Global Crossing Telecommunications, Inc. v. Metrophones Telecommunications, Inc.
Issues
Whether a payphone service provider can sue a long distance carrier in federal court when that carrier fails to pay compensation for dial-around calls made in violation of Federal Communications Commission regulations.
Payphone users can circumvent the usual payment method and avoid inserting a coin by using an access code or 800 number provided by a long distance carrier. These “dial-around” numbers, while convenient for users, leave payphone service providers uncompensated for the call made. The Federal Communications Commission, as instructed by Congress in the Telecommunications Act of 1996, created regulations to ensure that payphone service providers receive compensation for these “dial-around” calls. Metrophones Telecommunications, Inc., a payphone service provider, argues that Global Crossing Telecommunications, Inc., a long distance provider, has violated these regulations by failing to compensate Metrophones for such calls. Metrophones argues that under Section 201(b) of the Communications Act, Global Crossing Telecommunications’ violation of the Federal Communications Commission regulation constitutes an unjust and unreasonable practice, making it unlawful and actionable in federal court. Both the District Court and Ninth Circuit Court of Appeals held that a private cause of action does exist under Section 201(b). The Supreme Court’s decision in this case will define the scope of Section 201(b) of the Communications Act as well as give insight into the amount of deference to agency pronouncements that the court deems fit. It will also either provide a long awaited opportunity for payphone service providers to assert their rights in this area or leave them looking for another way to obtain compensation.
Questions as Framed for the Court by the Parties
Whether 47 U.S.C. § 201(b) of the Communications Act of 1934 creates a private right of action for a provider of payphone services to sue a long distance carrier of alleged violations of the FCC’s regulations concerning compensation for coinless payphone calls.
Metrophones Telecommunications, Inc. (“Metrophones”) is a payphone service provider (“PSP”). Global Crossing Telecommunications, Inc. (“Global Crossing”) is a long distance provider. The basis of the dispute is compensation Global Crossing is required by law to pay Metrophone for “dial around” calls from payphones.