North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: HR 4445 Reciprocal Compensation
IMHO, anyone who wrote a business plan dependent on continuing recip comp deserves what they get. Sheesh. David Leonard ShaysNet On Thu, 14 Sep 2000, Brett Frankenberger wrote: > > > > > I hate to sound stupid, but isn't this the "ILECs put CLECs out > > of business act?" Exactly how will this impact any ISP that uses the > > ILEC's facilities? > > Some ISPs have business models that include, directly or indirectly, > making money from the reciprocal compensation fees paid by the ILEC. > (Example: CLEC gives free phone line service to ISPs and makes it's > profit off the compensation. ISP becomes dependant on the effective > subisdy represented by the free phone lines and can't live with out > it.) (Example: ISP becomes CLEC and depends on reciprocal compensation > revenue to survive.) > > Real CLECs -- those that try to serve a broad based market, rather than > hack togethor a contrived market that will result in a high ration o > finbound to outbound calls, will do fine in the absence of reciprocal > compensation. > > -- Brett > >
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