Virtual NXX - VZ Shutting down ISP Dial-Up

GNAP versus Verizon in Mass. has been the center of the Virtual-NXX debate. Dial-up in Mass. is in trouble. Qwest Dial-up is in trouble. ISPs like Crocker Communications are being shut down. Historically, VNXX was used for modem access. Now, the same facilities are also being used for VoIP back-end services. According to Fred Goldstein,

"CLEC FX happens when a CLEC has live customers within a rate center, but also provides FX service to ISPs or others. VNXX is when they assign numbers in a rate center where they have no real dial tone-type presence." Fred further explains, "VNXX is Foreign Exchange service by another name. To be pedantic, by at least some definitions, it's VNXX if the LEC in question does not have real live dialtone subscribers in the rate center, but provides NXX codes there anyway, and FX if the LEC does also provide some local subscribers there with dial tone. LNP simply changes the carrier; it doesn't impact the physical location of the subscriber vis a vis the rate center."

This is big business for Level(3) who has over 2000 VNXX rate centers around the country - has a FCC petition (03-266) about V-NXX. There are other big players behind the V-NXX issue - Paetec, Global NAPs, PacWest & Broadwing/Focal. Massachusetts has sided with VZ. So has Michigan with its revision to the Michigan Telecommunication Act last year by adding Section 304(9) to the Michigan PA235. CLEC lawyers are quick to submit an Order from the Washington Public Utility Commission and two Orders from a Federal District Court in Connecticut. These decisions hold, contrary to the First Circuit decision, that the ISP Remand Order applies to ALL ISP-bound traffic.