Hypothetical for "Ex Parte Communications"

Cable Television Re-regulation Act

Section 1: The Chairman of the Federal Communications Commission may issue licenses that authorize persons to provide cable television services within a defined service area.
 

Section 2: No person may provide cable television services except in accordance with a license issued by the Chairman of the Federal Communications Commission.
 

Section 3: Cable television providers shall file the rates that they charge for cable television service with the Federal Communications Commission.
 

Section 4: If, after opportunity for a hearing on the record, the Chairman of the Federal Communications Commission determines that the rates that a cable television provider has charged in the past are unreasonable, the Chairman may revoke the license of the cable television provider.
 

Facts

a. Mid-Georgia Cable Television, in Macon, Ga., a licensed cable television provider, files its rates with the F.C.C. and indicates that it charges $40 per month for basic cable service (no premium channels).

b. The F.C.C. holds a formal hearing to review Mid-Georgia's rates and Mid-Georgia submits data regarding its capital and operating expenses, subscriber base, and a variety of other factors to justify its $40 per month rate.

c. Outside of the hearing process, a representative of STV Corporation, a satellite tv company that is expanding into the Macon area, contacts the FCC and informs the FCC that Mid-Georgia has overstated its operating expenses. (In other words, it cost Mid-Georgia less to provide cable television service than Mid-Georgia told the FCC that it cost.)

d. Based solely on the evidence submitted by Mid-Georgia, the FCC finds that Mid-Georgia's $40 per month rate was unreasonable, and the FCC revokes Mid-Georgia's license.
 

2. Question to consider: What APA challenges can Mid-Georgia make to the FCC's decision? With what success?