what’s with cabs? › wp-content › uploads › 2017 › 09 › cabs_2017.pdfover 6 million...
TRANSCRIPT
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What’s with CABS?
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Today’s AgendaIndustry HistorySwitched AccessSpecial Access
Where From HereMACC CABS
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CABS HistoryBirth of the Telephone
March 7, 1876‐ Alexander Graham Bell is issued patent for the telephone
Initially considered a passing novelty
1877‐American Telephone and Telegraph purchases Bell patents and controls all rights until 1894During that timeframe, 270,000 households had telephones, mostly concentrated in centers of cities
1894‐AT&T’s patent rights expire and their first monopoly of the telephone industry comes to an end
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CABS HistoryBirth of the Telephone (continued)
1894‐1907: Competition explodes and over 3,000 telephone companies are vying for customers Over 6 million households now have telephones with service available throughout the
country Lines were equally divided between AT&T and competitors Ability to connect calls between companies was limited
1910: New AT&T President Theodore Vail embarks plan to reduce and eliminate competitors AT&T begins buying and consolidating competing companies Befriends policy makers and regulators and gains their support
By 1913, AT&T had essentially re‐established their monopoly of the telephone industry
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CABS HistoryBirth of the Telephone (continued)
By 1982, AT&T had grown into a huge company
$150 Billion Dollars in assets$70 Billion Dollars in RevenuesOver 1 million employeesOperated 22 local exchange companies in addition to LD serviceOwnership interest in Western Electric ensured that AT&T also made huge profits from manufacturing of telephone equipment
Justice Department decrees company has grown too large and issues order to break up the monopoly
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CABS HistoryBreakup of the Bell System
January 8, 1982
AT&T monopoly breakup – Long distance/local service
AT&T proposes alternative Give up their 22 LEC’s and create 7 Regional Bell Operating Companies
(RBOC) Maintain LD Service Maintain Control of Western Electric Keep Yellow Page trademark
January 1, 1984 – Merged into seven RBOC’s (70% value loss for AT&T)
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RBOC’sNYNEX – Bell Atlantic (now part of Verizon)Pacific Telesis – (acquired by SBC – now AT&T Inc)Ameritech – (acquired by SBC – Now AT&T Inc)Bell Atlantic – (merged with GTE to form Verizon)SWB – (acquired AT&T Corp )Bell South – (acquired by AT&T Inc)US WEST – (acquired by Qwest – now CenturyLink)
Also, two partially owned by AT&TCincinnati BellSouthern New England Telephone (SNET) (now part of Frontier Communications)
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The Effects
• Surge in competition (Sprint and MCI)• Western Electric became Lucent, now Nokia• AT&T left with AT&T Long Lines and AT&T Communications
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AT&T Merger History(Post Break‐up)1991 – Purchases NCR (National Cash Register)1994 – Purchases McCaw Cellular (largest cell company)1995 – Purchases Alaska Comm Systems (Alascom)1997 – Purchases TCI and Media One (AT&T becomes the largest cable TV provider in the world)1998 – AT&T aligns with BT (Begins offering VOIP)1999 – Purchases IBM Global Network (Handles IBM Network Needs)2000 ‐ Major Re‐organization (Moves Mobile Phone and Broadband into separate companies)
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(Continued)2001 – Spins off AT&T Wireless and AT&T Broadband2002 ‐ Comcast buys AT&T Broadband2004 – AT&T Wireless merges with Cingular Wireless until 2007 then becomes AT&T Mobility
Southwestern Bell (SWB)1995 – Become SBC Communications1996 – Acquires Pacific Telesis (RBOC)1997 – Tries to merge with AT&T (FCC Denies)1998 – Acquires SNET (RBOC)
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SWB (Continued)1999 – Purchases Comcast Cellular2005 – Purchases AT&T Corp ($16 Billion – FCC Approves)2005 – SBC Communications adopts the name AT&T Inc.2006 – New AT&T Inc. purchase Bell South (RBOC)
New AT&T Inc. Restructures2007 – Moves into Rural areas with High Speed Internet2007 – Purchases Interwise (Leader of voice, Web and Video Conferencing) 2007 – Purchases More Spectrum Band
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New AT&T Inc. (Continued)2007/2008 – Wireless Acquisitions Begin (Cellular One/Centennial Communications/Wayport)2011 – Purchases more spectrum from Qualcomm ($1.9 Billion)2011 – Attempts to purchase T‐Mobile (would make AT&T Mobility the largest mobile company in the US – Dept. of Justice files suit to stop merger – AT&T Inc. withdraws offer)
Latest Developments2013 – AT&T Inc. moves into Latin America2014 – AT&T Inc. purchases Direct TV (Subject to 4 year conditions)
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Latest Developments (Cont)2016 – In talks to purchase Time Warner (waiting regulatory approval)2017 – AT&T to introduce cloud based DVR streaming
As you can see – AT&T continues to be aggressive in their overall business model just as they were in 1877 when they started to monopolize the telecommunications industry
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Carrier Access Billing (CABS)
WhyResidential Rates rise faster than inflation Long Distance rates fall FCC establishes access charges to offset changes (term. and orig.)
