Days after seeking Supreme Court review of a California Public Utility Commission (CPUC) order that concerns federal preemption and the right of state agencies to regulate wireless services, AT&T’s Cingular Wireless unit withdrew the petition after reaching an “all party” settlement with the CPUC. AT&T had sought to overturn a CPUC order handed down in 2004 that fined Cingular $12 million for violations of the state’s telecom consumer protection laws. Under a federal law adopted in 1993, states are barred from regulating wireless service rates and terms for market entry but may exercise jurisdiction over “other terms and conditions” for mobile phone services. Capping a two-year investigation into Cingular’s policies on early contract termination, the CPUC imposed the fine after finding that Cingular failed to provide a trial service period to customers and that Cingular forced its customers to pay fees for terminating service before the end of their contracts. Petitioning decisions by the California Court of Appeals and the state Supreme Court to deny appeal, AT&T told the Supreme Court that, “preemption of state regulation is critical to the federal regulatory framework for wireless communications, and the reach of [the 1993 pre-emption statute] constitutes an issue of great importance.” Nevertheless, after accepting terms of a CPUC settlement that calls for the payment of $18.5 million in refunds to California customers, AT&T withdrew the high court petition, asserting: “while we have a strong case for appeal, it is time to move forward.” Meanwhile, Sprint Nextel and T-Mobile USA are continuing to pursue Supreme Court review of an Eleventh Circuit Court decision, handed down last July, that struck down FCC rules prohibiting states from regulating lineitem charges on wireless phone bills. Although the National Association of Regulatory Utility Commissioners, a supporter of the Eleventh Circuit order, observed that the ruling “presents a more cogent view of the . . . statutory text” that underlies the 1993 legislation, Sprint Nextel and T-Mobile told the high court in a petition filed two weeks ago that “the Eleventh Circuit erred by holding that Congress unambiguously preserved state and local authority to prohibit the use of line items.”