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Monday January 26, 2004 Darwin's All For ISP Evolution If Sir Charles Darwin were alive today and looked around at the telecommunications industry through the eyes of his Theory of Evolution, what do you think he'd see on this digital island? Would he say that incumbent local exchange carriers (ILECs) are adaptable, simply responding to their environment slowly, like a Galapagos tortoise? Would he propose that CLECs and their data-only prodigy are currently in the midst of the process Darwin dubbed natural selection? Would Regional Bell Operating Companies be the only predatory sea lion-like species on this isles? And how do you suppose Darwin would view ISPs? Would and ISP be comparable to the dodo bird, haplessly going about its business until the final phase of evolution—extinction, or would Darwin observe something entirely different? Communications
domain When the FCC took the ax to reciprocal compensation in April, ISPs lost their most-favored nation status with many local carriers. Way back when the Telecom Act was amended, circa 1996, CLECs were granted survivalist clout. By their very nature, competitive and local to their surroundings, CLECs were far more adaptable to their habitat than RBOCs or incumbent carriers. By forming a symbiotic relationship with ISPs, some CLECs evolved toward living off local call termination moneys, rather than diversifying their diet on incremental revenues. Fast-forward five years to today's environment, and ISPs are no longer the darlings of CLECs. Where ISPs could once benefit from favorable rates for IP traffic, finding Dec ent upstream connections and rates has suddenly become much, much more difficult.In fact, many ISP owners figure that they will have to increase their monthly bill to customers once CLECs start passing along the price of lost reciprocal compensation revenues. Source: Courtesy of ISP Planet, author Jim Wagner Visit our News Archive: Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec
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