North American Network Operators Group

Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical

Re: HR 4445 Reciprocal Compensation

  • From: M. David Leonard
  • Date: Thu Sep 14 11:46:13 2000

	IMHO, anyone who wrote a business plan dependent on continuing 
recip comp deserves what they get.  Sheesh.

					David Leonard

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