• On November 17, 2010, North County Communications Corp. filed an Ex Parte presentation with the FCC responding to Verizon’s November 2, 2010 Ex Parte. North County urged the FCC to abandon its piecemeal approach to access charge disputes “and to stop the lawless actions of the Bell System and other large IXCs, who have adopted a nationwide campaign of self-help refusals to pay any access charges with which they disagree.” North County criticized Verizon’s arguments concerning LEC revenue-sharing arrangements, noting that Verizon “pays commissions of up to 90 percent to chat providers” and the large IXCs have other significant SMS-based revenue sharing arrangements with programs such as Dancing with the Stars. North County also took exception with Verizon’s claim that so-called “traffic pumping” costs the industry $400 million annually, pointing out that of the approximately 40 collection actions against IXCs pending, the amount claimed in unpaid charges typically runs from under $1 million to $3 million, and these sums represent amounts that the IXCs have refused to pay for many years. North County further asserted that the FCC’s inaction has emboldened IXCs to engage in self-help tactics rather than settle with LECs under reasonable terms, because they face no consequences for refusing to pay. To remedy this problem, North County urged the FCC to require IXCs to pay a minimum rate for terminating access at the lowest-band NECA rate pending final resolution of rule requiring IXCs to file rate complaints rather than cease paying. WC Docket 07-135.
  • On November 16, 2010, at its 122nd Annual Meeting in Atlanta, the National Association of Regulatory Utility Commissioners (NARUC) Board of Directors adopted a resolution urging the FCC to address so-called “traffic pumping,” noting that the FCC “is well positioned to resolve the increasing number of interstate traffic pumping complaints uniformly.” Previously, the NARUC Committee on Telecommunications inserted language into the resolution asserting that “[t]raffic pumping does not include traffic imbalances arising from legitimate transport and termination service for discrete, wholesale, or retail service arising from State or federal law.” The NARUC resolution recommends that the FCC act within the existing WC Docket 07-135 and “consider further efforts to adopt interim rules to limit or prohibit similar schemes of inter-carrier compensation arbitrage as recommended in the National Broadband Plan.”