more on facts on more on Cell Phone Controversy in Winthrop

[David Farber <dave () farber net>]

Begin forwarded message:

From: David Lesher <wb8foz () nrk com>
Date: August 15, 2004 11:44:56 AM EDT
To: dave () farber net
Subject: Re: [IP] facts on more on Cell Phone Controversy in Winthrop
Reply-To: wb8foz () nrk com

Speaking on Deep Background, the Press Secretary whispered:
> Traditionally, originating carriers have had to pay terminating
> carriers a
> fee, generally pennies per minute, for terminating their calls.  These
> are
> governed by interconnection agreements between the carriers, often
> constrained by regulators so that near-monopoly LECs don't gouge 
> upstart
> competitors (CLECs) or wireless companies.  Such negotiations are often
> contentious; there is a long history of tricky business practices
> associated
> with interconnection agreements involving CLECs, long distance
> companies,
> and ILECs.  The FCC has had to step in more than once to halt 
> outrageous
> scams.


Dr. F:

This all is part & parcel with "reciprical compensation"... As
telecom attorneys have told me, it came about when the 96 Telecom
act came into being. On intercarrier local the Bells demanded
the originating company pay the terminating company a per-minute
fee. (The alternative, each side eating its own costs, is called
"bill & keep"..)

The ILEC Bells thought they would clean up on the deal,
as big businesses that made many calls would move to their
CLEC competitors.

In reality, it was the ISP's that moved, and they got/get millions
of minutes of calls from Bell-fed dialup customers. (I recall
people in the ISP/CLEC business thinking "The Bells must be crazy"
at the time...)

So the Bells had to pay out millions for their own bright idea.
Ooops. (In reality, they have been stalling paying, but that's
another story..) They have been trying to void their agreements
ever since, and after losing in state after state, court after
court, finally got a FCC Chairman on their side.

Of course, others such as cell co's also had to pay recip comp.
If this small ILEC has no agreeement with the cell carrier, well,
then no carriage. But it's not possible to tell from this reporting
if there is an agreement, or if it's in dispute, or....



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