North American Network Operators Group

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Re: FCC Ruling, Cost of Internet

  • From: John Curran
  • Date: Wed Nov 04 02:32:41 1998

I'd recommend reading the actual text of the ADSL order (available at
http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1998/fcc98292.txt)
it's actually remarkably lucid regarding the complexity of the issues.

Note that the GTE ADSL decision applies to a specific service which
is not switched per the classic definition.  The decision to be 
announced is next week (with regard to conventional dial-up access)
apparently will be much broader in nature covering whether or not
the traditional inter-carrier reciprocal compensation should apply 
for dialup Internet calls terminating on an ISP/CLEC.

Currently, a carrier pays compensation to terminate calls on another
carriers network.  Note that carriers don't pay "customers" for the
privilege of terminating calls on their network.  Depending on the
actual ruling of the FCC to be announced, one possible outcome might
be for an ISP acting also as a CLEC to be paid "compensation" for each
call handed off to it by the local exchange carrier.  Another outcome
may be the FCC specifically stating that CLEC's should not receive
compensation for such traffic.

Needless to say, the anticipated order has some potential to alter
Internet economics for dialup providers.

/John