throbber
USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 1 of 29
`
`
`
`
`
`
`
`
`
`[PUBLISH]
`
`In the
`United States Court of Appeals
`For the Eleventh Circuit
`
`____________________
`
`No. 19-15072
`
`____________________
`
`
`AUTAUGA COUNTY EMERGENCY MANAGEMENT
`COMMUNICATION DISTRICT,
`CALHOUN COUNTY 911 DISTRICT,
`BIRMINGHAM
`EMERGENCY
`DISTRICT,
`MOBILE COUNTY COMMUNICATIONS DISTRICT,
`
`COMMUNICATIONS
`
`versus
`FEDERAL COMMUNICATIONS COMMISSION,
`
`
` Petitioners,
`
` Respondent,
`
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 2 of 29
`
`2
`
`Opinion of the Court
`
`19-15072
`
`ATT,
`BELLSOUTH,
`
`
` Intervenors-Respondents.
`
`
`____________________
`
`Petition for Review of a Decision of the
`Federal Communications Commission
`Agency No. 19-FCC-44
`____________________
`
`Before ROSENBAUM, LUCK, and ANDERSON, Circuit Judges.
`ROSENBAUM, Circuit Judge:
`Dialing 9-1-1 from anywhere in the United States, using just
`about any type of phone system, connects a user with an emer-
`gency-services hotline. That, of course, is by design.
`
`The groundwork for our national emergency-system hot-
`line started to be laid in the 1960s. Since that time, new telephony
`technology continued to develop: basic analog systems, digital sys-
`tems, mobile and cellular systems, and most recently, systems that
`use the internet to transmit messages. This internet telephony
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 3 of 29
`
`19-15072
`
`Opinion of the Court
`
`3
`
`technology is often referred to as “Voice over Internet Protocol,”
`or “VoIP,” for short.1 And Congress took notice of it.
`Indeed, in 2008, Congress enacted legislation that required
`the development of a “national plan for migrating to a national IP-
`enabled emergency network capable of receiving and responding
`to all citizen-activated emergency communications and improving
`information sharing among all emergency response entities.” 47
`
`
`1 To understand how VoIP functions, it’s helpful to compare it to how
`conventional phone calls work. A “regular” phone call using the “public
`switched telephone network” (“PSTN”) (also known by the retronym “plain
`old telephone service” (“POTS”)) relies on circuit-switched telephony. See
`ThinkSecure Network, How does a VoIP phone system work differently than
`POTS?, Difference Between VoIP and PSTN, ThinkSecureNet (June 11, 2021),
`https://www.thinksecurenet.com/blog/how-does-a-voip-phone-system-
`work-differently-than-pots/. The system works by setting up a dedicated cir-
`cuit between two points at different sites for the duration of a call. See Cam-
`eron Johnson, What is POTS? Plain Old Telephone Service Line & Network
`Explained, Nextiva Blog
`(Oct. 15, 2018), https://www.nextiva.com
`/blog/what-is-pots.html. Traditionally, this type of telephony system has
`used copper wires carrying analog voice data over dedicated circuits. Id. In
`more recent years, integrated services digital network (“ISDN”) technology
`has been used to carry digital voice data, using the traditional public switched
`telephone network. Id. In contrast, VoIP refers to phone service over the
`internet. See Difference Between VoIP and PSTN, GeeksforGeeks (updated
`on Aug. 14, 2020), https://www.geeksforgeeks.org/difference-between-voip-
`and-pstn/. For calls using VoIP, the internet is the transmission medium for
`voice data in the form of packets using Internet Protocol (“IP”). Id. VoIP
`transmits real-time voice signals from a source IP address to the target IP ad-
`dress. Id. VoIP has come a long way since its invention, and today, some
`consider it more reliable and cost-effective than good, old-fashioned POTS.
`Id.
