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Modem tax again?
As I recall, the alleged "subsidy" consists of lack of payments so
rural areas can have subsidized phone service - thus making their costs borne
by everyone else.
-Allen
> _________________________________________________________________
> Avis
> _________________________________________________________________
> INTERNET IS HURTING PHONE NETWORKS, STUDY SAYS
> __________________________________________________________________________
> Copyright © 1996 Nando.net
> Copyright © 1996 San Francisco Examiner
> SAN FRANCISCO (Aug 27, 1996 3:11 p.m. EDT) -- Hoping to reduce or end
> a subsidy that has kept down the cost of on-line service, local phone
> companies here have presented the Federal Communications Commission
> with studies arguing that Internet users are overtaxing phone networks
> and ought to pay more for monthly service.
> The studies, one of which was published on the Internet, argue that a
> 13-year-old subsidy lets Internet service providers (ISPs) pay a
> fraction of what a long distance company pays to get a phone line,
> even though Internet calls may use more phone system capacity than
> voice traffic.
[...]
> For their part, ISPs are alarmed at the remote possibility that the
> FCC might let phone companies raise their monthly costs from the
> current monthly average of $30 to anything approaching the $600 that
> some long distance carriers pay for a phone line.
> "If we had to pay anything like long distance access charges, it would
> put all the ISPs out of business," said Ronald Plesser, the
> Washington, D.C., attorney who represents the Commercial Internet
> Exchange, an ISP trade group.
> FCC staff attorney Kevin Werbach said the subsidy began in 1983, when
> the five-member federal commission created a special rate to encourage
> the growth of on-line services, voicemail companies and other emerging
> industries that offered enhanced electronic services over phone lines.
> In 1987, the FCC considered ending the subsidy but backed down after
> public protest over what came to be characterized as the "modem tax."
> Given the growth in on-line usage, ISPs assume any talk of ending the
> subsidy would create a bigger backlash today.
> "There are a minimum of 20 million and perhaps as many as 40 million
> on-line and Internet users and many of them are registered voters,"
> said William Schrader, president of PSI Net, an ISP in Herndon, Va.
> Schrader said when he visited several FCC members recently, he
> suggested that many of those users would be happy to send a letter of
> protest to FCC Chairman Reed Hundt.
[...]
> Copyright © 1996 Nando.net