The use of “end-to-end” analysis to conclude that Internet-bound calls are interstate, rather than local, and, therefore, not eligible for reciprocal compensation was unjustified, the U.S. Court of Appeals for the District of Columbia held March 24 in vacating and remanding a ruling of the Federal Communications Commission (Bell Atlantic Telephone Cos. v. Federal Communications Commission, D.C. Cir., No. 99-1094, 3/24/00).

Section 251(b)(5) of the Telecommunications Act of 1996, 47 U.S.C. ��151-714, requires local exchange carriers (LECs) to “establish reciprocal compensation arrangements for the transport and termination of telecommunications.” When LECs collaborate to complete a call, this provision ensures compensation both for the originating LEC, which receives payment from the end-user, and for the recipient’s LEC.

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