[Cybertel-Ann] FCC on Internet Peering

[Robert Cannon]

>>> A Service of www.cybertelecom.org <<< 

FOR IMMEDIATE RELEASE: September 26, 2000 News Media contact: Michael
Balmoris at (202) 418-0253

FCC RELEASES STUDY OF INTERNET BACKBONE MARKET

Study Concludes that Competitive Internet Backbone Market Should Remain
Free of Telecommunications Regulation

Washington, D.C. - The Federal Communications Commission's (FCC) Office
of Plans and Policy (OPP) today released the 32nd in its OPP Working
Paper Series, entitled "The Digital Handshake: Connecting Internet
Backbones." The paper, authored by Michael Kende, Director of Internet
Policy Analysis in the Office of Plans and Policy, examines the
interconnection arrangements between Internet backbone providers that
lead to the universal connectivity that characterizes the Internet.

Since its commercialization in 1995, the Internet has served as an
example of a network industry in which interconnection agreements are
reached through commercial negotiations in a "handshake," rather than a
regulated, environment. This paper offers a primer describing the
existing Internet interconnection agreements - notably peering
arrangements - which have arisen in place of traditional regulation.
Issues covered include: 

Interconnection Agreements - The paper shows how competition, governed
by antitrust laws and competition enforcement, can prevent the emergence
of a dominant firm, and act to restrain larger backbones from engaging
in behavior that might otherwise warrant industry-specific regulations,
such as interconnection obligations.

Future Internet Services - The paper shows how the Internet marketplace
may prevent any fragmentation of the Internet as it evolves to support
new real-time services.

International Interconnection - The paper concludes that legacy
international telecommunications cost-sharing models are not appropriate
for the Internet backbone. 

OPP periodically issues working papers on emerging issues in
communications; these papers represent the individual views of their
authors and do not necessarily reflect the views of the FCC, any FCC
commissioner, or other staff.

A summary of the working paper is attached. The full text is available
on the FCC's web site at www.fcc.gov. 

http://www.fcc.gov/Bureaus/OPP/News_Releases/2000/nrop0002.html
http://www.fcc.gov/Bureaus/OPP/working_papers/oppwp32.doc
http://www.fcc.gov/Bureaus/OPP/working_papers/oppwp32.pdf


                                                  - FCC -

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