THE FCC SEEKS COMMENT REGARDING INTERCARRIER COMPENSATION REFORM

October 3, 2017

On September 26, 2017, the Federal Communications Commission (“FCC” or “Commission”) published a Public Notice in the Federal Register seeking additional comments regarding intercarrier compensation (“ICC”) reform.

In 2011, the FCC released the ICC Transformation FNPRM seeking comment to complete its intercarrier compensation reform effort and to complete the transition to bill-and-keep for certain rate elements not addressed in the ICC Transformation NPRM.  The FCC is now requesting further comment to refresh the record in light of developments that have occurred since 2011.  Specifically, the FCC would like to update the record with respect to the following rate elements and related issues: (1) the network edge for traffic that interconnects with the Public Switched Telephone Network; (2) tandem switching and transport; and (3) transit (the non-access traffic functional equivalent of tandem switching and transport).

  • The Network Edge – The “edge” is the point where bill-and-keep applies, and a carrier is responsible for carrying, directly or indirectly by paying another provider, its traffic to that edge.  With its most recent Public Notice, the FCC seeks comment, for example, regarding the experiences of states that have addressed network edge issues since the release of the ICC Transformation FNPRM.  The “edge” definition is critical to carrier network deployments and network cost control initiatives. 
  • Tandem Switching and Transport – The FCC seeks comment on what further steps the Commission should take to transition tandem switching and transport to bill-and-keep.  The rate transition adopted in the ICC Transformation FNPRM reduced tandem switching and transport charges only when the terminating price cap carrier also owns the tandem in the serving area and did not address other tandem switching and transport traffic.  
  • Transit – Since the ICC Transformation FNPRM, some state commissions have addressed the regulatory treatment of transit services.  The issue of  FCC guidance as to transit rates was left open in the FNPRM and the FCC therefore seeks comment regarding whether it should also adopt such a federal standard.  

Comments are due by October 26, 2017 and reply comments are due by November 13, 2017.  The full text of the Public Notice can be found here

This Utilities and Telecommunications Alert is intended to keep readers current on matters affecting businesses and is not intended to be legal advice.  If you have any additional questions regarding the above or if you are interested in further advocacy with respect to these issues, please contact Rob Gastner at 202.695.6674 (rgastner@eckertseamans.com).

Share This Post