DEFICIENCIES OF TELRIC
PRICING: THE ILEC'S RIGHT UNDER ANTITRUST
, UNE rates are based on the element's "economic
reconsider how the TELRIC
pricing methodology deals with the firm's
The FCC excluded opportunity cost from TELRIC
as part of the
This, in turn, is why it is so important to ensure that TELRIC
prices do not come into direct conflict with other pricing systems that are simultaneously imposed upon the ILECs.
Like the comment concerning the legality of TELRIC
pricing, this comment is woefully outdated, as the RBOCs now have Section 271 authority in all 48 continental states and the District of Columbia.
Indeed, Alfred Kahn, one of the harshest critics of TELRIC
pricing rules, has stated that "It is difficult-- ...
(84) However, this implication presupposes the lack of TELRIC
pricing requirements as preconditions to receiving authority under Section 271 of the '96 Act to provide long distance services and the fact that the FCC had found the ILEC cut over process inadequate for handing off customers' traffic to a competitor.
The FCC mandated that UNE prices be based on the Total Element Long Run Incremental Cost (TELRIC
) standard, a forward-looking economic cost methodology.
The stick, as implemented in the FCC rules, mandated that incumbent local exchange carriers (including Bell companies) allow requesting carriers to: interconnect to their local networks where feasible with charges based on Total Element Long-Run Incremental Cost (TELRIC
); unbundle network elements and provide requesting carriers access to these at TELRIC
prices; and resell telecommunications services provided at the retail level to requesting carriers at a wholesale price based on retail prices minus avoidable costs.
This article is not the venue to explore problems created by the alphabet soup of FCC's telecom programs like TRO, TELRIC
consumers and businesses, the current cynicism, ideological bias and outright ignorance towards UNE-P and TELRIC
pricing must come to an end."