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
Nov 3, 2017 10:00:00 AM
It's been six long years since the FCC took the first steps to fix the hopelessly muddled inter-carrier compensation system when it began reducing most terminating switched access charges to bill-and-keep. However, concerned about lost access revenues for rural ILECs, the Commission left originating access charges untouched and only mandated reductions in tandem-switched transport when the terminating price cap carrier owned the tandem in that serving area. Moreover, for rate-of-return ILECs, these charges were capped at interstate levels and not reduced any further.