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Date:      Wed, 17 Oct 2001 19:31:23 -0400
From:      "Louis A. Mamakos" <louie@TransSys.COM>
To:        "Ted Mittelstaedt" <tedm@toybox.placo.com>
Cc:        "void" <float@firedrake.org>, "Matt Dillon" <dillon@earth.backplane.com>, Bsdguru@aol.com, hackers@FreeBSD.ORG
Subject:   Re: Imagestream WanIC-520 interface cards 
Message-ID:  <200110172331.f9HNVNb56638@whizzo.transsys.com>
In-Reply-To: Your message of "Wed, 17 Oct 2001 09:24:27 PDT." <009501c15728$30ac6f80$1401a8c0@tedm.placo.com> 
References:  <009501c15728$30ac6f80$1401a8c0@tedm.placo.com> 

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> I am perfectly aware of this.
> 
> The RBOCs deserved to have those "fines" levied against them for a number
> of years, to punish them for attempting to block the CLECs.  However, it's
> been long enough for this, and in fact the money from the RBOCs is no longer
> being used to increase the CLEC's reach or service area (ie: infrastructure)
> and being used by the CLECS to bash each other, instead of bashing the
> RBOCS.

The recip-comp charges have nothing to do with extending the reach of
a CLEC's network.  It's (supposed) to cover the cost of carrying or
terminating an inbound POTS voice call.  In in more generic view,
recip-comp shows up in the "revenue" column of the balance sheet.  To assume
it's intended to be any more than that is imagination.

> The situation is equivalent to Foreign Aid that the US pays to a country such
> as Japan.  (which we still do to the tune of millions and millions of dollars
> a year)  Japan has long since ceased being a poor relation that needs to be
> bailed out.  The reasons for them being paid off by the US have been
> fulfilled.
> Yet, the payments continue, and the money is being used to free up other
> funding that's being spent on political - not necessary - things.

Huh?   You might also explain the situation as subsidizing the cost 
of providing Internet service.  It's revenue coming into the business
which would otherwise need to come from some other source, such as the
customers.  

There are lots of other examples of charges and tariffs which telecom
carriers charge each other because of the bizzare reality set up by
FCC regulations.  You simply siezed upon one with contemporary sex-appeal.

If you want to rant about something, go take a look at how half-circuit
pricing is done for international private lines.  You think the US
carriers are evil, go see what state-supported telecom monopolies get
to do.  Or the hoops which much be jumped through to get licenses to
operate telecom, datacom, or Internet lines of business in some
countries around the world.

Disclaimer:  I work for a big stupid phone company, and have unfortunately
become aware of this and many other regulatory issues.

louie


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