Unless they have SS7 access he is right.
Well, almost. Even if the ITSP has SS7 access, they still don't send CNAM information with each outbound call, at least not in North America. When you have ISDN/SS7 access to the network, and the proper configuration, the value supplied to SetCIDName _can_ be passed into the network, but it will not make it past your telco provider's end office switch except under unusual circumstances. Even it if does, the receiving end office switch will _still_ do an SS7 database lookup to find the "registered" CNAM that corresponds to the CLID being presented, even if the originating and terminating switches are one and the same.
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