« SONETS: Lord of the rings | Main | Early Termination Charges »

September 15, 2009

NECA Banded Rate Structure for Facility Circuits

The NECA rate banding process is a function of cost where NECA vendors with similar costs are banded into distinct rate bands. There are 10 rate bands (1 through 10) going from the least to most expensive. Each rate band’s rates are equal to the average cost per rate element for the vendors in that band.

NECA vendors have incentives to keep costs low and remain at a lower rate band. The lower cost companies in each rate band charge lower than average rates to their customers thus gaining from the revenue pooling in their particular rate band or revenue pool since NECA members automatically participate in revenue pooling
The NECA Tariff F.C.C. No. 5 Section 17.5.1 has a list of companies that do business under NECA with rate bands for: Multiline Business End User Common Line (MLB EUCL) and Local Transport/Special Access as well as Local Switching and Tandem Switched Transport for Usage.

In order to verify billed Facility Circuit rates for a given vendor an auditor would first have to verify that the vendor is on the list of NECA vendors (Sec 17.5.1) in order to use the NECA tariff; once the vendor is vetted as a NECA vendor the appropriate rate band for Facility Circuit rates would be found under the heading of Local Transport/Special Access.

The Facility Circuit rates are listed under Special or Switched Access sections and broken out by rate elements (Channel Terminations/Entrance Facility, Channel Mileage Termination and Channel Mileage Facility and MUX) for varying circuit capacities such as DS1, DS, OC3 and up to OC 12 – for both one time nonrecurring charges (NRCs), access service charges and monthly recurring charges (MRCs). Additionally, optional rate plan term discount percentages for 36 and 60 months are listed at 10% and 20% respectively.

Trackback Pings

TrackBack URL for this entry:
http://www.telcocost.com/cgi-bin/mt/mtb.cgi/155

Comments

Post a comment