 825 (S.D. Iowa 2005), aff'd, 476 F.3d 572 (8th Cir.
   2007) (holding that state commissions may arbitrate indirect
   interconnection agreements between LECs and CMRS carriers); Iowa Network
   Services, Inc. v. Qwest Corporation, 385 F. Supp.2d 850, 893 (S.D. Iowa
   2005) (holding that state commissions may arbitrate indirect
   interconnection agreements between LECs and CMRS carriers).

   Bureau Merits Order, 24 FCC Rcd at 3810-3811, P: 9.

   Id.

   Id.

   April 29, 2005 is the effective date of the T-Mobile Declaratory Ruling,
   according to North County. See, e.g., North County AFR at 15, n.55. We
   accept North County's assertion for purposes of this Order.

   See North County AFR; North County Response; North County Reply.

   See MetroPCS AFR; MetroPCS Response; MetroPCS Reply.

   Contrary to the parties' contention, the Enforcement Bureau did not hold
   that only a state commission has jurisdiction to determine what
   constitutes "reasonable compensation" under section 20.11 of the
   Commission's rules. See, e.g., North County AFR at 1, 6, MetroPCS AFR at
   3, 5. Thus, by affirming the Bureau Merits Order, we do not hold that the
   Commission lacks such jurisdiction. Rather, we merely affirm the Bureau's
   finding that the state commission, in this instance, is the more
   appropriate forum.

   Bureau Merits Order, 24 FCC Rcd at 3810-3814, P:P: 8-15.

   See, e.g., T-Mobile Declaratory Ruling, 20 FCC Rcd at 4860, P: 9.

   See, e.g., North County AFR at 12 and n.46.

   See, e.g., North County AFR at 8-13; MetroPCS AFR at 13-15.

   Bureau Merits Order, 24 FCC Rcd at 3812-3813, P: 12. See, e.g., T-Mobile
   Declaratory Ruling, 20 FCC Rcd at 4860-61, P: 10.

   Bureau Merits Order, 24 FCC Rcd at 3812-3813, P: 12; 47 U.S.C. S: 152(b).

   Despite the parties' protestations to the contrary, see, e.g., North
   County AFR at 2, 6-7, 12-13; MetroPCS AFR at 3-5, 8-15; MetroPCS Response
   at 5-6, there is nothing anomalous about a state commission establishing
   an intrastate rate to effectuate a compensation right arising from federal
   law. See, e.g., 47 U.S.C. S:S: 251-252.

   See, e.g., Bureau Merits Order, 24 FCC Rcd at 3810-3811, P: 9 (listing as
   procedural examples a complaint proceeding, a declaratory ruling
   proceeding, and a generic cost or rulemaking proceeding, all of which
   historically have afforded interested parties an opportunity to be heard
   before a ruling is rendered). See also T-Mobile Declaratory Ruling, 20 FCC
   Rcd at 4858-4859, P: 7 n.32 (noting that many state commissions had
   allowed LECs' wireless termination tariffs to go into effect without prior
   investigations). The parties point out that, since the T-Mobile
   Declaratory Ruling, a few state commissions have declined to arbitrate
   interconnection agreements between CLECs and CMRS providers. See, e.g.,
   North County AFR at 5, 9. As the Bureau Merits Order correctly observes,
   however, those state commission decisions have only concerned processes
   authorized by section 252 of the Act; thus, those state commission
   decisions do not indicate that state commissions will decline to exercise
   their general authority under state law to regulate rates for intrastate
   traffic as preserved by section 2(b) of the Act. Bureau Merits Order, 24
   FCC Rcd  at 3813, P: 12, n.45.

   See, e.g., MetroPCS AFR at 9-12; North County AFR at 12.

   See, e.g., North County AFR at 6-7, 12-13; MetroPCS AFR at 4, 13, 19-20;
   MetroPCS Response at 5-6.

   Bureau Merits Order, 24 FCC Rcd at 3808, P: 4; T-Mobile Declaratory
   Ruling, 20 FCC Rcd at 4857-4858, P: 5.