Carrier Access Billing is createdAllows Telephone companies to bill IXC’s for accessing their networkSwitched Access TrafficSpecial Access Traffic
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Carrier Access Billing (CABS)Switched Access Billing
Allows LEC’s to recover costs for building and maintaining infrastructure for their end usersBilled on a minute of use basisRates based on jurisdiction—Interstate vs. IntrastateRates based on traffic type—Originating vs. TerminatingTariffs filed for each jurisdiction and traffic type
End Office Rate ElementsTandem Switched or Direct Trunked Transport Elements
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Carrier Access Billing (cont)Switched Access Billing
MACC accumulates the minutes of useMACC applies the charges per the tariff
Carrier by Carrier Individual Statements (CABS Bill)Distributed to the carrier for payment
MACC Consolidated Billing Industry Leader Small Carrier Bills Consolidates all MACC Clients onto single bill to carrier Payments monthly and Detail Provided Improved Payment History
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Carrier Access Billing (CABS)Special Access Billing
Allows LEC’s to recover costs for building and maintaining infrastructure for their end usersDedicated Line allowing open flow of voice or dataBilled on a flat‐rated basis—not per MOURates based on jurisdiction—Interstate vs. IntrastateTariffs filed for each jurisdiction
Many offerings available based on speed and volume needs Can be billed to IXC or directly to the end user
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Carrier Access Billing (cont)
Special Access Billing
MACC receives Access Service Request (ASR) from client and enters circuit into billingMACC applies the charges based on type of circuit per tariffed ratesVoice Grade, Digital Data, High Capacity, etc.Ethernet speeds available from 2MBPS to 10 GBPS
Flat‐rated—same amount is billed each month until circuit is removed or tariff updated
Invoice created and distributed to carrier or end user
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Special Access ETS• Traditional Offering for flat rated service between end users
• Various speed offerings– Voice Grade 2W & 4W– Digital Data 2.4‐64K– High Cap DS1 & DS3– Optical Channel OC3‐12
• More Reliable• Costlier*
• New Kid on the block for flat rated service
• Also provides various speed offerings– 2Mbps 5Mbps– 10Mbps 20Mbps – 50Mbps 100Mbps– 250Mbps 500Mbps– 750 Mbps 1 Gbps– 5Gbps 10 Gbps
• Less Reliable• Less expensive*
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Carrier Access Billing (cont)Implementation of CABS created need for overseers of industry
1984‐National Exchange Carrier Association (NECA) created to administer fees charged by LEC’s to IXC’sNECA Tariff No. 5 maintains and updates switched and special access rates used by its member companiesMany services are rate banded, allowing members to bill based on cost requirements of each individual member
NECA Tariff No. 4 maintains and updates all routes filed between existing officesBilling authority for the billing of facility charges for switched and special access
Lists mileage and % ownership of each route listed in tariff
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Carrier Access Billing (cont)Implementation of CABS created need for overseers of industry
Local Exchange Routing Guide (LERG) created to maintain network information for telecommunication companiesConsists of 15 separate databases to support routing of calls by service providers
Updated monthly to identify changes in networksProvides data to support routing of calls by service providers in public switched telephone network
All network changes should be filed with both NECA and LERG
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Lets Dig a Little Deeper
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CABS BillingSwitched and Special Access
Pre – Divestiture
Post‐ Divestiture
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Switched Access
• Pre‐divestiture BillingEnd‐to‐End BillingAT&T only Long Distance optionNo Jurisdictional ParametersAT&T billed toll charges to End UserSettlement process between AT&T and local telephone company
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Switched AccessSwitched Access Overview‐Pre‐divestiture
End User Local Phone Co. Bell Office Bell Office Local Phone Co. End User
AT&T LD
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Switched Access• Post‐divestiture Billing Point to Point BillingMultiple options for Long Distance Providers Jurisdictional Parameters‐‐Interstate or Intrastate &
Interlata and Intralata Three or more companies eligible to bill portion based on
route ownership Each entity bills IXC for their portion IXC bills toll charges to end user
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Switched Access
Switched Access Overview—Post Divestiture
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Switched Access
Switched Access Overview—Post Divestiture
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Special Access• Pre‐divestiture BillingEnd‐to‐End BillingAT&T Long Lines generated total billNo Jurisdictional ParametersBilled one Channel Termination on each endBilled Channel Mileage Element measured rate center to rate center for mid‐portion pieceAT&T Billed End User and reimbursed telephone companies for Channel Termination charge
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Special Access
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Special Access• Post‐divestiture BillingPoint to Point BillingMost circuits provisioned through an IXC Jurisdictional Parameters‐‐Interstate or Intrastate Three or more companies eligible to bill portion based on route ownership
Each entity bills IXC for their portion IXC adds charges for their piece and bills end user for the total circuit
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Special Access
Special Access Service Overview‐Post Divestiture
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Where From Here
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FCC ICC Transformation Order Reminders
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Annual Rate Changes
• July 1, 2013 – Terminating switched end office and transport rates and recip comp, if above the carrier’s interstate access rate, were reduced to parity with interstate access rate.
• July 1, 2014 – Terminating switched end office and recip comp rates are reduced by one‐third of the differential between end office rates and $.005. Note: Transport rates remain unchanged.
• July 1, 2015 – Reduce by an additional one‐third differential to $.005.• July 1, 2016 – Reduce all to $.005.• July 1, 2017 – Terminating end office and recip comp rates are reduced by one‐
third of the differential between $.005 and $.0007.• July 1, 2018 – Reduce an additional one‐third of the July 1, 2016 rate and
$.0007• July 1, 2019 – Reduce all to $.0007• July 1, 2020 – All goes to bill and keep. (Terminating End Office Only)
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MACC CABS
• Since the Beginning – 1982• Serve 375 Clients Nationwide• Dedicated Staff – over 20 year average experience
• Full Line Service Bureau – we maintain it all for you
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Resources
• E‐DataMaster Reports• Trending and Quality Control • Consolidated Billing Option• Access Mart Web Portal• Highly Rated Customer Service
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Questions
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Thank You