The Illinois Commerce Commission gave Level 3 Communications unti...
The Illinois Commerce Commission gave Level 3 Communications until May 9 to explain to the ICC staff why it hasn’t obeyed a 2007 order barring it from billing Neutral Tandem reciprocal compensation or any similar fee on intrastate traffic…
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from third-parties that crossed Neutral Tandem’s network. The June order resolved a billing dispute between the companies over whether reciprocal compensation applied to transiting traffic. Level 3 had threatened to disconnect Neutral Tandem if reciprocal compensation wasn’t paid. The ICC said Neutral Tandem didn’t owe compensation on transiting traffic, ordered the companies to maintain their interconnection and barred Level 3 from billing reciprocal compensation charges or any similar fee on intrastate traffic not originated by Neutral Tandem. Level 3 appealed the ICC order to federal and state courts, where the matter is pending. The courts didn’t stay the ICC order. The ICC staff last month said Neutral Tandem complained that Level 3 still is billing its transiting traffic a fee similar to reciprocal compensation (Case 08-0621). The staff said Level 3 is billing a fee called “transport compensation” on transiting traffic and recommended that Level 3 be required to explain its actions, since they appear to violate the 2007 order. The ICC agreed and set the May 9 deadline for a Level 3 response. The ICC made clear that if Level 3 ignores this order to explain its conduct, or fails to give complete and specific answers to the staff’s questions, there will be penalties. Under ICC rules, Level 3 could be fined up to $1,000 a day if it fails to respond and other sanctions are possible.