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D.C. Circuit Rules Against AT&T, Verizon on Accounting Forbearance

Verizon and AT&T’s appeal of FCC denial of their petition to forbear requiring them to maintain a uniform system of accounts was denied Friday in a decision by the U.S. Court of Appeals for the D.C. Circuit. The companies “have…

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long argued that, in light of the existing price cap regime, the Commission’s accounting rules are unnecessary,” the decision said. The commission said the accounting is still needed for a number of reasons, including its need to regulate pole attachment rates and interstate access rates, the decision said. The FCC’s interpretation is “permissible,” Senior Circuit Judge Laurence Silberman wrote. Judges David Tatel and Janice Brown concurred. Neither AT&T nor Verizon commented after the decision. Also, Verizon responded to Public Knowledge Senior Vice President Harold Feld’s blog post that forbearance is so easy it makes him “want to puke.” Verizon on its blog Monday pointed to last Friday’s U.S. Court of Appeals for the D.C. Circuit decision turning down Verizon and AT&T’s petition challenging the commission’s denial of a forbearance petition ([Ref. 1410310055]). The court and the FCC “have provided more evidence that the forbearance process is nauseating, but not because it is easy,” wrote Verizon Senior Vice President for Public Policy Craig Silliman.