Trading Desk: Master Agreement Remains in Committee

Posted: 12/2000

Master Agreement Remains in Committee
By Khali Henderson

After months of deliberations, the committee drafting a bandwidth trading
master agreement is close to releasing the draft, according to H. Russell Frisby
Jr., president of the Competitive Telecommunications Association (CompTel,,
the association that organized the task force.

At press time, however, Frisby could not give a release date, saying only it
would be "soon."

The committee drafting the document had hoped to reach a consensus in time to
unveil the agreement at CompTel’s Fall Business Conference, which took place in
October in San Francisco. Committee members met during and immediately following
the conference, but they failed to resolve outstanding issues relative to QoS

The master agreement is expected to include QoS standards and to provide
resolutions for failure to deliver. Such remedies could range from credits for
limited outages to contract termination for chronic problems, Frisby says.

While the QoS clauses remain unresolved, the committee has made headway on
another issue–liquidated damages–that had stalled its deliberations earlier
this fall.

The committee has decided the amount of such damages will be calculated based
on the replacement price for comparable bandwidth units. In the event the market
price is not readily calculated, the agreement will provide for liquidated
damages equal to 125 percent of the contract price for the prorated portion of
the bandwidth unit in default.

When the committee approves the master agreement, its document will be posted
on the CompTel website for comment.

Frisby says that because of the legal and technical issues raised by
bandwidth trading, the committee expects that agreement revisions may need to be

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