North American Network Operators Group

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Re: HR 4445 Reciprocal Compensation (fwd)

  • From: Nathan Stratton
  • Date: Sun Sep 24 12:30:25 2000

On Sun, 24 Sep 2000 [email protected] wrote:

> I've been thinking about this and I think the CLECS and ISP's might be
> benefitted by the passing of this.  I think this bill will do more to
> hurt the ILECS then help them in the long run.

The ILECs are like that, don't forget it was the ILECs who wanted
reciprocal compensation and fought to make it as high as possible so they
could make more money from CAPs like MFS. 
> One of the things blocking CLECS from offering local dial tone for
> residential service is the reciprocal compensation.  The single biggest
> item contributing to it is internet dialup.  As an example of what I mean:

Hmm, I have been trying to talk people into building out dial tone network
for residential customers for years and I don't think it has been
compensation that has stopped them. 
> I suspect AT&T and other CLECS who are providing or interested in
> providing local dialtone to residential customers are backing this bill.
> The short term result may be bad for any CLEC depending on the income,
> but those that are looking to providde local phone service will find
> this a great benefit and as a result this is more likely to lead to
> local dialtone competition against the ILEC.  Which will lead to lower
> costs for phone lines ;)  As best I can see, the ILECs tend to be the
> more incompetent competitors and maybe they will finally put themselves
> out of business with this encouragement to their compitition.

Well as soon as a VoIP guy start sending a few hundred million minutes of
traffic via local interconnection trunks the ILECs will demand access
charges and will take them to court. They will try to find some way
of saying that compensation should apply until it is to their disadvantage.

> If I had the money, I'd start some planning now to put up my own CO's
> and lay my own copper/fibre/etc for providing local services.

Well I know I plan to do this sometime in the future, but it is a tad
expensive to build out local plants.

Just watch, as soon as the ILECs get out of paying reciprocal compensation
for ISP traffic, they will turn around and say it is LD in nature and
demand access charges for use of their local network like every other IXC

Nathan Stratton				CTO, Exario Networks, Inc.
[email protected]                     [email protected]       

> -- 
> Richard Shetron  [email protected] [email protected]  NO UCE
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