Inteliquent Applauds FCC Decision
October 8, 2019
FCC Takes Action Against Arbitrage Schemes that Exploit Intercarrier Compensation between Long Distance and Local Providers
CHICAGO — Inteliquent, a leading provider of communications services, applauds the FCC for approving an order designed to eliminate the waste generated by access arbitrage schemes. The FCC noted that access arbitrage currently has “an annual cost of $60 million to $80 million in access charges to interexchange carriers (IXCs) and their customers.”
According to the FCC, “The ability to charge inefficiently high access rates for terminating calls in certain rural areas has encouraged some [local exchange carriers] to engage in access arbitrage. Specifically, to artificially increase their access charge revenues, these [local exchange carriers] stimulate terminating call volumes through arrangements with entities that offer high-volume calling services. This practice is known as access stimulation.”
“We are pleased with the FCC’s decision, and look forward to working through the implementation of this order,” said Fritz Hendricks, Inteliquent CEO. “We commend the thoroughness of the FCC’s diligence in working through the NPRM process.”
Inteliquent empowers communications for the top communication service providers, unified communications as a service providers and partners. The foundation of Inteliquent’s communications platform as a service (CPaaS) is its fully redundant, geo-diverse, carrier-grade tier 1 network. This network is trusted by the nation’s largest service providers, as it provides the most expansive footprint of local phone numbers in the United States and billions of minutes of traffic on the network annually.