Many of the pricing issues that come up with WAN services involve LATA boundaries. But unless you've been working in this industry segment for a long time, being asked to actually define a LATA might throw you for a loop (pun intended).
"LATA" stands for "local access and transport area." LATAs are geographic areas that dictate where the former Bell operating companies (now often called incumbent local exchange carriers, or "ILECs") can offer communications services. All LATA boundaries are defined in the Modified Final Judgment (MFJ) -- the rules that set forth in 1984 how the member companies of the former AT&T Bell System monopoly could operate.
Under the auspices of the MFJ, an ILEC can only offer intra-LATA services (those that fall within their service region). This is in effect until the Federal Communications Commission decides that, per the Telecommunications Act of 1996, competition in the local market is thriving sufficiently to merit allowing these carriers into the nationwide inter-LATA (long-distance) arena.
An ILEC may offer intra-LATA "local toll services" within the LATA boundaries -- communication services that stretch beyond a customer's local service area but do not spill over outside the LATA boundary. The rates for "local toll" services are generally controlled by a state's public utilities commission.
Services that cross boundaries are reserved for interexchange (IXC) carriers, such as AT&T, MCI, and Sprint. And between points that fall completely outside their service areas, the ILECs can also offer toll services, since there is no presumed competitive advantage from their also providing local service. What they cannot do is stretch their services from their own local service areas to another ILEC's area -- leaving a gap in service coverage for many frame relay users.
Crossing LATA boundaries requires interconnection with another carrier, which is dependent on Network-to-Network Interface (NNI) services, and those services to date are scarce. Because of this, and the fact that most major interexchange carriers offer at least one point of presence within each LATA, ILEC services tend to be used most often by customers with sites located in local clusters. But beware of assuming that the "one-POP-per-LATA" buildout of the IXCs will always mean that your service will be less expensive. More on that in an upcoming newsletter.
Steven Taylor, consultant and broadband packet evangelist, and Joanie Wexler, an independent networking technology editor and writer, team up to bring you this analysis and commentary. Taylor specializes in education and market analysis, and Wexler adds incisive reporting and research. For more detailed information on most of the topics discussed in this newsletter, connect to www.webtorials.com, the first Web site dedicated exclusively to market studies and technology tutorials in the Broadband Packet areas of Frame Relay, ATM, and IP. Feedback and additional topic ideas are welcome. Please contact taylor@webtorials.com or joanie_wexler@mindspring.com.
Service interworking cost savings:
Considerations on going with a local or regional carrier. Network World on Frame Relay, 4/28/98.
FCC drops ball on RBOC regulation:
A look at an FCC decision on RBOC service areas. Network World, 8/10/98
