• On March 6, 2013, the FCC filed its appellate brief in the U.S. Court of Appeals for the Tenth Circuit defending its 2011 Connect America Fund order which revamps rules governing intercarrier compensation and the Universal Service Fund. The FCC argued that it was well within its discretion to replace its prior intercarrier compensation rules – which it characterized as “antiquated” and “archaic” – because they had failed to keep up with technology and the market Congress tasked it to regulate: “While technology and market changes developed at a rapid pace, until the FCC adopted its Order, the [FCC’s] ICC framework largely had remained frozen in time. This resulted in regulatory distortions, extensive arbitrage, and waste.” The FCC also supported its new rules based on its decision to abandon its prior “calling-party-network-pays approach” with a new perspective that “both parties generally benefit from participating in a call, and therefore, that both parties should split the cost of the call.” Finally, the FCC rejected the argument that “certain universal service conditions and other requirements adopted in the Order unconstitutionally burden state sovereignty,” pointing to its “well-established authority to place conditions on the receipt of universal service subsidies.” In re FCC 11-161, No. 11-9900 (10th Cir.).