The FCC clarified some of the rules on intercarrier compensation...
The FCC clarified some of the rules on intercarrier compensation for VoIP traffic, saying late Wednesday that intrastate toll calls that start on the public switched telephone network and terminate on the Internet -- or vice versa -- can be…
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charged intrastate originating access rates. The decision grants in part a request by Frontier, Windstream, and some rural associations to reconsider the VoIP intercarrier compensation rules adopted in the USF/ICC order (http://xrl.us/bm5adq). The targeted modification is “transitional and temporary and does not alter the overall, uniform, national framework for comprehensive intercarrier compensation reform,” the commission said. The request in a December petition for reconsideration by Frontier and Windstream set off a chain of ex parte meetings, letters, and comments, as LECs and interexchange carriers argued about whether the USF/ICC order really was intended to move industry away from the ICC regime that many carriers relied upon for revenue (CD Feb 14 p13). “We permit LECs to tariff default charges equal to intrastate originating access for originating intrastate toll VoIP traffic (including traffic that originates in IP, terminates in IP, or both) at intrastate rates until June 30, 2014,” the commission said Wednesday. But the commission’s ultimate goal is to promote migration to IP services, and “a measured transition with a time limit on the use of intrastate access charges as a default for that time period is necessary to ensure that migration to IP services is adequately promoted,” the order said. “The FCC’s reconsideration order puts the right glide path and incentives in place for stronger competition in the business broadband market,” said Bill Weber, senior vice president-general counsel for Cbeyond. Chris Murray, Senior Vice President-Public Policy at EarthLink, said the order provided “a more rational path for competitors to transition to the FCC’s new intercarrier compensation regime.” Christopher King and David Kaut of Stifel Nicolaus characterized the ruling as “a victory for Frontier/Windstream,” cable and CLECs.