ÿWPCÞ. …# V %a 0 (gw@4Ïãò 0ú 0D‡ 0JË UF 0T[ 0^¯ 0h 0ru 0|ç 0†c 0é 1uy U ,î 0d B~U,›U6ÇB)ý D3&DCY AMœ 0@éU*)$S w_„ãé†éno Ýv~è%vÓf' AO9-ƈ- 0DN. D/’. BÁ.˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 X($¡¡   D D D ¿DÓ€DÒ 3|x(;*2æ$¤¤Ý ƒ!ÝÝ  ÝÔ€ôXõôXXÔà  àòòÚ  Ú0Ú  Úóó€€(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô<4šÛ 9Z ‹.Courier New Regular2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ d< Œ 9p`(Monaco< Œ 9p`(Courier New% Line 7 d$$$$'ÿÿdxd))))7Border 1dd€-+Cþÿ << Gÿÿ("ÿÿ$££Ò  ÒÒ  Ò< Œ 9p`(Arial Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÔ€(ÔÝ  ÝÔ€.ÔÔ€.ÔÓ  Óò òÔ YYY ÔFILEDÔ€.XÔÌÌAugust€28,€1996ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó ó Ý ƒ!ÝÑ#€d#ÑÔ€ÔÔ€(ÔÝ  ÝÝ ƒ $ÝÔ€(ôÔà àòòÚ  ÚÚ  Úóó€€Ý  ÝA€tariff€is€the€schedule€of€prices€and€regulations€for€a€particularÏservice€which€is€filed€with€the€Commission€and€serves€as€the€officialÏpublished€list€of€charges,€terms€and€conditions€governing€the€provision€of€theÏservice€or€facility.€€Tariffs€functions€in€lieu€of€a€contract€between€an€endÏuser€and€a€service€provider.€€€Ì UÝ ƒ!ÝÑ#€d#ÑÔ€ÔÔ€(ÔÝ  ÝÝ ƒ $ÝÔ€(ôÔà àòòÚ  ÚÚ  Úóó€€Ý  ÝThe€numbers€of€the€AT&T€tariffs€are€94„200,€94„277,€94„289,€94„292,Ï94„293,€94„280,€94„284,€95„014,€95„016,€95„103,€95„094,€95„127,€95„139,€andÏ95„140.Ì üÝ ƒ!ÝÑ#€d#ÑÔ€ÔÔ€(ÔÝ  ÝÝ ƒ $ÝÔ€(ôÔà àòòÚ  ÚÚ  Úóó€€Ý  ÝThe€numbers€of€the€MCI€tariffs€are€94„247,€95„003,€and€95„009.Ì öÝ ƒ!ÝÑ#€d#ÑÔ€ÔÔ€(ÔÝ  ÝÝ ƒ $ÝÔ€(ôÔà àòòÚ  ÚÚ  Úóó€€Ý  ÝThe€numbers€of€the€Sprint€tariffs€are€94„269€and€95„008.Ì |Ý ƒ!ÝÑ#€d#ÑÔ€ÔÔ€(ÔÝ  ÝÝ ƒ $ÝÔ€(ôÔà àòòÚ  ÚÚ  Úóó€€Ý  ÝAt€the€time€of€the€settlement,€or€ð ðModified€Final€Judgment,ðð€AT&T€wasÏthe€largest€corporation€in€the€world.€€In€1980€the€Bell€Systemððs€totalÏoperating€revenues€exceeded€$50€billion€which€constituted€almost€two€percentÏof€the€gross€national€product€of€the€U.S.€that€year.€€òòUnited€States€v.ÏAmerican€Tel.€&€Tel.€Co.,óó552€F.Supp.€131,€152€(D.D.C.€1982),€òòaffððd€sub€nom.óó€ÏòòMaryland€v.€United€States,€óó460€U.S.€1001€(1983).€€Ì dÝ ƒ!ÝÑ#€d#ÑÔ€ÔÔ€(ÔÝ  ÝÝ ƒ $ÝÔ€(ôÔà àòòÚ  ÚÚ  Úóó€€Ý  ÝInterexchange€carriers€are€facilities€based€providers€of€intrastate,ÏinterLATA€telecommunications€services.€In€Tennessee€these€providers€includeÏAT&T,€MCI€and€Sprint.Ì  Ý ƒ!ÝÑ#€d#ÑÔ€ÔÔ€(ÔÝ  ÝÝ ƒ $ÝÔ€(ôÔà àòòÚ  ÚÚ  Úóó€€Ý  ÝThe€Court€considered€the€following€provisions€of€the€1996€FederalÏTelecommunications€Act:ÌÌThe€caption€of€the€Act:ÌÌà8 àAn€Act€to€promote€competition€and€reduce€regulation€in€order€toÏsecure€lower€prices€and€higher€quality€services€for€AmericanÏtelecommunications€consumers€and€encourage€the€rapid€deployment€ofÏnew€telecommunications€technologies.ÌÌSection€253:ÌÌà8 à(a)à àIN€GENERAL€„€No€state€or€local€statute€or€regulation,€orÏother€State€or€local€legal€requirement,€may€prohibit€or€have€theÏeffect€or€prohibiting€the€ability€of€any€entity€to€provide€anyÏinterstate€or€intrastate€telecommunications€service.€€ÌÌà8 à(b)à àSTATE€REGULATORY€AUTHORITY€„€Nothing€in€this€section€shallÏaffect€the€ability€of€a€state€to€impose,€on€a€competitivelyÏneutral€basis€and€consistent€with€section€254,€requirementsÏnecessary€to€preserve€and€advance€universal€service,€protect€theÏpublic€safety€and€welfare,€ensure€the€continued€quality€ofÏtelecommunications€services,€and€safeguard€the€rights€ofÏconsumers.€€ÌÌà8 à(c)à àSTATE€AND€LOCAL€GOVERNMENT€AUTHORITY€„€Nothing€in€thisÏsection€affects€the€authority€of€a€State€or€local€government€toÏmanage€the€public€rights„of„way€or€to€require€fair€and€reasonableÏcompensation€from€telecommunications€providers,€on€a€competitivelyÏneutral€and€nondiscriminatory€basis,€if€the€compensation€requiredÏis€publicly€disclosed€by€such€government.€€ÌÌà8 à(d)à àPREEMPTION€„€If,€after€notice€and€an€opportunity€for€publicÏcomment,€the€Commission€determines€that€a€State€or€localÏgovernment€permitted€or€imposed€any€statute,€regulation,€or€legalÏrequirement€that€violate€subsection€(a)€or€(b),€the€CommissionÏshall€preempt€the€enforcement€of€such€statute,€regulation,€orÏlegal€requirement€to€the€extent€necessary€to€correct€suchÏviolation€or€inconsistency.€€ÌÌSection€261€(b):€€€ÌÌà8 àà àEXISTING€STATE€REGULATIONS€„€Nothing€in€this€part€shall€beÏconstrued€to€prohibit€any€State€Commission€from€enforcingÏregulations€prescribed€prior€to€the€date€of€enactment€of€theÏTelecommunications€of€1996€in€fulfilling€the€requirements€of€thisÏpart,€to€the€extent€that€such€regulations€are€not€inconsistentÏwith€the€provision€of€this€part.€€ÌÌSection€261(c):ÌÌà8 àà àNothing€in€this€part€precludes€a€State€from€imposingÏrequirements€on€a€telecommunications€carrier€for€intrastateÏservices€that€are€necessary€to€further€competition€in€theÏprovision€of€telephone€exchange€service€or€exchange€access,€asÏlong€as€the€Stateððs€requirements€are€not€inconsistent€with€thisÏpart€or€the€Commissionððs€regulations€to€implement€this€part.€€ÌÌ€ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA Op Monaco ÒÒ  BA Op Monaco Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€''X„d&ÓÑ#€''Xd#ÑÔ€(ÔÝ  Ý›Ñ\R AØ'\ÑÑ\R AØ'\ÑÑ7€RcXXdÖdÈ7ÑÑ  ÑœBELLSOUTH›€TELECOMMUNICATIONS,à àà à)à àConsolidated€Appeal€No.