e.spire Praises FCC Decision Requiring Monopolies to
Pay Compensation For Dial-Up Internet Calls
Thursday February 25, 8:03 pm Eastern Time
Company Press Release
SOURCE: e.spire Communications, Inc.
e.spire Praises FCC Decision Requiring Monopolies to
Pay Compensation For Dial-Up Internet Calls
ANNAPOLIS JUNCTION, Md., Feb. 25 /PRNewswire/ -- e.spire Communications, Inc. (Nasdaq: ESPI - news) today praised a decision by the Federal Communications Commission confirming that incumbent local exchange companies (''ILECs'') are bound by provisions of existing interconnection agreements, as interpreted by state commissions, which require payment of reciprocal compensation for dial-up Internet service provider (''ISP'') traffic. The FCC also confirmed that on a prospective basis, new entrants such as e.spire will recover their costs of carrying this traffic as required by the Telecommunications Act of 1996.
By action today, the FCC concluded that incumbents must abide by their existing interconnection agreements, which have been interpreted by the states to require payment to e.spire and others for reciprocal compensation for ISP traffic. The FCC indicated that state commissions may continue to interpret carrier interconnection agreements on this issue, as they have in the past. To date, 29 states have interpreted interconnection agreements to require ILECs to compensate new entrants for this traffic, and no state has sided with the incumbents on the issue.
For instance, in a ruling last week, the Georgia Commission interpreted e.spire's regionwide interconnection agreement with BellSouth to require reciprocal compensation be paid to e.spire for ISP traffic in Georgia. e.spire will continue to aggressively assert its rights under its agreements, and the FCC's decision today fortifies e.spire's position in its commercial arbitration and PSC proceedings to collect reciprocal compensation.
''The FCC's decision supports e.spire's interpretation of our agreements with ILECs that traffic to ISPs is subject to reciprocal compensation,'' said Riley Murphy, General Counsel of e.spire. ''e.spire's favorable state decisions remain intact.''
The FCC asserted jurisdiction to regulate dial-up calls to ISPs. The FCC will begin a rulemaking to determine prospectively the rates for traffic delivered to ISPs carried on competitors' networks. To date, many states have set cost-based rates for such carrier-to-carrier calls, and the FCC did not preclude a continuation of that process. Whether state or federal ratemaking ultimately prevails, the Telecommunications Act requires that e.spire and other new entrants be compensated at cost-based rates for carrying dial-up Internet traffic.
e.spire is a leading provider of integrated communications solutions, including dedicated access, local dial tone, long distance, advanced data, Internet and networking solutions, in markets throughout the United States. For more information on e.spire, contact espire.net.
SOURCE: e.spire Communications, Inc.
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I don't know what to make of this. First article implies the ISP fees are in danger of reduction, this seems to say, it went the way e.spire wished ... Can anybody give a bit less opaque exposition of the issue? I know there's an important controversy here but I don't know enough about the biz to translate the bureau-speak.
Greg |
