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Strategies & Market Trends : Internet Tariffs...Coming Soon?

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To: Don Pueblo who wrote ()1/25/1999 3:11:00 AM
From: Merritt  Read Replies (2) of 36
 
I haven't read all the posts on this thread, so I hope this isn't redundant. I recently asked my congressman about this issue, and this was his reply, dated 1-11-99:

"Thank you for contacting me regarding additional phone service charges for internet access. I appreciate hearing from you and having this opportunity to respond.

Recently, the issue of imposing a charge equal to a long distance phone call for accessing the internet has received much attention. This question arose because the Federal Communications Commission (FCC) must decide whether a phone company which originates a local call to an Internet Service Provider (ISP) must pay reciprocal compensation to the phone company of the ISP which completes the call. Currently, reciprocal compensation is paid in this situation, and numerous state regulatory commissions have reaffirmed this policy. The FCC is re-examining this issue, since many argue that internet calls are interstate, and therefore, do not fall under the states' regulatory jurisdiction.

However, the FCC has always mandated that ISP's be treated as local phone customers. Long distance telephone service is not involved in this debate. Furthermore, regardless of the FCC ruling on regulatory jurisdiction over reciprocal compensation, this decision would only affect the arrangements between local phone carriers. Consequently, maintaining reciprocal compensation will not translate into a per minute usage charge, since local phone companies charge flat fees for service.

Additionally, in November, the Chairman of the FCC, Mr. William Kennard addressed the recent rumors about the possibility of imposing of per minute usage charges. Mr.Kennard asserted, "the forces behind these rumors are doing a disservice to the American consumer, because in fact, nothing could be further from the truth...the FCC is not about to impose per minute charges on the internet."

Again, thank you for contacting me. Please do so again on this or any matter of interest or concern."

Signed, Jim Gibbons, Member of Congress
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