BellSouth is really stubborn about this access charge:
BellSouth to charge for Internet phone
calls
WASHINGTON (September 4, 1998 7:31 p.m. EDT
-- BellSouth Corp. plans to charge companies
that carry long-distance phone calls over the Internet the same fees
traditional long-distance companies must pay, a move that could
narrow the cost savings enjoyed by people making Internet calls.
BellSouth's decision on Friday marks the first time a local phone
company has charged carriers for such calls and is likely to be a
test case for federal regulators.
AT&T, MCI, Sprint and other traditional long-distance companies
currently pay BellSouth and other local phone companies fees,
known as access charges, for connecting long-distance calls. The
fees make up about 40 percent of the average residential
customers' long-distance bill.
Six companies would be affected by BellSouth's decision, said
spokesman Bill McCloskey. The companies have been notified that
that they will begin getting charged for the fees in November.
BellSouth declined to identify the companies.
The change would affect all types of long-distance calls carried
over the Internet except those made by computer users to other
computers or made from telephones to computers.
Less than one-half of 1 percent of all telephone time is taken up by
Internet calls.
Although McCloskey said BellSouth initially expects to receive little
money from the fees, the amount of money at stake could grow
significantly as more companies provide Internet calling.
However, the prospect of such fees could dim the allure of cheap
phone calling over the Internet.
One big reason these calls are far less expensive than traditional
long-distance calls is because federal regulators have not required
companies that provide them to pay access fees to local phone
companies.
"BellSouth is creating a test case and is forcing the process," said
Scott Cleland, an analyst at Legg Mason Wood Walker Inc. in
Washington.
Federal Communications Commission officials, speaking on
condition of anonymity, agreed with the assessment.
By JEANNINE AVERSA, Associated Press Writer
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