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Home Communications Policy

A Local Story, A National Threat

by Dana Blankenhorn
May 1, 2006
in Communications Policy, Internet, politics, regulation
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Gnaps
The story has spread over the Internet this weekend like wildfire.

Verizon has won a ruling that it can charge local calls to ISPs as toll calls.

The issue specifically involves an outfit called Global NAPs, which acted as an "ISP’s ISP," offering a huge modem bank to several other ISPs for dial-up service.

The business started in the 1990s as a sort of scam against what’s now Verizon. By aggregating a lot of modems and defining the local calling area widely, the company could claim "recipricol compensation" from Verizon. Verizon had that stuffed on the federal level in 2001. Then in 2003 it got state regulators to let it define things its way, making what had been local data calls into long-distance. Global NAPs protested, and the precedents looked good, but the US First Circuit ruled for the state last week, on technical grounds.

Thus, Verizon cut off Global NAPs, and dial-up service to most competing ISPs in Massachusetts.

This is a complex issue. It is an in-state issue. But it’s one that
could come to every other state, because local phone monopolies can
manipulate nearly every state regulatory commission, and have every
incentive to do so.

Could it happen where you live? Yes, but it will take time.

Can you do something about it? Yes, if you live in Massachusetts, you
have an obligation to make this a big political issue, and hold
politicians’ feet to the fire on it.

This is how political change happens.

This could turn out to be good news. If people pay attention.

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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn began his career as a financial journalist in 1978, began covering technology in 1982, and the Internet in 1985. He started one of the first Internet daily newsletters, the Interactive Age Daily, in 1994. He recently retired from InvestorPlace and lives in Atlanta, GA, preparing for his next great adventure. He's a graduate of Rice University (1977) and Northwestern's Medill School of Journalism (MSJ 1978). He's a native of Massapequa, NY.

Next Post

Democrats Get Played on Internet Competition

Comments 3

  1. Appellate Law says:
    19 years ago

    More on Global Naps

    While I read Global NAPS v. Verizon, No. 05-2657, in terms of its procedural and constitutional aspects, Dana Blankenhorn (And the Open-Source World) reads it in terms of its practical implications, narrows it down to this: Verizon has won a

    Reply
  2. Major_Waffles says:
    15 years ago

    You might wish to check out http://bewareofbroadvoice.com, Shows what Global Naps & Family have been up to for the last 10 years.

    Reply
  3. Major_Waffles says:
    15 years ago

    You might wish to check out http://bewareofbroadvoice.com, Shows what Global Naps & Family have been up to for the last 10 years.

    Reply

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