FCC Common Carrier Bureau granted petitions by Cox and AT&T and p...

FCC Common Carrier Bureau granted petitions by Cox and AT&T and preempted Va. State Corp. Commission’s (VSCC) authority to arbitrate interconnection disputes companies are having with Verizon. VSCC has refused to arbitrate interconnection disputes because of uncertainty about state immunity under U.S. Constitution’s 11th Amendment. Under Telecom Act, companies first go to states for arbitration of disputes and if they disagree with decision they can challenge state-arbitrated interconnection agreements in federal court. States say that process places them in awkward position because 11th Amendment gives states immunity from being sued in federal court. Issue is topic of challenges in several U.S. Appeals Courts, and U.S. Supreme Court recently chose not to hear it. FCC stepped in under its authority to preempt states that don’t act. FCC said Cox and AT&T now could formally petition FCC for arbitration and Common Carrier Bureau will issue comment schedules. Agency said it would decide later whether to combine AT&T and Cox cases with pending WorldCom arbitration proceeding, as requested by AT&T.