ROODE@BIONET-20.ARPA (David Roode) (06/24/87)
The FCC has finalized plans to impose access charges on connections over Public Data Nets effective next 1 Jan 88. I cannot understand the rationale of these charges, and wonder if anyone can explain or would care to comment. The dollar amount they are throwing around is $5 per connect hour. I don't know if this would be discounted in off hours or not. Reasons I see that PDN's are different from long distance carriers: a. The PDN cannot establish a call to an arbitrary station on the switched telephone net. This service is typically available only to host computers with an X.25 link or similar connection to the PDN. b. The PDN does not need nor can it use services like 10xxx dialing and automatic station number identification. c. In view of the PDN network reach, it has presence in most local dialing areas, and so does not save anything by using fewer access points which are dialable at the same originating phone rate by users regarless of location in an area code. d. The benefit of waiving local message unit/zone charges in dialing a PDN switch is unclear. It shifts charges between budgets in corporate, academic and governmental environments. Residential callers escape these charges entirely currently, but they certainly would be far less than $5 per hour if imposed. e. The PDN's are commonly used within a LATA or an AREA code, and are so not a long distance service. Any surcharge would apply equally to interLATA and intraLATA costs, if motivated strictly by costs. Basically, none of this cost is associated by use coming from outside a LATA, even in the case of interLATA use, since leased lines connect PDN switches to host computers. PC Pursuit is the sole exception to this, or that ilk of use, which is new and reasonably treated differently. Telenet currently racks up considerable toll fees for outgoing PC Pursuit calls. f. The potential for escaping the PDN surcharges for network access are much greater, as are the motivations due to cost. Only common carriers would be subject to these fees. Would networks like CompuServe stop selling use to 3rd parties to be safe from classification as common carriers? Would dialup lines to ARPANET and MILNET TAC's be subject to these charges? What about dialup lines to hosts on these networks, or on consortia networks such as BITNET and NSFNET? Are such surcharges sufficient to move traffic off of Telenet and Tymnet and onto ARPANET or NSFNET if such use is exempt? Is this fair, or desirable? By what right are PDN switch computers treated differently than an IBM Mainframe on BITNET? Then a small computer serving as a dedicated datacomm switch on a university campus? Would businesses start a cooperative arrangement of mutually providing independent access through their PDN connections? I.e., business A in New York would have users in Los Angeles dialing business B's Telenet PAD and originating calls to business A. The common carrier-like service involved is being access not directly from the switched telephone network, but from private facilities. g. Already, some local telephone companies, state-wide in some cases, provide an X.25 network service. Such nets are gatewayed to nationwide PDN's such as Telenet and CompuServe network. Should this type of access be subject to the surcharge? Is FCC pre-empting the right of the local telcos to provide this service if it surcharges the service and controls allocatio of the revenues? If it does not surcharge these, is it penalizing the nationwide PDN's?