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(ASCEND) What about this?

Message from sender:
   What do you think?
-------------------------------------------------------
Telcos get new shot at ISP fees
By Courtney Macavinta
January 6, 1998, 4:50 p.m. PT
http://www.news.com/News/Item/0%2C4%2C17860%2C00.html?sas.mail

The Federal Communications Commission today is seeking public comment for 
an upcoming report to Congress that  could result in new fees for 
Internet service providers.

    When implementing the Telecommunications Act of 1996, the FCC shot 
down a  request from Pacific Bell and other Baby Bells that online access 
 providers be forced to pay phone companies a fee for every customer who  
hooks up to the Net through a local switch center.

    But now, local phone companies are getting another chance to plead 
their  case. If the telcos prevail, ISPs will be reclassified as 
"telecommunications  services" and will have to pay the switch fee, just 
like long distance  providers. ISPs, no doubt, would pass the fees on to 
their customers.

    Under mandates buried in major 1998 appropriations bills, the FCC has 
to  review its rules for implementing universal service under the telco 
act  and report to Congress by April. The FCC announced that it is now  
collecting public and industry comments on the issue via its Web site 
until  January 20. In addition, the FCC has created a Universal Service 
Report  Working Group, which will operate under the direction of its 
Common Carrier  Bureau.

    Local telephone carries, long distance providers, the federal 
government,  and states pay into universal service, which subsidizes 
phone service for  rural and low-income residents throughout the country. 
Last year, the FCC  restructured universal service to include, for 
example, up to $2.25 billion  in annual subsidies for hooking public 
schools and libraries up to the  Net.

    According to its public notice, the FCC will clarify its definitions 
of  "information service," "local exchange carrier," and 
"telecommunications  service," and "the impact of the interpretation of 
those definitions on the  provision of universal service to consumers in 
all areas of the nation."

    In addition, the agency will review "the application of those 
definitions to  mixed or hybrid services and the impact of such 
application on universal  service, and the consistency of the 
Commission's application of those  definitions, including with respect to 
Internet access for educational  providers, libraries, and rural health 
care providers under the Act."

    The confirmation of William Kennard as FCC chairman was held up until 
two  senators were satisfied that the commission would review universal 
service.  Sen. Conrad Burns (R-Montana) argued that states were footing a 
larger  portion of the universal access bill than the federal government. 
  

  In addition, Sen. Ted Stevens (R-Alaska) backed telco industry claims 
that  local switch centers need to be upgraded due to increased Net 
traffic.  Stevens introduced the FCC review into the appropriations bills 
because he  agrees that ISPs should have to contribute to universal 
service  through access fees. 

    But members of the online industry will continue to fight any new 
fees, because they  say they already pay telecommunications fees.

    The cost of Net access is already increasing for many users. 
According to  the FCC rules, by the end of this year, businesses will pay 
$2 per month more  for each additional phone line. The cost could be as 
high, however, as  $4.21 per additional line by the beginning of next 
year, because long  distance providers will be charged $2.20 for each 
added line, a fee  they could pass on to customers.



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