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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: justone who wrote (8530)9/19/2000 10:48:44 AM
From: justone  Read Replies (1) of 12823
 
The house will very likely pass the bill to cut reciprocal phone fees. It seems to me
the ISP will lose the money they get each dial up internet call. Thus they will have more
trouble making money on dial up, and thus there is even more pressure to go broadband, since it
becomes more competitive as dial up fees will increase or ISPs leave the business.
It may also be the end of the 'free' ISP movement.

The growth in dial-up modem equipment sales may halt well before saturation. In
addition, a lot of the growth in CO equipment and Tandem equipment has been to
handle dial-up traffic. Reciprocal compensation really annoys the ILECS not only
because they have to pay billions in fees, but if you add a second phone line to get
internet access, they have to add more equipment and only get the second line fee. This is
not good news for Lucent and NT as well.

But given the speed of politics, this could take another year.

dailynews.yahoo.com

Monday September 18 10:58 PM ET
Panel Approves Bill to Cut Reciprocal Phone
Fee

WASHINGTON (Reuters) - A U.S. House panel on Monday approved a
measure that could eliminate billions of dollars in fees large regional telephone
companies pay annually to carry consumer Internet traffic.

The House Commerce subcommittee on telecommunications approved by
voice vote a bill that would eliminate a charge one phone company must pay
to terminate a call on another company's network, including Internet traffic
which is not often returned.

ING Barings analysts recently estimated that big regional telephone
companies like SBC Communications Inc. (NYSE:SBC - news) together
spend roughly $4 billion annually paying fees that are not reciprocated.

The measure ``corrects an unintended consequence of the '96 Telecom Act
that harms consumers by placing a tollbooth to the Internet and reduces
competition in the local exchange market,'' Gary Lytle, interim head of the U.S.
Telecommunications Association, said in a statement. ``

But Consumers Union and the Consumer Federation of America have argued
that elimination of the payments
would in effect raise the cost to many of the new, competing phone companies
that handle Internet dial-up calls.

The measure's immediate future is uncertain because Congress is set to adjourn
in less than three weeks so
lawmakers have time to campaign for reelection and the bill must still be
considered by the full Commerce
Committee and the House of Representatives as well as the Senate.
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