FCC speaks about recent action.

Thank your for your email concerning reports that the FCC will take action
requiring Internet service providers (ISPs) to    impose per-minute usage
charges on consumers. Please let me assure you that  these reports are
erroneous.

The matter before the FCC concerns carrier-to-carrier payments, so-called
"reciprocal compensation."  Reciprocal compensation has nothing to do with
consumer Internet charges.  It's about what telephone companies pay one
another.

In fact, the FCC has exempted ISPs from paying per-minute charges to local
phone companies and will continue to do so.  The threat of imposing
per-minute
charges on the Internet is one of the great enduring urban myths.

In short, the FCC has no intention of  imposing per-minute charges  on the
Internet.

I am attaching a copy of Chairman Kennard's  statement on the matter.

ANSWERS FROM FCC CHAIRMAN WILLIAM E. KENNARD
TO QUESTIONS CONCERNING
THE ACTION TAKEN BY THE FCC ON FEBRUARY 25, 1999,
CONCERNING RECIPROCAL COMPENSATION FOR DIAL-UP
INTERNET TRAFFIC

   Has the FCC opened the door to Internet charges?

  A:  Absolutely not.  The FCC has reconfirmed the Internet's exemption.
Consumers will see no new charges on their Internet or phone bills.


  Q:   Are we going to see new long distance charges to connect to the
Internet?

  A.   No.  Rumors have been spread by some people, but these rumors are
false.  The FCC will not impose long distance charges for dialing up the
Internet.


  Q:   Is there any way that local phone companies will be able to start
imposing usage-sensitive access charges to Internet service providers?

  A.   No.  The exemption from long distance access charges is solid as a
rock and has been upheld in court.


  Q:   The FCC will not allow long distance charges for local calls to the
internet.  But has the FCC made it easier for states to impose long
distance charges for local calls to the Internet?

  A:   No.  States have no power to impose long distance charges.  Only the
FCC can do that, and we declared our jurisdiction over this traffic.


  Q:   What changes can consumers expect to see as the result of this
decision-- in the short run, and in the long run?

  A:   Consumers should see no changes in their Internet or phone bills,
either in the short run or long run, as a result of this Order.  The big
picture in the long run is very positive -- our continued "hands off"
policy towards the Internet will allow it to continue growing rapidly,
unfettered by regulations.

  Q:  How will Internet providers react to this Order?  Will this be good
for business or bad for business?

  A:  It's good for business and consumers.  We have clarified how
companies pay each other for this traffic and we have done so in a way that
prohibits the assessment of long distance charges.  This can only help
consumers.


  Q:   Why were so many negative rumors spread around?

  A:  The Internet has become extremely important to a lot of people in the
last few years.  We get letters every week from people for whom access to
the Internet has opened up whole new possibilities for business, social
service, and life. The very idea of paying long-distance-type charges for
hours web surfing naturally produces great anxiety.  Therefore these rumors
tend to
spring up anytime the FCC does anything related to long distance service.

=====================


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