VON Coalition Backs Uniform Access Rates

Like the rest of the telecom industry, the VON Coalition is looking ahead to Nov. 4, the day the FCC is slated to vote on intercarrier compensation/Universal Service Fund (ICC/USF) reform.

Unlike CLECs and RLECs, however, VON Coalition members want a uniform rate – the .0007 supported by Verizon Communications Inc. and others – for access charges and reciprocal compensation. That number scares CLECs and RLECs because it’s far lower than the 10 cents or less they’ve been collecting.

But such arbitrary rates open the door to taking advantage of the system, said Jim Kohlenberger, executive director of the VON Coalition. Nonetheless, he said intercarrier comp and the USF have to be fixed – the question comes down to how.

“Part of where we see the problem is that today’s system, for a rural provider, it subsidizes them and if they had instead moved to broadband and voice-over-IP, they lose that subsidy – so there’s actually a disincentive for them to move to broadband,” he explained. “That’s one of the reasons why we think the U.S. is behind in broadband deployment.”

For RLECs worried about losing access revenue, the VON Coalition has some ideas.

“If we lower those rates, there are other tools to recover those rates from consumers,” Kohlenberger said. Carriers could increase subscriber line charges, for example, or the FCC could implement an access replacement mechanism on the USF. Both options have been bandied about during this year’s comments process.

Meanwhile, the VON Coalition is concerned about ensuring nothing “harms or impedes existing CLEC interconnection rights,” Kohlenberger said.

The coalition contends that IP-to-PSTN calls constitute an information service, which exempts some communications from complying with certain federal rules. Therefore, the VON Coalition has told the FCC, “to make absolutely clear,” that the agency should not change existing interconnection and other rights for CLECs, he added.

Overall, the VON Coalition is pushing for reform that will “promote broadband and get to a uniform low rate across the board,” said Kohlenberger. The group also supports federal jurisdiction over VoIP.

Coalition members include Covad Communications Group, EarthLink Inc. (ELNK), Cisco Systems Inc., Yahoo! Inc. (YHOO) and Skype.

The organization last week launched a new Web site that highlights the convergence of Web 2.0 and Voice 2.0. Talking avatars, anyone?