ÌINC.€d/b/a€SOUTH€CENTRAL€BELLà àà à)à à01A01„9504„BC„00165ÌTELEPHONE€COMPANY,à àà àà àà à)à àÌà àà àà àà àà àà àà à)à àÌà àà àPetitioner/Appellant,à à)à àTennessee€Public€ServiceÌà àà àà àà àà àà àà à)à àCommission€DocketÌv.à àà àà àà àà àà àà à)à àNumbers:€œ€94„02610,›Ìà àà àà àà àà àà àà à)à à94„04482,€94„04483,ÌKEITH€BISSELL,€CHAIRMAN;€STEVEà à)à à94„04485,€95„01137,ÌHEWLETT,€COMMISSIONER;€SARAà àà à)à à95„01139,€95„01140,ÌKYLE,€COMMISSIONER;€Constitutingà à)à à95„01141,€95„01142,Ìthe€Tennessee€Public€Serviceà àà à)à à95„02207,€95„02208,̜ـ€ÙÙ€€ÙßL€,/+;+'h|E±` ç `€€Lß›Commission,à àà àà àà àà à)à à95„02639,€95„02640,Ìà àà àà àà àà àà àà à)à àœ95„02641.›Ìà àà àRespondents/Appellees.à à)ÌÌÌÌÔ€(¼Ôà@ àCOURT€OF€APPEALS€OF€TENNESSEEÌÌà@ àMIDDLE€SECTION€AT€NASHVILLEÌÌà@ àAPPEAL€FROM€THE€TENNESSEE€PUBLIC€SERVICE€COMMISSIONÌÌà@ àAT€NASHVILLE,€TENNESSEEà@ àÔ€(XÔÌÌÌÌSANDRA€L.€RANDLEMANÌCHARLES€L.€HOWORTH,€JR.€ÌBellSouth€Telecommunications,€Inc.Ì333€Commerce€Street,€Suite€2101ÌNashville,€Tennessee€37201„3300Ìà àATTORNEYS€FOR€PETITIONER/APPELLANTÌÌVAL€SANFORDÌJOHN€KNOX€WALKUPÌGullett,€Sanford,€Robinson€&€MartinÌP.O.€Box€198888ÌNashville,€Tennessee€37219„8888Ìà àœATTORNEYS›€FOR€AT&T€COMMUNICATIONS€OFÌà àœTHE›€SOUTH€CENTRAL€STATES,€INC.€AND€Ìà àœMCI›€TELECOMMUNICATIONS€CORPORATIONÌÌROGER€A.€BRINEY,€ESQ.ÌAT&T€Communications€of€the€South€Central€StatesÌ1200€Peachtree€Street,€N.E.ÌAtlanta,€Georgia€30309Ìà àOF€COUNSEL€FOR€AT&T€COMMUNICATIONS€OFÌà àœTHE›€SOUTH€CENTRAL€STATES,€INC.€AND€Ìà àœMCI›€TELECOMMUNICATIONS€CORPORATIONÌÌMARTHA€P.€MCMILLIN,€ESQ.ÌMCI€Telecommunications€CorporationÌ780€Johnson€Ferry€Road,€Suite€700ÌAtlanta,€Georgia€30342Ìà àOF€COUNSEL€FOR€AT&T€COMMUNICATIONS€OFÌà àœTHE›€SOUTH€CENTRAL€STATES,€INC.€AND€Ìà àœMCI›€TELECOMMUNICATIONS€CORPORATIONÌÌÌà@ àAFFIRMED€AND€REMANDEDÌÌÌà àà àà àà àà àà àà àSAMUEL€L.€LEWIS,€JUDGEÌÓÓÌà@ àÔ€( ÔòòOPINIONÔ€(XÔóóÌÌà@ àò òIntroductionó óÌÌà àThis€appeal€involves€the€judicial€review€of€five€TennesseeÏPublic€Service€Commission€orders.€€The€orders€approved€tariffsÏfiled€by€AT&T€Communications€of€the€South€Central€States,€Inc.,ÏSprint€Communications€Company,€L.P.,€and€MCI€TelecommunicationsÏCorporation.€€BellSouth€Telecommunications€Inc.,€d/b/a€SouthÏCentral€Bell,€has€appealed€directly€to€this€Court€pursuant€toÏTenn.R.App.P.€12.€€They€assert€that€the€Tennessee€Public€ServiceÏCommission€(Commission€or€PSC)€should€have€denied€the€tariffs,€asÏthey€violated€the€Commissionððs€prior€orders€and€policies.€ÏAdditionally,€BellSouth€contends€that€the€tariffs€at€issue€in€thisÏproceeding€violate€the€Tennessee€Telecommunications€Reform€Act€ofÏ1995.€€ÌÌà àWe€have€decided€that€the€PSC€did€not€act€arbitrarily€or€abuseÏits€discretion€in€approving€the€œtariffs.€€Also,€we›€decline€toÏdecide€whether€the€tariffs€violate€the€TennesseeÏTelecommunications€Reform€Act€of€1995.€€The€Commission€did€notÏrender€a€decision€with€respect€to€its€interpretation€of€theÏTennessee€Act.€€Accordingly,€we€affirm€the€Commissionððs€decision.€€€€ÌÌà@ àò òProcedural€Historyó óÌÌà àThis€case€began€on€September€8,€1994,€the€date€AT&T€filedÏTariff€No.€94„200× ƒ0 ××  ×€in€the€offices€of€the€Tennessee€Public€ServiceÏCommission.€€From€that€date€to€June€8,€1995,€AT&T€filed€thirteenÏadditional€tariffs× ƒ1 ××  ×,€MCI€filed€three€tariffs× ƒ2 ××  ×,€and€Sprint€filed€twoÏtariffs.× ƒ3 ××  ×€€After€each€of€these€companies€filed€their€respectiveÏtariffs,€petitioner/appellant,€BellSouth€Telecommunications,€Inc.Ï("BellSouth"),€filed€petitions€for€leave€to€intervene,€to€suspendÏthe€tariffs,€and€to€set€hearings.ÌÌà àAs€to€the€first€six€tariffs€filed,€including€five€AT&TÏtariffs€and€one€MCI€tariff,€the€Commission€granted€BellSouth'sÏpetitions€to€intervene,€suspended€the€tariffs,€and€consolidatedÏthe€petitions€into€docket€number€94„02610.€€On€February€22,€1995,Ïthe€Commission€heard€oral€arguments€concerning€the€six€petitions.€ÏIn€its€final€order,€dated€March€24,€1994,€the€Commission€heldÏ"that€the€promotions€and€tariffs€involved€here€are€consistent€withÏprevious€orders€and€rulings€of€this€Commission€and€should€beÏapproved."€€ÌÌà àOn€April€24,€1995,€BellSouth€filed€a€petition€to€reviewÏpursuant€to€Rule€12€of€the€Tennessee€Rules€of€Appellate€Procedure.ÏThe€petition€asked€that€this€court€review€the€March€24,€1995€orderÏas€it€applied€to€all€six€of€the€tariffs€("Appeal€One").€€Later,ÏAT&T€and€MCI€filed€a€joint€notice€of€appearance€pursuant€to€RuleÏ12(e)€of€the€Tennessee€Rules€of€Appellate€Procedure.€€Sprint,Ïpursuant€to€Rule€21(b)€of€the€Tennessee€Rules€of€AppellateÏProcedure,€filed€a€Notice€of€Appearance,€and€requested€that€thisÏCourt€allow€it€to€adopt€the€briefs€of€intervenors€AT&T€and€MCI.€WeÏgranted€the€motion.ÌÌà àThe€next€set€of€tariffs€at€issue€includes€two€AT&T€tariffsÏand€one€Sprint€tariff.€€Again,€BellSouth€responded€to€the€filingsÏof€the€tariffs€with€petitions€to€intervene,€to€set€hearings,€andÏto€suspend.€€Although€the€Commission€failed€to€consolidate€theseÍpetitions,€it€did€treat€them€similarly.€€It€granted€BellSouth'sÏpetitions€to€intervene,€but€denied€BellSouth's€requests€to€suspendÏthe€tariffs.