FCC Ruling, Cost of Internet

Tue Nov 3 18:39:29 UTC 1998

FROM FCC DAILY DIGEST:
FCC SAYS GTE'S ADSL INTERNET ACCESS SERVICES IS AN INTERSTATE SERVICE.
<snip>
The Commission intends to address next week, in a
separate order, the broader issue of whether conventional dial-up access
to the Internet, made through calls to information service providers,
including Internet Service Providers (ISPs), is local or interstate in
nature. That decision will address whether incumbent local telephone
companies may be required to compensate their competitors for handling
calls made by the incumbents' customers to ISPs that are the competitors'
customers. Report No: CC-98-41. by MO&O. Action by: the Commission.
Adopted: October 30, 1998. (FCC No. 98-292) CCB.

ENGLISH TRANSLATION:  why is this important?

Most ISP's in Michigan purchase dialtone from Competitive Local Exchange
Carriers(CLEC) at discounted rates from traditional Ameritech services and
thus provide services at lower cost to consumers. If Internet access
through CLEC's is deemed to be interstate telecommunications traffic, per
minute tariff charges would begin to apply for calls delivered via CLEC's.
This could mean a dramatic increase (on the order of 1-2 cents per minute)
for Internet access.

Additional information on the GTE "test" case can be found at
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8081.html

---------
Ivars Upatnieks                 v (734)998-0090
ICNet, Inc.                                     f (734)998-0816
2901 Hubbard                            e ivars at ic.net
Ann Arbor, MI  48105                       www.ic.net 
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