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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (8042)	8/16/2000 8:17:25 PM
From: Frank A. Coluccio	Respond to of 12823

"... would you happen to know how the tariff works if a LD company signs up a CLEC customer. Does the CLEC collect the same exact tariff from the LD SP that the ILEC would have?" There is no gospel answer to this. There are several relationships to consider, as well. One is the customer and their account status with the Interexchange carrier. The other is the relationship between the CLEC and the Interexchange carrier. Then there is the business account, versus the residential account, and then there is the on-net versus off-net consideration. Generally, the CLECs have enticed the IXCs to use them by removing, or drastically reducing the access charges (which is what I think you're referring to). These make up both the originating and terminating charges during call setups. As a rule, CLECs do not receive as much as ILEC do, and that is a business decision they make in order to win the business. Since most CLECs skim the field for the most lucrative subscribers in the densest locations (high route activity), the costs associated with carrying traffic is low to begin with, so they can afford to charge less and still make their margins. For residentials, however (and there are not that many CLECs doing residential, comparatively speaking. leastwise not in the boondock sectors), I would assume that the charges are a bit higher, but I'm not sure. FAC