The Commission concluded that telecommunications traffic delivered to an ISP is interstate access traffic, specifically information access, thus not subject to reciprocal compensation. Additionally, rather than immediately eliminate the current system, which has created opportunities for regulatory arbitrage and distorted market incentives, the Commission established a transitional cost recovery mechanism for the exchange of this traffic. Intercarrier compensation refers to payments among telecommunications carriers resulting from their interconnecting networks. The Commission concluded that reciprocal compensation has inherent shortcomings with respect to the recovery of costs for originating and terminating telecommunications traffic delivered to ISPs. Both proceedings seek to harmonize the Commission s patchwork of intercarrier interconnection rules to make them compatible with a deregulated, competitive telecommunications environment.
Today s Order resolves the issues remanded by the court.
This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action.