March 21, 2012
i2Gemini Taking Action to Adhere to FCC's Order on VoIP Regulation
By Tammy Wolf TMCnet Web Editor
In November 2011, the Federal Communications Commission made the decision to transition high-cost support from traditional voice networks to broadband capable networks, which would bring along with it voice traffic.
This game-changing order was issued as part of the Universal Support and Intercarrier Compensation objective, which has an end-goal of moving to a “bill-and-keep” regime at the edge of the network that would replace today’s intercarrier compensation scheme. The process for doing so, however, is expected to take nearly eight more years, with the transition period scheduled to finally conclude July 1, 2020.
The first of these amendments, effective Dec. 28, 2011, applies directly to VoIP regulation, as there will be major changes made to the access charges interexchange carriers (IXCs) pay for traffic designated to VoIP. As a result, there will be substantial boosts in terminating costs to those carriers that carry a high percentage of VoIP traffic, as well as reductions in charges that the IXCs take care of in regards to traffic originated from VoIP-based carriers. The problem is, unfortunately, is that current IXCs are not willing to pay.
Under the new FCC (News - Alert) transitional regulations, the charges related to VoIP-PSTN traffic, which is defined as “traffic exchanged over PSTN facilities that originates or terminates in IP format,” will be undergoing an overhaul. More specifically, default charges for “toll” VoIP-PSTN traffic will now be equal to interstate access rates application to non-VoIP traffic, and default charges for other VoIP-PSTN activity will be the otherwise applicable reciprocal compensation rates. Even more, LECs will now be allowed to tariff these default charges for toll VoIP-PSTN traffic in related federal and state tariffs in the event there is no agreement for intercarrier compensation.
To even further compound this, the FCC is still actively trying to figure out whether the new VoIP-PSTN rules apply to originating VoIP traffic, and what the ruling will be on determining how much of the traffic sent by a carrier to an ILEC or CLEC is subject to VoIP pricing. The current method used in the majority of intra-state tariffs for doing so calls for the IXC to deliver a PVU (percentage VoIP usage) similar to the PIU (percentage of inter-state usage) factors.
Of course, the FCC’s order has sparked a scramble amongst telecommunications companies to accommodate for the stream of inter- and intra-state tariff filings. One company, i2Gemini – a switched access pricing provider – has already started to address these new rules with NetExpress, a solution that provides telecommunications services providers with a switched access pricing tool that when combined with the Local Exchange Routing Guide (LERG), enables intelligence. The solution also takes advantage of the i2Gemini library of interstate and intrastate information to eliminate unwanted routing costs.
The company’s database contains comprehensive tariff information, making it the most accurate and complete in the industry. i2Gemini’s trademarked pricing engine leverages rates databases to assess relevant rate elements, rate information from every telephone company and from every industry combination.
Database information offered in NetExpress can be used to determine direction on routing systems, accounting functions to determine accrued costs, network designers configuring their networks, network monitoring systems seeing to add costs to their systems, bill reconciliation and even sales support.
To stay in line with the FCC’s proposed changes, i2Gemini plans on adding a third jurisdiction to its already established FCC and state tariffs. Called VoIP, it contains the appropriate rate elements from the inter-state tariff and provisions for separate rates for originating traffic if the CLECs decide to use intra-state for originating intra-state traffic.
Additionally, i2Gemini has laid out a detailed plan of action that will match the requirements imposed by the FCC over the next eight years. Set up as yearly intervals, each part of the timeline will adhere to changes related to price cap carriers and CLECs benchmarking access rates to price cap carriers, and rate-of-return carriers and CLECs benchmarking access rates to rate-of-return carriers.
For more information, stay tuned to the Switched Access Pricing channel for a description of i2Gemini’s Intercarrier Compensation Reform timeline.
Edited by Jamie Epstein
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