AT&T Updates Its Plans to Terminate Current ILEC-to-ILEC Traffic Agreements

On June 30, AT&T updated its notice to carriers concerning its termination of traffic exchange agreements and the cessation of reciprocal compensation and switched access payments (see JSI’s June 2, 2020, e-Lert on the original notice). The updated notice states that AT&T no longer demands termination of current traffic exchange agreements, but it will stop paying ILECs for terminating switched access and reciprocal compensation.

Instead of unilaterally terminating the agreements as the original notice stated, AT&T is now initiating company-specific negotiations to replace existing traffic exchange arrangements, such as traffic termination agreements and extended local calling arrangements.  Several of these requests for negotiation were sent out yesterday. Unlike the original notice, these company-specific notices do contain a specific AT&T contact for the negotiations.

Although this notice provides some extension of the existing arrangements, AT&T is still stating it will stop paying any reciprocal compensation and switched access now. If companies receive compensation associated with a state required plan, JSI does not believe AT&T can unilaterally stop paying without first negotiating a new agreement.

ILECs with connections to or traffic routed through AT&T should respond to the request for negotiations. JSI is currently working with several companies and state coalitions to negotiate replacement agreements with AT&T.  If you would like JSI to negotiate on your behalf, please contact our experts by clicking the button below.

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