ATS Network & Billing Update

   September 24, 2002


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Interconnection, Reciprocal Compensation Disputes Continue

In unrelated proceedings, the U.S. Federal Communications Commission (FCC) has recently preempted jurisdiction from one state utility commission and has been petitioned to do the same with another state commission over disputes arising from interconnection agreements and reciprocal compensation provisions. These proceedings continue to illustrate the confusion and difficulties inherent in the interconnection process for local competition and how they can significantly impact intercarrier revenues and the billing process.

The FCC granted Global NAPs’ petition to preempt jurisdiction of the Virginia State Corporation Commission over arbitration of unresolved interconnection agreement issues between Global Naps and Verizon in Virginia. The Virginia State Corporation Commission had declined to arbitrate the issues under the Communications Act, instead permitting the parties to elect to arbitrate the issues under Virginia state law. In doing so, the FCC found that the Virginia Commission failed to carry out its responsibilities under section 252 of the Communications Act. The FCC will issue a public notice establishing procedures and a pleading schedule specific to the upcoming Global Naps/Verizon arbitration proceeding.

The FCC has already established a pleading schedule for a recent petition from MCImetro requesting the FCC to assume jurisdiction over MCImetro’s dispute regarding reciprocal compensation with Verizon in New York. In that dispute, there were several unresolved issues between the parties specific to the FCC’s reciprocal compensation rules, which the New York Public Service Commission allegedly will no longer address. The main issues are questions of contract and how the FCC’s ISP Remand Order (Apr. 27, 2001) applies. In this proceeding (WC Docket No. 02-283), the FCC has set October 2, 2002 for comments and October 9 for replies.

 

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