Clinton Admin: FCC Shouldn't Regulate Internet
Telephony
Dow Jones Newswires
WASHINGTON -- A top White House telecommunications adviser urged the Federal
Communications Commission on Thursday not to stray from its hands-off approach to the
Internet.
The FCC "should do nothing that would thwart the growth and vibrancy" of the global computer
network, said Larry Irving, the Commerce Department's assistant secretary for communications
and information.
Irving's remarks come as the FCC wraps up work on a report to Congress that's expected to
recommend new fees for companies that use the Internet to provide long-distance telephone
service. The report is due tomorrow.
In a letter to FCC Chairman William Kennard, Irving said the Clinton administration remained
opposed to Internet regulation and urged the FCC not to change its current approach.
"Any proposal to regulate Internet telephony as a 'telecommunications service' would raise
contentious issues, resolution of which would have international, as well as domestic,
repercussions," Irving wrote.
Traditional long-distance carriers pay the Baby Bells and other local phone companies billions of
dollars each year for access to their networks. A portion of those fees are used to fund universal
service, a mechanism that keeps rates affordable for low-income consumers and for people living
in rural areas where it's expensive to string phone lines.
Internet companies are exempt from access charges, part of a long-standing FCC effort to foster
the nascent technology. But as the line between traditional telephone service and Internet
technology begins to blur, some lawmakers and phone companies have asked the FCC to
reexamine its policies.
Critics, like Alaska GOP Sen. Ted Stevens, fear that Internet providers aren't paying their fair
share to maintain local phone networks and keep rates rates affordable. Stevens requested the
FCC review as part of a spending measure last year.
Irving said the administration is willing to work with Congress, the FCC, the industry and
others to ensure that universal service goals are met.
Access charges on Internet calling would be felt by companies like Qwest Communications
International Inc. (QWST) and AT&T Corp. (T), which want to offer cut-rate long-distance
calling over the Internet. The FCC proposal is not expected to recommend that Internet service
providers like America Online Inc. (AOL) pay access charges.
-By Scott Ritter; 202 862-6687 |
