MCI Telecommunications Corp. v. Federal Communications Commission

Opinion for the Court filed by Circuit Judge WILKEY.

WILKEY, Circuit Judge:

Petitioners challenge a Federal Communications Commission (FCC) decision prescribing an interim cost allocation methodology for use in setting rates for interstate services provided by American Telephone and Telegraph Company (AT&T). They charge that the FCC failed to explain its reversal of a previous cost allocation decision and violated the “arbitrary and capricious” provision of the Administrative Procedure Act (APA).1 We reject these contentions and affirm the agency’s action.

I. BACKGROUND

A. The Problem of Cost…