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Terminating Switched Access Costs Vary by a Factor of 12 in Some States!

Posted by George David

Jan 15, 2018 10:00:00 AM

That’s right, just when you thought the FCC’s terminating switched access reforms to a bill-and -keep regime would make your life simpler, it turns out things are much more complex – and error prone – than ever. For example, in one New York state Local Access and Transport Area (LATA) terminating switched access cost per minute (CPM) can range from $0.00070000 to $0.00883148, that’s over twelve times higher! We’ll share the gory details later in the blog, but first some background.

The July 1, 2017 access filings added a brand-new twist to terminating access rate management, the notion of “affiliation”. Simply put, if the access tandem (AT) and the terminating end office (EO) are owned by the same incumbent local exchange carrier (ILEC) , i.e. affiliated and are price cap regulated - one set of rate elements apply; if the access tandem and the terminating end office are owned by two different ILECs, i.e. non-affiliated, another set of rate element apply.

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Topics: CCMI, FCC, switched access, LATA, CPM, ILECs, rate and tariff data, telecom rate research tools, access charges, NetExpress, Net Express, terminating switched access

Update on FCC Order to Reform Intercarrier Compensation Rates

Posted by George David

Mar 25, 2013 3:05:00 PM

Oral arguments in the court case challenging the FCC’s Report and Order (FCC Docket 10-90) reforming the intercarrier compensation system are scheduled for November 19, 2013, at the Denver Circuit Court. There are two major points of contention. First, does the FCC have the right to usurp the individual states rate-making authority? And second, does the Commission have the legal authority to create the Connect America Fund with dollars from the proposed Fund going to broadband providers despite the fact that broadband is not one of the USF mandated services under Section 254 of the 1996 Telecom Act? And while predicting the outcome, is at this point, a fool’s errand, some industry insiders believe hearing the case in Denver – rather than at the D.C. Circuit, which traditionally rules on communication policy – may tilt the deck slightly in favor of the FCC’s position.

The November date pretty much guarantees that they’ll be no decision until well into 2014. And with an appeal to the Supreme Court almost inevitable, it is unlikely they’ll be final legal resolution until 2016 or 2017!

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Topics: carrier access rates, rate and tariff data, FCC, regulatory updates, intercarrier compensation

Doubling Down on Universal Service Fund (USF)

Posted by George David

Feb 2, 2013 12:07:00 PM

Every once in a while, it pays to dismiss – or at least discount – policy arguments and look at the cold, hard facts. So, while the FCC’s interminable deliberations on Universal Service Fund (USF) reform continue consider this: in just under 10 years, the USF contribution rate has doubled. That’s right, doubled.

In the fourth quarter of 2003, the USF contribution rate was 8.7% – a number that at the time seemed extraordinarily high.  In the fourth quarter of 2012, the USF contribution rate hit 17.4% – a 100% increase from 2003!

Click the image to view a larger version.
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Topics: FCC, USF, Universal Service Fund

Timeline of FCC Order to Reform Intercarrier Compensation Rates

Posted by George David

Feb 3, 2012 10:45:00 AM

The FCC’s Order in FCC Docket 10-90 starts a phased – and fundamental – reform of the intercarrier compensation system which has been in place since 1982 and which defined how, and how much, telecom carriers paid for the use of each other’s networks.

Here are the key pieces you need to know about the Order:

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Topics: carrier access rates, CLECs, TelView, rate and tariff data, FCC, regulatory updates, LECs, intercarrier compensation, CABSdb Pro