October Term 2001 · Docket 00-511
Should telecom rates reflect historical costs or future network needs?
Telecom firms and regulators dispute how to calculate fair rates for network services.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
William Barr argued that firms incur three specific costs when building networks.
William Barr stated that forward-looking perspectives clarify the legal issues.
William Olson argued that courts evaluate results rather than methodologies.
William Olson asserted that the statute does not mention compensating investors.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 2, lines 3-3 — Transcript, file page 2, lines 3-3
- Official Supreme Court Transcript — file page 4, lines 19-15 — Transcript, file page 4, lines 19-15
- Official Supreme Court Transcript — file page 4, lines 5-17 — Transcript, file page 4, lines 5-17
- Official Supreme Court Transcript — file page 42, lines 31-7 — Transcript, file page 42, lines 31-7
- Official Supreme Court Transcript — file page 50, lines 23-9 — Transcript, file page 50, lines 23-9
- Official Supreme Court Transcript — file page 66, lines 15-41 — Transcript, file page 66, lines 15-41
- Official Supreme Court Transcript — file page 76, lines 43-7 — Transcript, file page 76, lines 43-7
- Official Supreme Court Transcript — file page 78, lines 9-11 — Transcript, file page 78, lines 9-11
A citizen's guide to the whole case
What this case is about
This case tests how courts should evaluate telecom rate-setting methods.
Official sources for this section
- Official Supreme Court Transcript — file page 2, lines 3-3 — Transcript, file page 2, lines 3-3
- Official Supreme Court Transcript — file page 4, lines 19-15 — Transcript, file page 4, lines 19-15
- Official Supreme Court Transcript — file page 42, lines 31-7 — Transcript, file page 42, lines 31-7
- Official Supreme Court Transcript — file page 50, lines 23-9 — Transcript, file page 50, lines 23-9
- Official Supreme Court Transcript — file page 66, lines 15-41 — Transcript, file page 66, lines 15-41
- Official Supreme Court Transcript — file page 76, lines 43-7 — Transcript, file page 76, lines 43-7
How the case got here
The Supreme Court heard oral argument in this case on October 10, 2001.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 5-17 — Transcript, file page 4, lines 5-17
- Official Supreme Court Transcript — file page 78, lines 9-11 — Transcript, file page 78, lines 9-11
What each side wants
the sides that brought the case want the Court to reject historical cost calculations.
the opposing sides want the Court to uphold the FCC's rate-setting method.
Official sources for this section
- Official Supreme Court Transcript — file page 2, lines 3-3 — Transcript, file page 2, lines 3-3
- Official Supreme Court Transcript — file page 4, lines 19-15 — Transcript, file page 4, lines 19-15
- Official Supreme Court Transcript — file page 42, lines 31-7 — Transcript, file page 42, lines 31-7
- Official Supreme Court Transcript — file page 50, lines 23-9 — Transcript, file page 50, lines 23-9
- Official Supreme Court Transcript — file page 66, lines 15-41 — Transcript, file page 66, lines 15-41
- Official Supreme Court Transcript — file page 76, lines 43-7 — Transcript, file page 76, lines 43-7
What each side says
the sides that brought the case argue courts must evaluate rate outcomes, not calculation methods.
the opposing sides argue the statute requires just and reasonable rates based on service costs.
Official sources for this section
- Official Supreme Court Transcript — file page 2, lines 3-3 — Transcript, file page 2, lines 3-3
- Official Supreme Court Transcript — file page 4, lines 19-15 — Transcript, file page 4, lines 19-15
- Official Supreme Court Transcript — file page 42, lines 31-7 — Transcript, file page 42, lines 31-7
- Official Supreme Court Transcript — file page 50, lines 23-9 — Transcript, file page 50, lines 23-9
- Official Supreme Court Transcript — file page 66, lines 15-41 — Transcript, file page 66, lines 15-41
- Official Supreme Court Transcript — file page 76, lines 43-7 — Transcript, file page 76, lines 43-7
What the justices asked
Chief Justice Rehnquist asked if the statute addresses investor compensation.
Official sources for this section
- Official Supreme Court Transcript — file page 78, lines 9-11 — Transcript, file page 78, lines 9-11
Why it matters
This dispute determines how telecom companies calculate future network costs. It shapes the financial rules for building communication infrastructure. It affects the pricing of essential digital services for consumers.
Official sources for this section
- Official Supreme Court Transcript — file page 2, lines 3-3 — Transcript, file page 2, lines 3-3
- Official Supreme Court Transcript — file page 4, lines 19-15 — Transcript, file page 4, lines 19-15
- Official Supreme Court Transcript — file page 42, lines 31-7 — Transcript, file page 42, lines 31-7
- Official Supreme Court Transcript — file page 50, lines 23-9 — Transcript, file page 50, lines 23-9
- Official Supreme Court Transcript — file page 66, lines 15-41 — Transcript, file page 66, lines 15-41
- Official Supreme Court Transcript — file page 76, lines 43-7 — Transcript, file page 76, lines 43-7
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 5-17 — Transcript, file page 4, lines 5-17
- Official Supreme Court Transcript — file page 78, lines 9-11 — Transcript, file page 78, lines 9-11
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 2, lines 3-3 — Transcript, file page 2, lines 3-3
- Official Supreme Court Transcript — file page 4, lines 19-15 — Transcript, file page 4, lines 19-15
- Official Supreme Court Transcript — file page 42, lines 31-7 — Transcript, file page 42, lines 31-7
- Official Supreme Court Transcript — file page 50, lines 23-9 — Transcript, file page 50, lines 23-9
- Official Supreme Court Transcript — file page 66, lines 15-41 — Transcript, file page 66, lines 15-41
- Official Supreme Court Transcript — file page 76, lines 43-7 — Transcript, file page 76, lines 43-7
- Official Supreme Court Transcript — file page 2, lines 3-3 — Transcript, file page 2, lines 3-3
- Official Supreme Court Transcript — file page 4, lines 19-15 — Transcript, file page 4, lines 19-15
- Official Supreme Court Transcript — file page 42, lines 31-7 — Transcript, file page 42, lines 31-7
- Official Supreme Court Transcript — file page 50, lines 23-9 — Transcript, file page 50, lines 23-9
- Official Supreme Court Transcript — file page 66, lines 15-41 — Transcript, file page 66, lines 15-41
- Official Supreme Court Transcript — file page 76, lines 43-7 — Transcript, file page 76, lines 43-7
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.