From: [EMAIL PROTECTED]

On Mon, 25 Apr 2005, Matthew Simpson wrote:

I was waiting for you or Alex to chime in with that.  If you're not
buying from an IXC like Qwest or Global crossing you can get rates at
0.005 and below for all tiers, including NECA.  The interconnect cost is
0.003 or less, so selling at 0.005 or 0.0075 would be profitable.
Uh how's that? Whoever you buy from has to pay NECA access tariff.

That's true... if you connect to the access tandem. ;)


You can go out and buy foreign<-->US settlement traffic for 0.006
through 0.015 blended that includes NECA all day long.
Yeah, but that's borderline illegal ;)

How so? Major carriers sell settlement traffic all day long. We run a private peering that has some major international telcos trading traffic with all peers, and settlement traffic is a hot item right now.


See lawsuits thrown around between SBC/Verizon and ATT/MCI.

You're talking about the "Starts as TDM -- IP transport -- ends as TDM" lawsuits, right? That was found to be illegal. And I'm not advocating that. That was a poor excuse for a loophole that was tried for a while, but none of the arbitrage players of today are setting themselves up that way.



I know it can suck to be a "wholesaler" out there reselling IXC routes
and get hit with the new VoIP guys selling below your "cost", but if
you're still buying and selling on the old TDM model, you'd better be
selling to end-users, because nobody else will pay those prices for
routes.  Our company is glad to see more VoIP wholesalers out there, if
someone's cheaper than we are, we'll buy from them, and it's just better
for the industry all around.
TDM or not TDM, the bottom line is, there's access tariff. How do you
get around that? I'm not aware that if you trunk into each individual EO,
you somehow avoid paying access tariff. (I think there's a specific
different tariff for direct-EO interconnect but to my knowledge it is
identical to access tariff).

You pay access only on access traffic. You don't pay access on local traffic. ;)

Yours,
Matthew
www.txlink.net/


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