To: Stephen B. Temple who wrote (1473 ) 10/13/1998 8:42:00 AM From: Stephen B. Temple Respond to of 3178
Small Victory, big Batte Field. If Focal Comm. is a CLEC, then rightfully so, payment is due! Ameritech Pays Focal For Net Calls, Under Protest October 13, 1998 CHICAGO, ILLINOIS, U.S.A., Newsbytes via NewsEdge Corporation : Focal Communications Corp. is claiming a victory after Ameritech Corp. [NYSE:AIT] paid it $7 million in disputed reciprocal compensation fees for telephone calls to Internet service providers' (ISPs) points of presence. Ameritech said it made the payment under protest because of regulators' orders, and will continue to fight the issue. The dispute revolves around whether calls to ISPs are local calls under telecommunications legislation. Ameritech says they are not, and that it therefore should not have pay Focal, a competitive local exchange carrier (CLEC), the fees that one local carrier normally pays another when a call originates on the first carrier's network and terminates on the second's network. Focal says they are local calls, and so far both Illinois regulators and one federal court have agreed. Dave Pacholczyk, a spokesman for Ameritech, said a call to the Internet travels to an ISP's point of presence (POP) over the phone system, and then travels from there to a point on the Internet, such as a distant World Wide Web server. He said this is analogous to a long- distance call that might travel from an Ameritech customer's telephone to a central office and then be switched onto a long-distance carrier's network to travel to another part of the country. Focal, on the other hand, regards the POP as the end of the phone call. Since that makes the call a local one, Focal maintains, an existing agreement between the two carriers requires Ameritech to pay Focal a fee when a call originates on Ameritech's network and ends on Focal's. The Illinois Commerce Commission earlier this year ruled in favor of Focal. Ameritech appealed that ruling to the Federal District Court, which in July also ruled in favor of Focal. Ameritech then asked the Seventh Circuit Court of Appeals to stay the Federal District Court ruling pending appeal. In September, the circuit court refused the stay, meaning Ameritech must pay the amount in dispute, said Renee Martin, Focal's senior vice president and general counsel. The circuit court did not deny the appeal itself, which will still go forward, Martin told Newsbytes. She said no dates have been set for appeal proceedings. Focal said it had been unable to collect the money from Ameritech until this week. Pacholczyk told Newsbytes that Ameritech has been ordered to pay reciprocal compensation for Internet calls in Illinois, Michigan, Wisconsin, and Ohio. The Ohio decision was stayed until the end of October, and in the other three states Ameritech is paying the fees, he said. Regulators in Indiana have not made a decision on the issue. Reported By Newsbytes News Network,newsbytes.com . (19981009/Press Contact: Arianne Venuso, Focal Communications, 312-895- 8274; Dave Pacholczyk, Ameritech, 312-750-5205/WIRES TELECOM, LEGAL/)