To: Kenneth E. Phillipps who wrote (2282 ) 11/5/1998 11:27:00 AM From: WTC Read Replies (3) | Respond to of 12823
Mr. Phillipps, RE: FCC action on dial-up internet access charges, either you or ZDNet got the FCC action and the participants preferences a bit confused in your Nov 3 post. Actually, 1) The FCC delayed making its decision, and, 2) The ILECs (RBOCs) FAVOR a ruling that dial-up internet access is INTERSTATE, i.e., under FCC jurisdiction, not state PUC jurisdiction. One of the substantive issues is reciprocal compensation between ILECs and CLECs. A ruling that internet access is INTERSTATE would knock out about 10% of the CLEC revenue stream as soon as it is implemented (and return it to the ILECs who are paying or escrowing it today.) The implementation process, if there is a federal preemption, is a separate and similarly divisive issue. This news clip characterizes the situation correctly: Bell Atlantic Wants FCC To Let States Rethink ISP Fees Posted November 04, 1998 06:00 PM PST The following information has been excerpted from the November 4, 1998 edition of TR Daily. The FCC should rule that dial-up Internet calls are interstate calls and should refrain from addressing the effect its ruling has on existing reciprocal compensation agreements, according to Bell Atlantic Corp. In a letter sent today to FCC Chairman William E. Kennard, Bell Atlantic said that when the agency rules on the jurisdiction of dial-up Internet access--which it may do by the end of the week--it should let state regulatory commissions decide the effect of the ruling on existing interconnection agreements. To learn more about TRI's TR Daily, click on the logo at the top of this article. The interconnection agreements between ILECs and CLECs are contracts that the FCC might decide to let stand until they expire, or they might make their ruling impact those agreements. Bell Atlantic supports leaving the effect on existing agreements to the states. The effect of that could probably be a mixed-bag around the country.