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Legal standard for competition

Legal standard for competition. 1953 Court Case, FCC v. RCA Communications FCC granted licenses to Mackay Radio and Telegraph Company on international routes already served by RCA RCA appealed up to the Supreme Court

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Legal standard for competition

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  1. Legal standard for competition • 1953 Court Case, FCC v. RCA Communications • FCC granted licenses to Mackay Radio and Telegraph Company on international routes already served by RCA • RCA appealed up to the Supreme Court • Court found that in authorizing a competitor, the FCC “must at least warrant, as it were, that competition would serve some beneficial purpose such as maintaining good service or improving it.”

  2. Competition in CPE • Hush-a-Phone • Carterfone • PCA program • Certification program

  3. Competition in L.D. • Above 890 • Specialized Common Carrier • Domsat (Open Skies) • Resale and Shared Use • MCI • FX service • Execunet

  4. What about the states? • State commissions challenged federal preemption • CPE: North Carolina Utility Comm. v. FCC (1976 and 1977) • Other Common Carriers: California v. FCC (1977) • FCC could regulate interstate services offered by OCCs even if facilities totally within a single state • Resale: NARUC v. FCC (1984) • “purely intrastate facilities any services used to complete even a single interstate call may be subject to FCC regulation to the extent of its interstate use.” • States lost on all counts: why???

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