[comp.sys.ibm.pc] FCC scraps modem fees proposal

W8SDZ@SIMTEL20.ARPA (Keith Petersen) (03/19/88)

From the Los Angeles Times, March 17, 1988...

WASHINGTON--The  Federal Communications Commission plans to scrap 
a  proposal that would substantially increase  telephone  charges 
for business and home computer users, sources said Wednesday.

     FCC Chairman Dennis R.  Patrick has concluded that, based on 
strong and nearly unanimous opposition to the proposal,  the plan 
should be dropped,  according to sources at the commission and on 
Capitol Hill.

     Commissioner  Patricia  Diaz  Dennis said  Patrick  had  not 
spoken with her about a recommendation to drop the plan,  but she 
said she agreed with the idea.

     "There's a lot on our plate right now and I don't think  I'd 
miss not seeing that on it," she said.

     The third commissioner,  James Quello,  could not be reached 
for comment.  Patrick's office had no comment on the reports.

     The  commission was expected to vote in two to three  months 
to drop the proposal.

     A  decision  to  scrap the plan would be a victory  for  the 
hundreds of thousands of computer users who dial into data  bases 
such  as CompuServe and QuantumLink for a variety of  information 
services, like news stories and financial reports, and electronic 
communication with other users.

                      May Delay Legislation

     Users  of  these services flooded the FCC and  Capitol  Hill 
with  thousands  of letters opposing the plan,  which  would  add 
about  $4.50  an  hour to the cost of hooking up  to  information 
services.

     They  said  the increased charges,  which would  double  the 
hourly  hookup price for some information services,  would  drive 
many  of  them off the computer networks and  crush  a  fledgling 
industry.

     Rep.  Edward  J.  Markey,  (D-Mass.),  chairman of the House 
Energy and Commerce telecommunications subcommittee, said that in 
light  of the commission's apparent reversal on the  proposal  he 
would  delay indefinitely introduction of a bill  preventing  the 
FCC from imposing the access charges.

     But  Markey  said,  the  panel  "will  closely  monitor  the 
commission's  actions to ensure that these onerous charges do not 
re-emerge in a new form."

     The  FCC had proposed extending to computer users  the  same 
access  charges now paid by long-distance companies for access to 
the local phone network.   But the commission found virtually  no 
support for the proposal, and users warned that the charges could 
strangle a new industry.