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On December 24, 1996, the Commission initiated a rulemaking to revise its access charge rules to make them compatible with a competitive market envisioned by the Telecommunications Act of 1996. On May 7, 1997, in the Access Charge Reform Order, the Commission adopted revised access charge rate structure rules and adjusted the price cap productivity factor. The Commission also adopted a market-based approach to reducing overall access charge levels and moving such levels toward forward-looking economic costs.

On July 10, 1997, on its own motion, and on October 9, 1997, in response to reconsideration petitions, the Commission revised or clarified certain parts of the rules adopted in the May 1997 Access Charge Reform Order. Reconsideration petitions filed in response to the Access Charge Reform Order, if not yet addressed, will be addressed in future reconsideration orders. On November 26, 1997, in the General Support Facilities Order, the Commission adopted rules requiring price cap carriers to adjust the allocation of General Support Facilities costs and to reduce their price cap indices to ensure that regulated access rates do not recover those costs that are related to nonregulated services. Reconsideration petitions filed in response to the November 1997 General Support Facilities Order were withdrawn, and the reconsideration proceeding was terminated effective September 9, 2004. On May 27, 1999, the Commission initiated a further rulemaking seeking comment on how to adjust interstate access charges in conjunction with the removal from access charges of implicit universal service support for nonrural local exchange carriers. On August 5, 1999, the Commission adopted rules implementing the market-based approach to access charge reform, pursuant to which incumbent price cap local exchange carriers receive progressively greater pricing flexibility as competition develops. The Commission also initiated a Further Notice of Proposed Rulemaking seeking comment on additional pricing flexibility, proposing changes to the rate structure for local switching and tandem-switched transport, and citing the need to constrain access charges imposed by competitive local exchange carriers. 

On an order on May 31, 2000, the Commission adopted the Coalition for Affordable Local and Long Distance Services (CALLS) proposal, establishing a 5-year plan for a price cap on local exchange carriers and resolving many outstanding issues concerning interstate access charges and interstate universal service. On April 27, 2001, the Commission revised its tariff rules to establish benchmark access rates for competitive local exchange carriers, whereby access rates at or below the benchmark will be presumed just and reasonable and may be imposed by tariff, and access rates above the benchmark will be mandatorily detariffed. The Commission adopted a rural exemption to this benchmark scheme, recognizing that a higher level of access charges is justified for certain carriers serving rural areas.

On May 21, 2001, the Commission determined that price cap local exchange carriers should not be permitted to assess prescribed interexchange carrier charges on special access lines. On June 4, 2002, the Commission concluded a cost review proceeding in which it determined that price cap carriers' forward-looking costs justified scheduled increases to the subscriber line charge cap. On April 26, 2001, the Commission adopted rules governing competitive local exchange carrier (LEC) access charges in the CLEC Access Charge Order. Specifically, the Commission limited to a declining benchmark the amounts that competitive LECs may tariff for interstate access services, restricted the interstate access rates of competitive LECs entering new markets to the rates of the competing incumbent LEC, and established a rural exemption permitting qualifying carriers to charge rates above the benchmark for their interstate access services. 

On April 19, 2001, the Commission initiated a rulemaking to fundamentally re-examine all regulated forms of intercarrier compensation (ICC) and to test the concept of a unified regime (the "Intercarrier Compensation Rulemaking"). The Commission sought comment on unified approaches based on both intercarrier payments and alternative approaches, such as "bill and keep." In the alternative, the Commission requested comment on modifications to the existing ICC  regimes.

On June 24, 2003, in response to a petition for reconsideration, the Commission adopted a rule exempting pay phone lines from the presubscribed interexchange carrier charge (PICC). On July 10, 2003, in response to a remand by the U.S. Court of Appeals for the Fifth Circuit, the Commission released an order reaffirming two aspects of the CALLS Order: the sizing of the interstate access universal service support mechanism at $650 million, and the adoption of a 6.5 percent X-factor. On May 18, 2004, the Commission released an order that denied seven petitions for reconsideration of the CLEC Access Charge Order, clarified application of the CLEC access charge rules in several respects, and allowed originating 8YY traffic to be governed by the same declining benchmark as other competitive LEC interstate access traffic.

