national cable telecommunications association et al brand internet services et argued march decided june consumers traditionally access internet connections provided via local telephone lines internet service providers isps turn link calls internet network providing physical connection also offering consumers ability translate raw data information may view computers transmit others connected internet technological limitations local telephone wires however retard speed internet data may transmitted narrowband connections broadband internet service contrast transmits data much higher speeds two principal kinds broadband service cable modem service transmits data internet users computers via network television cable lines owned cable companies digital subscriber line dsl service uses wires owned local telephone companies ways transmitting internet data including wireless networks also emerging communications act amended telecommunications act defines two categories entities relevant information service providers offering capability processing information via telecommunications subject mandatory regulation federal communications commission common carriers title ii act conversely telecommunications carriers offering telecommunications fee directly public regardless facilities used subject mandatory title ii regulation two classifications originated late commission developed rules regulate services offered telephone wires regulated telecommunications service act analog basic service prior regime computer ii rules rules defined service pure transparent transmission capability communications path enabling consumer transmit message another point without computer processing storage information via telephone facsimile act nformation service analog enhanced service defined computer ii rules applications act subscriber information voice data storage services well protocol conversion ability communicate networks employ different formats declaratory ruling review commission classified broadband cable modem service information service telecommunications service act subject mandatory title ii regulation commission relied heavily universal service report earlier classified isps transmission facilities use connect end user internet solely providers internet access capability manipulating storing information commission concluded information service however integrated nature access wire used provide led commission conclude cable companies providing telecommunications service providers adopting universal service report reasoning commission held cable companies offering broadband internet access like isps offer end user telecommunications service merely use telecommunications provide end users cable modem service numerous parties petitioned review judicial lottery appeals ninth circuit selected venue challenge granted petitions part vacated declaratory ruling part remanded proceedings particular held commission permissibly construe communications act exempt cable companies providing cable modem service mandatory title ii regulation rather analyzing permissibility construction deferential framework chevron natural resources defense council however grounded holding stare decisis effect decision portland held cable modem service telecommunications service held commission conclusion broadband cable modem companies exempt mandatory regulation lawful construction communications act chevron administrative procedure act pp chevron framework applies commission interpretation telecommunications service pp chevron governs review commission construction see national cable telecommunications gulf power chevron requires federal defer agency construction even differs believes best interpretation particular statute within agency jurisdiction administer statute ambiguous point issue agency construction reasonable commission statutory authority execute enforce communications act prescribe rules regulations may necessary carry act provisions give commission power promulgate binding legal rules commission issued order review exercise authority dispute order within commission jurisdiction pp ninth circuit applied chevron framework instead following contrary construction adopted portland prior construction statute trumps agency construction otherwise entitled chevron deference prior decision holds construction follows unambiguous terms statute thus leaves room agency discretion see smiley supra portland held best reading cable modem service telecommunications service permissible reading communications act unambiguously required ninth circuit erred refusing apply chevron pp commission construction telecommunications service definition permissible reading communications act steps chevron test pp commission question whether cable companies providing cable modem service offe telecommunications within meaning turned nature functions offered end user seen consumer point view commission concluded cable wire used access world wide web newsgroups rather transparently transmit receive messages without computer processing storage message integrated character offering led commission conclude cable companies make transparent offering telecommunications pp commission construction permissible chevron first step asks whether statute plain terms directly addres precise question issue conclusion follows ordinary meaning offering communications act regulatory history pp statute plain terms admit two reasonable ordinary usages commission choice one entitled deference see verizon communications fcc common usage describe company offers consumer consumer perceives integrated finished product even exclusion discrete components compose product cable companies providing cable modem service offer finished internet service though using discrete components composing end product including data transmission functionally integrated components need described distinct offerings pp commission traditional distinction basic enhanced service also supports conclusion communications act ambiguous whether cable companies offer telecommunications cable modem service congress passed act definitions background regulatory history may assumed parallel terms telecommunications service information service substantially incorporated meaning basic enhanced service history least two respects confirms term telecommunications service ambiguous first computer ii order establishing terms basic enhanced services commission defined terms functionally based consumer interacts provided information commission order review cable modem service transparent terms interaction information transmission occurs connection information processing therefore consistent statute terms commission assume parallel term telecommunications service likewise describes pure transparent communications path necessarily separately present integrated service perspective second commission application service distinction isps also supports conclusion commission historically subjected providers common carrier regulation history suggests turn act unambiguously classify nonfacilities based isps offerors telecommunications act unambiguously classify providers offering telecommunications also unambiguously classify providers cable companies relevant definitions distinguish two types carriers act silence suggests instead commission discretion fill statutory gap pp commission interpretation also permissible chevron step two reasonable policy choice agency make respondents argue unpersuasively commission construction unreasonable allows communications provider evade regulation simply bundling information service telecommunications result follow interpretation adopted declaratory ruling commission classified cable modem service solely information service telecommunications input used provide cable modem service separable service capabilities part parcel service integral capabilities therefore telecommunications offering construction leave offerings unregulated title ii plain example local telephone company escape regulation packaging telephone service voice mail packaging offers transparent transmission path telephone service transmits information independent capabilities voice mail provides contrast transmission used provide cable modem service functionally integrated component internet service transmits data connection processing information necessary provide service commission construction therefore limited respondents assume respondents argument cable modem service fact provide transparent transmission consumer perspective also mistaken characterization offering internet access consisting access cable company service web page ability provides create personal web page conflicts commission reasonable understanding nature internet service end user accesses third party web site commission concluded equally using information service provided cable company accesses company web site service personal webpage commission recognized service internet access providers offer public internet access transparent ability