   See, e.g., North County AFR at 4.

   See, e.g., North County AFR at 12-13; MetroPCS AFR at 3-5; 8-15; MetroPCS
   Response at 5-6.

   Bureau Merits Order, 24 FCC Rcd at 3814, P: 14, citing In the Matter of
   Developing a Unified Intercarrier Compensation Regime, Order on Remand and
   Report and Order and Further Notice of Proposed Rulemaking, 2008 WL
   4821547 (2008); In the Matter of Developing a Unified Intercarrier
   Compensation Regime, Further Notice of Proposed Rulemaking, 20 FCC Rcd
   4685 (2005); In the Matter of Developing a Unified Intercarrier
   Compensation Regime, Comment Sought on Missoula Intercarrier Compensation
   Reform Plan, 20 FCC Rcd 4855 (2005); In the Matter of Developing a Unified
   Intercarrier Compensation Regime, Notice of Proposed Rulemaking, 16 FCC
   Rcd 9610 (2001). The parties point out that no Commission order or court
   decision precludes the Commission from changing course and deciding to
   preempt state authority over the termination rates that LECs charge CMRS
   providers for intrastate traffic. See, e.g., North County AFR at 5, 8-10,
   12-13; MetroPCS AFR at 3-5, 8-15. Again, that may be true, but we decline
   to take such action in this complaint proceeding. See, e.g., Bell
   Atlantic-Delaware, Inc. v. Frontier Communications Services, Inc.,
   Memorandum Opinion and Order, 16 FCC Rcd 8112, 8120 (2001) ("We are
   mindful that the Commission has been asked to clarify or revise existing
   regulations governing the per-call compensation scheme on a going-forward
   basis.  But because this issue has come before us as part of a section 208
   complaint proceeding regarding past behavior, we are constrained to
   interpret our current regulations and orders.").

   See, e.g., MetroPCS AFR at 3-4, 7-15.

   North County AFR at 13-15. As previously mentioned, North County contends
   that April 29, 2005 is the effective date of the T-Mobile Declaratory
   Ruling. North County AFR at 15, n.55.

   See, e.g., North County AFR at 13-15; North County Reply at 6-9.

   Because we reject North County's assertion on that ground, we need not and
   do not address MetroPCS's contentions that (i) North County's assertion is
   barred by rule 1.115(c); (ii) North County's California state tariff was
   unlawful as applied to MetroPCS traffic even before April 29, 2005; (iii)
   North County's California state tariff, by its own terms, did not apply to
   termination of MetroPCS's traffic; (iv) North County's claim for damages
   arising prior to April 29, 2005 is wholly or partially barred by the
   two-year statute of limitations in 47 U.S.C. S: 415; and (v) awarding
   damages based on traffic terminated prior to April 29, 2005 would
   undermine Commission policies favoring negotiated interconnection
   agreements and limiting interim compensation to incumbent LECs. See, e.g.,
   MetroPCS Response at 7-15.

   See North County AFR at 8 n.30; MetroPCS Response at 4-5.

   Rule 1.115(c) provides: "No application for review will be granted if it
   relies on questions of fact or law upon which the designated authority has
   been afforded no opportunity to pass." 47 C.F.R. S: 1.115(c).

   We expressly dismiss this claim on procedural grounds. Cf. BDFCS, Inc. v.
   FCC, 351 F.3d 1177, 1183-84 (D.C. Cir. 2003) (upholding the Commission's
   dismissal on procedural grounds of arguments not first presented to the
   bureau).

   For example, North County belatedly asserts in a single, unsupported
   footnote in its Application for Review that the parties have never
   stipulated that the traffic at issue is all intrastate, and that "this is
   simply not the case." North County AFR at 8, n.30. Similarly, MetroPCS now
   contends, in response to North County's belated assertion, that some
   unspecified portion of the traffic is interstate. MetroPCS Response at
   4-5.

   Bureau Merits Order, 24 FCC Rcd at 3808, P: 5, n.12.

   North County makes the assertion in a single, unsupported footnote. See
   North County AFR at 8 n.30.