€€On€May€12,€1995,€the€Commission€filed€its€finalÏorder€as€to€all€three€tariffs€and€stated€as€follows:€€"[œT]hese›Ïtariffs€were€not€in€violation€of€the€Commission's€policy€onÏintraLATA€competition€as€established€in€prior€Commission€OrdersÏand€should€be€allowed€to€remain€in€effect."€€BellSouth€appealedÏthis€decision€on€July€7,€1995,€by€filing€a€petition€to€reviewÏpursuant€to€Rule€12€("Appeal€Two").Ì€€€€Ìà àThe€third€group€of€tariffs€includes€two€AT&T€tariffs,€two€MCIÏtariffs,€and€one€Sprint€tariff.€€For€all€practical€purposes,€theÏhistory€of€this€group€is€the€same€as€that€of€the€second€group.€ÏBellSouth€filed€petitions€as€to€each€tariff.€€The€Commission€thenÏgranted€the€petitions€to€intervene,€but€denied€BellSouth'sÏrequests€that€the€Commission€suspend€the€tariffs.€€The€CommissionÏheld€a€hearing€and€entered€a€final€order€on€May€12,€1995.€€TheÏCommission€concluded€"that€these€tariffs€were€not€in€violation€ofÏany€prior€Commission€Order€and€should€be€allowed€to€remain€inÏeffect."€€In€response€to€the€Commission's€order,€BellSouth€filed€aÏpetition€to€review€pursuant€to€Rule€12€("Appeal€Three").ÌÌà àThe€fourth€group€of€tariffs€includes€two€tariffs€filed€byÏAT&T.€€After€the€filings,€BellSouth€filed€two€petitions€toÏ"suspend€the€tariff€filing,€convene€a€contested€case,€and€allowÏleave€to€intervene."€€In€separate€orders,€the€Commission€allowedÍBellSouth€to€intervene€in€both€proceedings€and€denied€both€ofÏBellSouth's€requests€to€suspend€the€tariffs.€€Later,€theÏCommission€considered€the€tariffs€at€its€conference€and€concludedÏ"that€the[]€tariffs€were€not€in€violation€of€the€Commission'sÏpolicy€on€intraLATA€competition€as€established€in€prior€CommissionÏOrders€and€should€be€allowed€to€remain€in€effect."€€Following€theÏdecision€in€these€cases,€BellSouth€filed€a€petition€to€reviewÏpursuant€to€Rule€12€on€September€8,€1995€("Appeal€Four").ÌÌà àThe€final€group€of€tariffs€also€involves€only€AT&T.€On€MayÏ22,€1995,€AT&T€filed€one€tariff,€and€on€June€8,€1995,€AT&T€filedÏtwo€additional€tariffs.€€In€June€1995,€BellSouth€filed€threeÏpetitions€to€"suspend€[the]€tariff€filing,€convene€a€contestedÏcase,€and€allow€leave€to€intervene."€€Unlike€the€other€cases,€hereÏthe€Commission€denied€BellSouth's€petitions€to€intervene€and€itsÏrequests€to€suspend€the€tariffs.€€The€Commission€found:€€"Bell'sÏfilings€fail€to€allege€any€new€issues€or€evidence€raised€by€theseÏtariffs€other€than€those€previously€reviewed€and€decided€by€theÏCommission."€€Once€again,€BellSouth€filed€a€petition€to€reviewÏpursuant€to€Rule€12€on€September€25,€1995("Appeal€Five").ÌÌà àThus,€as€of€September€25,€1995,€BellSouth€had€five€appealsÏpending€in€this€court.€€As€a€result,€on€September€26,€1995,€theÏCommission,€AT&T,€and€MCI€filed€a€joint€motion€to€consolidate€theÏappeals€and€a€memorandum€in€support€of€the€motion.€€This€courtÏreserved€judgment€on€the€motion€until€October€25,€1995,€when€itÍordered€the€appeals€consolidated.ÌÌà àAs€these€facts€developed,€another€set€of€facts€relevant€toÏthe€outcome€of€this€case€began€to€unfold.€€On€June€6,€1995,€ÌGovernor€Don€œSundquist›€signed€the€Telecommunications€Reform€Act€ofÏ1995("the€Act")€into€law.€€1995€Tenn.€Pub.€Acts€Ch.€408€ðð7.€ÏSection€seven€of€the€Act€amended€Tennessee€Code€Annotated€sectionÏ65„4„201€by€adding€subsection€(b).€€This€subsection€provides€asÏfollows:€€ÌÌÌÓÓà8 à(b)€Except€as€exempted€by€provisions€of€state€or€federalÏlaw,€no€individual€or€entity€shall€offer€or€provide€anyÏindividual€or€group€of€telecommunications€services,€orÏextend€its€territorial€areas€of€operations€without€firstÏobtaining€from€the€commission€a€certificate€ofÏconvenience€and€necessity€for€such€service€or€territory;Ïprovided,€that€no€œtelecommuni›„cations€services€providerÏoffering€and€providing€a€telecommunications€serviceÏunder€the€authority€of€the€commission€on€June€6,€1995,Ïis€required€to€obtain€additional€authority€in€order€toÏcontinue€to€offer€and€provide€such€telecommunicationsÏservices€as€it€offers€and€provides€as€of€June€6,€1995.ÌÌòòTenn.€Code€Ann.€ðð€óó65„4„201(b)€(œSupp›.€1995).ÌÌÌÌÓÓà àOn€July€24,€1995,€AT&T€filed€a€petition€asking€the€CommissionÏto€amend€its€existing€certificate€of€convenience€and€necessity.€ÏAT&T€wanted€the€commission€to€authorize€it€to€"provideÏœinterexchange›€telecommunication€services€throughout€TennesseeÏregardless€of€LATA€boundaries."€€An€administrative€judge€held€aÏhearing€and€issued€an€initial€order€on€September€22,€1995.€€In€theÍinitial€order,€the€judge€denied€AT&T's€petition€to€amend€itsÏcertificate€of€convenience€and€necessity,€but€issued€AT&T€a€newÏcertificate€as€a€"Competing€Telecommunications€Service€Provider."€ÏOn€October€13,€1995,€the€Commission€entered€an€order€ratifying€theÏinitial€order€of€the€administrative€judge.€€None€of€the€parties€inÏthe€present€action€filed€an€appeal€as€to€this€order€before€timeÏexpired.€€ÌÌà àAt€the€beginning€of€oral€argument,€BellSouth€stated€that€itÏwas€voluntarily€dismissing€the€appeal€as€to€the€AT&T€tariffs.€€AsÏa€result,€Appeal€Four€and€Appeal€Five€are€voluntarily€dismissedÏbecause€both€contained€only€AT&T€tariffs.€€Further,€AT&T€had€filedÏseven€of€the€tariffs€in€the€remaining€appeals.