ATS Network & Billing Update

   July 11, 2002


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FCC Declares Wireless Access Charges Permissible by Agreement

In a proceeding in which many of the major carriers on both sides participated, the FCC issued a declaratory ruling last week that wireless carriers may collect access charges from IXCs. The issue was originally referred to the Commission by a federal district court in Missouri last July in a dispute between Sprint PCS and AT&T.

The FCC found “that Sprint PCS was not prohibited from charging AT&T access charges, but that AT&T was not required to pay such charges absent a contractual obligation to do so.” The FCC deferred to the court on the issue of whether a contract between the parties existed. In its ruling, the Commission seemed to indicate that wireless carriers might refuse to permit IXCs access to their networks if the parties couldn't agree on access fees.

The FCC stated that “There are three ways in which a carrier seeking to impose charges on another carrier can establish a duty to pay such charges: pursuant to (1) Commission rule; (2) tariff; or (3) contract.” The Commission indicated that while it has discussed the issue before, it has never adopted any rules allowing wireless carriers to unilaterally impose access charges on IXCs.

The FCC also pointed out that it currently forbears from requiring or permitting the filing of tariffs for interstate access services offered by commercial mobile radio service (“CMRS” or “wireless”) carriers. “It is therefore undisputed that Sprint PCS could not have imposed access charges on AT&T pursuant to any tariff.”

Concluding there is no authority under the Commission’s rules or a tariff for Sprint PCS unilaterally to impose access charges on AT&T, the FCC indicated that Sprint PCS is entitled to collect access charges only to the extent that a contract imposes a payment obligation on AT&T. Though there was no written agreement between AT&T and Sprint PCS, the FCC pointed out that the law recognizes that an agreement may exist even absent an express contract. It believes this issue should be resolved by the court.

The FCC concluded that:

“Our order today clarifies requirements under our existing rules. Suggestions for changes to those rules will be addressed in our pending Intercarrier Compensation proceeding. Our goal in the Intercarrier Compensation proceeding is to move toward a unified compensation regime that eliminates the opportunity for arbitrage due to different regulatory treatment of different types of traffic. At that time we will address CMRS carriers’ requests to be placed on equal footing with wireline carriers, whether through bill-and-keep or some other compensation mechanism.”

The FCC added that “[i]n the interim, IXCs and CMRS carriers remain free to negotiate the rates, terms and conditions under which they will exchange traffic.” “To the extent that carriers encounter problems with this regime, we encourage them to raise any concerns in the pending Intercarrier Compensation proceeding so that we may consider those concerns in any future compensation regime we may adopt.”

For more information on carrier access billing, contact us at info@atso.com.

Related story: Can Wireless Carriers Collect Access Charges?, 5/16/30

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