Transaction Based Settlements Encourage Waste (was Re: BBN/GT EI)
Derek Elder
delder at usweb.com
Sun Aug 23 01:20:33 UTC 1998
And this is precisely why the RBOC's are refusing to pay the settlements
to the CLEC's. I personally agree that settlement based peering won't
work (with current technology). Whoever figures out a good solution
gets a truckload of beers from me ;)
>
> In fact, this already happens with telco termination charges.
> For example,
> there are CLECs that call up dialup ISPs and offer free PRIs.
> They plan
> to make more on termination charges than they could possibly
> get from the
> ISPs in a competitive environment. Aside from the fact that
> they don't
> have copper in the ground, this is the reason CLECs don't
> want residential
> customers, since they would be the ones paying termination
> fees on originated
> calls. When enough CLECs are concentrating on businesses
> that only have
> incoming calls (ISPs, tech support centers, 900-style
> services, etc), Bell
> will scream to the FCC that termination charges need to be
> reevaluated.
> With this approach, eventually *no one* will want customers
> that make lots
> of outbound calls -- let the other providers have them and
> then collect the
> money when they call your customers.
>
> The point is it is an unstable environment. Unlike
> capitalism where our
> innate greedy nature serves to balance the system, in this
> case the greedy
> nature serves to unbalance the system by promoting inefficient use of
> resources.
>
> John Tamplin Traveller
> Information Services
> jat at Traveller.COM 2104 West Ferry Way
> 256/705-7007 - FAX 256/705-7100 Huntsville, AL 35801
>
>
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