FCC Faces Harsh Questions on Verizon Price Bid Denial

The US Court of Appeals for the District of Columbia had harsh questions for the Federal Communications Commission about last year's decision that prevented Verizon Communications from raising rates it charges rival phone companies to use its network in six East Coast markets. Judge Harry Edwards was by far the most animated on the three-judge panel. He repeatedly asked Richard Welch, FCC acting deputy associate general counsel, whether the commission took into account the potential for competition in the six markets, rather than drawing a simple threshold based on Verizon's market share. "Don't deny it. Your rule is a per se determination of market share," Judge Edwards said. Verizon wants the court to send the issue back to the FCC and require a new decision within 30 days. Welch closed his argument by saying the judges needn't impose a deadline if they disagree with the FCC's analysis. "Certainly, 30 days is way too short," he said.