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 4 of 29
`
`4
`
`Opinion of the Court
`
`19-15072
`
`U.S.C. § 942(d)(1) (2008). That legislation is called the New and
`Emerging Technologies 911 Improvement Act of 2008 (“NET 911
`Act”), Pub. L. 110-283, 122 Stat. 2620 (July 23, 2008), and it is codi-
`fied at 47 U.S.C. §§ 222, 615a, 615a-1, 615b and 942.2
`Congress identified three interrelated purposes of the NET
`911 Act: “To promote and enhance public safety by facilitating the
`rapid deployment of IP-enabled 911 and E-911 services, encourage
`the Nation’s transition to a national IP-enabled emergency net-
`work, and improve 911 and E-911 access to those with disabilities.”
`Pub. L. 110-283, 122 Stat. 2620.
`
`In furtherance of these purposes, Congress legislated “par-
`ity” between VoIP-based and non-VoIP-based providers and sub-
`scribers when it comes to providing and obtaining 911-system ac-
`cess. Put simply, Congress sought to eliminate any financial pen-
`alty to VoIP providers and subscribers, in comparison to non-VoIP
`providers and subscribers, for 911-system access.
`
`As part of this plan, Congress enacted 42 U.S.C. § 615a-
`1(f)(1), which we refer to as the “911 Fee Parity Provision.” This
`statute allows non-federal government entities to charge a fee to
`commercial phone services for the support or implementation of
`various 911 services. But it specifies that, “[f]or each class of
`
`
`2 Section 942 has since been substantially amended by the Next Gen-
`eration 9-1-1 Advancement Act of 2012, Pub. L. 112-96, §§ 6501-09, 126 Stat.
`156, 237-45 (Feb. 22, 2012). For that reason, our further citations of Section
`942 in this opinion refer to the 2008 version.
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 5 of 29
`
`19-15072
`
`Opinion of the Court
`
`5
`
`subscribers to IP-enabled voice services, the fee or charge may not
`exceed the amount of any such fee or charge applicable to the same
`class of subscribers to telecommunications services.” Id.
`Appellants here are four 911 Districts in Alabama who con-
`tend that the 911 Fee Parity Provision authorizes them to charge
`non-VoIP and VoIP service providers using a different unit of meas-
`ure for each, as long as the Districts apply the same base fee for
`each unit. For example, the 911 Districts argue that they may
`charge non-VoIP service providers per access line and VoIP service
`providers per ten-digit telephone number as long as they charge,
`say, $1.00 each for both units—even if the total charges for a given
`class of VoIP subscribers exceed the total charges for the same class
`of non-VoIP subscribers for the same amount of burden each group
`of subscribers imposes on the 911 system.
`
`Asserting that Intervenor BellSouth failed to pay the fee for
`each ten-digit number, the 911 Districts filed suit against BellSouth
`in district court. BellSouth disagreed that it was required to pay
`these fees.
`Under the primary-jurisdiction doctrine, the district court
`referred the matter to the Federal Communications Commission
`(the “Commission”), since the Commission was charged with exe-
`cuting and enforcing the provisions of the NET 911 Act, see 47
`U.S.C. § 151. After receiving comments, the FCC issued a declara-
`tory ruling concluding that the 911 Fee Parity Provision prohibits
`state and local governments from charging 911 fees to VoIP pro-
`viders that are greater than those charged to non-VoIP providers
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 6 of 29
`
`6
`
`Opinion of the Court
`
`19-15072
`
`for the same amount of burden the services impose on the 911 sys-
`tem. The effect of that order would preclude the 911 Districts from
`charging VoIP providers and non-VoIP providers the same base fee
`based on different units if the total fee charged for comparable 911
`access is higher for VoIP service providers. The 911 Districts now
`challenge that ruling on a petition for review.
`After careful consideration and with the benefit of oral argu-
`ment, we independently arrive at the same conclusion as the FCC.
`We base our determination on congressional intent as expressed in
`the statutory text, structure, and purpose of the NET 911 Act. Be-
`cause Congress’s intent is unambiguous, we deny the 911 Districts’
`petition for review.
