Last week, the U.S. Court of Appeals for the D.C. Circuit held that the FCC had erroneously denied Verizon’s petitions for forbearance from local exchange network element unbundling (UNE) regulations in a 2007 FCC order.1 In remanding the 2007 Verizon Order,2 the court found that the FCC’s reliance on the extent of actual competition as measured by the incumbent carrier’s market share, while excluding consideration of potential competition, was an unexplained departure from existing FCC precedent.

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