perspective transmit information pp rejects respondent mci argument commission treatment cable modem service inconsistent treatment dsl service therefore arbitrary capricious deviation agency policy administrative procedure act see mci points local telephone companies began offer internet access dsl technology commission required make telephone lines used provide dsl available competing isps nondiscriminatory terms respondents claim commission adequately explained decision regulate cable companies similarly thinks commission provided reasoned explanation decision traditional reason computer ii treatment carriers telephone network primary exclusive means information service providers gain access customers commission applied treatment dsl service based history rather analysis contemporaneous market conditions commission declaratory ruling contrast concluded changed market conditions warrant different treatment cable modem service unlike time dsl order substitute forms internet transmission exist today including wireline cable terrestrial wireless satellite commission therefore concluded broadband services exist minimal regulatory environment promotes investment innovation competitive market nothing arbitrary capricious applying fresh analysis cable industry pp reversed remanded thomas delivered opinion rehnquist stevens kennedy breyer joined stevens breyer filed concurring opinions scalia filed dissenting opinion souter ginsburg joined part national cable telecommunications association et petitioners brand internet services et al federal communications commission petitioners brand internet services et al writs certiorari appeals ninth circuit june justice thomas delivered opinion title ii communications act stat amended et subjects providers telecommunications servic mandatory regulation order review federal communications commission concluded cable companies sell broadband internet service provide telecommunications servic communications act defines term hence exempt mandatory regulation title ii must decide whether conclusion lawful construction communications act chevron natural resources defense council administrative procedure act et seq hold traditional means consumers access network interconnected computers make internet connections provided local telephone facilities see cases inquiry concerning access internet cable facilities fcc rcd hereinafter declaratory ruling using connections consumers access internet making calls computer modems telephone wires owned local phone companies see verizon communications fcc describing physical structure local telephone exchange internet service providers isps turn link calls internet network providing physical connection also offering consumers ability translate raw internet data information may view personal computers transmit computers connected internet see joint board universal service fcc rcd hereinafter universal service report huber kellogg thorne federal telecommunications law ed hereinafter huber technological limitations local telephone wires however retard speed data internet may transmitted end users connections connections therefore known narrowband slower speed connections broadband internet service contrast transmits data much higher speeds two principal kinds broadband internet service cable modem service digital subscriber line dsl service cable modem service transmits data internet users computers via network television cable lines owned cable companies see dsl service provides access using local telephone wires owned local telephone companies see worldcom fcc cadc describing dsl technology cable companies telephone companies either provide internet access directly consumers thus acting isps lease transmission facilities independent isps use facilities provide consumers internet access ways transmitting internet data homes including wireless networks also emerging declaratory ruling ii issue cases proper regulatory classification communications act broadband cable internet service act amended telecommunications act stat defines two categories regulated entities relevant cases telecommunications carriers providers act regulates telecommunications carriers providers common carriers telecommunications carriers example must charge reasonable nondiscriminatory rates customers design systems carriers interconnect communications networks contribute federal universal service fund provisions mandatory commission must forbear applying determines public interest requires providers contrast subject mandatory regulation title ii though commission jurisdiction impose additional regulatory obligations title ancillary jurisdiction regulate interstate foreign communications see two statutory classifications originated late commission developed rules regulate services offered telephone wires regime computer ii rules distinguished basic service like telephone service enhanced service service offered telephone lines amendment section commission rules regulations second computer inquiry hereinafter computer ii order computer ii rules defined basic enhanced services reference consumer perceives service offered particular commission defined basic service pure transmission capability communications path virtually transparent terms interaction customer supplied information pure transparent transmission commission meant communications path enabled consumer transmit message another point computer processing storage information processing storage needed convert message electronic form back ordinary language purposes transmitting network via telephone facsimile basic service subject regulation nhanced service however service computer processing applications used act content code protocol aspects subscriber information voice data storage services well protocol conversion ability communicate networks employ different formats contrast basic service commission decided subject providers enhanced service even enhanced service offered via transmission wires title ii regulation commission explained unwise subject enhanced service regulation given competitive market offered definitions terms telecommunications service information service established act similar computer ii classifications telecommunications service analog basic service offering telecommunications fee directly public regardless facilities used telecommunications transmission among points specified user information user choosing without change form content information sent received telecommunications carrier subjected mandatory title ii regulation defined provider telecommunications services information service analog enhanced service offering capability generating acquiring storing transforming processing retrieving utilizing making available information via telecommunications september commission initiated rulemaking proceeding among things apply classifications cable companies offer broadband internet service directly consumers march rulemaking culminated declaratory ruling review cases declaratory ruling commission concluded broadband internet service provided cable companies information service telecommunications service act therefore subject mandatory title ii regulation support conclusion commission relied heavily universal service report see declaratory ruling citing universal service report report universal service report classified isps transmission facilities use connect end user internet solely providers see universal service report unlike isps cable companies cable lines use provide internet access nevertheless declaratory ruling commission found basis statutory definitions treating cable companies differently isps offer single integrated service enables subscriber utilize internet access service realize benefits comprehensive service offering declaratory ruling internet access provides capability manipulating storing information commission concluded information service ibid integrated nature internet access wire used provide internet access led commission conclude cable companies providing internet access telecommunications providers conclusion commission reasoned followed logic universal service report report concluded though internet service involves data transport elements internet access provider must enable movement information customers computers distant computers customers seek interact also offers end users capabilities inextricably intertwined data transport universal service report isps therefore offering telecommunications directly public properly classified telecommunications carriers see words commission reasoned consumers use cable modems transmit information transparently using telephone instead obtain internet access commission applied reasoning cable companies offering broadband internet access logic like isps cable companies offe telecommunications service end user rather merely us telecommunications provide end users cable modem service declaratory ruling though commission declined apply mandatory title ii regulation cable companies invited comment whether