FCC Votes 5-0 With Democrat Concurrences on VoIP Intercarrier Comp Clarity
FCC Commissioners Jessica Rosenworcel and Geoffrey Starks concurred during a unanimous vote to clarify the VoIP symmetry rule Thursday. That upholds reversal of a 2015 rule that would have allowed over-the-top VoIP providers to assess terminating fees on long-distance calls even if they had neither last-mile end-office facilities nor partnered with a local exchange carrier that did. The U.S. Court of Appeals for the D.C. Circuit later vacated the older rule and remanded it.
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Thursday's decision provides certainty to carriers on VoIP services and should resolve pending intercarrier compensation disputes, the agency said.
"This might seem like an arcane matter, but it's also important," Chairman Ajit Pai said. "By limiting intercarrier compensation charges to companies that are actually providing a physical connection, we're ensuring that our rules provide an incentive to build out networks and continue the transition from traditional copper networks to modern IP-based networks that will support future innovation."
Rosenworcel believes the 2015 decision was the correct call "because it advanced the goal of facilitating the IP transition and reduced incentives for arbitrage." She would have preferred another outcome but acknowledged the court's remand "left us with little room to maneuver." Starks said the decision could impede the VoIP transition and deter competition.
Commissioner Mike O'Rielly called the order's reasoning "undoubtedly correct." He said as firmly established in commission precedent, "the defining feature of end office switching in a TDM network, or the functional equivalent thereof, is the act of physical interconnection of subscriber loops and trunks. Since over-the-top VoIP providers do not actually interconnect with the last-mile network to a customer's home, they are not entitled to collect access charges for performing that function." He said because end office switching charges will finish transitioning to bill-and-keep in 2020, "the item's effect will be largely retroactive."
CenturyLink had petitioned the FCC for reconsideration and clarification of its intent to overturn the 2015 rule (see 1807050040). "We’ll evaluate the final order when it’s released," a CenturyLink spokesperson emailed.
“AT&T supports today’s FCC action that interprets the VoIP symmetry rule in a manner consistent with long-standing precedent," said Joan Marsh, executive vice president-regulatory and state external affairs. "This decision provides greater marketplace clarity while reducing existing and potential future intercarrier compensation disputes.”
"Verizon supports today's decision, which puts an end to intercarrier arbitrage schemes in which carriers billed for functions they weren't actually providing," said Will Johnson, senior vice president-federal regulatory and legal affairs. It's "a win for consumers because it will advance competition in the voice services market and promote the deployment of IP networks."