Federal Communications Commission FCC-CIRC2310-01
39
Under the Computer Inquiries, facilities-based telephone companies were obligated to offer the
transmission component of their enhanced service offerings—including broadband Internet access service
offered via DSL—to unaffiliated enhanced service providers on nondiscriminatory terms and conditions
pursuant to tariffs or contracts governed by Title II.
239
Thus, there is no disputing that until 2005, Title II
applied to the transmission component of DSL service.
240
Further, because the statutory definitions
substantially incorporated the Commission’s terminology under the Computer Inquiries, Commission
decisions regarding the distinction between basic and enhanced services—in particular, decisions
regarding features that are “adjunct to basic” services—are relevant to our analysis, as discussed further
below, because the Commission’s definition of “adjunct to basic” services has been instrumental in
determining which functions fall within the “telecommunications systems management” exception to the
“information service” definition.
69. We tentatively conclude that both a reasonable and the best reading of these definitional
provisions supports classifying BIAS as a telecommunications service. As explained in the 2015 Open
Internet Order, “the critical distinction between a telecommunications and an information service turns on
what the provider is ‘offering.’”
241
If the provider is offering “telecommunications” to the public for a
fee, then the service is necessarily a telecommunications service.
242
Thus, in 2015, the Commission
interpreted these terms to classify BIAS as a telecommunications service, finding that BIAS, as then
offered, is sufficiently independent from the information services that ISPs may also offer.
243
Consistent
(Continued from previous page)
16979, Notice of Inquiry, 7 FCC 2d 11, 11-12, para. 2 (1966) (Computer I Notice of Inquiry) (subsequent history
omitted). In the Computer II and Computer III decisions, the Commission required telephone companies that
provided “enhanced services” over their own transmission facilities to separate out and offer on a common carrier
basis the transmission component underlying their enhanced services. Amendment of Section 64.702 of the
Comm’n’s Rules & Regs, Second Computer Inquiry, Final Decision, 77 FCC 2d 384, 417-35, 461-75, paras. 86-132,
201-31 (1980) (Computer II Final Decision), aff’d sub nom. Computer & Commc’ns Indus. Ass’n v. FCC, 693 F.2d
198 (D.C. Cir. 1982); Amendment of Section 64.702 of the Comm’n’s Rules & Regs. (Third Computer Inquiry), CC
Docket No. 85-229, Phase I, Report and Order, 104 FCC 2d 958, para. 4 (1986) (Computer III Phase I Order),
recon., 2 FCC Rcd 3035 (1987) (Computer III Phase I Reconsideration Order), further recon., 3 FCC Rcd 1135
(1988) (Computer III Phase I Further Reconsideration Order), second further recon., 4 FCC Rcd 5927 (1989)
(Computer III Phase I Second Further Reconsideration Order); Phase I Order and Phase I Recon. Order vacated
sub nom. California v. FCC, 905 F.2d 1217 (9th Cir. 1990) (California I); CC Docket No. 85-229, Phase II, 2 FCC
Rcd 3072 (1987) (Computer III Phase II Order), recon., 3 FCC Rcd 1150 (1988) (Computer III Phase II
Reconsideration Order), further recon., 4 FCC Rcd 5927 (1989) (Phase II Further Reconsideration Order); Phase
II Order vacated, California I, 905 F.2d 1217 (9th Cir. 1990); Computer III Remand Proceeding, CC Docket No.
90-368, 5 FCC Rcd 7719 (1990) (ONA Remand Order), recon., 7 FCC Rcd 909 (1992), pets. for review denied sub
nom. California v. FCC, 4 F.3d 1505 (9th Cir. 1993) (California II); Computer III Remand Proceedings: Bell
Operating Company Safeguards and Tier 1 Local Exchange Company Safeguards, CC Docket No. 90-623, 6 FCC
Rcd 7571 (1991) (BOC Safeguards Order), BOC Safeguards Order vacated in part and remanded sub nom.
California v. FCC, 39 F.3d 919 (9th Cir. 1994) (California III), cert. denied, 514 U.S. 1050 (1995); Computer III
Further Remand Proceedings: Bell Operating Company Provision of Enhanced Services, CC Docket No. 95-20,
Notice of Proposed Rulemaking, 10 FCC Rcd 8360 (1995) (Computer III Further Remand Notice), Further Notice
of Proposed Rulemaking, 13 FCC Rcd 6040 (1998) (Computer III Further Remand Further Notice); Report and
Order, 14 FCC Rcd 4289 (1999) (Computer III Further Remand Order),
recon., 14 FCC Rcd 21628 (1999)
(Computer III Further Remand Reconsideration Order).
239
See Computer II Final Decision, 77 FCC 2d at 475, para. 231; see also Wireline Broadband Classification Order,
20 FCC Rcd at 14866-68, para. 24. We note that a large number of rural local exchange carriers (LECs) have also
chosen to offer broadband transmission service as a telecommunications service subject to the provisions of Title II.
240
See, e.g., Wireline Broadband Classification Order, 20 FCC Rcd at 14858, para. 5.
241
2015 Open Internet Order, 30 FCC Rcd at 5757, para. 355.
242
Id. at 5757, para. 355.
243
Id. at 5757-58, para. 356.