title jurisdiction require cable companies offer isps access facilities terms numerous parties petitioned judicial review challenging commission conclusion cable modem service telecommunications service judicial lottery appeals ninth circuit selected venue challenge appeals granted petitions part vacated declaratory ruling part remanded commission proceedings particular appeals vacated ruling extent concluded cable modem service telecommunications service communications act held commission permissibly construe communications act exempt cable companies providing internet service title ii regulation see rather analyzing permissibility construction deferential framework chevron however appeals grounded holding stare decisis effect portland see portland held cable modem service telecommunications service though case reviewing administrative proceeding commission party case see nevertheless portland holding appeals reasoned overrode contrary interpretation reached commission declaratory ruling see granted certiorari settle important questions federal law cases present iii first consider whether apply chevron framework commission interpretation term telecommunications service conclude also conclude appeals done instead following contrary construction adopted portland chevron held ambiguities statutes within agency jurisdiction administer delegations authority agency fill statutory gap reasonable fashion filling gaps explained involves difficult policy choices agencies better equipped make courts statute ambiguous implementing agency construction reasonable chevron requires federal accept agency construction statute even agency reading differs believes best statutory interpretation chevron framework governs review commission construction congress delegated commission authority execute enforce communications act prescribe rules regulations may necessary public interest carry provisions act iowa utilities provisions give commission authority promulgate binding legal rules commission issued order review exercise authority one questions order within commission jurisdiction see household credit services pfennig mead christensen harris county hence past apply chevron framework commission interpretation communications act see national cable telecommunications gulf power verizon respondents dispute conclusion ground commission interpretation inconsistent past practice reject argument agency inconsistency basis declining analyze agency interpretation chevron framework unexplained inconsistency reason holding interpretation arbitrary capricious change agency practice administrative procedure act see motor vehicle mfrs assn state farm mut automobile ins agency adequately explains reasons reversal policy change invalidating since whole point chevron leave discretion provided ambiguities statute implementing agency smiley citibank south dakota see also rust sullivan barnhart walton scalia concurring part concurring judgment initial agency interpretation instantly carved stone contrary agency must consider varying interpretations wisdom policy continuing basis chevron supra example response changed factual circumstances change administrations see state farm supra rehnquist concurring part dissenting part doubt chevron deferred agency interpretation recent reversal agency policy see therefore difficulty concluding chevron applies appeals declined apply chevron thought commission interpretation communications act foreclosed conflicting construction act adopted portland supra see based holding assumption portland construction overrode commission regardless whether portland held statute unambiguous reasoning incorrect prior judicial construction statute trumps agency construction otherwise entitled chevron deference prior decision holds construction follows unambiguous terms statute thus leaves room agency discretion principle follows chevron chevron established presumption congress left ambiguity statute meant implementation agency understood ambiguity resolved first foremost agency desired agency rather courts possess whatever degree discretion ambiguity allows smiley supra yet allowing judicial precedent foreclose agency interpreting ambiguous statute appeals assumed allow interpretation override agency chevron premise agencies courts fill statutory gaps see better rule hold judicial interpretations contained precedents demanding chevron step one standard applies reviewing agency construction blank slate judicial precedent holding statute unambiguously forecloses agency interpretation therefore contains gap agency fill displaces conflicting agency construction contrary rule produce anomalous results mean whether agency interpretation ambiguous statute entitled chevron deference turn order interpretations issue construction came first construction prevail whereas agency came first agency construction command chevron deference yet whether congress delegated agency authority interpret statute depend order judicial administrative constructions occur appeals rule moreover lead ossification large portions statutory law mead supra scalia dissenting precluding agencies revising unwise judicial constructions ambiguous statutes neither chevron doctrine stare decisis requires haphazard results dissent answers allowing agency override believes best interpretation statute makes judicial decisions subject reversal executive officers post opinion scalia since chevron teaches opinion best reading ambiguous statute agency charged administering authoritative agency decision construe statute differently say holding legally wrong instead agency may consistent holding choose different construction since agency remains authoritative interpreter within limits reason statutes respects prior ruling remains binding law example agency interpretations chevron inapplicable precedent reversed agency federal interpretation state law said reversed state adopts conflicting yet authoritative interpretation state law appeals derived contrary rule mistaken reading decisions read neal establish prior judicial construction statute categorically controls agency contrary construction see also post scalia dissenting neal established proposition neal declined defer construction adopted sentencing commission conflicted one previously adopted chapman neal supra chapman however held relevant statute unambiguous see emphasis added see also lechmere nlrb decisions allow prior interpretation statute override agency interpretation relevant decision held statute unambiguous background appeals erred refusing apply chevron commission interpretation definition telecommunications service prior decision portland held best reading cable modem service telecommunications service permissible reading statute see nothing portland held communications act unambiguously required treating cable internet providers telecommunications carriers instead noted presented case involving potential deference administrative agency statutory construction pursuant chevron doctrine invoked rule construction rule lenity requiring conclude statute unambiguous reach judgment judicial construction statute whether contained precedent may trump agency must hold statute unambiguously requires construction portland dissent points logically necessary us reach question whether appeals misapplied chevron us decide whether commission acted lawfully see post opinion scalia nevertheless great mystery reaching point ibid genuine confusion lower courts interaction chevron doctrine stare decisis principles petitioners informed us certiorari stage litigation see pet cert federal communications commission et al pp pet cert national cable telecomm assn et al pp point briefed see brief federal petitioners brief petitioners reaching point undermine purpose grant certiorari settle authoritatively whether commission declaratory ruling lawful uphold declaratory ruling without reaching chevron point appeals strike commission rule based portland decision portland least arguably compel appeals reverse commission despite decision since conclusion reasonable read communications act classify cable modem service solely information service leaves untouched portland holding commission interpretation best reading statute decided similar questions strictly speaking necessary disposition see agostini felton requiring courts appeals adhere directly controlling precedents even rest reasons rejected decisions roper simmons slip scalia dissenting criticizing reaching question whether missouri erred failing follow directly controlling precedent though conclusion necessary decision prudent us today iv next address whether commission construction definition telecommunications service permissible reading communications act chevron framework chevron established familiar procedure evaluating whether agency interpretation statute lawful first step ask whether statute plain terms directly addres precise question issue statute ambiguous point defer step two agency interpretation long construction reasonable policy