Friday, October 28, 2005 - The Progress & Freedom Foundation Blog

Interconnection without Regulation

Level 3 and Cogent have worked it out. Neither the service disruption and nor the use of your own customers as hostages evidence a mature industry that has worked out the contracting methods and terms that would avoid these two unendurable outcomes. Nevertheless, the parties did reach a private accommodation, without the intervention of a regulator. Furthermore, the continual rentseeking and manipulation that regulated interconnection was avoided.

I would expect that you don't need but one Level 3-Cogent service disruption for it to never happen again. The business and reputational effects on both parties were horrendous. Such derision usually makes coming to an agreement much easier.

posted by Ray Gifford @ 1:46 PM | Internet