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Arrow Communications, Inc.

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SECTION 1. SCOPE OF EXHIBIT<br />

Exhibit B<br />

1.1 This Exhibit specifies the terms and conditions, including compensation, under<br />

which BellSouth and <strong>Arrow</strong> <strong>Communications</strong>, <strong>Inc</strong>. will compensate each other for<br />

Intercompany Settlements (ICS) messages. It includes the settlement of<br />

revenues associated with traffic originated from or billed by <strong>Arrow</strong><br />

<strong>Communications</strong>, <strong>Inc</strong>. as a facilities based provider of local exchange<br />

telecommunications services outside the BellSouth region. Only traffic that<br />

originates in one Bell operating territory and bills in another Bell operating<br />

territory is included in this Agreement. Traffic that originates and bills within the<br />

same Bell operating territory will be settled on a local basis between <strong>Arrow</strong><br />

<strong>Communications</strong>, <strong>Inc</strong>. and the involved company(ies).<br />

1.2 Both traffic that originates outside the BellSouth region by <strong>Arrow</strong><br />

<strong>Communications</strong>, <strong>Inc</strong>. and is billed within the BellSouth region, and traffic that<br />

originates within the BellSouth region and is billed outside the BellSouth region<br />

by <strong>Arrow</strong> <strong>Communications</strong>, <strong>Inc</strong>., is covered by this Agreement.<br />

1.3 Once <strong>Arrow</strong> <strong>Communications</strong>, <strong>Inc</strong>. is operating within the BellSouth territory, both<br />

BellSouth and <strong>Arrow</strong> <strong>Communications</strong>, <strong>Inc</strong>. agree that revenues associated with<br />

calls originated and billed within the BellSouth region will be settled via<br />

BellCore’s, its successor or assign, NICS system when it is implemented.<br />

Should <strong>Arrow</strong> <strong>Communications</strong>, <strong>Inc</strong>. operate within the BellSouth region prior to<br />

the implementation of NICS, BellSouth and <strong>Arrow</strong> <strong>Communications</strong>, <strong>Inc</strong>. agree<br />

that these in-region revenues will not be settled until the implementation of NICS.<br />

Should this time period exceed six (6) months, BellSouth and <strong>Arrow</strong><br />

<strong>Communications</strong>, <strong>Inc</strong>. agree to negotiate an alternate form of settlement for<br />

these revenues.<br />

1.4 Upon the implementation of NICs, the parties agree that this Exhibit will<br />

be amended to include intra-region settlements as appropriate.<br />

SECTION 2. RESPONSIBILITIES OF THE PARTIES<br />

2.1 BellSouth will receive the monthly Credit Card and Third Number Settlement<br />

System (CATS) reports from BellCore, its successor or assign, on behalf of<br />

<strong>Arrow</strong> <strong>Communications</strong>, <strong>Inc</strong>. BellSouth will distribute copies of these reports to<br />

<strong>Arrow</strong> <strong>Communications</strong>, <strong>Inc</strong>. on a monthly basis.

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