Verizon Public Policy on Netflix

William Herrin bill at
Fri Jul 11 17:11:31 UTC 2014

On Fri, Jul 11, 2014 at 11:38 AM, Miles Fidelman
<mfidelman at> wrote:
> Well... if you make a phone call to a rural area, or a 3rd world country,
> with a horrible system, is it your telco's responsibility to go out there
> and fix it?

Hi Miles,

The telephone companies offer a remarkably apt case study in how NOT
to do traffic hand off.

With the advent of CLECs, the incumbent phone companies fought tooth
and nail against simple settlement-free interconnection. They were
deathly afraid of CLECs wiring up office buildings at a discount and
then stranding the ILECs with the more expensive residential and small
users. They convinced the FCC to dictate an originator-pays strategy
where both companies must assure sufficient capacity between their
systems and then the originating system pays the receiving system a
couple pennies a minute. So sure, wire up all those office buildings.
They're going to mainly call our customers and we'll collect the money
from you instead.

As you can imagine, hilarity ensued: some CLECs actually paid Internet
Service Providers to accept PRIs because the PRIs only ever received
calls and they tended to be heavily used 24 hours a day. The CLECs got
their entire revenue from per-minute charges the ILECs had insisted
the FCC require.

Modern arrangements between CLECs and ILECs are somewhat less insane.

Bill Herrin

William D. Herrin ................ herrin at  bill at
3005 Crane Dr. ...................... Web: <>
Falls Church, VA 22042-3004

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