€€Thus,€this€courtÏis€left€with€three€appeals,€which€we€consolidated€into€one€appeal,Ïand€a€total€of€five€tariffs,€three€filed€by€MCI€and€two€filed€byÏSprint.€€BellSouth€has€presented€this€court€with€two€issues€as€toÏeach€of€the€tariffs.€€The€issues€are€as€follows:ÌÓÓà8 à[I]à àWhether€the€tariffs€at€issue€in€this€proceedingÏviolate€the€Tennessee€Public€Service€Commission's€OrdersÏand€its€policy€on€intraLATA€competition?Ìà8 à[II]à àWhether€the€tariffs€at€issue€in€this€proceedingÏviolate€the€Telecommunication€reform€Act€of€1995?ÌÌÓÓÌà@ àò òStandard€of€Reviewó óÌÌà àòòTenn.€Code€Ann.€ðð€óó4„5„322€provides€the€appropriate€standardÏof€review€for€Tennessee€appellate€courts€reviewing€state€agencyÏdecisions.€€Subsection€(h)€of€that€statute€states:ÌÓÓà8 à(h)€the€court€may€affirm€the€decision€of€the€agency€orÏremand€the€case€for€further€proceedings.€€The€court€mayÏreverse€or€modify€the€decision€if€the€rights€of€theÏpetitioner€have€been€prejudiced€because€ofÏadministrative€findings,€inferences,€conclusions€orÏdecisions€are:Ìà8 àà à(1)€In€violation€of€constitutional€or€statutoryÏprovisions;Ìà8 àà à(2)€In€excess€of€the€statutory€authority€of€theÏagency;Ìà8 àà à(3)€Made€upon€unlawful€procedureÌà8 àà à(4)Arbitrary€or€capricious€or€characterized€byÏabuse€of€discretion€or€clearly€unwarranted€exercise€ofÏdiscretion;€or€Ìà8 àà à(5)€Unsupported€by€evidence€which€is€bothÏsubstantial€and€material€in€the€light€of€the€entireÏrecord.€€Ìà8 àIn€determining€the€substantiality€of€evidence,€the€courtÏshall€take€into€account€whatever€in€the€record€fairlyÏdetracts€from€its€weight,€but€the€court€shall€notÏsubstitute€its€judgment€for€that€of€the€agency€as€to€theÏweight€of€the€evidence€on€questions€of€fact.ÌÌÓÓBellSouth€contends€that€subsections€(1),€(4),€and€(5)€provideÏgrounds€for€reversal.€€ÌÌà àThis€Court€examines€the€Commissionððs€adjudicatory€decisionsÏusing€the€same€standards€of€review€applicable€to€the€decisions€ofÏother€administrative€agencies.€€òòJackson€Mobilephone€Co.,€Inc.,€v.ÏTennessee€Public€Service€Comððn,€óó876€S.W.2d€106,110€(Tenn.Ct.App.Ï1993).€€Thus,€we€observe€the€narrow,€statutorily€defined€standardÏcontained€in€òòTenn.€Code€Ann.€ðð€óó4„5„322(h)(4),€and€òòTenn.€Code€Ann.Ïðð€óó4„5„322(h)(5),€rather€than€the€broad€standard€used€in€otherÏcivil€appeals.€€òòWayne€County€v.€Tennessee€Solid€Waste€DisposalÏControl€Bd.,€óó756€S.W.2d€274,€279€(Tenn.Ct.App.€1988);€òòciting€CFÏIndus.€v.€Tennessee€Pub.€Serv.€Commððn,€óó599€S.W.2d€536,€540€(Tenn.Ï1980)òò.€óó€€€ÌÌà àAdditionally,€courts€defer€to€the€decisions€of€administrativeÏagencies€when€they€are€acting€within€their€area€of€specializedÏknowledge,€experience,€and€expertise.€€òòWayne€County€v.€TennesseeÏSolid€Waste€Disposal€Control€Bd.,€óóat€279;€òòciting€Southern€Ry.€v.ÏState€Bd.€of€Equalization,€óó682€S.W.2d€196,€199€(Tenn.1984);òò€FreelsÏv.€Northrup,€óó678€S.W.2d€55,€57„58€(Tenn.€1984).€€We€do€not€reviewÏthe€factual€issues€de€novo,€and€therefore,€do€not€substitute€ourÏjudgment€for€the€agencyððs€as€to€the€weight€of€the€evidence.€€òòId.óóÏòòciting€Humana€of€Tennessee€v.€Tennessee€Health€Facilities€Commððn,Ïóó551€S.W.2d€664,€667€(Tenn.€1977).€€However,€we€may€construeÏstatutes,€and€apply€the€law€to€the€facts.€€òòSanifill€of€TennesseeÏv.€Tennessee€Solid€Waste€Disposal€Control€Bd.,€óó907€S.W.2d€807,€811Ï(Tenn.€1995).€€€€ÌÌà àAs€to€òòTenn.€Code€Ann.€ððóó€4„5„322(h)(4)ððs€ð ðarbitrary€andÏcapriciousðð€standard,€this€court€should€determine€ð ðwhether€theÏadministrative€agency€has€made€a€clear€error€in€judgment.ðð€ÏòòJackson€Mobilephone€Co.,€Inc.,€v.€Tennessee€Public€Service€Comððn,óóÏat€110„11.€€An€arbitrary€decision€is€one€not€based€on€any€courseÏof€reasoning€or€exercise€of€judgment,€or€one€which€disregards€theÏfacts€or€circumstances€of€the€case€without€some€basis€that€wouldÏlead€a€reasonable€person€to€reach€the€same€conclusion.€òò€Id.€€óó€ÌÌà àòòTenn.€Code€Ann.€ðð€óó4„5„322(h)(5)€does€not€define€what€amountsÏto€ð ðsubstantial€and€material€evidence.ðð€€However,€in€reviewing€anÍadministrative€decision€with€regard€to€òòTenn.€Code€Ann.€ðð€óó4„5„322(h)(5),€this€court€should€examine€the€record€carefully€toÏdetermine€whether€the€administrative€agencyððs€decision€isÏsupported€by€ð ðsuch€relevant€evidence€as€a€rational€mind€mightÏaccept€to€support€a€rational€conclusion.ðð€€òòJackson€MobilephoneÏCo.,€Inc.,€v.€Tennessee€Public€Service€Comððnóó€at€111,€òòquoting€ClayÏCounty€Manor€v.€State€Depððt€of€Health€&€Environment,€óó849€S.W.2dÏ755,€759€(Tenn.€1993).€In€general€terms€this€amounts€to€somethingÏless€than€a€preponderance€of€the€evidence,€but€more€than€aÏscintilla€or€glimmer.€€òòWayne€County€v.€Tennessee€Solid€WasteÏDisposal€Control€Bd.,óó€at€280.ÌÌÌò òÓÓÓ  ÓThe€Development€of€Long€Distance€Telephone€Regulation€inÏthe€United€Statesó óÌÓÓÓ  ÓÌÌà àEarly€this€century€the€American€Telephone€and€TelegraphÏCompany€(AT&T)€developed€a€long€distance€telephone€networkÏsuperior€to€its€competitors.€€Later,€AT&Tððs€long€distanceÏdominance€extended€to€local€calling€when€it€limited€connection€ofÏits€long€distance€network€to€its€local€service€network.