`
`I.
`
`A.
`
`
`Factual Background
`1.
`History of 911
`Just three presses of a button on any telephone—9-1-1—re-
`quest emergency assistance in the United States. Dialing 911 auto-
`matically links the caller to a nearby “public safety answering
`point,” (referred to in the U.S. Code as “PSAP,” see 47 U.S.C. §
`615b(3)) where a trained telephone operator can dispatch emer-
`gency responders such as police, firefighters, and ambulance ser-
`vices directly to the caller’s location. Better yet, today, in most
`parts of the country, the 911 system automatically provides the dis-
`patcher with the caller’s location and phone number.
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 7 of 29
`
`19-15072
`
`Opinion of the Court
`
`7
`
`But things weren’t always this way. Before the designation
`of 911 as the nationwide three-digit emergency-call number, indi-
`viduals needed to know and dial local phone numbers to reach
`their nearby police or fire station in case of emergency. Or they
`could dial “0” to reach a telephone-company operator, who would
`then have to transfer the call. But unlike the emergency dispatch-
`ers who are now trained for their specific positions, general tele-
`phone operators weren’t necessarily equipped or taught to perform
`emergency-call-assistance services.
`
`By the mid-1950s, people started to recognize that this sys-
`tem was inadequate to meet the emergency communication needs
`of the public. In 1957, for example, the National Association of Fire
`Chiefs reportedly suggested the need for a single telephone num-
`ber for reporting fires. See History of 911: And What it Means for
`the Future of Emergency Communications, iCERT and 911 Edu-
`cation Foundation, https://static.wixstatic.com/ugd/b8d2ce_e6b
`60db90b47454dbb047f451278aa66.pdf.
`And ten years later, in 1967, President Lyndon B. Johnson’s
`Commission on Law Enforcement and Administration of Justice
`recommended that citizens be able to contact police departments
`using a uniform telephone number. Id. Its report stated, “Wher-
`ever practical, a single police telephone number should be estab-
`lished, at least within a metropolitan area and eventually over the
`entire United States . . .” Id. To make that vision a reality, in No-
`vember 1967, the Federal Communications Commission met with
`the American Telephone and Telegraph Company (“AT&T”)—
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 8 of 29
`
`8
`
`Opinion of the Court
`
`19-15072
`
`the provider of telephone service throughout most of the United
`States at that time—to find a means of establishing a universal
`emergency number that could be implemented quickly.
`Two months later, on January 12, 1968, AT&T announced
`its designation of 911 as the universal emergency number. Id. Why
`those digits? According to the National Emergency Number Asso-
`ciation (“NENA”), 911 was “brief” and “easily remembered,” and
`because it was “a unique number, never having been authorized as
`an office code, area code, or service code,” “it best met the long
`range numbering plans and switching configurations of the tele-
`phone industry.” See 9-1-1 Origin & History, NENA The 9-1-1 As-
`(last
`sociation, https://www.nena.org/page/911overviewfacts
`visited Oct. 26, 2021). On February 16, 1968, Alabama’s state
`Speaker of the House Rankin Fite completed the first ever 911 call
`to Tom Bevill, a U.S. Representative, in Haleyville, Alabama, who
`was sitting at the police station, waiting to inaugurate the new sys-
`tem. See Haleyville – The First 911 Call, http://archives.ubalt.edu
`/bsr/articles/feb%2016.pdf.
`2.
`Statutory regulation of 911
`Fast forward to 1999 and the new age the cell-phone rang in:
`Congress directed the Federal Communications Commission to
`designate 911 as the nationwide emergency hotline for wireline
`and wireless voice services. See Wireless Commc’ns and Pub.
`Safety Act of 1999, Pub. L. 106-81, § 3(a), 113 Stat. 1286, 1287 (Oct.
