| Apparently there is some confusion in the ranks of the FCC. A story run by InfoWorld Electric stated that the FCC had ruled that Internet access calls were subject to long distance charges. This was based on a press release made by Mr. Furchtgott-Roth, a dissenting member of the FCC who was upset that a request to delay the vote was not granted.
The FCC posted an official press release which clearly states that ISPs would continue to be exempt from these charges despite the fact that are mostly Interstate related calls. According to the FCC:
"The Commission declared that Internet traffic is jurisdictionally mixed and appears to be largely interstate in nature. But the decision preserves the rule that exempts the Internet and other information services from interstate access charges. This means that those consumers who continue to access the Internet by dialing a seven-digit number will not incur long distance charges when they do so. In a notice of proposed rulemaking, the Commission also asked for comment on proposals governing future carrier-to-carrier compensation for handling this traffic."
This means that local dial-up numbers will not be subject to long-distance charges, contrary to the press release by Mr. Furchtgott-Roth
Mr. Furchtgott-Roth's PR can be read here, while the official FCC PR can be read here.
We would like to thank Ed Hansen, Public Relations Manager of Mindspring, for his help with this article. Sources at Southwestern Bell would not return our phone calls.
The Mac Observer Spin: This was a very serious moment for the Internet, or at least it seemed like it was. At issue was whether you would be charged by the minute by your local Telco for dialing into an ISP. The ISPs would not collect more money, it would have been the telephone companies who have been clamoring for the right to charge per minute fees since the explosion of the Internet first began who would have collected the fees if they were assessed.
ISPs too would have indirectly benefited from this ruling however, had it gone down like the InfoWorld report said. As is the case with the Telcos, it is people who stay connected to the Internet all the time, whether they are using it or not, who use most of the resources, Those who are not on all that much effectively subsidize these heavy users.
John Morgan, President of KDi Internet Solutions, felt that the Telcos would not be likely to price themselves out of business.
"Per minute charges have not hampered the internet in Japan or Australia and will not significantly hurt the internet here. The charges will be miniscule, as with all per minute usage fees. The phone companies can not afford to chase everyone to cable modems so any per minute charges will be miniscule.
Up until now, the people who are not on very much are paying for the people that camp on the internet. Don't get me wrong, I don't think this is a good thing for the Internet, but I don't think it would end up being that big a deal [if per minute access fees were allowed]."
Mr. Morgan made it clear that he hoped it would not happen and it appears as if this is the case. It should be pointed out that very few parts of the country have access to cable modems or other alternatives to dial-up connectivity.
It is our thought that per-minute charges would hamper many aspects of the growth of the Internet, though it would in fact be more fair to some providers. Internet gaming for instance would become prohibitively expensive, even if the rates were as low as a half-cent per minute. Internet gaming is the driving force behind many technological advancements made in connectivity.
The same is true for online commerce, dedicated connections, and other online activities.
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