Two lawsuits filed over FCC's Universal Service order

Core Communications, a small telephone company, and the Pennsylvania Public Utility Commission are suing the Federal Communications Commission over its recent order to convert a multibillion dollar telephone fund into a subsidy to expand Internet access.

Both suits allege that the agency's order was "arbitrary and capricious" and a "departure from reasoned decision-making." The Pennsylvania PUC, a state agency, also argues in its filing that the FCC order violates the 10th Amendment, which leaves powers not given to the federal government to the states. Core Communications filed its lawsuit in the 4th Circuit Court of Appeals in Richmond (VA) and the Pennsylvania PUC filed its suit in the 3rd Circuit in Philadelphia. Groups seeking to block the order must file their cases by Friday. A lottery will then determine which court will hear the challenges to the order.