• On May 11, 2010, the Iowa Utilities Board approved a settlement agreement ending the dispute between Verizon Communications of Iowa, Inc. and Frontier Communications of Iowa, Inc. that will have the effect of lowering Frontier’s intrastate access rates. Verizon alleged in its complaint that Frontier’s intrastate access rates were substantially higher than those of Qwest Corp., and were thus anticompetitive and unreasonable. Pursuant to the terms of the settlement, Frontier will reduce its intrastate local switching rate from $0.026058 per minute to $0.021488 in a three-stage reduction. The first reduction will take effect within five days, while the second and third reductions will occur on July 1, 2011 and July 1, 2012, respectively. In its order approving the settlement, the Board stated that “because Frontier is changing its access tariffs, the reduction in its local switching access rates will apply to all intrastate traffic from all interexchange carriers” and that “this reduction will benefit not only Verizon and its customers, but all interexchange carriers doing business with Frontier and the customers of those carriers.” FCU-08-6.
  • On May 11, 2010, AT&T Florida filed a complaint with the Florida Public Service Commission alleging that affiliated CLECs Grande Communications Networks LLC and Grande Communications Networks, Inc. had breached the terms of their interconnection agreement (ICA) with AT&T by refusing to pay reciprocal compensation for VoIP traffic transported and terminated by AT&T. AT&T asserts that the parties’ ICA does not distinguish between TDM and VoIP traffic, and therefore Grande has no basis to withhold payment for the VoIP traffic. According to AT&T, Grande submitted a dispute letter to AT&T stating that the FCC is still considering whether VoIP traffic is compensable, and it was therefore claiming that such traffic was not subject to compensation either under a tariff or an ICA. AT&T is seeking damages of approximately $290,000, not including late fees. 100275-TP.
  • On May 7, 2010, Florida Governor Charlie Crist signed legislation that amends section 364.051 of the Florida Statutes to subject all Florida local exchange telecommunications companies to price regulation. Under existing law, only incumbent local exchange carriers that elected to be subject to price regulation were regulated as such. The new legislation becomes effective July 1, 2010. HB 1377.