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  1. 1. www.telution.com
    www.telution.com/sections/news - [Cached]

    Published on: 4/14/2004   Last Visited: 7/22/2004

    The FCC felt that the rules should more closely take into account real-world attributes. [TELRIC] ignores the realities," says Bob Canavan, a managing consultant with Fujitsu's telecommunications division.
    ...
    "Not only are the states being tentatively brought into this idea of impairment," Canavan says, the FCC dropped another bomb when it made it clear that the TELRIC formula didn't have its complete blessing. "They in effect, said ‘By the way, we're not too comfortable with the pricing methodology you've been using.'"

    In the midst of all this uncertainty surrounding the future of pricing, Canavan says, ILECs and CLECs have to be careful of the economic models upon which they build their impairment and business strategies.
    ...
    "It is asking [ILECs] to aggressively build networks so their competitors can rent it at a great price," Canavan says. "Do I put money in something I'll use myself or something my competitors will use? The facts speak for themselves."

    The CLECs will fight just as hard to prevent the loss of TELRIC, Canavan says. "The CLEC side of the market would kill themselves on their swords rather than let the ILECs get the pricing opportunity," he says.

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