FCC Addresses Access Stimulation
At its Open Meeting this morning, the FCC voted to adopt a Report and Order aimed at combatting what it characterizes as “wasteful arbitrage schemes that exploit the system of intercarrier compensation between local and long-distance providers, and indirectly cost consumers an estimated $60 million to $80 million annually.” The order reduces the financial incentives for carriers to engage in these schemes by requiring that the access-stimulating local phone company, rather than the long-distance company, be financially responsible for covering the cost of incoming traffic.
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