`26, 1999) (codified at 47 U.S.C. § 251(e)(3)). Since that time, the
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 9 of 29
`
`19-15072
`
`Opinion of the Court
`
`9
`
`Commission has issued numerous orders overseeing and regulat-
`ing the nation’s 911 emergency call system.3
`And then, the internet took off.4 After 2000, with the prolif-
`eration of new technologies and the growing popularity of voice
`
`
`3 See, e.g., In the Matter of Revision of the Commission’s Rules to En-
`sure Compatibility with Enhanced 911 Emergency Calling Systems, Report
`and Order and Further Notice of Proposed Rulemaking, 11 FCC Rcd 18676,
`18678, ¶1 (1996) (“today we are taking several important steps to foster major
`improvements in the quality and reliability of 911 services” in furtherance of
`“our longstanding and continuing commitment to manage use of the electro-
`magnetic spectrum in a manner that promotes the safety and welfare of all
`Americans”); In the Matter of Revision of the Commission’s Rules to Ensure
`Compatibility with Enhanced 911 Emergency Calling Systems; Amendment
`of Parts 2 and 25 to Implement Global Mobile Personal Communications by
`Satellite (GMPCS) Memorandum of Understanding and Arrangements; Peti-
`tion of the National Telecommunications and Information Administration to
`Amend Part 25 of the Commission’s Rules to Establish Emissions Limits for
`Mobile and Portable Earth Stations Operating in the 1610-1660.5 MHz Band,
`Report and Order and Second Further Notice of Proposed Rulemaking, 18
`FCC Rcd 25340, 25341, ¶1 (2003) (“we revise the scope of our enhanced 911
`rules to clarify which technologies and services will be required to be capable
`of transmitting enhanced 911 information to public safety answering points”).
`Enhanced 911 (“E911”) service, in contrast with the original basic 911, routes
`emergency calls to a geographically appropriate public safety answering point
`based on the caller’s location, provides the caller’s call-back number and, in
`many instances, the caller’s location. To keep things simple, we refer to basic
`911 and E911 collectively as “911” unless otherwise noted.
`4 See Anne Hyland, How the internet changed everything, Australian
`Financial Review (Apr. 14, 2015), https://www.afr.com/life-and-luxury/
`how-the-internet-changed-everything-20150306-13x619.
`
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 10 of 29
`
`10
`
`Opinion of the Court
`
`19-15072
`
`calls made online using VoIP technology, the Commission initiated
`a rulemaking proceeding to explore the impact that internet and
`VoIP services “have had and will continue to have on the United
`States’ communications landscape.” In the Matter of IP-Enabled
`Services, Notice of Proposed Rulemaking, 19 FCC Rcd 4863, 4864,
`¶ 1 (2004). Relevant here, the Commission specifically sought com-
`ment “on the potential applicability of 911, E911, and related criti-
`cal infrastructure regulation to VoIP and other IP services.” See
`id., 19 FCC Rcd at 4898-99, ¶ 53.
`In 2005, the Commission adopted rules “requiring providers
`of interconnected voice over Internet Protocol (VoIP) service to
`supply enhanced 911 (E911) capabilities to their customers.” In re
`IP-Enabled Servs. & E911 Requirements for IP-Enabled Serv. Pro-
`viders, 20 F.C.C.R. 10245, 10246 (2005). These rules define “inter-
`connected Voice over Internet protocol (VoIP) service” as “a ser-
`vice that: (i) Enables real-time, two-way voice communications; (ii)
`Requires a broadband connection from the user’s location; (iii) Re-
`quires internet protocol-compatible customer premises equipment
`(CPE); and (iv) Permits users generally to receive calls that origi-
`nate on the public switched telephone network and to terminate
`calls to the public switched telephone network.” 47 C.F.R. § 9.3.
`We refer to these rules as the “2005 VoIP 911 Order.”
