DC Circ. Backs FCC Cap On Wireless Subsidies

Law360, New York (December 12, 2009, 1:18 PM EST) -- A federal appeals court has upheld a Federal Communications Commission decision to temporarily cap the amount of subsidies paid to small cell phone providers that deliver service in high-cost rural areas.

The U.S. Court of Appeals for the District of Columbia Circuit ruled Friday that the FCC acted reasonably in imposing the interim cap and that the petitioners had failed to demonstrate that they would not be able to operate under the cap.

The dispute centered on a fund the agency maintains to subsidize the cost...
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