R E C I ’ r , 1 8 2 0 t 5 No. 15—1063 o u i t of Aoo a _ U N I T E D S T A T E S C O U R T O F A P P E A L S FOR THE D I S T R I C T OF COLUMBIA C I R C U I T U n i t e d S t a t e s T e l e c o m A s s o c i a t i o n , P e t i t i o n e r V. F e d e r a l C o m m u n i c a t i o n s C o m m i s s i o n a n d U n i t e d S t a t e s o f A m e r i c a , R e s p o n d e n t s I n d e p e n d e n t T e l e p h o n e a n d T e l e c o m m u n i c a t i o n s A l l i a n c e , e t a l . , I n t e r v e n o r s C o n s o l i d a t e d w i t h 15—1078, 15—1086, 15—1090, 15—1091, 1 5 — 1 0 9 2 , 1 5 — 1 0 9 5 , 15—1099, 15—1117, 15—1128, 15—1151, 15—1164 ON PROTECTIVE PETITION FOR REVIEW REPLY B R I E F OF AMICUS C U R I A E W I L L I A M J . K I R S C H IN SUPPORT OF AFFIRMANCE IN PART AND REVERSAL IN PART WILLIAM J . KIRSCH 1 2 1 1 SOUTH EADS STREET # 2 1 1 ARLINGTON, VIRGINIA 2 2 2 0 2 USCA Case #15-1063 Document #1574655 Filed: 09/18/2015 Page 1 of 5 A m i c u s , W i l l i a m J . K i r s c h , f i l e s t h i s r e p l y b r i e f in a c c o r d a n c e w i t h t h e c l e r k ’ s o r d e r f i l e d o n A u g u s t 4 , 2 0 1 5 g r a n t i n g m y m o t i o n t o p a r t i c i p a t e a n d d i r e c t i n g t h e c l e r k t o f i l e m y b r i e f a n d r e p l y b r i e f . T h e F C C i s c o r r e c t t h a t t h e o r i g i n s o f c o m m o n c a r r i e r l a w d a t e f r o m t h e e r a o f t h e M a g n a C a r t a a n d c o n s u m e r p r o t e c t i o n s a g a i n s t f r a d u l e n t t r a n s a c t i o n s i n c l u d i n g r e l a t e d t o t h e s a l e o f b l i n d h o r s e s . T i t l e II c l a s s i f i c a t i o n b e t t e r a l i g n s f e d e r a l w i t h s t a t e r e g u l a t i o n a n d p r o v i d e s t h e b a s i s f o r a c o n s i s t e n t a p p r o a c h f o r i n t r a s t a t e a n d i n t e r s t a t e b r o a d b a n d s e r v i c e s . S e e , f o r e x a m p l e , B r u c e K u s h n i c k , H o w T h e P u n d i t s . . . G o t It W r o n g , H u f f i n g t o n P o s t , S e p t . 1 5 , 2 0 1 5 . T h e v i r u l e n t , b u t s o m e w h a t u n d e r s t a n d a b l e , o p p o s i t i o n o f t h e p e t i t i o n e r s , h o w e v e r , i s in p a r t a r e c o g n i t i o n t h a t t h i s F C C i s u s i n g t h e b r e a d a n d c i r c u s e s m o d e l o f t h e R o m a n E m p i r e t o e n g a g e in a R o b i n H o o d - l i k e t r a n s f e r o f w e a l t h n o t f r o m t h e r i c h t o t h e p o o r b u t f r o m t h e m i d d l e c l a s s t o t h e p o o r o r t o f a v o r e d p o l i t i c a l c o n s t i t u e n c i e s . T h e s u b s i d i e s i n v o l v e t a x - l i k e m a n d a t e s o f b e t w e e n o n e - f i f t h a n d o n e - s i x t h o f t h e c o s t o f s e r v i c e . T h i s i s w e l l in e x c e s s o f b i b l i c a l c h a r i t a b l e t i t h i n g o f o n e - t e n t h . T h e r e f o r e , w h i l e t h e i n f a m o u s c o m p l a i n t o f t h e f o r m e r F C C C h a i r m a n ( n o w h e a d o f a p e t i t i o n e r c a b l e t e l e v i s i o n t r a d e a s s o c i a t i o n ) a b o u t a n a d v e r t i s e r - b a s e d i n f o r m a t i o n s e r v i c e m o d e l m a y i n v o l v e t h e s i n o f e n v y a s s o c i a t e d w i t h a s o m e t i m e s l e s s l u c r a t i v e s u b s c r i p t i o n b a s e d t e l e c o m m u n i c a t i o n s s e r v i c e s m o d e l , o n e c a n r e a d b e t w e e n t h e l i n e s t h a t t h e r e i s a l e g i t i m a t e c o n c e r n a b o u t t h e F C C ’ s v o r a c i o u s a p p e t i t e f o r g l o r y e a t i n g a l l t h e p r o f i t s . N e i t h e r t h e p e t i t i o n e r s n o r t h e r e s p o n d e n t s , h o w e v e r , m e n t i o n , m u c h l e s s , USCA Case #15-1063 Document #1574655 Filed: 09/18/2015 Page 2 of 5 a d d r e s s a m i c u s c o n c e r n s a b o u t t h e F C C ’ s s t a t u t o r y a u t h o r i t y a n d l e g a l r e s p o n s i b i l i t y f o r i n t e r n a t i o n a l t e l e c o m m u n i c a t i o n s . T o t h e c o n t r a r y , t h e F C C , a p p a r e n t l y o b l i v i o u s t o i r o n y , s e e k s t o u s e t h i s C o u r t ’ s C a b l e a n d W i r e l e s s d e c i s i o n t o j u s t i f y a n u n t e n a b l e e f f o r t t o p a s s o f f a N o t i c e o f I n q u i r y a s a N o t i c e o f P r o p o s e d R u l e m a k i n g a n d c o n t i n u e i t s g e n e r a t i o n l o n g f a i l u r e t o a p p l y t h e “ s a m e f o o t i n g a s r e g a r d s p r i v i l e g e s ” s t a n d a r d d a t i n g t o t h e e s s e n t i a l l y c o n c u r r e n t F o r e i g n P a r t i c i p a t i o n O r d e r , 1 2 F C C 2 3 8 9 1 ( 1 9 9 7 ) d e s p i t e t h e a c c e s s i o n o f t h e P e o p l e ’ s R e p u b l i c o f C h i n a t o t h e W o r l d T r a d e O r g a n i z a t i o n ( W T O ) ( R e p o r t o f t h e W o r k i n g P a r t y o n t h e A c c e s s i o n o f C h i n a , W T O , W T / A C C / C H N / 4 9 / A d d . 2 , O c t . 1, 2 0 0 1 ) a n d t h e a s s e s s m e n t o f t h e D i r e c t o r o f t h e N a t i o n a l S e c u r i t y A g e n c y o f t h e d e v a s t a t i n g d a m a g e in e n s u i n g y e a r s . S e e E . J o h n s o n , N S A C h i e f , C h i n e s e C y b e r - T h e f t M o s t S i g n i f i c a n t T r a n s f e r o f W e a l t h in H i s t o r y , N a t i o n a l R e v i e w , J u n e 2 3 , 2 0 1 3 . F o r t u n a t e l y , t h e C o n g r e s s a n d t h e O f f i c e o f t h e U n i t e d S t a t e s T r a d e R e p r e s e n t a t i v e ( U S I R ) r e c o g n i z e t h e p r o b l e m . T h e T r a d e A c t o f 2 0 1 5 p r o v i d e s in S e c t i o n 1 0 2 ( a ) ( 1 ) f o r a n a f f i r m a t i o n o f t h e s a m e f o o t i n g s t a n d a r d w i t h i t s d i r e c t i o n f o r U S T R t o o b t a i n m o r e o p e n , e q u i t a b l e a n d r e c i p r o c a l m a r k e t a c c e s s a n d in 1 0 2 ( b ) ( 8 ) f o r t h e e l i m i n a t i o n o r p r e v e n t i o n o f t r a d e d i s t o r t i o n s a n d u n f a i r c o m p e t i t i o n f a v o r i n g s t a t e o w n e d a n d s t a t e - c o n t r o l l e d e n t e r p r i s e s . T h e F C C b r i e f n o t o n l y i g n o r e s t h e T r a d e A c t o f 2 0 1 5 , b u t a l s o f a i l s t o a d d r e s s c r i t i c a l p r o v i s i o n s s u c h a s 4 7 U . S . C . 3 4 - 3 9 , 2 1 4 a n d 3 1 0 . T h e F C C h a s a l s o c o n t i n u e d u n l a w f u l l y t o s t o n e w a l l r e l a t e d F r e e d o m o f I n f o r m a t i o n A c t a n d P r i v a c y A c t r e q u e s t s w h i l e U S T R h a s e n g a g e d in a c o n s t r u c t i v e USCA Case #15-1063 Document #1574655 Filed: 09/18/2015 Page 3 of 5 d i a l o g u e t h a t m a y r e s u l t i n r e l e a s e o f t h e d r a f t T r a n s - P a c i f i c P a r t n e r s h i p ( T P P ) t e x t . S e e , f o r e x a m p l e , U S T R F O I A 1 3 0 8 2 7 7 6 , 1 5 0 7 2 0 7 4 a n d 1 5 0 8 0 5 8 3 . F o r w i t h o u t t h e r e l e a s e o f t h e d r a f t T P P t e x t , w e m a y n o t k n o w b e f o r e a C o n g r e s s i o n a l f a s t t r a c k v o t e , w h a t , i f a n y , p o s i t i v e i m p a c t m a y r e s u l t f r o m t h e l i b e r a l i z a t i o n , i f a n y , o f t r a d e i n t e l e c o m m u n i c a t i o n s a n d i n f o r m a t i o n s e r v i c e s . S e e , f o r e x a m p l e , U n i t e d S t a t e s I n t e r n a t i o n a l T r a d e C o m m i s s i o n F O I A R e q u e s t 1 5 - 2 7 ( A u g u s t 1 3 , 2 0 1 5 ) . W i t h t h e p u b l i c r e l e a s e o f s e n s i t i v e U . S . n e t w o r k i n f o r m a t i o n ( s e e , f o r e x a m p l e , T o m S i m o n i t e , F i r s t D e t a i l e d P u b l i c M a p o f U . S . I n t e r n e t B a c k b o n e C o u l d M a k e I t S t r o n g e r , M I T T e c h n o l o g y R e v i e w , S e p t . 