April 27, 2004

Pure VoIP, IP in the middle and access charges

First news came from FCC that even if a call is carried on an IP network, if it originates and terminates in PSTN, then access charges will apply. Then Qwest took a press release saying that it is setting a precedent by announcing that it will not collect access charges from pure VoIP service providers. I had already anticipated FCC decision. But the action by Qwest is perplexing on two counts. Firstly, it looks like they are easily forgoing a revenue source. The stated justification is that, “it's hoping that cheaper prices will attract more business from commercial Net phone providers.” Then why not eliminate it altogether? Be that as it may, the question I have is how are they going to determine the nature of the origin? For example, AT&T CallVantage will be eligible for access charge relief whereas AT&T LDS will not be. But how will Qwest determine a call that AT&T delivers is from CallVantage and not LDS?

Posted by aswath at April 27, 2004 03:54 PM
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