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- SAMPLE CLEC Switched Access Rate Cap Summary
Effective as of May 31, 2013
STATE
FCC
RATE CAP
REGION
(Interstate)
N/A
NECA Rate Bands
1-5
NECA Rate Bands
6-10
NECA Rate Band
11
CLECs who file interstate access tariffs are capped at the ILEC rates (Click on the
appropriate region link to view interstate switched access rates for that
carrier). CLECs who want to charge more than the ILECs are required to negotiate their
rates directly with the IXCs. A rural exemption is available for a CLEC competing with a
non-rural ILEC. The exemption is not available, however, if any portion of the CLEC's
service area falls within a non-rural area. Qualifying CLECs may tariff rates up to the
highest NECA rate band minute minus the NECA tariff's CCL charge if the competing ILEC
is subject to CALLS access rates.
See FCC ICC Reform effective December 29, 2011
Alabama
AT&T f/k/a
BellSouth
No rate caps. April 17,2012 - The Commission issued an order requiring CLECs to file
intrastate access reductions implementing the FCC's Reform Order no later than June 11,
2012. ILECs were required to submit filings in May. The Order also sets out the filing
dates for the subsequent access reductions required by the FCC.
Alaska ACS of
Alaska,
Anchorage &
Fairbanks
ACS AK &
Anchorage
The Alaska Intrastate Interexchange Access Charge Manual (AIIACM) provides that when
an incumbent LEC first faces facilities based competition, it is required to exit the Alaska
Exchange Carriers Association (AECA) access charge pool. When that happens, the
Commission caps the major switched access charge rate elements (local switching,
carrier common line, common transport, dedicated transport, and equal access) at the
ILEC rates for all CLECs providing service in the ILEC's study area.
Alaska ACS of the
Northland
ACS Fairbanks &
Northland
In an order dated August 18, 2010, the Regulatory Commission of Alaska revised its
switched access charge regulations to eliminate the carrier common line (CCL) access
charge rate element. Revenue lost as a result of the elimination of the CCL will be
recovered through a new Alaska USF program and by a phased-in increase in the
Network Access Fee (NAF) from $3.00 per month to a maximum of $5.75 per month. The
new regulations are effective July 31, 2011.
Arizona
CenturyLink QC
f/k/a Qwest
No rate caps. In September 2007, the Arizona Corporation Commission sought comment
on a list of issues to be considered in a consolidated proceeding concerning changes to its
access charge and Arizona USF rules. Access issues to be addressed include whether
CLEC access charges should be addressed as part of this docket and whether the
Commission should attempt to achieve parity between intrastate and interstate access
charges. In Procedural Orders issued in Feb. and March 2009, Commission Staff was
authorized to issue data requests to both Arizona CLECs and ILECs, including Qwest. A
workshop process will then be used to determine the issues to be considered in this
docket going forward and whether a rulemaking or evidentiary hearing procedure should
be used. A workshop was held July 27, 2009. The Commission decided at a procedural
hearing on September 16, 2009 to seek additional testimony in its ongoing investigation.
A hearing will be held March 16, 2010. March 2012 - The Commission is seeking
comment on the impact of the FCC's ICC/USF Order.
Arkansas
AT&T f/k/a SBC
No rate caps.
SOURCE
47 CFR 61.26
FCC 11-161
(ICC Reform
Order)
FCC 12-47, 2nd
Order on
Reconsideration
Dockets
28642 &
31816
R-08-3
(Order No. 9)
and R-09-3
(Order No. 5)
Procedural
Orders,
Docket Nos.
97-0137 &
00-0672
Copyright © 2013 Technologies Management, Inc. All rights reserved.
Published by Technologies Management, Inc.,P.O. Drawer 200, Winter Park, FL 32790
Page 1 of 5
- SAMPLE CLEC Switched Access Rate Cap Summary
Effective as of May 31, 2013
STATE
California
REGION
(Interstate)
AT&T f/k/a SBC
RATE CAP
The PUC has approved reductions to intrastate access charges by requiring all mid-size
incumbent carriers to remove the non-cost-based element or its equivalent effective
January 1, 2009. CLECs must reduce their intrastate access charges in two phases. In
phase one, effective April 1, 2008, CLECs may charge no more than $0.025 per minute
for originating or terminating intrastate access traffic. In phase two, effective January 1,
2009, CLEC rates will be capped at the higher of AT&T or Verizon's intrastate access
charges plus 10%. Existing contracts between carriers that specify intrastate access
charges are not affected by this Decision. Carriers may voluntarily contract with each
other to pay intrastate access charges different from those adopted by the PUC's
Decision. April 24, 2012 - The PUC proposed modifications to intrastate access charge
rules in order to implement the FCC's ICC/USF reform order. June 21, 2012 - The
Commission issued an Order directing ILECs and CLECs to adopt changes to their
intrastate access rates consistent with the FCC ICC/USF Order and requirements
established by the PUC.