€ÏEventually,€AT&T€monopolized€all€telephone€traffic€in€the€UnitedÏStates.€€òòSee€GTE€Sprint€Communications€Corp.€v.€Public€Util.ÏCommððn,€óó753€P.2d€212,€213€(Colo.€1988).€€In€1974€the€U.S.ÏDepartment€of€Justice,€responded€to€AT&Tððs€hegemony€by€filing€anÏantitrust€claim.€€This€claim,€settled€in€1982,€resulted€in€theÍlargest€judicially€supervised€divestiture€in€American€history.× ƒ4 ××  ×ÌÌà àThe€1982€court„approved€order,€also€known€as€the€ModifiedÏFinal€Judgment€(MFJ),€accomplished€two€things€significant€to€thisÏappeal:€Ìà à(1)€it€divested€AT&T€of€its€twenty„two€subsidiaries,€whichÏnow€operate€independently€as€regulated€local€monopolies.€€òòUnitedÏStates€v.€American€Tel.€&€Tel.€Co.,€óó552€F.Supp.€131,226€(D.D.C.Ï1982),€òòaffððd€sub€nom.€Maryland€v.€United€Statesóó,€460€U.S.€1001Ï(1983);€Ìà à(2)€it€created€a€new€framework€of€ownership€and€rateÏstructure€by€establishing€ð ðRegional€Bell€Operating€CompaniesððÏ(RBOCs),€like€BellSouth,€which€were€to€divide€their€territoriesÏinto€new€geographical€classifications€known€as€ð ðlocal€access€andÏtransport€areasðð€€(LATAs).€€òòGTE€Sprint€Communications€Corp.€v.ÏPublic€Communications€Corp.€v.€Public.€Util.€Commððn,€óóat€214.€€€ÌÌà àThe€MFJ€allowed€the€œRBOCs›€to€retain€a€monopoly€over€localÏtelephone€services,€but€precluded€the€RBOCððs€from€providing€anyÏlong€distance€services.€€òòUnited€States€v.€American€Tel.€&€Tel.ÏCo.,€óóat€227„8.€€Thus,€the€œRBOCs›€can€carry€intraLATA€trafficÏ(local),€but€not€interLATA€traffic€(long€distance).€€The€MFJÍdivided€the€original€AT&T€territory€into€163€LATAððs€nationally,€5Ïof€which€are€in€Tennessee.€€€€ÌÌà à€A€stateððs€power€to€regulate€extends€to€all€LATAs€within€itsÏboundaries.€€òòGTE€Sprint€Communications€Corp.€v.€Public€Util.ÏCommððn,€óó753€P.2d€at€214.€€The€Tennessee€Public€Service€CommissionÏhas€regulatory€authority€over€the€telephone€companies€of€thisÏstate.€€òòTennessee€Cable€Television€Assððn€v.€Tennessee€PublicÏService€Comððn,€óó844€S.W.2d€151,155€(Tenn.App.€1992).€€TheÏCommission€exercises€co„mingled€legislative,€executive,€andÏjudicial€functions.€€òòId.€óóat€158;€òòciting€Blue€Ridge€Transp.€Co.€v.ÏPentecost,€óó343€S.W.2d€903,€904€(Tenn.€1961).€€Like€otherÏadministrative€agencies,€the€PSC€must€base€the€exercise€of€itsÏrulemaking€or€adjudicatory€authority€on€state€law.€€òòId.€óóat€161.€€€Ì€€€Ìà àAt€divestiture€some€state€public€utility€commissions,Ïincluding€Tennesseeððs,€initially€barred€interexchange€carriers,œ× ƒ5 ××  כϜ(IXCs)from›€providing€intraLATA€services.€€Nevertheless,Ïtechnological€advances€in€the€1980's€brought€new€serviceÏcapabilities€to€the€œIXCs.›€€The€knowledge€of€these€capabilitiesÏprompted€the€œIXCs›€to€approach€the€PSC€and€request€permission€toÏprovide€some€intraLATA€services.€€On€July€27,€1991,€the€PSCÏresponded€to€the€IXCððs€request€and€denied€them€intraLATAÍcertificates€which€would€have€permitted€them€to€compete€freely€inÏthe€intraLATA€market.€€However,€in€an€unprecedented€œstep,›€theÏCommission€agreed€to€allow€the€œIXCs›€to€provide€some€intraLATAÏcommunications€services€in€4€specific€instances.€€These€instancesÏwere€exceptions€to€the€PSC€rule€prohibiting€intraLATA€competition.€ÏEach€exception€involved€access€arrangements€for€the€terminationÏand/or€origination€of€calls€in€local€telephone€exchanges.€€TheÏfour€exceptions€to€the€Commissionððs€policy€prohibiting€intraLATAÏcommunication€include:€€€€€ÌÌà à(1)€intraLATA€calls€made€by€customers€subscribing€toÏinterLATA€special€access€(Megacom„like)€services;ÌÌà à(2)€calls€made€over€private€lines€that€complete€the€intraLATAÏportion€of€an€interLATA€private€line€service;ÌÌà à(3)€intraLATA€ð ð800"€calls€which€are€part€of€an€interLATAÏoffering;€and€ÌÌà à(4)€calls€prefixed€by€10„XXX,€950„XXXX,€or€some€other€type€ofÏaccess€code€which€users€dial€to€reach€the€subscriberððs€interLATAÏcarrier.€€ÌÌà àIn€its€Order€the€Commission€stated:ÌÓÓà8 àTennesseans€may€enjoy€the€benefits€of€€ð ðone„stopÏshoppingðð€using€a€single€carrier€to€handle€both€intra„Ïand€interLATA€toll€calls€„„€without€opening€the€LATAððsÍto€competition€and€without€[the]€threatening€value€ofÏservice€pricing.€.€.€.ÌÌà8 à[T]he€Commission€approves€the€partiesðð€proposal€in€thisÏproceeding€to€ð ðunblockðð€certain€types€of€intraLATA€tollÏcalls.€€The€Commission€finds€that€the€reasons€for€LECÏblocking€are€no€longer€sufficient€to€outweigh€theÏbenefit€of€making€these€IXC€services€available€on€aÏstatewide€basis.€ÌÌÓÓIn€a€footnote€on€page€5€of€the€June€27,€1991€Order€the€PSC€stated:ÌÓÓà8 àSince€the€IXCððs€applications€for€intraLATA€authority€areÏdenied,€the€carriersðð€tariff€shall€continue€to€describeÏonly€interLATA€services.€€The€applicants€may,€however,Ïadvertise€that€the€carriers€are€able€to€provideÏstatewide€service€to€certain€types€of€customers.€€ÌÌÓÓLater€in€the€Order€the€Commission€added:ÌÓÓà8 à[T]he€Commission€approves€the€parties€proposal€in€thisÏproceeding€to€ð ðunblockðð€certain€types€of€intraLATA€tollÏcalls.€€The€Commission€finds€that€the€reasons€for€LECÏblocking€are€no€longer€sufficient€to€outweigh€theÏbenefit€of€making€these€IXC€services€available€on€aÏstatewide€basis.