TELECOM Digest OnLine - Sorted: Third Time's No Charm

Third Time's No Charm

Eric Friedebach (
17 Mar 2005 11:25:22 -0800

David M. Ewalt, 03.17.05,

NEW YORK - Benjamin Franklin once remarked that the definition of
insanity is repeating the same action over and over and expecting
different results. If that's true, then someone needs to fit Qwest
Communications International Chief Executive Richard Notebaert for a

Wednesday night, Qwest submitted yet another bid to purchase MCI,
upping its offer to $8.45 billion in cash and stock, or about $26 per
share. The new offer is up significantly from the $8 billion Qwest
offered just over two weeks ago. The cash part of the deal was
increased to $10.50 a share from $9.10, with the stock terms unchanged
at $15.50.

This is the third offer Qwest has made, and it's likely to be the
third offer MCI will ignore. Last month, the company accepted an offer
from Verizon Communnications for $6.75 billion, or about $20.75 a
share, even though MCI CEO Michael Capellas and his board were well
aware that Qwest was willing to pony up more cash.

{Hey Pat, looks like you could use one of those pallets of dog food I
see at Sam's Club!}

Eric Friedebach
/An Apollo Sandwich from Corky & Lenny's/

[TELECOM Digest Editor's Note: Yes, I could use one, Eric. Right now
the monster is in _my_ bedroom, on _my_ bed, sound asleep. PAT]

Date: Thu, 17 Mar 2005 14:42:46 -0500
From: Jack Decker <jack-yahoogroups@withheld on request>
Newsgroups: comp.dcom.telecom
Subject: FCC May Allow VOIP Access Charges
Message-ID: <>
Organization: TELECOM Digest
X-Telecom-Digest: Volume 24, Issue 120, Message 11 of 25
Lines: 59

The Federal Communications Commission (FCC) is expected to deny a
forbearance petition that has kept VOIP providers from paying PSTN
access charges, just days before the Commission's March 22 deadline,
sources close to the Commission say.

When this happens, VOIP providers will be subject to access charges
for terminating their calls on other carrier networks. But all is not
lost for the VOIP crowd.

The FCC is expected to deny the forbearance request before Tuesday,
rather than let the deadline pass, sources say. But soon after, the
FCC may also order a rule change further exempting the VOIP carriers
from access charges. Either way, the resolution of the situation will
have very serious implications for the fledgling VOIP industry.

"I know there will be order of denial on the forbearance," says Staci
Pies, vice president of governmental and regulatory affairs at VOIP
provider PointOne Telecommunications.

"But because of the way they will deny it, following that will be an
additional order that will change the rules in such a way that Level 3
and others like them will be afforded relief," says Pies, who
worked at Level 3 when the petition was filed, and before that held an
office at the FCC in Washington.

"The commissioners understand that it doesn't make any sense to deny
the forbearance because the rules are substandard, and then not change
the rules," Pies says.

Background: The forbearance petition was filed a year ago by VOIP
provider Level 3 Communications Inc., and since then the VOIP industry
has watched for the Commission to grant or deny it, hoping all the
while that it would do neither as the deadline approached. If the
Commission did let the deadline pass, it would mean that VOIP carriers
would continue to be exempt from the access charges.

Outgoing chairman Michael Powell, in one of the last actions of his
term, has reportedly floated two possible responses to the Level 3
petition, sources close to the situation say. The first is an outright
denial of the forbearance petition, and the second is an 'interim'
rule change that would further protect Level 3 and others from the
access charges.

Telecom carriers, on the other hand, believe that the FCC will deny
the petition -- period.

Full story at:

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