SOURCE
R.03-08-018;
Final Opinion
dated
12/6/07
R.03-08-018;
Proposed
Modifications
and 6/21/12
Order
Copyright © 2013 Technologies Management, Inc. All rights reserved.
Published by Technologies Management, Inc.,P.O. Drawer 200, Winter Park, FL 32790
Page 2 of 5
INTRASTATE CALIFORNIA
CLEC SWITCHED ACCESS RATE CAPS
RATES EFFECTIVE AS OF 12/1/12
AT&T f/k/a SBC
(Originating)
1.
Carrier Common Line
2.
Switched Transport - Rated on a per DS-1 circuit.
3.
AT&T f/k/a SBC
(Terminating)
Verizon f/k/a GTE
(Originating)
Verizon f/k/a
GTE
(Terminating)
$0.00000000
$0.00000000
$0.00000000
$0.00000000
Common Transport
Tandem Switched - per Minute
Tandem Switched - per Minute per Mile
Access Tandem Switching - per Minute
Access Tandem Switching - CMUX - per minute
Access Tandem Switching - CTP - per Minute
$0.00029700
$0.00004730
$0.00109340
$0.00000000
$0.00000000
$0.00027000
$0.00004300
$0.00099400
$0.00000000
$0.00000000
$0.00000000
$0.00000220
$0.00039831
$0.00000000
$0.00186120
$0.00000000
$0.00000200
$0.00157400
$0.00000000
$0.00169200
Interconnection - per minute
$0.00000000
$0.00000000
$0.00000000
$0.00000000
$0.00209110
$0.00190100
$0.01456532
$0.00190190
$0.00048118
$0.00048118
Local Switching
Local Switching - Rate per Access Minute
4.
Information Surcharge
$0.00000000
$0.00000000
5.
Transitional Charge - per term. minute (applies from 7/1/12 to 6/30/13)
n/a
n/a
UNE-P Tandem Switched Scenario
Total Per Minute - (mileage assumption of 12 miles)
$0.00404910
$0.00368100
$0.01733241
$0.01076808
UNE-P Direct Scenario
Total Per Minute
$0.00209110
$0.00190100
$0.01504650
$0.00747808
CLEC Facilities Based Scenario
Total Per Minute - (mileage assumption of 12 miles)
$0.00295570
$0.00268700
$0.01693410
$0.00919408
n/a
$0.00509500
CLECs are capped at the higher of AT&T or Verizon's intrastate access charges plus 10% for originating access. Originating rates shown above include the
10% additive. CA Staff has confirmed that even if a CLEC does not operate in Verizon's territory, the limit is Verizon's rates plus 10% for originating access.
On June 21, 2012, The Commission modified intrastate access charges to be consistent with the FCC's objectives, thus removing the provision for a 10%
markup on intrastate terminating access rate levels for all CLECs as originally permitted in D.07-12-020.
Note:
Interstate switched access rates apply to relevant terminating VoIP-PSTN traffic.
FCC ICC Reform - Effective December 29, 2011
On November 18, 2011, the FCC released the text of its historic 750+ page Order comprehensively reforming its intercarrier
compensation (access and reciprocal compensation) system. The Order will dramatically change the cost/revenue structure
of the industry and affect all carriers whether providing local, long distance, wireless, or VoIP services.
Transition for ICC Rates
Under the framework established in the Order, all intercarrier compensation (ICC) rates will transition to bill-and-keep, which
means that access and reciprocal compensation rates will go to zero.
Intercarrier Compensation Reform Timeline
Effective Date
Dec. 29, 2011
July 1, 2012
July 1, 2013
July 1, 2014
For Price Cap Carriers and CLECs that
benchmark access rates to price cap carriers
For Rate-of-Return Carriers and CLECs that
benchmark access rates to rate-of-return carriers
All intercarrier switched access rate elements, All interstate switched access rate elements,
including interstate and intrastate originating and including all originating and terminating rates and
terminating rates and reciprocal compensation rates reciprocal compensation rates are capped. Intrastate
terminating rates are also capped.
are capped.