1 5 , 2 0 1 5 ) , i t w o u l d b e f o l l y f o r U S T R t o n o t r e l e a s e t h e t e x t a n d p e r m i t a l l p a r t i c i p a n t s i n t h i s p r o c e e d i n g t o i m p r o v e t h e d r a f t t e x t . U S T R a p p a r e n t l y n o w r e c o g n i z e s , o r i s a t l e a s t b e g i n n i n g t o r e c o g n i z e , t h e h i s t o r i c m i s t a k e a s s o c i a t e d w i t h t h e W T O A g r e e m e n t o n B a s i c T e l e c o m m u n i c a t i o n s ( A B T ) f a i l u r e t o s e c u r e s a m e f o o t i n g a s r e g a r d s p r i v i l e g e s m a r k e t a c c e s s f r o m o t h e r A B T M e m b e r S t a t e s a n d a n y m a r k e t a c c e s s a t a l l f r o m t h e h a l f o f W T O M e m b e r S t a t e s n o t p a r t i c i p a t i n g i n t h e A B T . T h e r e s u l t i n g t r a g e d y o f t h e c o m m o n s a s s o c i a t e d w i t h t h e t h r e a t t o n e t w o r k a n d n a t i o n a l s e c u r i t y s h o u l d n o t b e a l l o w e d t o c o n t i n u e a n d s h o u l d b e a d d r e s s e d b y v a c a t i n g , r e v e r s i n g a n d r e m a n d i n g a n F C C s o - c a l l e d g e n e r a l c o n d u c t s t a n d a r d t h a t i s o b l i v i o u s t o t h e s e c o n c e r n s . P e t i t i o n e r s a r e n o t e n t i t l e d , a n d t h e F C C m a y n o t p e r m i t c o m m o n c a r r i e r s , t o b u i l d i n a d e q u a t e f a c i l i t i e s a t p r e m i u m r a t e s f u n d e d b y c a p t i v e r a t e p a y e r s . T h e P h o e n i x C e n t e r i s c o r r e c t t h a t a c o u r t - d i r e c t e d F C C r e v i e w o f r a t e s i s l i k e l y t o b e a c o m p l e x a n d a r d u o u s t a s k a n d t h a t d r u d g e r y i s n o e x c u s e f o r F C C a v o i d a n c e o f USCA Case #15-1063 Document #1574655 Filed: 09/18/2015 Page 4 of 5 its legal responsibility in light of the decimation of its common carrier expertise. Life may not fair, but a government of the people, by the people, and for the people must be or it will perish from the earth. The FCC Brief inadvertently acknowledges that it has engaged in invidious discrimination against disfavored companies or industries including legacy telephone companies. This Court, which played a critical role by its decision in Verizon v. FCC in obtaining the correct Title II classification, should now finish the important pro-competitive impact for international telecommunications services that it began in Cable & Wireless towards a more open and competitive global open internet. The petitioners and the FCC ignorance of the international dimension is likely to lead to the worst of two worlds -- that is, no market access for U.S. telecommunications and information services providers abroad and legally binding commitments to permit intrusive access by foreign state-owned enterprises to the U.S. network. Our trading partners have not lived up to their Uruguay Round commitment to progressively liberalize trade in telecommunications and information services. Rather than continuing to ignore this transgression, the FCC must act accordingly. The FCC brief makes it clear that the FCC will not do so absent court direction. As Winston Churchill once said, the truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is. William J. Kirsch September2015 USCA Case #15-1063 Document #1574655 Filed: 09/18/2015 Page 5 of 5