choice agency make commission interpretation permissible steps first set forth understanding interpretation communications act commission embraced issue commission whether cable companies providing cable modem service providing telecommunications service addition information service commission first concluded cable modem service information service conclusion unchallenged act defines information service offering capability generating acquiring storing transforming processing retrieving utilizing making available information via telecommunications cable modem service information service commission reasoned provides consumers comprehensive capability manipulating information using internet via telecommunications service enables users example browse world wide web transfer files file archives available internet via file transfer protocol access usenet newsgroups declaratory ruling universal service report like forms internet service cable modem service also gives users access domain name system dns dns among things matches web page addresses end users type browsers click internet protocol ip servers containing web pages users wish access declaratory ruling features commission concluded part information service cable companies provide consumers see also universal service report time commission concluded cable modem service telecommunications service telecommunications service offering telecommunications fee directly public telecommunications turn defined transmission among points specified user information user choosing without change form content information sent received commission conceded like providers cable companies use telecommunications provide consumers internet service cable companies provide service via wire transmits signals end user computer declaratory ruling commission however question whether cable broadband internet providers offer telecommunications involved whether telecommunications one necessary component cable modem service instead whether service also includes telecommunications offering tur ned nature functions end user offered emphasis added statutory definition telecommunications service res particular types facilities used see definition telecommunications service applies regardless facilities used seen consumer point view commission concluded cable modem service telecommunications offering consumer uses wire always connection capabilities provided internet access transmission necessary component internet access provided end user telecommunications part parcel cable modem service integral capabilities declaratory ruling wire used words access world wide web newsgroups forth rather transparently transmit receive messages without computer processing storage message see supra noting computer ii notion transparent transmission integrated character offering led commission conclude cable modem service transparent offering telecommunications declaratory ruling construction passes chevron first step respondents argue ground cable companies providing internet service necessarily offe underlying telecommunications used transmit service word offering used however unambiguously require result instead offering reasonably read mean offering telecommunications offered service user perspective transmits messages unadulterated computer processing conclusion follows ordinary meaning word offering also regulatory history communications act cable companies broadband internet service business offe consumers information service form internet access via telecommunications inexorably follow matter ordinary language also offe consumers data transmission telecommunications input used provide service held statute plain terms admit two reasonable ordinary usages commission choice one entitled deference see verizon agency construction entitled deference alternative dictionary definitions word issue term offe used definition telecommunications service ambiguous way common usage describe company offers consumer consumer perceives integrated finished product even exclusion discrete components compose product dissent concedes see post opinion scalia one might well say car dealership offers cars offer integrated major inputs make purchasing car valuable engine chassis fact odd describe car dealership offering consumers car components addition car even linguistically permissible say car dealership offers engines offers cars shows term offer applied commercial transaction ambiguous whether describes offered finished product product discrete components well show usage permitted question whether transmission component cable modem service sufficiently integrated finished service make reasonable describe two single integrated offering see ibid think sufficiently integrated consumer uses wire always connection capabilities provided internet access transmission necessary component internet access supra telecommunications context least reasonable describe companies offering consumers discrete input necessary providing always used connection finished service think misuse language example say cable companies providing internet service offer consumers dns even though dns essential providing internet access declaratory ruling likewise telephone company offers consumers transparent transmission path conveys message necessarily data transmission facilities also transmi information user choosing physical elements facilities used provide telephone service like trunks switches copper wires cable companies providing cable modem service telephone companies providing telephone service offer internet service telephone service respectively finished services though using via discrete components composing end product including data transmission functionally integrated components need described distinct offerings response dissent argues transmission component necessary providing cable modem service necessarily offered internet service cable modem service like offering pizza delivery service together pizza offering puppies together dog leashes post opinion scalia dissent appeal analogies underscores term offer ambiguous way described entire question whether products functionally integrated like components car functionally separate like pets leashes question turns language act factual particulars internet technology works provided questions chevron leaves commission resolve first instance commission candidly recognized question may always straightforward whether one hand entity providing single information service communications computing components hand providing two distinct services one telecommunications service universal service report term offer sometimes refer single finished product sometimes individual components package offered depending whether components still possess sufficient identity described separate objects post statute fails unambiguously classify telecommunications component cable modem service distinct offering leaves federal telecommunications policy technical complex area set commission warring analogies also share dissent certainty cable modem service obviously like pizza delivery service combination dog leashes dogs commission reasonably thought otherwise post example unlike transmission component internet service delivery service dog leashes integral components finished products pizzas pet dogs one pick pizza rather delivered one dog without buying leash contrast commission reasonably concluded consumer purchase internet service without also purchasing connection internet transmission always occurs connection information processing event doubt statute example subjected offerors delivery service federal express parcel service regulation unambiguously require companies offer delivery services common carrier basis commission traditional distinction basic enhanced service see supra also supports conclusion communications act ambiguous whether cable companies offer telecommunications cable modem service congress passed definitions communications act background regulatory history may assume parallel terms telecommunications service information service substantially incorporated meaning commission held see joint board universal service fcc rcd noting definition enhanced services substantially similar definition information services services previously considered services commissioner keystone consol industries noting presumption congress aware settled judicial administrative interpretation terms enacts statute regulatory history least two respects confirms term telecommunications service ambiguous first computer ii order established terms basic enhanced services commission defined terms functionally based consumer interacts provided information commission order see supra explained internet service terms interaction information computer ii order transmission occurs connection information processing therefore consistent statute terms commission assume parallel term telecommunications service likewise describes pure transparent communications path necessarily separately present end user