Cost-Based Intercarrier Compensation Coalition Announces Proposal.Business Editors/High-Tech Writers Association for Local Telecommunications Services Conference WASHINGTON--(BUSINESS WIRE)--May 11, 2004 At today's Association for Local Telecommunications Services Conference, the Cost-Based Intercarrier Compensation Coalition ("CBICC CBICC Cost-Based Intercarrier Compensation Coalition ") announced its proposal for a Unified Intercarrier Compensation System for the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. to consider in its intercarrier compensation docket. John Sumpter, vice president-regulatory for Pac-West Telecomm, stated, "this proposal eliminates the opportunity for arbitrage of the compensation rules, simplifies the intercarrier compensation rules and avoids future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ." Sumpter further noted, "the CBICC proposal calls for a unified cost-based approach for the origination and termination of circuit-switched traffic exchanged between licensed common carriers with a minimal increase in the Subscriber Line Charge." Wanda Montano, vice president, regulatory and industry affairs for US LEC (1) (LAN Emulation Client) A software driver that provides LAN emulation (LANE) in an ATM network. It resides in an ATM end station or in a computer system that provides the LAN to ATM conversion, often known as a LAN access device. See LANE. Corp., noted, "the CBICC proposal largely retains the 'sent paid' model of current intercarrier compensation systems in which the carrier that has a retail relationship with the customer originating a telephone call pays all other carriers whose networks are used to complete the call." The CBICC proposal calls for all traffic to transition to a single cost-based rate set by state commissions. At the end of all transition periods, the terminating compensation rate for all traffic--including local, interstate and intrastate--will be the blended TELRIC (Total Element Long Run Incremental Cost) A calculation method that the FCC requires ILECs to use to charge CLECs for interconnection and colocation. It provides a price ceiling for such services. See ILEC and CLEC. rate for tandem switching (e.g., tandem switching, end office switching, and interoffice transport) set by the applicable state commission for each ILEC (Incumbent Local Exchange Carrier) A traditional local telephone company such as one of the Regional Bell companies (RBOCs). Contrast with CLEC. See ELEC and TELRIC. in a serving area ("baseline rate"). The proposal applies to circuit switched traffic, regardless of whether the traffic is ISP-bound, VOIP (Voice Over IP) A digital telephone service that uses the public Internet as well as private backbones instead of the traditional telephone network. Many companies, including Vonage, 8x8 and AT&T (CallVantage), typically offer calling within the country for a , or CMRS (Commercial Mobile Radio Service) An organization that provides cellular, PCS, mobile radio, paging and other wireless services. A good source of information can be found at http://wireless.fcc.gov/cmrsreports.html. traffic. Interstate access rates will transition to the baseline rate. The rebalancing of rates to actual cost will be accomplished through a capped increase in the SLC, with USF funds to recover any remaining shortfall. Intrastate access rates will transition to the baseline rate on a separate schedule. If not already set at the baseline rate, reciprocal compensation traffic and ISP-bound traffic will move immediately to the baseline rate. Carriers may mutually agree to other arrangements. For interconnection arrangements, the option of a single POI per LATA is retained. The Cost-Based Intercarrier Compensation Coalition is an industry group organized by Competitive Local Exchange Carriers to develop economically efficient intercarrier compensation rules. |
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