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Non-Tech : Proposed $.10 per Minute Internet Charge

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To: James F. Hopkins who wrote (55)2/9/1997 10:53:00 PM
From: John Grandy   of 112
 
James, First off, the baby bells' monopolies on local service have already been shot down. In my area, MCI currently offers $25 per month flat fee local access as an alternative to PacBell. Many more alternatives will follow.

You state that the RBOCs are making a "killing" off of Internet users. This is completely false. They are effectively losing vast amounts of money and are subsidizing the ISPs; and the phone system is being severely overburdened.

If you were to call all over the US, indeed, call all over the entire world continuously night and day for 30 days straight, how much do you think your phone bill would be? $20 per month? I doubt it.

While this analogy is not exact, the facts are that currently the long-distance telcos must pay the RBOCs for the right to access bandwidth on their local loop networks. The ISPs are essentially providing a similar service, as internet traffic is routed all over the world. They pay next to nothing to the RBOCs. It's based on loopholes in the regulatory structure. The H&Q report spells it out.
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