1. Level 3 Petition for Forbearance from Interstate and Intrastate Switched Access Charges Victoria R. Mandell Regulatory Counsel Level 3 Communications, LLC

2. 2 Summary of Level 3 Forbearance Petition Purpose: Have the FCC eliminate all legal bases for levying access charges on IP-PSTN VoIP traffic and some (such as call forwarded or leaky PBX) PSTN-PSTN traffic. Effect if granted: All traffic exchange for IP- PSTN and covered PSTN-PSTN traffic will be done pursuant to reciprocal compensation agreements, and can therefore be exchanged over co-carrier trunks rather than Feature Group D. State access charges are also preempted.

3. 3 IP-PSTN Traffic Covered Traffic originates on the PSTN – Within the same LATA as the point of interconnection between the LEC and the interconnected telecom. carrier. Is passed to an end user from an IP network in IP format. Traffic originates on an IP network – Is delivered by the interconnected telecom. carrier to the LEC in the same LATA as the Called Party. Symmetrical Rates Exception for traffic exchanged with a LEC in an area served by an ILEC subject still subject to Section 251(f)(1)’s rural exemptions.

4. 4 VoIP - No Access Charges Level 3 Petition resolves uncertainty on treatment of VoIP traffic during interim period pending comprehensive reform. Three RBOCS in their interconnection agreements with Level 3 have agreed that VoIP traffic rides on the interconnection trunks. Model Recently Submitted to FCC Analyzing and Quantifying the Impact of Applying Switched Access Charges to VoIP Services.

5. 5 FCC Forbearance Petition -- Timeline Filed December 23, 2003. FCC Public Notice issued January 2, 2004. Initial Comments due: March 1, 2004. Reply Comments due: March 31, 2004. 12 month Statutory Deadline: December 23, 2004. + 90 Day Extension: March 22, 2005.