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- FCC732.NEW FCC NEWS June 10, 1987 Report DC 941, CC Docket 87-208
-
- FCC PROPOSES ELIMINATION OF INTERSTATE ACCESS CHARGES EXEMPTION FOR ENHANCED
- SERVICE PROVIDERS.
-
- The FCC has proposed elimination of the exemption from interstate access
- charges currently allowed enhanced service providers, effective January 1,
- 1988. Charges for interstate service would not be affected.
-
- Enhanced services add value to, or enhance the use of, basic transmission
- service. Examples of enhanced services, which the FCC defined in its COMPUTER
- II and COMPUTER III proceedings, include computer-based applications such as
- protocol processing, information retrieval systems and voice message service.
-
- In its access charge proceeding, the FCC provided for exemptions for a number
- of groups. These exemptions have gradually been eliminated.
-
- In the pre-access environment, enhanced service providers and WATS resellers
- were paying local business exchange service rates for their interstate access,
- rather than the higher charges that other common carriers (OCC's) were paying
- and the even higher amounts accessed to MST and WATS through the divisions of
- revenues and settlements processes. The FCC decided that the immediate
- imposition of interstate access charges on enhanced service providers and
- resellers could affect their ability to provide service during the time they
- were adjusting to the new access charge rules. Consequently, the FCC granted
- enhanced service providers, as well as resellers, a temporary exemption from
- payment of interstate access charges.
-
- In proposing to eliminate this exemption, the FCC said it was concerned that
- the charges currently paid by enhanced service providers did not contribute
- sufficiently to the cost of the enhanced access facilities they use in offering
- services to the public. Concerns about rate shock might justify a temporary,
- but not a permanent, exemption from access charges. Enhanced service providers
- have had ample notice of the FCC's ultimate intent to apply ;interstate access
- charges and ample opportunity to adjust their planning accordingly.
-
- Moreover, it said, the potential financial impact on ;enhanced service
- providers of eliminating their exemption is substantially smaller than it was
- at the time of the exemption was granted. In particular, the FCC noted that
- the carrier common line charge has decreased dramatically with the introduction
- of subscriber line charges.
-
- By action of the Commission June 10, 1987, by Notice of Proposed Rule Making
- (FCC 87-208). Commissioners Patrick (Chairman), Quello, Dawson and Dennis
-
- For more information contact Ruth Milkman, Common Carrier Bureau, at (202) 632-
- 4047.
-
- -********-
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- Note: the dates for filing comments have not been set yet and will be included
- as soon as they are set.
- J. Hoffman- Sysop BPForum
-