Common use of Compensation for Local Traffic Clause in Contracts

Compensation for Local Traffic. 4.1 All Local Traffic shall be exchanged between the Parties on a Bill and Keep basis. Under a Bill and Keep compensation arrangement, each Party retains the revenues it receives from End User customer, and neither Party pays the other Party for transport and termination of the traffic which is subject to the Bill and Keep arrangement. The specific compensation terms and conditions set forth in this Section 4.1 are limited to the exchange of Local Traffic between the Parties. 4.2 Neither Party shall provide the other VNXX traffic. CLEC certifies that due to the mass availability and portability of IP-based CPE, some of the traffic it sends to ILEC for termination may be Nomadic Traffic. Nomadic Traffic is traffic originating from an Internet Protocol (“IP”) device other than at the End User’s service location. The Parties understand and agree that some small amount of Nomadic Traffic is likely to be exchanged and wish to ensure that ILEC is properly compensated for such traffic. As a result, the Parties will initially assume that 2% of traffic exchanged is Nomadic Traffic and ILEC will bill its applicable interstate switched access rates for 2% of the local traffic sent by CLEC for termination. CLEC agrees that it will update the percentage notice according to the notice provisions of this Agreement and ILEC may request that CLEC review and update such percentage on a not more often than a quarterly basis.

Compensation for Local Traffic. 4.1 All Local Traffic shall be exchanged between the Parties on a Bill and Keep basis. Under a Bill and Keep compensation arrangement, each Party retains the revenues it receives from End User customer, and neither Party pays the other Party for transport and termination of the traffic which is subject to the Bill and Keep arrangement. The specific compensation terms and conditions set forth in this Section 4.1 are limited to the exchange of Local Traffic between the Parties. 4.2 Neither Party shall provide the other VNXX traffic. CLEC certifies that due to the mass availability and portability of IP-based CPE, some of the traffic it sends to ILEC for termination may be Nomadic Traffic. Nomadic Traffic is traffic originating from an Internet Protocol (“IP”) device other than at the End User’s service location. The Parties understand and agree that some small amount of Nomadic Traffic is likely to be exchanged and wish to ensure that ILEC is properly compensated for such traffic. As a result, the Parties will initially assume that 2% of traffic exchanged is Nomadic Traffic and ILEC will bill its applicable interstate switched access rates for 2% of the local traffic sent by CLEC for termination. CLEC ▇▇▇▇ agrees that it will update the percentage notice according to the notice provisions of this Agreement and ILEC may request that CLEC review and update such percentage on a not more often than a quarterly basis.