`In 2008, Congress followed suit by enacting the New and
`Emerging Technologies 911 Improvement Act of 2008 (“NET 911
`Act”), Pub. L. 110-283, 122 Stat. 2620 (July 23, 2008). That law,
`which codified the rules set forth in the 2005 VoIP 911 Order,
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 11 of 29
`
`19-15072
`
`Opinion of the Court
`
`11
`
`directed that it “shall be the duty of each IP-enabled voice service
`provider to provide 9-1-1 service and enhanced 9-1-1 service to its
`subscribers in accordance with the requirements of the . . . Com-
`mission.” 47 U.S.C. § 615a-1(a).
`As we have noted, the statute also preserved the ability of
`states and other jurisdictions to impose fees on these types of ser-
`vices to assist in supporting the 911 emergency-hotline system. In
`so doing, the Act required that any fees charged be used exclusively
`“in support of 9-1-1 and enhanced 9-1-1 services, or enhancements
`of such services” as the state or local law authorizing the fees spec-
`ified, and it directed that the fee for “each class of subscribers to
`[VoIP] services” not exceed that for “the same class of subscribers
`to telecommunications services”:
`
`Nothing in this Act, the Communica-
`tions Act of 1934 (47 U.S.C. 151 et seq.),
`the New and Emerging Technologies
`911 Improvement Act of 2008, or any
`Commission regulation or order shall
`prevent the imposition and collection of
`a fee or charge applicable to commercial
`mobile services or IP-enabled voice ser-
`vices specifically designated by a State,
`political subdivision thereof, Indian
`tribe, or village or regional corporation
`serving a region established pursuant to
`the Alaska Native Claims Settlement
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 12 of 29
`
`12
`
`Opinion of the Court
`
`19-15072
`
`Act, as amended (85 Stat. 688)[,] for the
`support or implementation of 9-1-1 or
`enhanced 9-1-1 services, provided that
`the fee or charge is obligated or ex-
`pended only in support of 9-1-1 and en-
`hanced 9-1-1 services, or enhancements
`of such services, as specified in the pro-
`vision of State or local law adopting the
`fee or charge. For each class of subscrib-
`ers to IP-enabled voice services, the fee
`or charge may not exceed the amount of
`any such fee or charge applicable to the
`same class of subscribers to telecommu-
`nications services.
`
`Id. § 615a-1(f)(1).
`B.
`Procedural Background
`
`1.
`The district-court lawsuit
`On May 6, 2015, BellSouth Telecommunications, LLC, filed
`a notice of removal in the United States District Court for the
`Northern District of Alabama, relating to a complaint three 911
`emergency-communications districts—those for Autauga County,
`Calhoun County, and Birmingham—filed in state court.
`
`In an amended complaint, the 911 Districts—now including
`the communications district for Mobile County as well (we refer to
`the four 911 emergency-communications districts collectively as
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 13 of 29
`
`19-15072
`
`Opinion of the Court
`
`13
`
`the “911 Districts”)—alleged that they provide their districts with
`911 services, which are funded by emergency telephone service
`charges. They further asserted that BellSouth did not collect the
`proper charges from VoIP customers as required under Alabama’s
`Emergency Telephone Service Act (“ETSA”), Ala. Code § 11-98-1,
`et seq. (effective until Oct. 1, 2013). More specifically, the com-
`plaint contended that, between 2005 and 2013, BellSouth failed to
`correctly bill its business VoIP customers for emergency telephone
`service fees, and it misapplied a cap on 911 charges.
`
`Initially, ETSA had imposed a 911 charge on service provid-
`ers for every “exchange access line” up to a cap of 100 “per person,
`per location.” Ala. Code § 11-98-5. But in 2005, Alabama amended
`ETSA to require VoIP providers to instead bill one “fee for each 10-
`digit access number assigned to the [VoIP] user.” Id. at § 11-98-5.1.