perspective integrated offering commission application service distinction isps also supports conclusion commission long held provide form transmission services necessarily common carriers computer ii order see also acknowledg ing existence communications component offerings example commission subject regulation service providers offered enhanced services telecommunications facilities underlying facilities providers see universal service report examples services included database services customer used telecommunications access information dow jones news lexis well value added networks lease wires common carriers provide transmission well service wires see amendment sections commission rules regulations third computer inquiry fcc rcd supra explaining protocol conversion services combin ed communications computing components yet commission held always deemed enhanced therefore subject regulation universal service report following traditional distinction commission universal service report classified isps leased rather owned transmission facilities pure providers respondents statutory arguments conflict regulatory history claim communications act unambiguously classifies telecommunications carriers entities use telecommunications inputs provide information service respondent mci concedes argument subject mandatory regulation providers use telecommunications input provide information service public brief respondent mci example subject regulation isps transmission facilities see universal service report isps provide consumers transmission facilities used connect internet see supra respondents argument necessarily offer telecommunications consumers respondents position entities necessarily offering telecommunications therefore entails mandatory regulation entities commission never classified offerors basic transmission service therefore common carriers computer ii see universal service report noting past commission policy computer communications industry assn fcc cadc noting upholding commission computer ii finding enhanced services common carrier services within scope title ii doubt parallel term telecommunications service unambiguously worked abrupt shift commission policy respondents analogy cable companies provide cable modem service providers providers transmission facilities used provide services fares better respondents stress computer ii rules commission regulated providers heavily providers commission required example local telephone companies provided enhanced services offer wires basis competing providers see amendment sections commission rules regulations third computer inquiry hereinafter computer iii order respondents argue communications act unambiguously requires treatment cable companies cable companies also facilities use provide cable modem service therefore information service disagree think improbable communications act unambiguously freezes time computer ii treatment providers act definition telecommunications service says nothing imposing stringent regulatory duties providers definition hinges solely whether entity offer telecommunications fee directly public though act elsewhere subjects carriers stricter regulation see imposing various duties local telephone companies computer ii rules commission subjected providers duties nature offering made carriers rather concern local telephone companies abuse monopoly power possessed virtue bottleneck local telephone facilities owned see computer ii order computer iii order verizon describing naturally monopolistic physical structure local telephone exchange differential treatment carriers therefore function definitions basic service instead choice commission regulate stringently discretion certain entities provided enhanced service act definitions however parallel definitions enhanced basic service grounds policy choice based commission remains free impose special regulatory duties isps title ancillary jurisdiction fact invited comment whether see supra sum act fails unambiguously classify providers use telecommunications inputs provide information service offer ors telecommunications also fails unambiguously classify providers offerors relevant definitions distinguish carriers silence suggests instead commission discretion fill consequent statutory gap also conclude commission construction reasonable policy choice commission make chevron second step respondents argue commission construction unreasonable allows communications provider evade regulation expedient bundling information service telecommunications respondents argue commission construction telephone company example offer information service like voice mail together telephone service thereby avoiding regulation telephone service need decide whether construction resulted consequences unreasonable believe results follow construction commission adopted understand declaratory ruling commission say telecommunications service priced bundled information service automatically unregulated title ii commission said telecommunications input used provide information service separable capabilities service instead part parcel information service integral information service capabilities telecommunications offering declaratory ruling see supra construction leave information service offerings exempt mandatory title ii regulation plain example local telephone company escape title ii regulation residential local exchange service simply packaging service voice mail universal service report telephone company packages voice mail telephone service offers transparent transmission path telephone service transmits information independent capabilities provided voice mail instance person makes telephone call ability convey receive information using call trivially affected additional capability equally telephone company add announcement played every time user picked telephone transparent information transmitted ensuing call trivially dependent information service announcement provides contrast transmission used provide cable modem service functionally integrated component service transmits data connection processing information necessary provide internet service commission construction therefore limited respondents assume respondents answer cable modem service fact provide transparent transmission consumer perspective argument mistaken respondents characterize offering internet access consisting access cable company service web page ability provides consumers create personal web page consumer goes beyond offerings accesses content provided parties cable company respondents argue consumer uses pure transmission less consumer purchases phone service together voice mail argument believe conflicts commission understanding nature cable modem service understanding find reasonable end user accesses web site commission concluded equally using information service provided cable company offers internet access accesses company web site service personal web page example commission found part information service cable companies provide access dns service see supra user reach web site without dns among things matches web site address end user types browser clicks mouse ip address web page host server see albitz liu dns bind ed internet user dns must early internet network services use dns includes world wide web electronic mail remote terminal access file transfer least reasonable think dns capability acquiring retrieving utilizing making available web site addresses therefore part information service cable companies provide similarly internet service provided cable companies facilitates access web pages offering consumers ability store cache popular content local computer servers see declaratory ruling cacheing obviates need end user download anew information web sites time consumer attempts access thereby increasing speed information retrieval words subscribers reach web sites via world wide web browse contents service provider offers acquiring storing retrieving utilizing information universal service report quoting service internet access providers offer members public internet access universal service report transparent ability end user perspective transmit information therefore conclude commission construction reasonable respondent mci urges commission treatment cable modem service inconsistent treatment dsl service see supra describing dsl service therefore arbitrary capricious deviation agency policy see mci points local telephone companies began offer internet access dsl technology addition telephone service commission applied computer ii classification required make telephone lines used transmit dsl service available competing isps nondiscriminatory terms see supra describing computer ii classification providers deployment wireline services offering advanced telecommunications capability fcc rcd hereinafter wireline order classifying dsl service telecommunications service mci claims commission decision regulate cable companies similarly title ii inconsistent dsl policy conclude however