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May 18, 2009

CLEC Rate Caps

Many states and the FCC have ordered CLECs to cap their switched access rates no higher than the incumbent local exchange carrier (ILEC). There have been many disputes against CLEC CCL charges, since few of the ILECs continue to charge CCL. The CLECs argue that they are not required to maintain the same rate structure as the ILECs and they only need to meet the rate requirement with a “composite” rate.

This is supported by the FCC CFR § 61.26 Tariffing of competitive interstate switched exchange access services.
(5) The rate for interstate switched exchange access services shall mean the composite, per-minute rate for these services, including all applicable fixed and traffic-sensitive charges.

Technologies Management Inc. (TMI) also provides composite benchmark rates for the ILECs. Their calculations include charges for circuits to tandems and for direct end office circuits converted to a per-minute of use charge. Typically carriers pay for these circuits on facilities invoices, so these charges should be removed from the TMI benchmark rates.

Posted in at 12:20 PM

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