   MetroPCS did not make the assertion until its Response. See Metro Response
   at 4-5. Indeed, MetroPCS's Application refers to the traffic at issue as
   intrastate several times. See MetroPCS AFR at ii, 1, 17.

   Rule 1.720(c) provides: "Facts must be supported by relevant documentation
   or affidavit." 47 C.F.R.S: 1.720(c). See 47 C.F.R. S:S: 1.721(a)(5),
   1.724(g), 1.726(e), 1.732(b) (all requiring that factual assertions in
   formal complaint proceedings be supported by declarations and/or
   documents).

   Given the parties' failure to preserve or support their claim that there
   is any interstate traffic at issue here, we have no occasion in this
   adjudicatory proceeding to address whether it would be appropriate for the
   state commission to determine a rate for any such traffic.

   MetroPCS AFR at 16-17.

   See, e.g., MetroPCS AFR at 17-24.

   After the pleading cycle closed in this review process, CTIA - The
   Wireless Association ("CTIA") sought leave to file an "amicus curiae
   letter" supporting the parties' Applications for Review and asking that
   this proceeding be converted from "restricted" to "permit-but-disclose"
   for purposes of the Commission's ex parte rules. Letter dated July 10,
   2009 from Christopher Guttman-McCabe, Vice President, Regulatory Affairs,
   CTIA, to Marlene Dortch, Secretary, FCC ("CTIA Letter"). See 47 C.F.R.
   S:S: 1.1200-1.1216 (setting forth the Commission's ex parte rules). We
   hereby grant CTIA's request to file the CTIA Letter, and we have carefully
   considered the Letter's contents. See, e.g., AT&T Corp. v. BellSouth
   Telecommunications, Inc., Order on Reconsideration, 20 FCC Rcd 8578, 8580,
   at P: 6 n.16 (2005) (subsequent history omitted). We deny CTIA's request
   to convert this proceeding from "restricted" to "permit-but-disclose,"
   because CTIA has not shown that the public interest supports changing the
   ex parte status of this adjudicatory proceeding from "restricted" to
   "permit-but-disclose." For example, CTIA has not shown that such a
   conversion is necessary to provide us with a comprehensive record on which
   to base our decisions. Indeed, all of the arguments asserted in the CTIA
   Letter were already made by the parties themselves and are expressly
   addressed either in the Bureau Merits Order or in this Order on Review or
   in both.

   See, e.g., Bureau Merits Order, 24 FCC Rcd at 3810-3811, P: 9.

   Cf., e.g., Reiter v. Cooper, 507 U.S. 258, 267-68 (1993); American
   Association of Cruise Passengers v. Cunard Line, Ltd., 31 F.3d 1184,
   1187-88 (D.C. Cir. 1994) (both holding that a federal court should stay
   rather than dismiss a complaint if doing so is necessary to prevent
   prejudice to the plaintiff during the pendency of a primary jurisdiction
   referral).

   See Letter from Michael Hazzard, Counsel for North County, to Marlene H.
   Dortch, Secretary, FCC, File No. EB-06-MD-007 (filed Nov. 16, 2009),
   Exhibit A.

   See 47 C.F.R. S: 1.115(c) (providing that "[n]o application for review
   will be granted if it relies on questions of fact or law upon which the
   designated authority has been afforded to opportunity to pass").

   AT&T v. FCC, 978 F.2d at 732 (emphasis added to "prospectively") (citing
   Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 208 (1988)).

   See P:P: 23-24, supra. Other decisions make clear that the AT&T v. FCC
   decision also was predicated in large measure on the court's view that, by
   deferring to a separate rulemaking the question of whether MCI's practice
   of charging non-tariffed rates violated the Communications Act, the
   Commission was consciously attempting to insulate previously adopted
   policies from judicial review. See AT&T Corp. v. FCC, 220 F.3d 607, 631
   (D.C. Cir. 2000); American Message Centers v. FCC, 50 F.3d 35, 41 (D.C.
   Cir. 1995). No such concern is presented here.

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                                 Federal Communications Commission FCC 09-100