Intrastate terminating switched end office and Intrastate terminating switched end office and
transport rates, originating and terminating transport rates, originating and terminating dedicated
dedicated transport, and reciprocal compensation transport, and reciprocal compensation rates, if
rates, if above the carrier’s interstate access rate, above the carrier’s interstate access rate, are reduced
are reduced by 50 percent of the differential by 50 percent of the differential between the rate and
between the rate and the carrier’s interstate access the carrier’s interstate access rate.
rate.
Intrastate terminating switched end office and Intrastate terminating switched end office and
transport rates, originating and terminating transport rates, originating and terminating dedicated
dedicated transport rates,
and reciprocal transport rates, and reciprocal compensation, if
compensation, if above the carrier’s interstate above the carrier’s interstate access rate, are reduced
access rate, are reduced to parity with interstate to parity with interstate access rate.
access rate.
Terminating switched end office and reciprocal Terminating switched end office and reciprocal
one-third
third of the compensation rates are reduced by one
one-third
third of the
compensation rates are reduced by one
differential between end office rates and $0.0007.* differential between end office rates and $0.005. *
July 1, 2015
Terminating switched end office and reciprocal Terminating switched end office and reciprocal
compensation rates are reduced by an additional compensation rates are reduced by an additional onethird of the original differential to $0.005. *
one-third of the original differential to $0.0007. *
July 1, 2016
Terminating switched end office and reciprocal
compensation rates are reduced to $0.0007. *
Terminating switched end office and reciprocal
compensation rates are reduced to bill-and-keep.
Terminating switched end office and transport are
reduced to $0.0007 for all terminating traffic within
the tandem serving area when the terminating
carrier owns the serving tandem switch.
Terminating switched end office and reciprocal
compensation rates are reduced to $0.005. *
Terminating end office and reciprocal compensation
rates are reduced by one-third of the differential
between its end office rates ($0.005) and $0.0007. *
Terminating switched end office and transport are
reduced to bill-and-keep for all terminating traffic
within the tandem serving area when the
terminating carrier owns the serving tandem switch.
Terminating switched end office and reciprocal
compensation rates are reduced by an additional onethird of the differential between its end office rates
as of July 1, 2016 and $0.0007. *
July 1, 2017
July 1, 2018
July 1, 2019
July 1, 2020
* Transport rates remain unchanged from the previous step.
Terminating switched end office and reciprocal
compensation rates are reduced to $0.0007. *
Terminating switched end office and reciprocal
compensation rates are reduced to bill-and-keep.*
Notes: Reciprocal compensation rates and rates for VoIP-PSTN traffic decline in the same manner as terminating
access rates. The above rates are default rates. Carriers are free to negotiate alternative agreements. Transitions for
dedicated switched transport rates, originating access rates (including 8YY minutes), and rates for tandem switching
and transport if the carrier does not own the serving tandem switch will be decided in the Further Notice of Proposed
Rulemaking
Cost Recovery For ILECs & CLECs
The Order adopts a set of complex rules under which ILECs may recover some of their lost revenue through a new access
recovery charge (ARC) and in some cases the new USF fund (the Connect America Fund). CLECs may recover all their lost
revenue through their end user rates with no limitations.
VoIP Access Charges
VoIP-PSTN traffic is included in the ICC regime on a prospective basis on the effective date of the Order. VoIP-PSTN traffic is
traffic exchanged over PSTN facilities that originates and/or terminates in IP format and includes both interconnected and
one-way VoIP traffic. VoIP compensation obligations can be imposed in both federal and state tariffs, which may also
address the way intrastate VoIP calls can be identified. LECs may charge for both the functions they perform and the
functions performed by their retail VoIP partner.
Access Stimulation & Phantom Traffic
The Order also contains rules to address access stimulation and phantom traffic. If a CLEC meets the definition of access
stimulation it must benchmark its tariffed access rates to the rates of the price cap LEC with the lowest interstate switched
access rates in the state. Service providers that originate interstate or intrastate traffic on the PSTN, or that originate interor intrastate interconnected VoIP traffic destined for the PSTN, are required to transmit the telephone number associated
with the calling party to the next provider in the call path. This information must be passed on by all intermediate carriers in
the call chain.
Universal Service Program Reforms
The Order also reforms the existing universal service program by creating a new Connect America Fund to extend broadband
infrastructure to Americans who currently have no access to broadband. The new fund will include a Mobility Fund, making
mobile broadband an independent universal service objective for the first time in history. The Order does not undertake any
reform of the USF contribution methodology which is expected to be addressed in the first half of 2012.
Source:
Report and Order and Further Notice of Proposed Rulemaking
Rulemaking, FCC 11-161
WC Docket No. 10-90, et. al., Second Order On Reconsideration, FCC 12-47
Order, DA 12-870, Docket 10-90 et.al., released June 5, 2012