`It was these fees that the 911 Districts claimed BellSouth had failed
`to properly pay. As later became apparent during the course of the
`litigation (and for reasons we explain more below), this difference
`in the way that VoIP and non-VoIP subscribers were to have their
`911 fees assessed was significant because it would result in higher
`total charges to the VoIP subscribers for the same ability of the
`VoIP and non-VoIP subscribers to reach 911 at any given time.5
`
`
`5 During the course of the litigation through the district court and the
`Commission, Bellsouth actually explained its refusal to charge and collect the
`fees per telephone number based on the position that the services it provided
`were not VoIP services as that term is defined for purposes of the fee but were
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 14 of 29
`
`14
`
`Opinion of the Court
`
`19-15072
`
`The 911 Districts sought in five counts to recover these allegedly
`unpaid charges: (1) under ETSA, (2) for negligence, negligence per
`se, gross negligence, and recklessness, (3) for breach of fiduciary
`duty, (4) for wantonness, and (5) for negligent misrepresentation
`and fraud.
`BellSouth moved to dismiss for failure to state a claim, argu-
`ing that the factual allegations of the complaint were too conclu-
`sory and the common-law claims failed as a matter of law. The
`court denied the motion.
`Then BellSouth filed a motion to refer two issues relating to
`the litigation to the Commission under the primary-jurisdiction
`doctrine.6 That doctrine allows a court to “stay an action pending
`
`
`instead traditional telephone services. Because that issue is not before us on
`appeal, we do not discuss it further.
`6 The two issues BellSouth sought to have the Commission consider
`are not the issues the Commission ultimately decided to address, so they are
`not before us in this appeal. For that reason, though we note those issues for
`the sake of completeness, we do not pause to explain the technological details
`of them and how those technological aspects are relevant to the issues raised.
`The two issues included the following:
`Whether a traditional voice service, such as In-
`tegrated Services Digital Network (“ISDN”)
`Primary Rate Interface (“PRI”), that does not
`utilize Internet Protocol to transmit voice
`communications to or from the customer’s
`premises is nonetheless interconnected Voice-
`over-Internet-Protocol (“VoIP”) service when
`provisioned over fiber-optic facilities to a
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 15 of 29
`
`19-15072
`
`Opinion of the Court
`
`15
`
`resolution of an issue that falls within the special competence of an
`administrative agency.” Beach TV Cable Co. v. Comcast of
`Fla./Ga., LLC, 808 F.3d 1284, 1288 (11th Cir. 2015). BellSouth’s
`motion also sought a stay of the district-court proceedings while
`the Commission addressed the issues BellSouth sought to refer.
`The 911 Districts opposed the motion. They argued that the case
`involved a state-law dispute over which the Commission had no
`say.
`
`But the district court did not agree with the 911 Districts,
`and it granted the motion for referral. In its order, the court noted
`that the parties disagreed about how to characterize the claims in
`the case and about the claims’ relation to the communications tech-
`nologies at issue. Although the court referred the matter to the
`Commission “for further guidance,” it did not explicitly adopt Bell-
`South’s framing of the issues, nor did it otherwise specify the issues
`it was referring to the Commission.
`
`The district court proceedings remain stayed pending this
`appeal.
`
`
`customer that also has IP-compatible customer
`premises equipment (“CPE”).
`Whether 47 U.S.C. § 615a-1(f)(1) preempts Ala.
`Code § 11-98-5.1(c) insofar as it requires cus-
`tomers of VoIP or similar services to pay a
`charge that exceeds the 911 charges applicable
`to the same class of subscribers to traditional
`voice services.
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 16 of 29
`
`16
`
`Opinion of the Court
`
`19-15072
`
`The administrative proceeding
`2.
`After the referral to the Commission, the 911 Districts and
`BellSouth filed cross-petitions for declaratory ruling with the Com-
`mission. The Commission released a public notice seeking com-
`ment on the petitions.
