Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Argued February 12, 2002

Section 251(b)(5) of the Telecommunications Act of 1996, 47 U.S.C. �� 151-714 (the “1996 Act” or the “Act”), directs all local exchange carriers (“LECs”) to “establish reciprocal compensation arrangements for the transport and termination of telecommunications.” 47 U.S.C. � 251(b)(5). In the order before us the Federal Communications Commission held that under � 251(g) of the Act it was authorized to “carve out” from � 251(b)(5) calls made to internet service providers (“ISPs”) located within the caller’s local calling area. It relied entirely on � 251(g). Because that section is worded simply as a transitional device, preserving various LEC duties that antedated the 1996 Act until such time as the Commission should adopt new rules pursuant to the Act, we find the Commission’s reliance on � 251(g) precluded. Thus we remand the case. Because there may well be other legal bases for adopting the rules chosen by the Commission for compensation between the originating and the terminating LECs in calls to ISPs, we neither vacate the order nor address petitioners’ attacks on various interim provisions devised by the Commission.

Due in part to the 1996 Act, local telephone service areas are now typically (perhaps universally) served by more than one LEC. The reciprocal compensation requirement of � 251(b)(5), quoted above, is aimed at assuring compensation for the LEC that completes a call originating within the same area. Although its literal language purports to extend reciprocal compensation to all “telecommunications,” the Commission has construed it as limited to “local” traffic only. In the Matter of Implementation of the Local Competition Provisions in the Telecommunications Act of 1996, 11 FCC Rcd 15499, 16012-13, � � 1033-34, 16015-16, � 1040 (1996) (“Local Competition Order”); 47 C.F.R. � 51.701(a). For long distance calls, by contrast, the long-distance carrier collects from the user and pays both LECs-the one originating and the one terminating the call. Local Competition Order, 11 FCC Rcd at 16013, � 1034.

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now

Georgia Legal Awards 2022 (GALA)

June 23, 2022
Atlanta, GA

The Daily Report is honoring those attorneys and judges who have made a remarkable difference in the legal profession in Georgia.

Learn More

Pennsylvania Legal Awards 2022 (PALA)

June 29, 2022

The Legal Intelligencer honors lawyers leaving a mark on the legal community in Pennsylvania with their dedication to law.

Learn More

Elite Trial Lawyers 2022 (ETL)

July 14, 2022
New York, NY

The National Law Journal Elite Trial Lawyers recognizes U.S.-based law firms performing exemplary work on behalf of plaintiffs.

Learn More


McGovern Legal Services, LLC seeks an attorney to join our team at our North Brunswick office working with Condominium Associations, Homeown...

Apply Now ›

Commercial Finance Associate (Flexible location)

Duane Morris LLP seeks two commercial finance associates to join its strong and growing 190+ lawyer Corporate Practice Group. The ideal cand...

Apply Now ›

Public Finance Associate

Cozen O Connor seeks an attorney with at least four years of experience to join the firm s growing multi-state Public Finance practice. This...

Apply Now ›



Lawrence Law LLC congratulates Jeralyn Lawrence, Esq. on her upcoming installation as President of the New Jersey State Bar Association

View Announcement ›



RAYNES & LAWN is Proud to Welcome Next Generation to the Firm

View Announcement ›