Biennial Review of the Reform of the International Settlements Policy and Associated Filing Requirements

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This document removes outdated rules that govern the manner in which U.S. international telecommunications carriers relate to foreign carriers that provide service in competitive markets. The Commission concludes that it should remove the existing international settlements policy (ISP): for settlement arrangements between U.S. carriers and foreign telecommunications carriers that lack market power; and for all settlement arrangements on routes where U.S. carriers are able to terminate at least 50 percent of their U.S. billed traffic in the foreign market at rates that are at least 25 percent below the applicable benchmark settlement rate. The Commission believes that the new rules will create greater incentives for U.S. carriers to adopt business strategies that will enable them to obtain low rates to terminate U.S. traffic in foreign markets.