`Once the Commission considered the comments it received,
`it issued its declaratory ruling. To explain the ruling, we must
`pause to explain the concept of call capacity. Call capacity refers to
`the number of concurrent calls a business’s communications sys-
`tem can handle at any one time. See How much call capacity does
`your business need?, Bandwidth (Sept. 17, 2020), https://www
`.bandwidth.com/blog/how-much-call-capacity-does-your-busi-
`ness-need/. A business that employs 100 people, for example, may
`wish to assign each employee her own phone number, and it may
`wish to have additional phone numbers for departments or other
`aspects of the business. Besides allowing direct contact with those
`outside the business, this type of setup also permits internal em-
`ployee-to-employee communications. But most businesses of this
`size will not require a communications system that will allow all
`100 employees to be on external phone calls at the same time.
`Modern phone-communications services are able to offer such
`business customers telecommunications services that suit their
`needs without providing them with the capacity for each of their
`assigned phone numbers to be in use concurrently. See id.
`Here’s why the concept of concurrent calling capacity is im-
`portant: Under Alabama’s ETSA provision, the 911 Districts took
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 17 of 29
`
`19-15072
`
`Opinion of the Court
`
`17
`
`a position that the 911 Fee Parity Provision required only that the
`absolute base 911 fees they charged non-VoIP and VoIP service
`providers be the same, regardless of the systems’ concurrent call
`capacity. This construction would allow the 911 Districts to charge
`911 fees per access line to non-VoIP customers but per phone num-
`ber to VoIP customers, as long as the base fee amount charged was
`the same for each. A fee structure like this would result in higher
`total charges on VoIP customers than on non-VoIP customers.
`
`To understand why, consider a VoIP and non-VoIP cus-
`tomer that each bought ten access lines capable of outbound calling
`and that each obtained twenty telephone numbers for internal
`communications between the employees. If the fee were $1.00 per
`access line for a non-VoIP customer and $1.00 per assigned tele-
`phone number for a VoIP customer, the absolute base fee charged
`to customers of both types of services—$1.00—would be the same.
`But the non-VoIP customer would be charged a total of $10.00
`($1.00 times 10 access lines), while the VoIP customer would have
`to pay $20.00 ($1.00 times 20 individual phone numbers) for the
`same concurrent outbound call capacity. As a result, if a customer
`switched from a non-VoIP telecommunications service to a VoIP
`one with the same concurrent outbound calling capacity and the
`same number of individual phone numbers, BellSouth asserted
`that such a customer would “see its monthly telephone bill increase
`substantially.”
`With that basic understanding, we return to the order the
`Commission issued in response to the district court’s referral. The
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 18 of 29
`
`18
`
`Opinion of the Court
`
`19-15072
`
`Commission’s order interpreted the 911 Fee Parity Provision, 47
`U.S.C. § 615a-1(f)(1), to “prohibit[] non-federal governmental enti-
`ties from imposing 911 fees or charges on VoIP services in any man-
`ner that would result in a subscriber to such VoIP services paying
`a total amount of 911 fees or charges that exceeds the total amount
`of 911 fees or charges that the same subscriber would pay for a tra-
`ditional telecommunications service with the same 911 outbound
`calling capability or same quantity of units upon which 911 fees are
`imposed for traditional telecommunications services.”
`
`In other words, the oranges-to-oranges comparison the
`Commission’s interpretation of § 615a-1(f)(1) requires is based on
`the unit of outbound concurrent calling capacity—effectively, the
`same ability to burden 911 services at any point in time—not the
`base fee. So under this construction, the number of phone num-
`bers a VoIP customer has is necessarily irrelevant to the maximum
`amount the VoIP customer may be charged if it is not possible for
`the VoIP customer to use all its phone numbers simultaneously to
`call 911. Rather, both VoIP and non-VoIP customers may be
`charged the 911 fee for only as many numbers as they have the
`ability to simultaneously use to call 911. So VoIP and non-VoIP
`customers pay the same total 911 fee for the same maximum con-
`current call capacity, without respect to how the system is config-
`ured.
`
`Beyond this, though, the Commission declined to rule fur-
`ther on the specific arguments the parties raised in the district-court
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 19 of 29
`
`19-15072
`
`Opinion of the Court
`
`19
`
`proceeding, including whether the 911 Fee Parity Provision
`preempted ETSA.
