RAM Broadcasting of Indiana, Inc. v. Digital Paging Systems of Indiana, Inc.

Citation464 N.E.2d 336
Decision Date26 April 1984
Docket NumberNo. 2-782A207,2-782A207
PartiesRAM BROADCASTING OF INDIANA, INC., Respondent-Appellant, v. DIGITAL PAGING SYSTEMS OF INDIANA, INC., Petitioner-Appellee, and Indiana Bell Telephone Company, Incorporated, United Telephone Company of Indiana, Incorporated, General Telephone Company of Indiana, Incorporated, Home Telephone Company, Inc., Monrovia Telephone Corporation, Home Telephone Company of Pittsboro, Inc., Communications Corporation of Indiana, Inc., T.A.S.I., Inc., Radiotelephone Company of Indiana, Inc., Hancock Rural Telephone Corp., Hendricks Telephone Corp., Monrovia Telephone Corporation, Clay County Rural Telephone Corporation, Smithville Telephone Company, Incorporated, Thorntown Telephone Company, Respondents-Appellees.
CourtCourt of Appeals of Indiana

Jerry Williams, Nancy E. Wever, Williams & Shoup, Indianapolis, for respondent-appellant.

James L. Petersen, James A. Shanahan, Robert B. Clemens, Ice, Miller, Donadio & Ryan, Indianapolis, for petitioner-appellee.

RATLIFF, Judge.

STATEMENT OF THE CASE

RAM Broadcasting of Indiana, Inc. (RAM), appeals from the decision of the Public Service Commission of Indiana (Commission) granting Digital Paging Systems of Indiana, Inc. (Digital), a Certificate of Territorial Authority to operate a radio paging system in a seven county area surrounding Marion County, Indiana. 1

We affirm.

FACTS

Throughout 1980, various petitions were filed with the Commission by Radiotelephone Company of Indiana, Inc. (RTI), T.A.S.I., Inc. (T.A.S.I.), RAM, and Digital wherein each sought Certificates of Territorial Authority to operate radio paging and/or mobile telephone services to the public in the seven county area surrounding Indianapolis. At the time, RTI, T.A.S.I., and RAM already possessed certificates which enabled them to conduct their operations in Marion County. 2

Following a prehearing conference and a consolidation of the numerous petitions, the Commission conducted the required hearings, and on October 1, 1981, rendered its decision. Therein, it made the following determinations:

1. RTI was certified to operate both radio paging and mobile telephone systems in all seven counties.

2. RAM was certified to operate a radio paging service in all seven counties and a mobile telephone service in Hamilton, Hancock, and Hendricks counties.

3. T.A.S.I. was certified to operate a radio paging service in all seven counties as well as a mobile telephone service.

4. Digital was certified to operate a radio paging service in all seven counties.

RAM alone now complains the Commission erred in granting a certificate to Digital.

While there are numerous other facts relevant to the resolution of the instant case, they can be more meaningfully stated in our discussion of the issues.

ISSUES

We have rephrased and restated the issues raised by RAM as follows:

1. Are the findings of basic fact sufficient to support the Commission's ultimate findings regarding:

a. the public convenience and necessity for the granting of certificates to four RCCs 3 to service the seven county area;

b. Digital's financial, technical, and managerial ability to provide radio paging services in the seven county area; and

c. Digital's proposed rates for their services as being fair, reasonable, just, and nondiscriminatory?

2. Is there substantial evidence to support the Commission's findings of basic fact concerning:

a. the number of potential customers in the seven county area; and

b. the finite number of customers each RCC could serve?

3. Did the Commission err in failing to make findings regarding:

a. the differences in the public need and potential market for radio paging services in the seven counties;

b. the distinctions between the systems each RCC offered; and

c. its determination that a failure to grant Digital a certificate would result in an unfair competitive advantage to the other RCCs?

4. Did the Commission err in refusing to take administrative notice of RAM's motion for an involuntary dismissal of Digital's petition for a certificate in an unrelated proceeding?

5. Was the Commission's finding regarding Digital's proposed rates irrelevant?

6. Did the Commission err in failing to articulate the meaning it ascribed to "public convenience and necessity"?

7. Did the Commission err in utilizing a subjective test of the market potential for radio paging services in the seven counties?

8. Was the Commission's adoption and application of the theory of regulated competition instead of regulated monopoly contrary to law?

