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ATTACHMENT 12: COMPENSATION/SOUTHWESTERN BELL TELEPHONE, L.P.
SBC TEXAS/CLEC JOINT PETITIONERS
PAGE 4 OF 15
082505
call is terminated between SBC TEXAS and CLEC in Texas. The Parties will notify each other of
the date when the first commercial call is terminated in Texas between SBC TEXAS and CLEC
pursuant to this Section. Where CLEC and SBC TEXAS have exchanged traffic for less than nine
(9) months prior to entering this Agreement, Bill and Keep will be the compensation arrangement
for nine (9) months less the time traffic has already been exchanged under another Agreement. At
the completion of the nine month period, if the difference between the traffic volumes flowing
between the two networks in Texas exceeds ten percent of the larger volume of traffic, the rates,
terms and conditions in Section 3.0 for Section 251(b)(5) Traffic shall apply and the rates, terms
and conditions in Sections 1.5.2 through 1.5.4 for ISP-Bound Traffic shall apply. The ten percent
threshold should be calculated on a per-minute basis. When traffic exceeds the ten percent
threshold, SBC TEXAS and CLEC will compensate each other for all calls unless the Parties agree
to apply the compensation rates only to the volume of traffic that exceeds ten percent. The
reciprocal compensation rates as adopted herein apply to calls that originate and terminate within
the mandatory single or multi-exchange local calling area of SBC TEXAS including the mandatory
EAS areas served by SBC TEXAS. Bill and Keep applies only to Section 251(b)(5) Traffic as
defined in Section 1.0 and ISP-Bound Traffic as defined in Section 1.2 of this Attachment and does
not include Transit Traffic, Optional Calling Area Traffic, IntraLATA Interexchange Traffic, Meet
Point Billing Traffic, FX Traffic, FGA Traffic or Cellular Traffic.
1.5.2 Intercarrier Compensation Rate for ISP-Bound Traffic:
1.5.2.1 The Parties agree to compensate each other for ISP-Bound Traffic on a minute of use
basis at $.0007 per minute of use.
1.5.2.2 Payment of Reciprocal Compensation on ISP-Bound Traffic will not vary according to
whether the traffic is routed through a tandem switch or directly to an end office switch.
Where the terminating party utilizes a hierarchical or two-tier switching network, the
Parties agree that the payment of these rates in no way modifies, alters, or otherwise
affects any requirements to establish Direct End Office Trunking, or otherwise avoids the
applicable provisions of the Interconnection Agreement and industry standards for
interconnection, trunking, CPN, call transport, and switch usage recordation.
1.5.3 ISP-Bound Traffic Rebuttable Presumption
In accordance with Paragraph 79 of the FCC’s ISP Compensation Order, CLEC and SBC TEXAS
agree that there is a rebuttable presumption that any of the combined Section 251(b)(5) Traffic and
ISP-Bound traffic exchanged between CLEC and SBC TEXAS exceeding a 3:1 terminating to
originating ratio is presumed to be ISP-Bound Traffic subject to the compensation terms in this
Section 1.5. Either Party has the right to rebut the 3:1 ISP presumption by identifying the actual
ISP-Bound Traffic by any means mutually agreed by the Parties, or by any method approved by
the Commission. If a Party seeking to rebut the presumption takes appropriate action at the
Commission pursuant to section 252 of the Act and the Commission agrees that such Party has
rebutted the presumption, the methodology and/or means approved by the Commission for use in
determining the ratio shall be utilized by the Parties as of the date of the Commission approval and,
in addition, shall be utilized to determine the appropriate true-up as described below. During the
pendency of any such proceedings to rebut the presumption, CLEC and SBC TEXAS will remain
obligated to pay the presumptive rates (reciprocal compensation rates for traffic below a 3:1 ratio,
the rates set forth in Section 1.5.2.1 for traffic above the ratio) subject to a true-up upon the
conclusion of such proceedings. Such true-up shall be retroactive back to the date a Party first
sought appropriate relief from the Commission.