Ruling Reverses 6th Circuit Court Decision in Appeal Pursued by PAETEC Subsidiary Talk America, Inc.
FAIRPORT, N.Y. - June 14, 2011 (Print-friendly PDF file)
PAETEC Holding Corp. (NASDAQ GS: PAET), a national competitive provider of communications solutions, commends the U.S. Supreme Court decision in the case of its recently acquired subsidiary Talk America Inc. v. Michigan Bell Telephone Company dba AT&T Michigan. The ruling endorses PAETEC's belief that the Telecom Act of 1996 was enacted to promote fair competition between providers in the interests of America's businesses and consumers.
The Supreme Court ruled that AT&T must lease existing entrance facilities used for interconnection purposes to PAETEC and other competitive carriers at cost-based rates under the Telecom Act of 1996 and the subsequent FCC rules implementing the Act. Rejecting the argument of AT&T that the interconnection and unbundling obligations were synonymous under the Telecom Act, the Supreme Court held that interconnection is an independent obligation and must be available to competitive providers at cost-based rates when it is technically feasible.
Both the Michigan Public Service Commission and Talk America, Inc. had appealed the 6th Circuit ruling that had declared that AT&T was not required to provide entrance facility interconnection facilities to competitors at cost-based rates.
"The Supreme Court decision is a significant victory for PAETEC and the competitive telecom industry, upholding the opportunity to offer consumers a truly competitive choice," said Arunas Chesonis, chairman and CEO of PAETEC on the decision. "The ultimate beneficiaries of the Court's decision are the millions of businesses who have and will continue to receive unmatched service and innovative, cost-effective solutions in a competitive telecom environment. That added efficiency is vital to the creation of new jobs and driving overall economic growth."
PAETEC (NASDAQ GS: PAET), a Fortune 1000 company, is personalizing communications and energy solutions in 86 of the top 100 metropolitan areas across the United States. We offer a comprehensive suite of network services including voice, data and fiber solutions, as well as cloud and data center services, network security solutions, communications software, CPE, and managed services. For more information, visit www.paetec.com.