Cite as: 535 U. S. 467 (2002)
Opinion of the Court
wood II, and Robert B. McKennna for Qwest Communications International, Inc.†
Justice Souter delivered the opinion of the Court.*
These cases arise under the Telecommunications Act of 1996. Each is about the power of the Federal Communications Commission to regulate a relationship between monopolistic companies providing local telephone service and companies entering local markets to compete with the incumbents. Under the Act, the new entrants are entitled, among other things, to lease elements of the local telephone networks from the incumbent monopolists. The issues are whether the FCC is authorized (1) to require state utility commissions to set the rates charged by the incumbents for leased elements on a forward-looking basis untied to the incumbents' investment, and (2) to require incumbents to combine such elements at the entrants' request when they lease them to the entrants. We uphold the FCC's assumption and exercise of authority on both issues.
I
The 1982 consent decree settling the Government's antitrust suit against the American Telephone and Telegraph Company (AT&T) divested AT&T of its local-exchange carriers, leaving AT&T as a long-distance and equipment company, and limiting the divested carriers to the provision of local telephone service. United States v. American Telephone & Telegraph Co., 552 F. Supp. 131 (DC 1982), aff'd sub nom. Maryland v. United States, 460 U. S. 1001 (1983). The decree did nothing, however, to increase competition in the persistently monopolistic local markets, which were thought
†Harisha J. Bastiampillai and Morton J. Posner filed a brief for Allegiance Telecom, Inc., et al. as amici curiae urging affirmance in No. 00-511.
*Justice Scalia joins Part III of this opinion. Justice Thomas joins Parts III and IV.
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