On March 3, 2005, the Commission released a Further Notice of Proposed Rulemaking in the Intercarrier Compensation Rulemaking. The Commission confirmed the need to replace the existing ICC  rules with a more unified approach and sought comment on seven comprehensive reform proposals submitted by industry members and others, and also on any alternative measures necessary to reform the existing ICC regimes. 

On March 5, 2007, the Wireline Competition Bureau (the Bureau) released a Public Notice inviting interested parties to update the record pertaining to petitions for reconsideration filed with respect to the rules the Commission adopted in the CALLS Order. Specifically, the Bureau requested that parties that filed petitions for reconsideration of the CALLS Order file a supplemental notice indicating those issues that they still wish to be reconsidered. The only remaining petition for reconsideration was that filed by Pathfinder. No other notices were received in response to the request to update the record pertaining to petitions for reconsideration. The Pathfinder petition for reconsideration was dismissed as moot on July 3, 2007.

On November 5, 2008, the Commission adopted an Order on Remand, Report and Order, and Further Notice of Proposed Rulemaking in several dockets, including the Intercarrier Compensation Rulemaking. In the Further Notice of Proposed Rulemaking accompanying the Order, the Commission sought comment on three draft reform proposals that were attached as appendices. Two of the attached proposals addressed comprehensive reform of the existing ICC regimes.

On February 8, 2011, the Commission adopted a Notice and Further Notice of Proposed Rulemaking in several dockets, including the Intercarrier Compensation Rulemaking. In the Further Notice of Proposed Rulemaking, the Commission sought comment on proposals to reduce inefficiency and waste in the ICC system in the near term and to comprehensively reform the ICC system in the long term. Specifically, the Commission sought comment on proposals to: (1) amend its access charge rules to address access stimulation; (2) amend its call signaling rules to address "phantom traffic"; and (3) determine the ICC obligations for interconnected Voice over Internet Protocol traffic. In addition, the Commission sought comment on long-term proposals to work with the States to gradually phase out the current per-minute ICC rates and implement a recovery mechanism, which potentially could enable some carriers to receive support from a new Connect America Fund. 

On October 27, 2011, the Commission adopted a Report and Order and Further Notice of Proposed Rulemaking (USF/ICC Transformation Order) that fundamentally reformed the ICC regimes. First, the Commission adopted rules to immediately address access stimulation and "phantom traffic." Second, the Commission adopted comprehensive ICC reform based on a uniform national bill-and-keep framework as the ultimate end state for all telecommunications traffic exchanged with a LEC. In order to facilitate predictability and stability, the Commission adopted a gradual, measured transition that focused on reducing terminating switched access rates. The Commission required carriers to cap most ICC rates as of the effective date of the Order. To reduce the disparity between intrastate and interstate terminating end office rates, the Commission next required carriers to bring these rates to parity within two steps by July 2013. Thereafter, the Commission required carriers to reduce their termination (and for some carriers also transport) rates to bill-and-keep within 6 years for price cap carriers and 9 for rate-of-return carriers. To mitigate the effect of reduced intercarrier revenues on carriers, the Commission adopted a transitional recovery mechanism. The mechanism allows incumbent LECs to recover ICC revenues reduced as part of our ICC reforms, up to a defined baseline, from alternate revenue sources: incremental and limited increases in end-user rates; and, where appropriate, universal service support through the Connect America Fund. The Commission also clarified the prospective payment obligations for Voice over Internet Protocol (VoIP) traffic exchanged between a LEC and another carrier and adopted a transitional framework for this traffic. Further, the Commission clarified certain aspects of CMRS-LEC compensation to reduce disputes and address existing ambiguity. In the Further Notice of Proposed Rulemaking, the Commission sought comment on additional topics that will guide the next steps to comprehensive reform of the ICC system initiated in the Report and Order. 