`The 911 Districts now appeal the Commission’s Order di-
`rectly to us under the Hobbs Act, 28 U.S.C. § 2342, which endows
`federal courts of appeals with “exclusive jurisdiction to enjoin, set
`aside, suspend (in whole or in part), or to determine the validity of”
`Commission rulings. See Mais v. Gulf Coast Collection Bureau,
`Inc., 768 F.3d 1110, 1113 (11th Cir. 2014) (“In the Hobbs Act, 28
`U.S.C. § 2342, Congress unambiguously deprived the federal dis-
`trict courts of jurisdiction to invalidate FCC orders by giving exclu-
`sive power of review to the courts of appeals.”). In particular, the
`Hobbs Act authorizes us to review orders “adopted by the Com-
`mission in the avowed exercise of its rule-making power” and that
`“affect or determine rights generally.” Id. at 1121 (citing Columbia
`Broad. Sys. v. United States, 316 U.S. 407, 417 (1942)).
`By the terms of the Hobbs Act, the 911 Districts’ appeal is
`against the Commission. See 28 U.S.C. § 2344 (“The action shall
`be against the United States.”). For its part, BellSouth has inter-
`vened as an interested party, as have two trade groups—
`USTelecom (The Broadband Association) and NCTA (The Inter-
`net and Television Association)—to defend the Commission’s in-
`terpretation of the 911 Fee Parity Provision.
`II.
`Under the Hobbs Act, when we conduct our review, we ap-
`
`ply the standards from the Administrative Procedure Act (“APA”).
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 20 of 29
`
`20
`
`Opinion of the Court
`
`19-15072
`
`See RTC Transp., Inc. v. I.C.C., 708 F.2d 617, 619 (11th Cir. 1983).
`The APA, in turn, requires us to set aside “agency action, findings,
`and conclusions found to be . . . arbitrary, capricious, an abuse of
`discretion, or otherwise not in accordance with law.” 5 U.S.C. §
`706(2), (2)(A). This deferential standard seeks only a “rational con-
`nection between the facts found and the choice made.” Motor Ve-
`hicle Mfrs. Ass’n of U.S., Inc. v. State Farm Mut. Auto Ins. Co., 463
`U.S 29, 43 (1983) (citation and internal quotation marks omitted).
`Our sole mission in conducting a review under this standard, then,
`“is to ensure that the agency came to a rational conclusion.” Sierra
`Club v. Van Antwerp, 526 F.3d 1353, 1360 (11th Cir. 2008) (citation
`and internal quotation marks omitted).
`III.
`In reviewing the FCC’s construction of a statute that it ad-
`
`ministers, we apply the two-step process that Chevron, U.S.A., Inc.
`v. Natural Resources Defense Council, Inc., 467 U.S. 837, 842
`(1984), sets forth. See Nat’l Ass’n of State Util. Consumer Advocs.,
`457 F.3d 1238, 1253 (11th Cir. 2006). At Chevron’s first step, we
`evaluate “whether Congress has spoken to the precise question at
`issue.” Id. (quoting Chevron, 467 U.S. at 842). “If the intent of
`Congress is clear, that is the end of the matter; for the court, as well
`as the agency, must give effect to the unambiguously expressed in-
`tent of Congress.” Id. at 842–43; cf. Kisor v. Wilkie, 139 S. Ct. 2400,
`2415 (2019) (before deferring to an agency’s reading of its own am-
`biguous regulation, a court must “carefully consider the text,
`
`

`

`USCA11 Case: 19-15072 Date Filed: 10/26/2021 Page: 21 of 29
`
`19-15072
`
`Opinion of the Court
`
`21
`
`structure, history, and purpose of a regulation, in all the ways it
`would if it had no agency to fall back on”).
`But if, after employing all the “traditional tools of statutory
`construction,” Chevron, 467 U.S. at 842 n.9, the s

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket