NETWORK WORLD NEWSLETTER: JIM DUFFY WITH VIEW FROM THE EDGE
08/24/04
Today's focus:  Carrier group seeks fee overhaul

Dear [EMAIL PROTECTED],

In this issue:

* Year-long effort results in proposal for compensation reform
* Links related to View from The Edge
* Featured reader resource
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Today's focus:  Carrier group seeks fee overhaul

By Jim Duffy

A group of carriers is lobbying the FCC to overhaul the way 
service providers are compensated for completing calls 
originating on competitors' networks.

The so-called Intercarrier Compensation Forum (ICF), led by 
AT&T, MCI, Sprint and SBC, is proposing a reform of disparate 
inter-carrier compensation arrangements that they claim "harms 
consumers and creates artificial regulatory advantages for 
certain carriers and technologies." The group says its plan 
seeks to revamp the system to preserve competition, facilitate 
deployment of new technologies and advance consumer interests.

The ICF members also include General Communication, Global 
Crossing North America, Iowa Telecom, Level 3 Communications and 
Valor Telecommunications. The group once included at least 25 
member carriers participating at various stages throughout a 
year-long effort to craft the new compensation plan.

Among those 25 were Verizon and BellSouth. They left the group 
last May when they could not fully endorse the compensation plan 
as it was at that time.

Both carriers are mulling the latest effort.

According to the ICF, the current compensation arrangement harms 
consumers by forcing carriers to make arbitrary distinctions 
between local and long-distance services, which makes it more 
difficult for consumers to receive the service bundles they 
want. 

"Jurisdictional disparities in inter-carrier compensation often 
make it more expensive to call across the state than across the 
country or around the world," the group claims in an executive 
summary of its plan.

The current system also harms universal service, the ability to 
fund telecom service in rural and poor areas, the group claims. 
Some providers are able to avoid some or all of their 
contribution obligations, as consumers increasingly bypass 
interstate long-distance offerings in favor of wireless 
services, bundled service and information services, according to 
the ICF.

But the ICF's alternative is not without its critics. TeleTruth, 
a telecommunications customer advocacy organization, labeled the 
plan a "scam" that protects carrier interests at the expense of 
businesses and consumers.

"Instead of getting rid of intrinsic problems, they're just 
raising rates," TeleTruth Chairman Bruce Kushnick says.

Kushnick, who notes the lack of consumer representation, says 
the ICF is "more of a cabal than an economic analysis" group.

Nonetheless, its plan, if approved, begins to restructure rates 
on July 1, 2005, and to unify the disparate network 
interconnection and inter-carrier compensation regimes within 
three years. It does this by seeking to develop uniform network 
interconnection rules that provide a framework for voluntary 
carrier negotiations and establish default responsibilities in 
the absence of any carrier agreement. 

The network interconnection rules are also designed to protect 
universal service in rural regions by establishing modified 
default rules to apply to networks operated by a Covered Rural 
Telephone Company (CRTC).

RELATED EDITORIAL LINKS

MCI investigating access-line dispute
IDG News Service, 07/29/03
http://www.nwfusion.com/news/2003/0729mciinves.html

FCC takes first step toward VoIP policy
IDG News Service, 02/13/04
http://www.nwfusion.com/edge/news/2004/0213fccvoip.html

MCI, Qwest reach pricing agreement
IDG News Service, 06/01/04
http://www.nwfusion.com/edge/news/2004/0601mciqwest.html
_______________________________________________________________
To contact: Jim Duffy

Jim Duffy is managing editor of Network World's service provider 
equipment coverage <http://www.nwfusion.com/edge/>. He has 18 
years of high-tech reporting experience, including over 12 years 
at Network World. Previously, he was senior editor at Computer 
Systems News and associate editor/reporter at Electronic News 
and MIS Week. He can be reached at <mailto:[EMAIL PROTECTED]>.
_______________________________________________________________
This newsletter is sponsored by Oracle 
An Economist Intelligence Unit White Paper: From Grid to Great? 

Grid computing is breaking out. Familiar mostly to academics, 
government groups, and scientific researchers, this technology 
that links together the power of diverse computers to create 
powerful, fast and flexible systems is beginning to catch on in 
the corporate world.   Included in this white paper, results and 
interviews from a global survey among Sr Executives, click to 
download now  
http://www.fattail.com/redir/redirect.asp?CID=73343
_______________________________________________________________
ARCHIVE LINKS

Archive of the View from the Edge columns:
http://www.nwfusion.com/edge/columnists/index.html
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Identity management best practices: User provisioning and 
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FEATURED READER RESOURCE
WONDERING IF YOUR PAY IS UP TO SNUFF?

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