FCC At Center Of Internet Controversy
(02/14/97; 10:08 a.m. EST)
By Sam Masud, Computer Reseller News

              WASHINGTON, D.C. -- The Federal Communications Commission
              is being barraged with complaints from those objecting to a local
              telephone-access charge for Internet usage.

              With Friday, Feb. 14 being the final day to comment on whether local
              phone companies should be paid an access charge for Internet usage,
              the FCC is said to have received more than 80,000 messages in its
              mailbox.

              Internet service providers, other than the local telephone companies,
              are almost universally opposed to the local telephone companies adding
              interstate access charges for Internet usage.

              "The biggest loser will be the consumer, because this industry operates
              on very thin margins, and ISPs would have to pass those costs on to
              the consumers," said Jill Lesser, deputy director for law and public
              policy at America Online, Vienna, Va.

              David Parker, vice president of marketing at Delphi Internet Services,
              Cambridge, Mass., agreed. "This would be the death of unlimited
              access, which would be a shame for consumers who don't want to
              worry about the clock ticking," Parker said.

              Telephone companies claimed that dial-up Internet access, because of
              the long duration of the calls, ties up the network. They said they
              estimated that by the year 2000, one-third of all local exchange traffic
              will be for Internet access.

              But not all telcos agree the solution is metered usage of the Internet.
              "Our position is that for the long term, there should be technical
              solutions," said Ted Creech, a spokesman for BellSouth, Atlanta.

              "This would be devastating for small and regional ISPs," said Pat
              Mallon, a spokeswoman for AT&T, New York. "As an interexchange
              carrier, we are all too familiar with local access, and we know what
              they are charging now is seven times their cost."

              Christine Heckart, vice president for telecommunications at
              TeleChoice, a Verona, N.J., consultant, said metered usage would
              affect not just residential users of the Internet, but also business rates,
              including those for dedicated access.

              "A part of what the regional Bell operating companies are arguing is
              valid, and that is that nobody gets something for free. But they also hold
              the local loop hostage," Heckart said