July 4, 2006 Phone Card Issuers Must Pay Access Fees By DOW JONES/AP
http://www.nytimes.com/2006/07/04/business/04cards.html?_r=1&oref=slogin&pagewanted=print WASHINGTON (Dow Jones/AP) The Federal Communications Commission has ruled that issuers of prepaid calling cards must pay connection fees and help subsidize phone service in rural areas. AT&T Inc. will have to repay the $553 million in access fees charges paid to other carriers to connect calls and Universal Service Fund payments that its predecessor, then known as the AT&T Corporation, had withheld on phone calling cards. AT&T had argued that because its cards offered enhancements like advertising, the cards were information services exempt from fees that apply to telecommunications services. In February 2005, the commission ruled against AT&T, potentially leaving the company on the hook for the withheld payments. AT&T had challenged the decision in court. "We are pleased the commission clarified the regulatory status of prepaid calling cards," an AT&T spokesman said in a statement. The commission also said that providers of prepaid calling cards cannot reduce payments by classifying certain calls as Internet traffic. Regulators said that calling cards that use "Internet in the middle" technology must make rural phone-subsidy contributions and pay access fees. Any payments that were with- held must be repaid, the commission said. As for military personnel, the commission said that prepaid calling cards sold under a contract with the Defense Department would be exempt from universal service payments. The exemption "should help ensure that our soldiers are able to obtain calling cards at reduced prices," the F.C.C. said. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list medianews@twiar.org To unsubscribe send an email to: [EMAIL PROTECTED]