On December 23, 2011, the Commission adopted an Order on Reconsideration that modified one aspect of the transition to a bill-and-keep framework for ICC adopted in the USF/ICC Transformation Order. As adopted, the USF/ICC Transformation Order made bill-and-keep the default ICC methodology applicable to non-access traffic exchanged between local exchange carriers (LECs) and Commercial Mobile Radio Service (CMRS) providers as of December 29, 2011. The December 23, 2011, Order on Reconsideration modifies the default bill-and-keep methodology for non-access traffic exchanged between local exchange carriers and Commercial Mobile Radio Service providers to make it consistent with the state of the transitional ICC recovery mechanism, also adopted in the October 27, 2011, Report and Order, for carriers that were exchanging LEC-CMRS traffic under existing interconnection agreements prior to October 27, 2011.

On February 3, 2012, the Wireline Competition Bureau and the Wireless Telecommunications Bureau (the Bureaus) adopted an Order on delegated authority to revise and clarify certain rules adopted in the USF/ICC Transformation Order. Several of these rule revisions and clarifications relate to ICC. First, the Order corrected and revised 47 CFR sections 51.917(d)(1)(i)(3)-(4) so that the recovery mechanism calculation expressed in those rule sections corresponds to paragraph 899 of the USF/ICC Transformation Order. Second, the Order clarifies that the data filing requirements for recovery mechanism compliance monitoring and for Access Recovery Charge (ARC) justification will be as consistent with one another as possible, and will be in the same or similar format where possible. Third, the Order clarified that the prospective VoIP-PSTN framework adopted in the USF/ICC Transformation Order applies to the interstate rates as well as the interstate structure, including both per-minute (usage sensitive) and flat rates (dedicated) charges. Fourth, the Order clarified that, in the limited circumstance of implementing the new ICC for VoIP regime when a carrier's intrastate access rate is lower than its corresponding interstate access rate, that carrier may not include a rate for toll VoIP/PSTN traffic in its intrastate tariff that is higher than its intrastate access rate. Fifth, the Order clarified that rules revisions adopted in the USF/ICC Transformation Order related to access stimulation complement previous Commission decisions related to access stimulation, and that nothing in the USF/ICC Transformation Order should be construed as overturning previous Commission decisions. The February 3, 2012, Order also clarified that any arrangement between a LEC and another party, including an affiliate, that results in the generation of switched access traffic to the LEC and provides for the net payment of consideration of any kind, whether fixed fee or otherwise, to the other party, including an affiliate, is considered to be "based on the billing and collection of access charges." Finally, the February 3 Order clarified that the USF/ICC Transformation Order, in adopting "interim default rules" allocating responsibility for transport costs applicable to non-access traffic exchanged between CMRS providers and rural, rate-of-return regulated LECs, did not intend to affect the existing rules governing points of interconnection between CMRS providers and price cap regulated carriers. On February 27, 2012, the Wireline Competition Bureau (the Bureau) adopted, on delegated authority, another Order to revise and clarify certain rules adopted in the USF/ICC Transformation Order. This Order amended an ICC rule, 47 CFR section 61.26(f), to clarify that a carrier's ability to charge access charges under tariffs, as described in that rule, is limited by 47 CFR section 51.913(b), which expressly states that "[t]his rule does not permit a local exchange carrier to charge for functions not performed by the local exchange carrier itself or the affiliated or unaffiliated provider of interconnected VoIP service or non-interconnected VoIP service." On April 24, 2012, the Commission adopted a Second Order on Reconsideration that modified one aspect of the VoIP ICC rules adopted in the USF/ICC Transformation Order. This Order amended 47 CFR section 51.913(a) to permit LECs, prospectively, to tariff their transitional default rates equal to their intrastate originating access rates when they originate intrastate toll VoIP traffic until June 30, 2014. On June 5, 2012, the Wireline Competition Bureau (the Bureau) adopted, on delegated authority, an Order to revise and clarify rules adopted in the USF/ICC Transformation Order relating to the transition of intrastate switched access rates and operation of the transitional recovery mechanism. The Order revised 47 CFR sections 51.907 and 51.909 to clarify that the required reductions to intrastate switched access rates may be made to the rate level for any intrastate switched access rate so long as the lowered rates produce a reduction in revenues equal to the total reduction required in 2012. The Order also revised 47 CFR sections 51.915 and 51.917 to clarify that non-CMRS reciprocal compensation traffic exchanged pursuant to a bill-and-keep arrangement should not be included in demand for the purpose of ICC rate transition calculations. 

