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Justices to hear FCC case
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January 26, 1998: 12:29 p.m. ET
Appellate Court had denied agency's right to set local access phone rates
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NEW YORK (CNNfn) - The U.S. Supreme Court said Monday it will review an appellate court ruling that struck down landmark rules designed to open the $100 billion local telephone market.
Hearings are slated to begin during the High Court's next term in the fall. No decision is expected until 1999. Long-distance companies and federal regulators had hoped for an expedited hearing to resolve the dispute.
The case involves a ruling issued last July by the 8th U.S. Circuit Court of Appeals that stated the Federal Communications Commission lacks the authority to set prices for the local phone companies.
Through the landmark Telecommunications Act of 1996, the FCC hoped to reduce the prices phone companies charge for access to those local networks. These so-called "interconnection" prices are estimated to account for as much as half of a long-distance phone bill.
However, the appeals court in St. Louis ruled only states have the authority to set prices.
"I am very pleased that the Supreme Court has decided to hear this case," FCC Chairman William Kennard said.
"The American people will reap the benefits of competition much sooner if the Supreme Court upholds the interpretation of the Telecommunications Act urged by the FCC," Kennard said. 
-- from staff and wire reports
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