commission provided reasoned explanation treating cable modem service differently dsl service already noted see supra commission free within limits reasoned interpretation change course adequately justifies done traditional reason computer ii treatment carriers including dsl carriers commission explained telephone network primary exclusive means information service providers gain access customers declaratory ruling emphasis original internal quotation marks omitted commission applied treatment dsl service based history rather analysis contemporaneous market conditions see wireline order noting dsl carriers continuing obligation offer transmission facilities competing isps nondiscriminatory terms commission order review contrast concluded changed market conditions warrant different treatment cable companies providing internet access unlike time computer ii substitute forms internet transmission exist today esidential access internet evolving multiple electronic platforms including wireline cable terrestrial wireless satellite declaratory ruling see also telecom assn fcc cadc noting commission findings robust competition broadband market commission concluded services exist minimal regulatory environment promotes investment innovation competitive market declaratory ruling commission reasoned warranted treating cable companies unlike providers past find nothing arbitrary commission providing fresh analysis problem applied cable industry never subjected rules adequate rational justification commission conclusions respondents argue effect commission justification exempting cable modem service providers regulation applies similar force dsl providers need address argument commission decision appears first step effort reshape way commission regulates providers may tentatively concluded dsl service provided telephone companies also classified solely information service see appropriate framework broadband access internet wireline facilities fcc rcd commission need immediately apply policy reasoning declaratory ruling types providers apparently decided revisit longstanding computer ii classification providers incrementally inconsistency order review commission treatment dsl service adequately addressed commission fully reconsiders treatment dsl service decides whether pursuant ancillary title jurisdiction require cable companies allow independent isps access facilities see supra page express view matters particular express view commission lawfully may classify dsl service questions commission resolved order review involve subject matter technical complex dynamic gulf power commission far better position address questions nothing communications act administrative procedure act makes unlawful commission use expert policy judgment resolve difficult questions judgment appeals reversed cases remanded proceedings consistent opinion ordered national cable telecommunications association et petitioners brand internet services et al federal communications commission petitioners brand internet services et al writs certiorari appeals ninth circuit june justice stevens concurring join opinion full add caveat concerning part correctly explains appeals interpretation ambiguous provision regulatory statute foreclose contrary reading agency explanation necessarily applicable decision presumably remove ambiguity national cable telecommunications association et petitioners brand internet services et al federal communications commission petitioners brand internet services et al writs certiorari appeals ninth circuit june justice breyer concurring join opinion believe federal communications commission decision falls within scope statutorily delegated authority though perhaps barely write separately believe important point justice scalia view wrongly characterized opinion mead held mead unspecified degree formal process agency required courts accord agency decision deference chevron natural resources defense council post dissenting opinion see also ibid formal process least safe harbor justice scalia correctly characterized way dissent characterized mead opinion said opposite agency action qualifies chevron deference congress explicitly implicitly delegated agency authority fill statutory gap including interpretive gap created ambiguity language statute provisions chevron supra mead supra said mead delegation may shown variety ways agency power engage adjudication rulemaking indication comparable congressional intent emphasis added explicitly stated absence rulemaking decide case sometimes found reasons chevron deference even administrative formality required none afforded repeated recognized variety indicators congress expect chevron deference emphasis added surprising hold existence formal rulemaking proceeding neither necessary sufficient condition according chevron deference agency interpretation statute necessary condition agency might arrive authoritative interpretation congressional enactment ways including ways justice scalia mentions see mead supra sufficient condition congress may intended leave matter particular interpretation agency irrespective procedure agency uses arrive interpretation say unusually basic legal question issue cf general dynamics land systems cline rejecting agency answer question whether age discrimination law forbids discrimination relatively young thus believe justice scalia right emphasizing chevron deference may appropriate absence formal agency proceedings mead give cause concern national cable telecommunications association et petitioners brand internet services et al federal communications commission petitioners brand internet services et al writs certiorari appeals ninth circuit june justice scalia justice souter justice ginsburg join part dissenting federal communications commission fcc commission attempted concoct whole new regime regulation competition guise statutory construction mci telecommunications american telephone telegraph actually cases might accurate say commission attempted establish whole new regime make less competition depending upon whose experts believed important fact however commission chosen achieve implausible reading statute thus exceeded authority given congress first sentence fcc ruling review reads follows cable modem service provides access internet well many applications functions used access cable system facilities inquiry concerning access internet cable facilities fcc rcd hereinafter declaratory ruling emphasis added omitted mean cable companies offer access internet surprisingly commission believed happens service popular precisely access provides connected internet subscribers often use internet applications functions providers cable company nevertheless purposes classifying cable company commission approval puts emphasis rest package additional applications functions claiming cable company offe customers internet access offers access conjunction particular applications functions rather separate ly offering focus term offer appropriately derives statutory definitions issue cases telecommunications act stat involves capacity generate store interact otherwise manipulate information via telecommunications turn defined transmission among points specified user information user choosing without change form content information sent received finally defined offering telecommunications fee directly public regardless facilities used question whether providers offe telecommunications fee directly public subject title ii regulation common carriers like chief competitors provide internet access technologies concludes word offer ambiguous sense dictionary might relevant ante quoting national railroad passenger corporation boston maine seems however analytic problem pertains really meaning offer identity offered relevant question whether individual components package offered still possess sufficient identity described separate objects offer whether changed combination components longer reasonable describe way thus agree adapt example ante odd say car dealer business selling steel carpets cars sells include steel frames carpeting water company sell hydrogen pet store water though dogs cats largely water molecular level sometimes true seems assume always true instances ridiculous deny one part joint offering offered merely offered basis ante example call pizzeria ask whether offer delivery common sense common usage ante prevent answering offer delivery order pizza us bake bring house logical response something order offer delivery may continue deny obvious explain paraphrasing fcc even though bring pizza house actually delivery delivery provide end users parcel service capabilities cf declaratory ruling ante reasonable customer conclude point interlocutor either crazy following legal advice short inputs finished service qualify objects offer term reasonably understood perhaps sufficient surely necessary condition seller offer separately discrete input necessary providing finished service ante pet store may policy selling puppies leashes customer say