WASHINGTON, D.C. - The United States Court of Appeals for the District of Columbia Circuit dealt the Federal Communications Commission still another legal defeat today, effectively ending rules that force local telephone companies to share facilities with competitors at government-set prices. The court appeared to allow broadband-related regulations contained in the FCC's Triennial Review Order to stand. Progress & Freedom Foundation Senior Fellow and Director of Communications Policy Studies Randolph J. May issued the following statement:

"The court's decision is another strong judicial rebuke to the FCC's seven-year adherence to an excessive unbundling regime. The court's clear holding on the Commission's delegation of decision-making authority to the state commissions is particularly noteworthy. And, the court's repeated recognition that excessive unbundling stifles infrastructure investment, contrary to one of the 1996 Act's paramount goals, is key. With the ball back in the FCC's court, that agency is once again at a crucial crossroads. This time, it must heed what the courts have been telling it for years, and put in place a lawful and less regulatory facilities-sharing regime."

The Progress & Freedom Foundation is a market-oriented think tank that studies the digital revolution and its implications for public policy. It is a 501(c)(3) research & educational organization.