House Passes IP Charges Bill
by Elisa Batista
11:20 a.m. May. 16, 2000 PDT
wired.com
(Editor's note: This story, originally published May 16 at 3 a.m., has been updated with the House approving the bill.)
In a move Internet users and advocates view as a "slippery slope" toward government regulation of the medium, the House of Representatives unanimously passed a bill Wednesday that allows the government to impose per-minute charges for online voice services.
The Internet Access Charge Prohibition Act of 2000 originally was drafted by Representative Fred Upton (R-Michigan) to permanently ban all federal Internet access charges. But it was revised last week to exclude online telephone services -- a decision Republican officials say was made to appease members of the telecommunications industry who view online telephony as competition.
com-notes.house.gov
Although telephony is the only Internet service singled out, Internet user advocates emailed their representatives Tuesday to criticize them for selling out to telephone companies. They said any exception to the access-charge ban is a loophole for future regulation of the Internet.
"The problem is certain representatives are in the pockets of telecommunication groups," said Jeff Pulver, president of Pulver.com, an organization that promotes the widespread use of Internet technology, including telephony. "The telecommunication lobbyists are more powerful than the tobacco and guns groups."
But House members who voted for the bill say that it represents a victory over any federal agency that wants to impose access charges. Technically, the government can impose such charges for general Internet usage, not just online phone services.
The bill's passage does not make it any easier for the Federal Communications Commission to impose access charges on online telephony, said Richard Diamond, a spokesman for House Majority Leader Dick Armey, who voted for the bill. "The FCC could do that with or without this legislation," Diamond said.
Upton's spokesman Mike Waldron defended the bill for the same reasons on Tuesday.
"I would say that our intention in this bill is to keep the flow of data affordable and accessible to all Americans," Waldron said. "What we were looking at are people who use the Internet for research, people who read their local newspapers online, and email. In doing the research we found that the per-minute charge would disproportionately impact low-income families."
Waldron said the online telephone provision was created to ensure the bill's passage, adding that there were too many questions surrounding online voice services that required an actual telephone for use.
"It's one of those complicated questions that doesn't need to be settled right now," Waldron said. "The intent of the amendment was to put the question off at a later date ... for more discussion."
But another Republican official who asked not to be identified said the online telephone provision was necessary to stave off strong lobbying efforts by telephone companies that have to comply with FCC regulations and view free online telephony as competition.
"It would be a huge fight," he said, adding that the telecommunications industry has enough support on Capitol Hill to make it difficult to pass an Internet access-charge ban.
On Wednesday the same official said he doubts the "FCC is stupid enough" to impose such charges, especially since most House members do not support any kind of Internet regulation.
If such charges are imposed "we will address that issue and smack that down," he said.
A FCC spokesman said on Tuesday that the agency has no plans to charge per-minute rates for online telephone services regardless of the bill's approval. "The FCC is interested in creating competition wherever it can be created," he said.
Still, regulation-free Internet proponents have launched what they labeled the "Million Nerd March," asking that users email their representatives to voice their opposition to the bill.
"It's the first time I've emailed my representative," Pulver said. "I view this bill as counterproductive in that the government will use it to regulate the Internet."
Ken Rutkowski, a CNET radio host who has aired his opposition to the bill, said he uses online telephone services like those of AOL's ICQ daily.
"I do that without paying anything," he said.
The bill's passage follows the House's vote last Thursday to extend an Internet tax-ban moratorium until 2006. Under the Internet Discrimination Act, local and state entities cannot impose taxes on the Internet until next year. |