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What is the significance of the Verizon Md. Inc. v. Public Serv. Comm'n of Md. court case in deregulating the telecommunications industry?

The Verizon Maryland, Inc.

v.

Public Service Commission of Maryland case was a significant event in the deregulation of the telecommunications industry.

Verizon challenged a Maryland state order that required incumbent local exchange carriers (LECs) to pay reciprocal compensation to Internet Service Providers (ISPs) for traffic originating from their customers.

Verizon argued that this order violated the 1996 Telecommunications Act and a Federal Communications Commission ruling.

The case sought a declaratory judgment and an injunction prohibiting the enforcement of the order.

The Court found that the order was consistent with prior FCC rulings and did not unfairly discriminate against LECs.

This case revolved around the interconnection agreement between Verizon Maryland Inc.

and MFS Intelenet of Maryland, which was later acquired by MCI WorldCom Inc.

After the Maryland Public Service Commission approved the agreement, Verizon informed WorldCom that it would no longer pay reciprocal compensation for calls made by Verizon's customers to the local access numbers of Internet Service Providers.

The Eleventh Amendment's constitutional immunity in utility cases became a crucial point of debate in this case, but the court found it to be an accident of captioning practice.

This case highlights the importance of interconnection agreements between telecommunications companies and the regulations surrounding them.

The court's decision in this case upheld the idea that reciprocal compensation for ISP traffic is a valid practice and does not violate the 1996 Telecommunications Act.

This case also emphasizes the significance of adhering to Federal Communications Commission rulings when implementing state-level orders in the telecommunications industry.

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