USTelecom, NCTA Disagree on Tw Telecom VoIP Petition
Verizon and Google disagreed sharply on whether the FCC should give tw telecom the declaratory ruling it asked for. Tw seeks a ruling that VoIP is a telecom service under Title II, giving the company the right “to establish direct IP-to-IP interconnections.” Google, as well as NCTA and a number of cable operators, supported the company’s arguments. Verizon and USTelecom said any such ruling would be premature.
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Tw telecom sought a “two-part clarification” from the commission (CD July 1 p5). The company asked the FCC to find that its VoIP offerings are “telecommunications as well as telephone exchange services and/or exchange access, and accordingly, TWTC has the right under Section 251(c)(2) of the Act to establish direct IP-to-IP interconnection with incumbent LECs for the transition and routing of TWTC’s facilities-based VoIP services.” Tw telecom also asked the FCC to clarify that the same section gives the company rights to direct IP-to-IP interconnection with incumbent LECs.
"The FCC already has noted the many benefits of transitioning to all IP networks in the National Broadband Plan and as part of its ongoing proposals to reform universal service and intercarrier compensation,” Google said (http://xrl.us/bk9yt9). “Facilitating IP interconnection is a necessary part of this process.” Google said, “There is no question that IP transmission is more efficient, scalable and flexible than TDM-based telephone service, which is why the FCC has established the deployment of all-IP networks as a national priority."
The agency should reject tw telecom’s petition and “allow commercial agreements to govern such interconnection, as they do on the Internet itself in the absence of any regulation,” Verizon and Verizon Wireless said (http://xrl.us/bk9ys8). “Over time, as technologies and networks continue to evolve, the industry as a whole is likely to transition to IP-to-IP interconnection as networks are rebuilt and upgraded to accommodate such interconnection.” Verizon suggested agreeing with tw telecom would work against the goals of the broadband plan: “Any regulatory mandate requiring carriers to divert funds prematurely to establish brand new interconnection arrangements for IP voice traffic would reduce the funds available to deploy broadband more widely."
USTelecom called the petition “unquestionably premature,” since it raises issues that have never been resolved by the commission (http://xrl.us/bk9yxv). The association also warned of a potential negative effect on broadband deployment. “Granting TWTC’s petition would be contrary to public policy as it would simply serve to undermine efforts to deploy broadband networks in rural, high-cost areas of the country,” the group said. “ILECs, rather than TWTC, are the companies delivering broadband to these communities and the Commission should not adopt rules that discourage these efforts."
The Voice on the Net Coalition said action on the petition would be premature. “Classification of all ‘fixed VoIP’ services based solely on tw telecom’s service delivery model would result in significant regulatory overreach, potentially affecting IP communications in an entirely different market segment,” VON said (http://xrl.us/bk9y7g). “Many of the issues related to refusals to interconnect have more to do with a broken intercarrier compensation system that rewards terminating carriers with above cost access charges when the transport provider converts the traffic from IP to TDM for traffic exchange. Economically rational carrier compensation reforms should reduce incentives for terminating carriers to refuse IP to IP interconnection."
NCTA supports tw telecom (http://xrl.us/bk9y8m). “Regulation of network interconnection among telecommunications carriers has been a critical foundation for the development of voice competition,” NCTA said. “To ensure that this competition continues as voice traffic transitions from TDM to IP format, the Commission should clearly affirm that incumbent LECs have a duty to provide direct IP-to-IP interconnection to telecommunications carriers for the purpose of exchanging voice traffic.”
"If the Commission does not grant TWTC’s petition, it will hobble its ability to carry out one of its basic statutory directives: to make available ‘a rapid, efficient, Nation-wide and world-wide wire and radio communication service with adequate facilities at reasonable charges,'” Public Knowledge said (http://xrl.us/bk9zcd). “Unless it asserts its authority over all telecommunications carriers, the Commission will not be able to adequately handle interconnection disputes, ensure call quality, promote public safety, and otherwise ensure that Americans have access to essential communications facilities.”