• On February 23, 2010, the US Court of Appeals for the Sixth Circuit affirmed a Michigan district court’s vacatur of the Michigan Public Service Commission’s ruling that ILECs must offer entrance facilities to CLECs at Total Element Long-Run Incremental Cost (TELRIC) prices. Michigan Bell Telephone Co. v. LarkCase Nos. 07-2469 and 07-2473. Relying on the FCC’s Triennial Review Remand Order, the two-judge panel held that the material distinction for the ILECs’ pricing obligations turned on whether it was offering an interconnection facility (which must be offered at TELRIC rates) or an entrance facility (which need only be offered at “competitive” rates). Judge Jeffrey S. Sutton dissented from the opinion insofar as it allows ILECs to charge non-TELRIC rates for entrance facilities used for interconnection.
  • On February 22, 2010, the US District Court for the Eastern District of Kentucky issued its third ruling against the Kentucky Public Service Commission to limit the agency’s ability to enforce section 271 of the Telecommunications Act of 1996. The court issued declaratory and injunctive relief against the PSC and in favor of AT&T, and noted that the PSC’s “authority based on Kentucky statutory law to regulate the terms and rates of those network elements which were ‘delisted’ by the FCC is preempted.” The court also held that, although AT&T is not obligated to sell section 271 loops, transport and switching, it must, when requested, do what is necessary for a CLEC to connect or otherwise link section 251 elements with wholesale services. AT&T was also ordered to grant CLECs the ability to engage in line-splitting arrangements with other CLECs using a splitter collocated or stored at AT&T’s central office. Civ. No. 3:08-07-DCR.