Feb 16, 2018 10:06:22 AM
Even with inter-carrier compensation reform, some bad actors continue to abuse the remaining price differences in switched access charges to enrich themselves. These arbitrage opportunities exist because rural ILECs were not required to reduce terminating tandem-switched transport to bill-and-keep maintaining their access revenues and originating switched access charges were never reformed at all by the FCC.
On the terminating side, some LECs continue to contract out with enterprises that generate large numbers of terminating calls and split the excess access revenues. Next week, we will discuss this issue of access stimulation (or traffic pumping) and review a current case where the FCC will determine whether IXCs must utilize the tariffs of LECs engaged in such a practice.
Topics: CLECs, FCC, ILECs, service providers, bill-and-keep, wireless, inter-carrier compensation, terminating traffic, direct connections, wireless carriers, small providers, Inteliquent, wholesale traffic, AT&T, 8yy, clec, terminating access charges, 8yy query charges
Jan 26, 2018 10:00:00 AM
A couple of weeks ago, we became aware of a brewing industry dispute between a diverse group of small service providers and the major national wireless carriers. The small carriers claim that wireless companies are refusing to directly connect with them to terminate traffic or at least certain types of terminating traffic such as wholesale. Instead, wireless carriers are forcing this traffic to be routed through an intermediate carrier partner or affiliate, and as a result, the originating providers can no longer can terminate traffic to these wireless carriers on a bill-and-keep basis.
The small carriers believe that by forcing carriers to send terminating traffic through the wireless company’s intermediate carrier partner they are engaging in an arbitrage scheme. These intermediate carriers assess terminating minute of use access charges and share these revenues, either directly or indirectly, with their wireless partner.
May 12, 2017 10:00:00 AM
The 2017 Annual Access Filings are a month away as part of the movement of terminating access rates to bill-and-keep, price cap ILECs (and mirroring CLECs) are required to reduce their tandem-switched transport rates to $0.0007 as the final interim step before reducing them to $0.00 in 2018. Now, however, that expected reduction is in some doubt.
Jan 20, 2017 10:00:00 AM
Will 2017 be the end of switched access charges? Despite the FCC’s decision in 2011 to reform inter-carrier compensation charges including interstate and intrastate access and reciprocal compensation charges by transitioning to a bill-and-keep structure, the industry debate over these charges continues into the new year and new administration.
For those unfamiliar with the term, a bill-and-keep regulatory system requires carriers to recover their costs of originating and terminating local and long-distance calls from their own customers rather than from charges assessed on other carriers.