€ÌÌà8 àAs€previously€discussed,€the€purpose€of€this€Order€isÏnot€to€promote€intraLATA€competition€between€theÏapplicants€and€the€LECððs€(local€exchange€carriers€likeÏBellSouth)€but€to€give€certain€IXC€customers€theÏconvenience€of€using€one€carrier€for€all€intrastate€andÏinterstate€toll€calls.€€ÌÌÓÓThe€Commission€added€a€footnote€which€provides€in€part:ÌÓÓà8 àThe€Commission€has€consistently€followed€a€policy€ofÏprotecting€local€exchange€carriers€from€IXC€competitionÏin€the€intraLATA€toll€market.€ÌÌÓÓÌà àOn€appeal,€BellSouth€seeks€review€of€the€Commissionððs€ordersÏof€March€24,€1995,€and€May€12,€1995,€approving€MCI€and€SprintÏtariffs.€€BellSouth€argues€that€the€tariffs€violate€the€TennesseeÏPublic€Service€Commissionððs€orders€and€its€policy€on€intraLATAÏcompetition.€€Specifically€BellSouth€claims€that€the€tariffsÍð ðpromote,ðð€ð ðdescribe,ðð€and€ð ðsolicitðð€the€use€of€interexchangeÏservices€for€calls€which€are€not€incidental€to€interLATA€service.€ÏStated€differently,€BellSouth€argues€the€tariffs€approved€in€1995Ïpermits€the€interexchange€carriers€to€impermissibly€compete€in€theÏintraLATA€services€market.€€ÌÌà@ àò òAnalysisó óÌÌò òÓÓI.€€€Whether€the€tariffs€at€issue€in€this€proceedingÏviolate€the€Commissionððs€prior€orders€and€policy€onÏintraLATA€competition.€€ó óÌÓÓÌà àBellSouth€asserts€the€1995€PSC€ruling€contradicts€theÏCommissionððs€1991€Order€and€earlier€rulings.€€However,€this€CourtÏbelieves€that€the€June€27,€1991€Order€is€dispositive€as€to€theÏissues€in€this€appeal.€€The€PSC€historically€has€made€its€intentÏto€prevent€intraLATA€competition€clear.€€However,€the€June€1991ÏOrder€created€four€exceptions€which€permit€interexchange€carriersÏto€carry€intraLATA€calls.€€€As€the€Commission€stated:ÌÓÓÌà8 à[T]he€Commission€approves€the€parties€proposal€in€thisÏproceeding€to€ð ðunblockðð€certain€types€of€intraLATA€tollÏcalls.€€The€Commission€finds€that€the€reasons€for€LECÏblocking€are€no€longer€sufficient€to€outweigh€theÏbenefit€of€making€these€IXC€services.€ÌÌà8 àAs€previously€discussed,€the€purpose€of€this€Order€isÏnot€to€promote€intraLATA€competition€between€theÏapplicants€and€the€LECððs€(local€exchange€carriers€likeÏBellSouth)€but€to€give€certain€IXC€customers€theÏconvenience€of€using€one€carrier€for€all€intrastate€andÏinterstate€toll€calls.€€ÌÌÓÓÌà àMCI€and€Sprint€argue€that€the€tariffs€they€filed€simplyÏrepresent€an€application€of€the€permissible€intraLATA€exceptionsÏcreated€in€1991.€€They€submit€that€the€tariffs€subject€to€thisÏappeal€do€not€wrongfully€promote€intraLATA€services,€but€involveÏinterexchange€activity€consistent€with€the€Commissionððs€currentÏpolicy.€€ÌÌà àTo€properly€determine€the€controversy€between€the€parties€weÏconsider€each€tariff€separately.ÌÌà@ àò òMCI€94„247ó óÌà àÌà àMCI€filed€Tariff€94„247€on€October€28,€1994.€€The€tariffÏallegedly€offers€credits€to€customers€of€ð ðMCI€Metered€Use€ServiceÏOption€Jðð€(MCI€Vision)€if€their€ð ðincremental€intraLATA€usageððÏexceeds€$100.00.€€For€those€customers€accessing€the€service€via€aÏð ðPBX,ðð€the€tariff€offers€a€credit€of€up€to€$250.00€if€theirÏintraLATA€usage€exceeds€certain€amounts.€€ÌÌà àThe€text€of€the€tariff€states€in€part:Ìà8 àòòMCI€Vision€IntraLATA€Usage€PromotionóóÌÓÓà8 àBeginning€on€November€27,€1994,€and€ending€April€14,Ï1995,€MCI€will€provide€the€following€promotion€to€newÏand€existing€customers€of€Metered€Use€Service€Option€JÏ(MCI€Vision)€who€enroll€in€the€promotion.€ÌÌÓÓÌà àAn€MCI€tariff€filed€with€the€PSC€describes€ð ðMCI€Visionðð€as:€ÌÓÓÌà8 à[A]n€outbound€customized€telecommunications€serviceÏwhich€may€include€an€inbound€800€service€option€usingÏBusiness€Line,€WATS€Access€Line,€or€Dedicated€AccessÏLine€Termination.€€It€provides€a€unified€service€forÏsingle€or€multi„location€companies€using€switched,Ïdedicated,€and€card€origination,€and€switched€andÏdedicated€termination.Ì€ÌÌÓÓà àMCI€claims€the€tariff€only€contemplates€the€completion€ofÏintraLATA€calls€in€exception€category€one€(special€access),Ïexception€category€three€(800€calls€part€of€an€interLATAÏoffering),€or€exception€category€four€(10„XXX€prefixed€or€otherÏdialing€code€calling).€€This€Court€cannot€verify€with€certaintyÏthat€a€category€one€or€category€four€exception€applies.€€However,Ïit€does€appear€that€MCI€tariff€94„247€involves€intraLATA€ð ð800"Ïcalls€which€are€a€part€of€an€interLATA€offering€(category€three).€ÏThus,€this€Court€cannot€assert€that€ð ðthe€administrative€agency€hasÏmade€a€clear€error€in€judgment.ðð€€òòJackson€Mobilephone€Co.,€Inc.,Ïv.€Tennessee€Public€Service€Comððn,€óóat€110„11.€€We€agree€with€theÏCommission€that€the€tariff€is€ð ðconsistent€with€previous€orders€andÏrulings€of€this€Commission€and€should€be€approved.ðð€€€ÌÌà@ àò òSPRINT€94„269ó óà@ àÌà àÌà àThe€Commissionððs€Final€Order€on€this€tariff€contains€theÏfollowing€statement:ÌÌÓÓà8 àThe€Commission€considered€these€tariffs€at€its€regularlyÏscheduled€April€18,€1995€Commission€Conference.€€It€wasÏconcluded€after€careful€consideration€of€the€entireÍdocket€constituting€the€record€in€this€matter,€theÏCommissionððs€prior€decisions€in€Docket€Nos.