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To: Ariella who wrote (1698)	9/5/1998 11:43:00 PM
From: Peter Piper	Read Replies (1) \| Respond to of 2349

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