WASHINGTON, Aug. 6 /EMWNews/ -- Citing "revolutionary" changes in

technology and the marketplace, a broad coalition of technology,

telecommunications and wireless companies and trade associations is

supporting the Federal Communications Commission's effort to enact

comprehensive reform of the nation's intercarrier compensation system.



    In a letter filed with the FCC today, the group urged commissioners to

"focus on policies that will help spur the continued evolution to more

advanced IP and broadband networks," and commended the agency for its plan

to complete the complicated task by November.



    "Now more than ever, it no longer make sense to perpetuate a system

that requires or permits terminating carriers to apply different rates for

different traffic based on arbitrary distinctions," the group wrote.

"Comprehensive reform of the existing intercarrier compensation system is

critical to accommodate progress and innovation, and to ensure

technological and competitive neutrality."



    AT&T, CompTIA, CTIA - The Wireless Association, Global Crossing, the

Information Technology Industry Council, National Association of

Manufacturers, New Global Telecom, PointOne, Sprint Nextel Corp., The

Telecommunications Industry Association, T-Mobile, Verizon and the VON

Coalition signed the letter.



    The group's filing suggests that the first step in the reform process

should be to "clarify the regulatory requirements associated with the

fastest growing segment of the communications industry -- Internet Protocol

("IP")-based technologies and services." The coalition also urges the

agency to issue two rulings clarify that all IP-based voice services, if

regulated at all, are subject to exclusive federal jurisdiction, and to

establish uniform compensation rules applicable to all traffic exchanged

with or on the public switched telephone network.



    The letter suggests that the new comprehensive rules "ultimately should

result in uniform terminating rates for all carriers at a level below

existing intercarrier compensation rates." The filing suggests a rate no

higher than $.0007 per minute of use, the current rate for transport and

termination of ISP-bound traffic. The group also stated that a transition

to these new rules "should allow for appropriate alternative recovery

mechanisms, if needed." The letter concluded:



    "The Commission must focus on policies that will help spur the

continued evolution to more advanced IP and broadband networks. If the

Commission is to ensure the future growth and development of these

services, it must not only eliminate multiple, and potentially capricious,

compensation regimes. It must also create a uniform, rational compensation

system. The evolution to IP-based services will create a more competitive

environment and will bring new and innovative services to consumers in all

areas of the country. However, for this trend to continue, the Commission

must take these important steps and reject efforts to apply legacy

regulation to the IP world -- whether that involves state regulation or the

legacy intercarrier compensation structure. By doing so, the Commission can

ensure the continued development and deployment of new innovative IP

services, as well as of broadband platforms on which those services

depend."



    Source: AT&T; CompTIA; CTIA - the Wireless Association; Global

Crossing; The Information Technology Industry Council; National Association

of Manufacturers; New Global Telecom; PointOne; Sprint Nextel Corp.; The

Telecommunications Industry Association; T-Mobile; Verizon; The VON

Coalition