€89„11065€andÏ94„02610,€the€provisions€of€all€applicable€rules€andÏstatutes,€particularly€the€provisions€of€TCA€65„5„203;Ïthat€these€tariffs€were€not€in€violation€of€theÏCommissionððs€policy€on€IntraLATA€competition€asÏestablished€in€prior€Commission€Orders€and€should€beÏallowed€to€remain€in€effect.ÌÌÓÓÌà àWe€have€reviewed€the€text€of€Sprint€Tariff€94„269,€the€PSCððsÏorder,€and€the€briefs€filed€by€the€parties.€€Although€neitherÏBellSouth€nor€Sprint€has€adequately€described€the€rationale€forÏtheir€positions€as€to€this€tariff,€we€cannot€affirmatively€say€Ïthat€the€Commissionððs€ð ðfindings,€inferences,€conclusions€orÏdecisionsðð€are€so€arbitrary€as€to€require€reversal.€€This€CourtÏwill€defer€to€the€decisions€of€administrative€agencies€when€theyÏare€acting€within€their€area€of€specialized€knowledge,€experience,Ïand€expertise.€€òòWayne€County€v.€Tennessee€Solid€Waste€DisposalÏControl€Bd.,€óó756€S.W.2d€274€(Tenn.Ct.App.€1988).€€As€the€CircuitÏCourt€of€Appeals€for€the€District€of€Columbia€recently€stated:ÌÓÓÌà8 àWhere,€as€here€the€issue€is€the€CommissionððsÏinterpretation€of€a€tariff,€we€defer€to€its€reading€ifÏit€is€ð ðreasonable€[and]€based€upon€factors€within€theÏCommissionððs€expertise.ðð€ÌÌÓÓòòÌAmerican€Message€Centers€v.€F.C.C.,€óó50€F.3rd€35,€39€(D.C.€Cir.Ï1995);€òòquotingóó€òòDiamond€Intððl€Corp.€v.€FCC,€óó627€F.2d€489,€492€(D.C.ÏCir.€1980).ÌÌà@ àò òMCI€95„003ó óÌÌà àThis€tariff€involves€a€reduction€to€MCIððs€per„minute€usageÏrates€for€its€basic€long€distance€service,€Dial€One/Direct€Dial.€ÏIt€also€revises€the€Time€of€Day€chart€to€reflect€accurate€times.€ÏThe€tariff€for€Dial€One/Direct€Dial,€also€known€as€ð ðOption€AððÏdescribes€the€service€as:ÌÓÓÌà8 à[A]€one„way,€dial€in€„€dial€out€multipoint€serviceÏallowing€the€customer€to€originate€and€terminate€callsÏvia€MCI„provided€local€business€telephone€lines.€ÏSubscribers€to€Dial€One/Direct€Dial€Service€mayÏoriginate€calls€only€from€telephones€which€are€served€byÏend€offices€that€have€been€converted€to€equal€access.€ÏCustomers€served€by€end€offices€that€have€been€convertedÏto€equal€access€may€originate€call€by€dialing€10222.€€ÌÌÓÓÌà àThus,€it€seems€the€tariff€comports€with€the€limitationsÏimposed€by€the€June€27,€1991€Order.€€The€tariff€only€describesÏinterLATA€services,€and€users€complete€intraLATA€calls€viaÏexception€category€four€(10XXX€prefixed€or€other€dialing€codeÏcalling).€€€€€€à àÌÌà àThe€Commissionððs€May€12,€1995€Order€declared€that€MCI€95„003Ïð ðallowed€consumers€one„stop€shoppingðð€for€telecommunicationsÏservices€and€found€no€violation€of€any€prior€Commission€Order.€€ÌÌà àThis€Court€affirms€the€Commissionððs€decision€to€uphold€MCIÏTariff€95„003,€since€the€services€contemplated€fall€squarelyÏwithin€an€exception€category.€Thus,€we€do€not€consider€theÏCommission€to€have€been€ð ðarbitrary€and€capriciousðð€in€arriving€atÍtheir€conclusions€as€to€this€tariff.€€ÌÌà ààHàò òà@ àMCI€95„009ó óÌÌà àMCI€95„009€involves€the€introduction€of€a€service€plan€knownÏas€ð ðFriends€&€Family€Option€Bðð€and€the€introduction€of€a€newÏPersonal€800€option,€ð ðPersonal€800€Plan€R.ðð€€Personal€800€Plan€RÏdescribes€the€service€as:ÌÓÓÌà8 àPersonal€800€Plan€R€provides€a€telephone€number€at€whichÏcalls€may€be€received€from€any€location€within€the€stateÏof€Tennessee€for€a€monthly€subscription€fee€and€one„timeÏinstallation€fee€as€identified€in€MCIððs€F.C.C.€TariffÏNo.1.€€MCI€will€provide€to€the€customer€and€800Ïtelephone€number,€a€4„digit€Security€Code,€and€a€6€digitÏRerouting€Code€which€will€allow€the€customer€to€use€theÏð ðFollow„Meðð€Routing€feature.€€The€customer€will€beÏcharged€the€per€minute€usage€rates€as€described€in€MCIððsÏF.C.C.€Tariff€No.€1.€€ÌÓÓÌà àThis€service€plan€comports€with€the€1991€Commission€Order€asÏit€involves€the€use€of€ð ð800"€calls€as€a€part€of€an€interLATAÏoffering€(Category€3).€€The€tariff€for€Friends€and€Family€Option€BÏis€a€variant€of€Option€A€or€ð ðDial€One/Direct€Dial.ðð€€The€tariffÏfor€Option€A€describes€the€service€as:ÌÓÓÌà8 à[A]€one„way,€dial€in„dial€out€multipoint€serviceÏallowing€the€customer€to€originate€and€terminate€callsÏvia€MCI„provided€local€business€telephone€lines.€ÏSubscribers€to€Dial€One/Direct€Dial€Service€mayÏoriginate€calls€only€from€telephones€which€are€served€byÏend€offices€that€have€been€converted€to€equal€access.€ÏCustomers€who€prescribe€to€MCI€may€originate€calls€byÏdialing€1.€€All€customers€served€by€end€offices€thatÏhave€been€converted€to€equal€access€may€originate€callsÏby€dialing€10222.€€ÌÌà àÌÓÓÌà àThis€plan€uses€exception€category€four€of€the€1991€PSC€orderÏ(10XXX€prefixed€or€other€dialing€code€calling).€€Thus,€MCI€TariffÏ95„009€complies€with€current€Commission€orders.€€We€find€that€theÏapproval€of€this€tariff€by€the€Commission€was€not€ð ðarbitrary€andÏcapriciousðð€pursuant€to€òòTenn.€Code€Ann.€ðð€óó4„5„322(h)(4).ÌÌà@ àò òSPRINT€95„008ÌÌà àó óThe€Commission€considered€this€tariff€in€a€docket€with€MCIÏ95„003€and€MCI€95„009.€€The€Commission,€as€it€had€done€in€everyÏtariff€except€MCI€94„247,€refused€to€suspend€the€tariff€asÏBellSouth€had€requested,€finding€ð ðno€basis€on€which€to€suspend€theÏtariff.ðð€€After€reviewing€Sprint€Tariff€95„008€we€too€find€noÏprovision€which€violates€the€Commissionððs€1991€Order€governingÏintraLATA€competition.