offer puppies leashed puppy still puppy even though offered basis despite mighty labors prove otherwise ante telecommunications component service retains ample independent identity must regarded offer especially seen perspective consumer end user purports find determinative ante commission ruling began noting service provides access internet applications functions declaratory ruling exactly reasonable consumer perceive consisting two separate things consumer view matter best assessed asking products service substitutes marketplace broadband internet service provided cable companies one three common forms internet service two access broadband digital subscriber line dsl service ante two physical transmission pathway internet sold indeed legally required sold separately internet functionality access physical pathway comes telephone company internet service provider isp provides functionality case internet access end user utilizes two different distinct services one transmission pathway telecommunications service end user purchases telephone company second internet access service enhanced service provided isp th functions provided isp separate transmission pathway data travels pathway regulated telecommunications service enhanced service offered oxman fcc unregulation internet fcc office plans policy working paper july available http visited june available clerk case file acknowledges ante dsl service similar service respect physical connection internet must offered separately internet thus customers shopping dsl service able use internet unless get someone provide physical connection someone provide applications functions web access therefore inevitable customers regard competing service giving computing functionality physical pipe functionality comes computer pizza delivery service nondelivery pizzerias require purchased cab since delivery service provided cable connection customer computer cable company facilities downstream facilities question merely serves conduit information services already assembled cable company capacity isp relevant statutory distinction information service telecommunications former involves capability getting processing manipulating information latter contrast involves change form content information sent received information enters cable delivery subscriber information service already complete information statute requires generated acquired stored transformed processed retrieved utilized made available remains information final unaltered form delivered via telecommunications subscriber reveals insubstantiality fear invoked commission fear happen isps provide physical pathway internet access yet still use telecommunications acquire pieces necessary assemble information pass back customers according reductio ante providers deemed provide telecommunications service must isps use telecommunications providing internet functionality connecting parts internet including internet backbone providers example terms pizzeria analogy equivalent saying pizzeria offers delivery restaurants offer delivery ingredients food serve customers come places matter customers get food whether eating restaurant coming pick still consume product delivery necessary input nonsense concluding delivery finished pizza constitutes offer delivery require conclusion serving prepared food includes offer delivery analogy even point justice since defined offering telecommunications fee directly public emphasis added isps use telecommunications processing information offered directly public regulatory history depends much ante provides another reason regulation isps worry computer inquiry rules foreshadowed definitions information telecommunications services ante commission forbore regulating common carriers networks providers leased basic services common carriers bundled enhanced services said unlike providers deemed provide enhanced services ante result achieved today commission statutory authority forbear imposing title ii regulations fact statutory criteria forbearance include reasonable necessary protection consumers consistent public interest correspond well kinds policy reasons commission invoked justify peculiar construction telecommunications service exclude service also puts great stock conclusion subscribers avoid using information services provided cable company isp capacity even isps ante even subscriber uses another isp designates page provided cable company home page takes advantage none standard applications functions provided cable company still using cable company domain name system dns server goes popular web pages perhaps versions stored cable company cache argument suffers least two problems first context telephone services recognizes de minimis exception contamination telecommunications service information service ante similar exception seem apply functions question dns particular scarcely routing information expressly excluded definition information service second apparently possible sell telecommunications service separately although conjunction services precisely happens dsl context commission contest done context cable impediment appears commission failure require cable companies unbundling required providers computer inquiry finally must note notwithstanding commission paean deregulatory largesse brief federal petitioners concluded declaratory ruling asking paraphrases whether title jurisdiction commission require cable companies offer isps access facilities terms ante see also reply brief federal petitioners tr oral arg words commission hath given commission may well take away unless wonderful illustration experienced agency assistance credulous courts turn statutory constraints bureaucratic discretions main source commission regulatory authority common carriers title ii commission rendered inapplicable instance concluding definition telecommunications service ambiguous current view apply service contemplates however altering unnecessary outcome changing law construction title ii definitions reserving right change facts undefined sparingly used ancillary powers commission might conclude order cable companies unbundle telecommunications component presto title ii apply finally offering telecommunications service course commission still statutory power forbear regulating already tentatively concluded declaratory ruling reasoning mocks principle statute constrains agency meaningful way said done regulatory cant translated smoke agency expertise blown away remains perfectly clear someone sells service offering telecommunications simple reason set forth statute affirm appeals ii part opinion continues improvisation project began four years ago mead extent set forth comprehensible mead drastically limited categories agency action qualify deference chevron natural resources defense council example position taken agency full approval agency head qualify rather unspecified degree formal process required least safe harbor see mead supra scalia dissenting meant many issues appropriate agency determination reach courts without benefit agency position entitled chevron deference requiring courts rule issues de pointed dissent turn meant law understood today many statutory ambiguities might resolved varying fashions successive agency administrations resolved finally conclusively forever federal judges producing ossification large portions statutory law today moves solve problem creation inventing yet another breathtaking novelty judicial decisions subject reversal executive officers imagine following sequence events fcc action challenged ultra vires governing statute litigation reaches way solicitor general sets forth fcc official position approved commission regarding interpretation statute applying mead however denies agency position chevron deference finds best interpretation statute contradicts agency position holds challenged agency action unlawful agency promptly conducts rulemaking adopts rule comports earlier position effect disagreeing concerning best interpretation statute according today opinion agency thereupon free take action found unlawful bizarre probably unconstitutional held chicago southern air lines waterman article iii courts sit render decisions reversed ignored executive officers case appeals determined jurisdiction review order civil aeronautics board awarding overseas air route statute orders subject presidential approval order question fact approved president order avoid conflict president powers appeals concluded review board action regulatory agent congress results review remain subject approval disapproval president noted mead dissent bristled suggestion judgments within powers vested courts judiciary article constitution may lawfully revised overturned refused faith credit another department government waterman supra today decision effectively allows even agency party case construes statute agency able disregard construction seek chevron deference contrary construction next time course like mead today novelty belated remediation mead creates many