On March 27, 2013, the Wireline Competition Bureau (the Bureau) adopted an Order on delegated authority to revise and clarify certain rules adopted in the USF/ICC Transformation Order. First, the Order harmonized inconsistent Connect America Fund ICC support eligibility certification and reporting filing deadlines contained in parts 51 and 54 of the Commission's rules to coincide with the date on which carriers must file their annual access tariffs. Second, the Order amended the part 51 rules to clarify the effects of the USF/ICC Transformation Order on National Exchange Carrier Association (NECA) traffic-sensitive tariff (NECA pool) pooling when carriers enter or exit the pool. Third, the Order addressed a petition filed by NECA for clarification of various existing pooling requirements. Fourth, the Order amended rules governing the transition of rate-of-return carriers' intrastate switched access rates to correct an omission. Fifth, the Order amended the part 69 access charge rules to clarify the treatment of local switching support in the calculation of the line-side port costs shift to the Common Line category and the allocation of Transport Interconnection Charge costs among the various access charge expense categories. Sixth, the Order clarified the operation of the corporate operations expense limit and monthly per-line cap on universal service support contained in part 54. Finally, the Order corrected errors in the part 51 rules implementing the Eligible Recovery true-up adjustment mechanism.

On March 31, 2014, the Wireline Competition Bureau (Bureau) adopted another Order on delegated authority to revise and clarify certain rules adopted in the USF/ICC Transformation Order. The Order clarified language in 47 CFR sections 51.907 and 51.909 to reflect ongoing rate parity in the ICC transition process for price cap and rate-of-return local exchange carriers. In addition, the Order clarified several aspects of the Commission’s rules related to the transition of terminating end office access rates and the calculation of Eligible Recovery for price cap and rate-of-return carriers beginning in 2014. Finally, the Order clarified issues related to duplicative recovery and the true-up of regulatory fees and revenue calculations.

On February 25, 2015, the Wireline Competition Bureau (Bureau) adopted another Order on delegated authority to clarify certain rules related to implementation of the ICC transition for rate-of-return carriers adopted in the USF/ICC Transformation Order. The Order clarified the Commission’s rules governing Eligible Recovery calculations under section 51.917 to address a limited number of unanticipated results associated with application of the true-up process that became apparent in rate-of-return carriers’ 2014 annual access tariff filings. 

On June 4, 2018, the Commission adopted an NPRM proposing to adopt rules to curb the financial incentive to engage in access stimulation by giving access-stimulating LECs two choices for receiving calls.  The item also sought comment on the effect the proposed rules will have on specific arbitrage schemes described in the record, and on how to curb other arbitrage schemes.

On June 7, 2018, the Commission adopted an FNPRM proposing to migrate interstate and intrastate originating end office and tandem switching and transport charges for toll free (8YY) calls to bill-and-keep, continuing the reform efforts that began with the USF/ICC Transformation Order.  The Commission also proposed to cap 8YY database query rates at the lowest rate charged by any price cap local exchange carrier, and to limit charges to one database query charge per call, regardless of the number of carriers in the call path or the number of database queries conducted.

On September 26, 2019, the Commission adopted a Report and Order and Modification of 214 Authorizations that limits the use of the ICC system to subsidize free” high volume calling services, by adopting rules requiring access-stimulating LECs--rather than IXCs--to bear financial responsibility for the tandem switching and transport charges associated with the delivery of traffic from an IXC to the access-stimulating LEC’s end office or functional equivalent.  In the same document the Commission also revised the definition of Access Stimulation.

On December 17, 2019, the Commission adopted an Order on Remand and Declaratory Ruling clarifying that VoIP-LEC partnerships may collect end office switched access charges only if one of the partners provides a physical connection to the last-mile facilities used to serve the end user.

On June 11, 2020, the Commission adopted an Order on Reconsideration of the Access Arbitrage Order, denying a Petition for Reconsideration.