MetroPCS California, LLC v. FCC, et al

A California local exchange carrier ("LEC") filed a complaint with the Federal Communications Commission ("FCC") alleging a violation of 47 C.F.R. 20.11(b) when the LEC unilaterally set a rate and began billing petitioner, a provider of commercial mobile radio services ("CMRS") in California, for the cost of terminating its traffic. At issue was whether the FCC erred in allowing a state agency to determine the rate for traffic that was wholly intrastate pursuant to section 20.11(b). The court held that the FCC's policy of allowing state agencies to set such rates was consistent with the dual regulatory scheme assumed in the Communications Act, 47 U.S.C. 151, which granted the FCC authority over interstate communications but reserved wholly intrastate matters for the states.