uncertainties bedevil lower courts interpretation conclusive says holds interpretation permissible reading statute merely holds best reading ante mean future cases involving statutes courts must specify presumably dictum two holding many cases decided past dictum requirement established apparently silence point means decision subject agency reversal judicial construction statute whether contained precedent may trump agency must hold statute unambiguously requires construction ibid made far know made calculation many hundreds past statutory decisions failure include unambiguous finding suspect number large much extra work entail confronted statute determine whether reached right best result permissible result standard unambiguous new rule standard unambiguous step one chevron course every case reaches step two chevron unambiguous dictum produce stare decisis effect even affirming rather reversing agency action future agency must adhere affirmed interpretation victorious agency right appeal appeals judgment favor ground text question fact appeals held unambiguous agency able change view future indeed wonderful new world creates one full promise professors need tenure articles course adhere rule past interprets statute without chevron deference agency views interpretation whether asserted rest upon unambiguous text law might add great mystery relevant whatever stare decisis effect portland ninth circuit surely govern decision despite peculiar suggestion contrary ante ninth circuit already obliged abandon portland holding face decision commission construction telecommunications service entitled deference reasonable sadness go far way make bad law respectfully dissent footnotes together federal communications commission et al brand internet services et also certiorari footnotes ip addresses identify computers internet enabling data packets transmitted computers reach see universal service report huber dissent attempts escape consequence respondents position way elaborate analogy isps pizzerias post opinion scalia analogy flawed pizzeria delivers nothing isps plainly provide transmission service directly public connection internet service example service isps process electronic signal travels local telephone wires transmit internet see supra huber dissent therefore deny position logically require applying presumptively mandatory title ii regulation isps dissent claims access dns count use capabilities internet service dns scarcely routing information expressly excluded definition service post opinion scalia definition information service exclude routing information instead excludes use capability management control operation telecommunications system management telecommunications service dissent argument therefore begs question assumes internet service telecommunications system service dns manages point contrary dissent assertion post need take view purposes response respondents vigorously argue commission purported inconsistent treatment reason holding commission construction impermissible chevron natural resources defense council inconsistency bears whether commission given reasoned explanation current position whether interpretation consistent statute footnotes myth pizzeria offer delivery becomes even difficult maintain pizzeria advertises quick delivery one advantages competitors course case cable broadband see also joint board universal service fcc rcd end users obtain telecommunications service local exchange carriers use information services provided internet service provider web site operators order access web dsl context physical connection generally resold consumer isp taken advantage telephone company offer consumer knows well however physical connection necessary component internet access context provided isp contends analogy inapposite one need pizza delivered ante whereas one must purchase cable connection order use cable isp functions isp functions provided cable company used without cable delivery accessing internet connection cable merger physical connection internet functions cable offerings nothing intertwined ante nature two like car carpet artificial product cable company marketing decision offer two separately commission declaratory ruling review exempt status commission says forbearance explain networks regulated providers given power forbear reply brief federal petitioners true commission ruled networks statute explicitly provide forbearance provided categories basic enhanced services computer inquiry rules established forbearance applied circuit however long since recognized commission discretionary power forbear title ii regulation computer communications industry assn fcc commission also says computer inquiry rules apply cable developed context telephone lines brief federal petitioners see also ante extent statute imported computer inquiry approach basis applying differently cable telephone lines since definition telecommunications service applies regardless facilities used says invoking explicit exception definition information services applies management control operation telecommunications system management telecommunications service begs question whether service includes telecommunications service ante think cite exception demonstrate incidental functions prevent cable including telecommunications service otherwise qualifies rather begs question saying exception apply cable telecommunications service commission assumption providers providing telecommunications services reason doubt whether use title powers impose requirements since specifically provides telecommunications carrier shall treated common carrier chapter extent engaged providing telecommunications services emphasis added chapter includes titles ii description confusion mead produced circuit alone see vermeule mead trenches geo rev concluding inadvertently sent lower courts stumbling land justice breyer attempts clarify mead repeating formulations sometimes found reasons give chevron deference variety ways variety indicators ante concurring opinion internal quotation marks emphasis omitted also notes deference sometimes inappropriate reasons unrelated agency process surprising thought decision defer agency general dynamics land systems cline depended conclusion serious question purely textual ambiguity statute justice breyer seemingly attributes decision exception chevron deference one unusually basic legal question ante today thankfully follow approach bases decision sees statutory ambiguity ante without asking whether classification service unusually basic legal question true even broad basis deference propose agency position plainly approval agency head see mead scalia dissenting interpretive matters decided de novo without deference agency views rare occurrence however level least respect matters significance agency seeking achieve agency control ambiguous provisions complicated method proposes worth incremental benefit unanimous holding neal plainly rejected notion form deference cause revisit prior holding determined statute meaning adhere ruling doctrine stare decisis assess agency later interpretation statute settled law attempts reinterpret plain language dissecting cases neal cited noting referred previous determinations statute clear meaning lechmere nlrb quoting maislin industries primary steel cases reveal today focus term clear revisionist oldest case chain using word maislin industries rely prior decision held statute clear statutory interpretation contained decision maislin industries referred prior determination statute clear meaning referring fact prior decision made statute clear conducting retrospective inquiry whether prior decision declared statute clear terms contends reversal judicial holdings involved opinion best reading ambiguous statute authoritative ante fails appreciate difference de novo construction statute decision whether defer agency position even purport give statute judicial interpretation mead supra scalia dissenting decided upon de novo construction statute longer different construction consistent holding ante available adoption agency suggestive chaotic undermining prior judicial decisions explicitly renounce ambiguity explanation agency departure prior judicial decision amount overruling agency may consistent holding choose different construction since agency remains authoritative interpreter within limits reason ambiguous statutes charged administering ante may already way hinted agency construction unworthy chevron deference may able trump one holdings edelman lynchburg college found need resolve question deference equal employment opportunity commission rule position adopt even interpreting statute scratch nevertheless refused say whether agency position one permissible quotation marks omitted justice appropriately doubt ed possible reserve question whether regulation entitled chevron deference simultaneously maintaining agency free change interpretation future opinion concurring judgment response cryptically said deference deference chevron