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To: Fuzzy who wrote (22576)8/20/1998 12:03:00 PM
From: DianaX  Respond to of 50264
 
Found this on another thread--
"
"A federal appeals court says Internet companies such as America Online and Netcom don't have to pay fees to support the nation's telephone system.
The decision by the U.S. Court of Appeals for the 8th Circuit in St. Louis was part of a broader ruling Wednesday upholding the Federal Communications Commission's overhaul last year of telephone fees.

It marked a rare victory for the commission, which in the last year has lost several high-profile telecommunications cases.

"We are very pleased," FCC Chairman Bill Kennard said.

If the court had ruled in favor of BellSouth and other local phone companies on the Internet question, the decision might have raised Internet prices for consumers.

Local phone companies argued that the FCC should have required Internet service providers to pay fees for using the local phone networks just as long-distance companies do.

The court disagreed.

"We agree that the FCC's decision to exempt ISPs (Internet Service Providers) from interstate access charges while continuing to investigate potential future changes in this area is a reasonable exercise of the agency's discretion" under a 1996 telecommunications law, the three-judge panel wrote.

The court agreed with the FCC's assessment that Internet service providers don't use the local phone network in the same way or for the same purposes as long-distance companies do and therefore should remain exempt from paying the fees.

The Internet exemption was just one piece of a big overhaul of telephone fees by the FCC in May 1997...."