9. Was the distinction drawn by the Commission between RCCs and landline telephone companies unsupported by Indiana law?

DISCUSSION AND DECISION
Issue One

RAM first challenges the sufficiency of the Commission's findings of basic fact relative to three of its ultimate findings. The three ultimate conclusions are: that public convenience and necessity required the granting of certificates to each of the four RCCs; that Digital possessed the financial, technical, and managerial ability to provide radio paging services in the seven county area; and that Digital's proposed rates were fair, reasonable, just, and nondiscriminatory. Because there were insufficient findings of basic fact supportive of these conclusions, RAM argues the Commission's order must be reversed and Digital's certificate revoked.

While this court is reluctant to disturb administrative findings, Office of the Public Counselor v. Indianapolis Power and Light Co., (1980) Ind.App., 413 N.E.2d 672, 675, we have held that PSC decisions must contain "specific findings on all factual determinations material to its ultimate conclusions." City of Evansville v. Southern Indiana Gas and Electric Co., (1975) 167 Ind.App. 472, 483, 339 N.E.2d 562, 571. See also Citizens Action Coalition of Indiana, Inc. v. Public Service Company of Indiana, (1983) Ind.App., 450 N.E.2d 98, 101-02; Citizens Energy Coalition, Inc. v. Indiana & Michigan Electric Co., (1979) Ind.App., 396 N.E.2d 441, 447, trans. denied (1980); L.S. Ayres & Co. v. Indianapolis Power & Light Co., (1976) 169 Ind.App. 652, 661, 351 N.E.2d 814, 822, trans. denied (1977). In other words, there must be sufficient findings of basic fact to support the ultimate conclusions of the Commission. Indiana Bell Telephone Co., Inc. v. T.A.S.I., Inc., (1982) Ind.App., 433 N.E.2d 1195, 1200, trans. denied.

We next examine the record to ascertain whether there is substantial evidence to support the basic findings of fact, and in turn, whether the ultimate conclusions can be reasonably inferred from those findings. Citizens Energy Coalition, 396 N.E.2d at 447; City of Evansville, 167 Ind.App. at 484, 339 N.E.2d at 571. Provided an affirmative determination is made, the decision will be affirmed.

RAM first challenges the following ultimate conclusion of the Commission:

"The Commission now finds that the evidence presented herein establishes that a public need for mobile radio telephone and paging service exists in Boone, Hamilton, Hancock, Hendricks, Johnson, Morgan, and Shelby Counties, Indiana, and the public convenience and necessity requires the issuance of Certificates of Territorial Authority to provide such service in said counties."

Record at 930. In RAM's view, this conclusion is unsupported by any findings of basic fact. RAM, however, has ignored the following findings also made by the Commission:

"In determining what public convenience and necessity require, the Commission must consider all evidence and factors pertaining to the public's need for the service. Accordingly, we turn to the evidence presented herein.

8. That each of the applicants submitted the results of surveys conducted by them in regard to the need for the proposed service in Boone, Hancock, Hendricks, Johnson, Morgan, and Shelby Counties, Indiana. Said surveys established a positive response in each of said counties as to a need for the proposed services. The applicants also presented their projections for each of said counties.

9. The evidence also established that the applicants herein propose different types of systems to provide mobile radio telephone and paging service to the public, said systems varying in the type of equipment used and the frequency upon which service would be rendered.

In addition, evidence was presented for each county pertaining to the following population data, business establishments data, and commuting patterns data."

Record at 929-30.

In view of these findings, we cannot say the Commission erred in reaching the ultimate conclusion that public convenience and necessity required the granting of certificates to four RCCs. As we noted in V.I.P. Limousine Service, Inc. v. Herider-Sinders, Inc., (1976) 171 Ind.App. 109, 355 N.E.2d 441, the concept of public necessity is not "susceptible to rigid or precise definition." Id. at 116, 355 N.E.2d at 445. Rather, we held, "[b]ecause the public's needs and demands are gauged by many variables, specific evidentiary factors necessary to establish 'public convenience and necessity' may not, therefore, be categorized or fixed." Id. at 115, 355 N.E.2d at 445. Moreover, "[t]he degree of specificity" required of findings to facilitate intelligent review by this court, "will necessarily vary from case to case depending upon the quantity and complexity of the evidence introduced." Indiana Bell, 433 N.E.2d at 1200. See also Charles W. Cole & Son, Inc. v. Indiana & Michigan Electric Co., (1981) Ind.App., 426 N.E.2d 1349, 1353.

In the instant case, the quantity and complexity of the evidence introduced regarding the issue of public convenience and necessity was, to say the least, significant. 4 Nevertheless, we do not believe detailed findings as to each and every fact bearing upon the issue must be made in order to support an ultimate conclusion that public convenience and necessity warranted the granting of a certificate. Thus, while the...

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