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Text File | 1992-07-16 | 9KB | 235 lines

     Copyright (c) 1992
   CompuServe Incorporated
     All Rights Reserved

FCC ACCESS CHARGES           FCC

An FCC Commissioner recently stated that the FCC may again examine the
possibility of imposing "modem fees" for information service companies.
Observers have said the fees could drive up telephone line costs to information
services companies by as much as 300 percent, some or all of which online
service members would likely bear.

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FCC ACCESS CHARGES         FDC-6

THE FCC IS ONCE AGAIN CONSIDERING ACCESS CHARGE PROPOSALS THAT COULD INCREASE
COMPUSERVE'S COSTS FOR LOCAL ACCESS

In July 1991, the Federal Communications Commission adopted rules which could
increase by up to 300 percent the price of local telephone lines which employ
new network features and which are used by information service companies like
CompuServe to provide its services to customers. In addition, at least one FCC
Commissioner recently suggested that the Commission likely would reexamine
whether various "modem fees" or "modem taxes" ought to be imposed on all
information services.  Consideration of any proposed "modem tax" would revive
proposals made back in 1987 and 1989 to impose usage-sensitive common
carrier-type access charges on information service companies.  It is important
that you understand the genesis of the FCC's latest rules, and how you can help
to fight back.

THE FCC'S PRICE INCREASE PROPOSAL WAS ORIGINALLY DEFEATED IN 1987 THANKS TO THE
EFFORTS OF COMPUSERVE MEMBERS LIKE YOU

The ability of CompuServe to offer advanced information services to its members
on a reasonably-priced basis is dependent upon being able to obtain cost-based
access to local telephone lines.  To date, information service companies have
been able to use non-usage- sensitive local business lines, obtained from the
local telephone company's state tariffs, for distributing their on-line
information services to customers.  Under this arrangement, CompuServe has been
able to provide its customers with hundreds of services at affordable prices
that promote widespread usage.

However, you may recall that in 1987 the FCC issued a proposal which, if
adopted, would have required information service providers (ISPs) like
CompuServe to abandon their flat-rated, state-tariffed access arrangements.
Instead, ISPs would have been required to pay usage- sensitive common carrier
access charges, which were originally designed solely to be paid by long
distance companies. After a massive letter writing campaign by CompuServe
members, the FCC decided not to adopt its carrier access charge proposal.

WHY YOUR HELP IS NEEDED NOW

CompuServe and other information service providers have filed petitions with the
FCC asking the agency to reconsider its July 1991 access charge decision.
Congress also may consider legislation shortly which would prevent the FCC from
imposing usage-sensitive carrier access charges on information providers as a
condition of obtaining new network features.

CompuServe believes that cost-based access to advanced telephone network
functionalities and features will be crucial in bringing the "Information Age"
to all consumers.  Members like you can help assure that the federal government
does not impose what in effect are enormous financial penalties on information
service providers and their members simply for attempting to use advanced
network functionalities and services.

We have drafted a suggested letter to various United States Senators which
objects to the FCC's new access charge rule and any new "modem tax" proposal,
and asks the Congress to pass legislation which would once and for all prevent
the FCC from imposing any usage-sensitive common carrier access charges on
information service providers.  Please write to the indicated members of
Congress, and send copies to FCC Chairman Alfred Sikes and the other FCC
Commissioners.  With your help, we can convince the FCC to change its mind
regarding new ONA access charge rules which would only hurt the ability of
CompuServe to provide consumers with advanced information services at reasonable
prices.

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SUGGESTED LETTER AND TEXT RECIPIENTS

 1 Suggested Letter Text

FCC ACCESS CHARGES        FDC-14

Please note that it is important for you to personalize your letter as
indicated.  Your message will be more effective if it is not perceived as simply
a form letter, but instead gives your individual reason for opposing modem fees.

SUGGESTED LETTER TEXT

    Dear Senator _____________:

         I have read that an FCC Commissioner has stated that the
    FCC may look once again at whether the FCC should require
    CompuServe and other information services to pay usage-sensitive
    carrier access charges or "modem fees" for the local telephone
    lines they use to distribute their services to customers.  If
    such higher fees for using local telephone lines were to be
    imposed and passed on to information service subscribers, this
    likely would have the effect of severely curtailing the use of
    information services just as the mass market for such services
    is beginning to develop.

         I urge you to pass legislation which would prevent the
    imposition of any new usage-sensitive carrier access charges or
    "modem fees" on information services.  The legislation also
    should allow CompuServe and other information service providers
    to use new and more efficient technologies without having to
    become subject to higher access charges.

    [At this point:

              State that you use CompuServe and other information
              services and describe how you use them;

              State that you will curtail your use of information
              services if the FCC's access charge rules cause price
              increases.]

         Thank you for your consideration.

                             Sincerely,


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ADDRESS INFORMATION FOR RECIPIENTS

The letter should be sent to the following members of the Senate Communications
Subcommittee.  A copy of the letter may also be sent to Congressman Edward
Markey, who is Chairman of the House Telecommunciations Subcommittee.  In
addition, a copy of the letter should be sent to the FCC Commissioners.

Letters to Senate members may be addressed to:

 The Honorable _________________
 United States Senate
 Washington, D.C.  20510

 Senator Lloyd Bentsen
 Phone:  [phone]
 Fax:   unpublished

 Senator John Breaux
 Phone:  [phone]
 Fax:   [phone]

 Senator Conrad Burns
 Phone:  [phone]
 Fax:   [phone]

 Senator James Exon
 Phone:  [phone]
 Fax:   unpublished

 Senator Wendell Ford
 Phone:  [phone]
 Fax:   [phone]

 Senator Albert Gore
 Phone:  [phone]
 Fax:   [phone]

 Senator Slade Gorton
 Phone:  [phone]
 Fax:   [phone]

 Senator Ernest Hollings
 Phone:  [phone]
 Fax:   unpublished

 Senator Daniel Inouye
 Phone:  [phone]
 Fax:   [phone]

 Senator John Kerry
 Phone:  [phone]
 Fax:   unpublished

 Senator John McCain
 Phone:  [phone]
 Fax:   [phone]

 Senator Bob Packwood
 Phone:  [phone]
 Fax:   [phone]

 Senator Ted Stevens
 Phone:  [phone]
 Fax:   [phone]

 Representative Markey
 Chairman, Subcommittee on Telecommunications and Finance
 U.S. House of Representatives
 2133 Rayburn House Office Building
 Washington, D.C.  20515
 Phone:  [phone]
 Fax:   [phone]

 Chairman Alfred C. Sikes
 Federal Communications Commission
 1919 M Street, N.W., Room 814
 Washington, D.C.  20554
 Phone:  [phone]
 Fax:   [phone]

 Commissioner Andrew C. Barrett
 Federal Communications Commission
 1919 M Street, N.W., Room 844
 Washington, D.C.  20554
 Phone:  [phone]
 Fax:   [phone]

 Commissioner Ervin S. Duggan
 Federal Communciations Commission
 1919 M Street, N.W., Room 832
 Washington, D.C.  20554
 Phone:  [phone]
 Fax:   [phone]

 Commissioner Sherrie P. Marshall
 Federal Communications Commission
 1919 M Street, N.W., Room 826
 Washington, D.C.  20554
 Phone:  [phone]
 Fax:   [phone]

 Commissioner James H. Quello
 Federal Communications Commission
 1919 M Street, N.W., Room 802
 Washington, D.C.  20554
 Phone:  [phone]
 Fax:   [phone]