€€Thus,€we€affirm€the€CommissionððsÏconclusion€as€to€this€tariff.€€Ìà àÌà àWe€believe€that€BellSouth€has€not€demonstrated€that€the€MCIÏand€Sprint€tariffs€were€so€inconsistent€as€to€warrant€this€CourtððsÏfinding€the€1995€Commission€Orders€arbitrary€and€capricious.€ÏAdditionally,€we€agree€with€MCIððs€position€that€the€determinativeÏissue€in€these€cases€was€whether€or€not€the€tariff€filings€wereÏconsistent€with€the€1991€Commission€Order.€€As€this€determinationÏinvolves€a€review€of€the€Commissionððs€orders,€the€issues€in€thisÍcase€were€legal€in€nature.€€Thus,€we€need€not€decide€whetherÏð ðsubstantial€and€material€evidenceðð€supports€the€CommissionððsÏdecision€as€required€by€òòTenn.€Code€Ann.€ðð€óó4„5„322(h)(5).€ÌÌÌò òÓÓII.€à àWhether€the€Tariffs€violate€the€1995€TennesseeÏTelecom„munications€Act?ó óÌÓÓÌÌà àAs€previously€discussed,€the€Telecommunications€Reform€Act€ofÏ1995€(ð ðthe€Actðð)€amended€Tennessee€Code€Annotated€section€65„4„201Ïby€adding€the€following€subsection:ÌÌÓÓà8 à(b)€Except€as€exempted€by€provisions€of€state€or€federalÏlaw,€no€individual€or€entity€shall€offer€or€provide€anyÏindividual€or€group€of€telecommunications€services,€orÏextend€its€territorial€areas€of€operations€without€firstÏobtaining€from€the€commission€a€certificate€ofÏconvenience€and€necessity€for€such€service€or€territory;Ïprovided,€that€no€telecommuni„cations€services€providerÏoffering€and€providing€a€telecommunications€serviceÏunder€the€authority€of€the€commission€on€June€6,€1995,Ïis€required€to€obtain€additional€authority€in€order€toÏcontinue€to€offer€and€provide€such€telecommunicationsÏservices€as€it€offers€and€provides€as€of€June€6,€1995.ÌÌÓÓÌRelying€on€this€amendment,€BellSouth€argued€that€MCI€and€SprintÏlacked€the€authority€to€offer€the€services€proposed€in€theirÏtariffs€because€they€failed€to€obtain€the€necessary€certificatesÏof€public€convenience.€€Despite€its€arguments,€BellSouth€must€failÏas€to€this€issue€because€it€is€not€properly€before€this€court.ÌÌà àTennessee€Code€Annotated€section€ðð€4„5„322€defines€thisÏcourt's€scope€of€review.€€Pursuant€to€that€section,€ð ð[a]€personÏwho€is€aggrieved€by€a€final€òòdecisionóó€in€a€contested€case€isÏentitled€to€judicial€review€.€.€.€.ðð€€Tenn.€Code€Ann.€ðð€4„5„322(a)(1)€(1991)€(emphasis€added).€€Upon€review,€this€court€ð ðmayÏaffirm€the€òòdecisionóó€of€the€agency€or€remand€the€case€for€furtherÏproceedings.ðð€€òòIdò ò.óóó ó€ðð4„5„322(h)€(emphasis€added).€€When€appealing€aÏdecision€of€the€Public€Service€Commission,€an€aggrieved€personÏshall€file€their€petition€for€review€in€this€court.€€òòIdò ò.€óóó ó€ðð€4„5„322(b)(1).€€Thereafter,€this€court€must€confine€its€review€to€theÏrecord€and€decide€the€issues€without€a€jury.€€òòIdò ò.€ó óóóðð€4„5„322(g).€ÏThis€limited€standard€of€review€prohibits€this€court€fromÏreviewing€an€issue€which€the€Commission€did€not€decide.ÌÌà àIn€this€case,€the€œCommission›€did€not€decide€if€the€tariffsÏviolated€the€Act.€€BellSouth€never€raised€the€issue€before€theÏCommission.€€The€Commission€never€addressed€the€issue€in€any€ofÏits€orders€relating€to€the€five€tariffs,€and€the€record€does€notÏcontain€any€evidence€as€to€the€issue.€€The€only€issue€òòdecidedóó€byÏthe€Commission€was€whether€their€approval€of€the€tariffs€wasÏconsistent€with€their€Order€from€1991.€€It€is€only€on€appeal€toÏthis€court,€that€BellSouth€raises€the€issue€of€a€violation€of€theÏAct.€€Because€there€was€neither€a€òòdecisionóó€nor€a€record€for€thisÏcourt€to€review,€this€court€lacks€the€authority€to€address€theÏissue€on€appeal.€€Moreover,€it€is€not€the€role€of€this€court€toÏdelve€into€the€complicated€issues€facing€administrative€agenciesÍunless€called€on€to€do€so.€€This€court€is€to€give€deference€to€theÏdecisions€of€an€administrative€agency€which€has€acted€within€itsÏarea€of€specialized€knowledge.€€òòWayne€County€v.€Tennessee€SolidÏWaste€Disposal€Control€Bd.óó,€756€S.W.2d€274,€279€(Tenn.€App.€1988).€ÏWe€are€not€to€substitute€our€judgment€for€that€of€the€agency€onÏhighly€technical€matters.€€òòIdò ò.óóó ó€at€280.ÌÌÌà@ àò òThe€Federal€Telecommunications€Act€of€1996ó óÌÌà àOn€February€16,€1996,€the€U.S.€Congress€passed€theÏTelecommunications€Act€of€1996.€€This€Act€does€not€provide€for€theÏwholesale€preemption€of€state€regulation€of€telecommunicationsÏservices.€Instead,€the€Act€permits€states€to€retain€authority€ifÏthe€state€regulation€is€consistent€with€it.€€In€examining€theÏprovisions€of€the€Federal€Telecommunications€Act€of€1996,€we€findÏnothing€which€would€alter€our€decision€in€this€appeal.€€We€believeÏthe€Commissionððs€Orders€governing€the€services€of€MCI€and€SprintÏto€be€consistent€with€the€1996€Federal€Act.× ƒ6 ××  ×€€€€€€ÌÌÌà àFor€the€foregoing€reasons€we€affirm€the€judgment€of€theÏTennessee€Public€Service€Commission.€€We€tax€costs€on€appeal€toÏthe€Appellants,€BellSouth.€€Ìà àÌœÌÓÓÌà àà àà àà àà àà à€€€____________________________Ìà àà àà àà àà àà à€€€SAMUEL€L.€LEWIS,€JUDGEÌÌÌÌÌÌÌCONCUR:ÌÌÌÌ______________________________ÌBEN€H.€CANTRELL,€JUDGE€Ìà àÌÌÌ______________________________ÌWILLIAM€C.€KOCH,€Jr.,€JUDGEà àà àà àà àà àà à›