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FCC Delays Intercarrier Compensation Provision

WASHINGTON (CN) - The Federal Communications Commission says it will delay, until July 1, implementation of a new compensation plan between local telephone carriers and commercial mobile radio service operators.

As part of its new Connect America Fund, on Dec. 29 of last year, intercarrier compensation between exchanges was supposed to switch to a bill-and-keep billing system, in which carriers agree not to charge each other termination fees for calls on each others' networks.

The delay is meant to allow carriers to apply for and receive revenue recovery from the fund to help cover the costs of transition to the new system.

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