AT&T Corp. v. Iowa Utilities Board

Under the Telecommunications Act of 1996, the FCC's Rule 319 required local exchange carriers (LECs) to share their networks with competitors through unbundled access. The LECs challenged the rule, arguing that the FCC failed to apply section 251(d)(2), which required the FCC to consider whether access to non-proprietary elements was 'necessary' and whether the lack of access would 'impair' a competitor's ability to provide service. The rule imposed no facility-ownership requirement, which the LECs said let entrants piggyback on existing networks instead of building their own.

Whether the FCC had authority to implement Rule 319, and if so, whether the rule was consistent with the Telecommunications Act of 1996.