FCC Faces Suits over Broadband Fund

The Federal Communications Commission is facing two lawsuits over its mammoth order that creates a multibillion-dollar fund to expand Internet access and results in other substantial reforms. The Pennsylvania Public Utility Commission filed a suit in the Third Circuit Court of Appeals in Philadelphia and a small phone company named Core Communications has sued the FCC in the 4th Circuit in Richmond, Va., The Hill reported. Both lawsuits contend the FCC's order was "arbitrary and capricious" and a "departure from reasoned decision-making," while the PUC further argues that the order violates the 10th Amendment, according to the report. The litigation comes in the wake of one of the most comprehensive rulemaking proceedings in the modern history of the agency. The FCC released a 759-page order last month, putting in motion several major telecommunications reforms including the creation of a $4.5 billion dollar fund – the Connect America Fund – to subsidize high-speed Internet service. The agency has said the $4.5 billion fund to support telecommunications service in high-cost areas is plagued with problems, including the fact that recipients of such funds have no obligation to advance broadband infrastructure. Groups seeking to block the order must file their cases by tomorrow, and a lottery will determine which appeals court hears the cases, The Hill reported.