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Inside Telecom: VoIP is Access Billable

When the Universal Service Fund (USF) and Intercarrier Compensation (ICC) Reform Order is released by the FCC, the order is expected to identify that Voice over Internet Protocol (VoIP) usage terminating to the Public Switched Telecommunications Network (PSTN) is billable at interstate access rates.  Identifying that VoIP is access billable is a huge step, one that many industry organizations have been trying to get the FCC to take a stand on for many years.  Absence of this stand has caused disputes and lost ICC revenues for many small rural Local Exchange Carriers (LEC’s).

Identifying that VoIP usage is billable at interstate access rates will cause changes in billing software.  For the most part, there is no way to differentiate VoIP-originated usage from non-VoIP-originated usage in today’s software.  In the industry standard Exchange Message Interface (EMI) record format – the standard record exchange format for Call Detail Records (CDR’s) in the industry – there are indicators with values to identify IP-originated or IP-terminated usage.  However, NISC has studied Members’ usage and found very few records with these indicators populated, leading us to question those that were populated.

In today’s world, there really is no way for originators of VoIP traffic to identify themselves.  Down the road, it is expected that access customers will order Session Initiation Protocol (SIP) trunks.  Once this happens, all usage on SIP trunks will be IP signaled which may allow the industry to start populating the indicators in the CDR’s so billing systems can differentiate between VoIP-originated usage and non-VoIP usage.

In proposals that provided input to the FCC order, there was language that discussed the possibility of a VoIP factor, knowing there was no way to distinguish VoIP-originated usage today.  Once the order is released, it will need to be determined if there is language regarding a VoIP factor. The industry currently does not support a VoIP factor, so there will need to be discussions and decisions regarding this factor.

Once the industry can accurately populate VoIP indicators in the CDR’s, NISC will write software around these indicators to identify actual VoIP usage from non-VoIP usage.  Our preference is to use actual usage wherever possible and only factor usage where necessary.

It is uncertain when the order will be published, but many additional details will be clearer once it is available.

For further information, the FCC’s Executive Summary of the order can be found at this link:

http://www.fcc.gov/document/connect-america-fund-commission-meeting-item-executive-summary