U.S. Appeals Court, D.C., said Fri. FCC was correct in voiding ta...

subject to reciprocal compensation. Company then billed Verizon for $1.7 million for 15 days of service. Verizon refused to pay and filed complaint with FCC, saying tariff preempted state authority to determine intercarrier compensation for Internet-bound traffic and because it amounted to access charges for Internet traffic, which isn’t allowed. Issue began in 1998 when Mass. Dept. of Telecom & Energy (DTE) ruled that Verizon was required to pay reciprocal compensation for delivery of Internet-bound traffic to CLECs. However, in Feb. 1999, FCC held that Internet-bound calls to ISPs weren’t local in nature and thus not covered by reciprocal compensation agreements. In May, DTE vacated its requirement that Verizon pay ILECs for handling such calls. In April, while DTE proceeding still was under way, Global NAPs filed tariff of 0.8 cent per min. for delivery of such calls. In decision written by Judge David Sentelle (00-1136), appeals court said FCC was within its rights to invalidate that tariff for several reasons, including fact that it was filed before DTE had completed its determination whether Global NAPs still would be able to collect reciprocal compensation under interconnection agreements. Court concluded: “That GNAPs sought to game the existing rules, and lost, does not mean the FCC was arbitrary and capricious in its application of its own rules.” Judges Stephen Williams and Judith Rogers also were on panel.