Verizon Wireless Agrees to Provide Connection to Independent Neutral Tandem
Neutral Tandem (NT) ended a longstanding open-access fight with Verizon Wireless, with Verizon agreeing to provide NT with a direct interconnection to its network across the United States. The FCC was ready to find for NT, but delayed a vote on an order amid reports that the companies were in talks (CD Oct 16 p2). Verizon Wireless was the sole major national carrier that refused to give NT a direct connection. As a result, in August 2006 NT filed a petition asking the FCC to order an interconnection.
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“Neutral Tandem and Verizon Wireless have entered into a binding, non-discriminatory agreement establishing terms and conditions consistent with established intercarrier compensation rules for the physical connection of their respective networks, making it unnecessary for the time being for the Commission to order such interconnection under Section 201 of the Communications Act,” NT said in a filing Monday at the FCC.
NT also is winning a fight with Level 3 at various state commissions over whether the CLEC illegally blocks traffic, refusing to terminate calls transmitted on NT’s system, said CEO Rian Wren. NT sought review in eight states. Five of the seven have ruled in NT’s favor, with decisions expected soon in California and Connecticut, Wren said. “Tandem competition and its attendant benefits -- improved homeland security and lower costs -- has been strengthened and all consumers have benefitted,” he said Monday.
The issue of whether the FCC should order Verizon Wireless to provide NT a connection has been controversial. NT got support from Capitol Hill and some state regulators. But CTIA said a decision against Verizon would be “perceived as overturning longstanding Commission precedent” that wireless carriers can choose “the most efficient and economical method of direct or indirect interconnection.”
Chicago-based NT, founded in 2003, went public last year. The company processes more than 4 billion minutes per month, providing tandem services primarily to wireless, wireline, cable and VoIP providers.