[comp.org.eff.talk] Big Brother charging for modem use?

cmcurtin@bluemoon.uucp (Matthew Curtin) (01/30/91)

Greetings!

I've been hearing roumors about the FCC charging us EXTRA for using modems 
(as opposed to just using voice).  How could the FCC regulate this, as it 
seems to me that the phone companies alone would be responsible for this.

If this is true, this is certainly just a scheme by some beaurocrat to 
make an extra buck and hinder us from communicating with each other in 
this manner.  What could be done to stop it?


 ______________________________________________________________________________
| C. Matthew Curtin             ! "This is a strange game.  The only way to   |
| P.O. Box 27081                ! win is not to play."  -Joshua               |
| Columbus, OH 43227-0081       !---------------------------------------------|
| cmcurtin@bluemoon.uucp _______!______________Apple_II_Forever!______________|

johnl@iecc.cambridge.ma.us (John R. Levine) (01/31/91)

In article <7X9kw3w163w@bluemoon.uucp> cmcurtin@bluemoon.uucp (Matthew Curtin) writes:
>I've been hearing roumors about the FCC charging us EXTRA for using modems 

This rumor keeps making the rounds.  It is completely false, based on a
proposal made and dropped about five years ago to treat packet switched
data carriers such as Tymnet more like long distance phone companies.

The FCC has on more than one occasion stated in writing that they have no
intention of changing the way things are now.

-- 
John R. Levine, IECC, POB 349, Cambridge MA 02238, +1 617 864 9650
johnl@iecc.cambridge.ma.us, {ima|spdcc|world}!iecc!johnl
" #(ps,#(rs))' " - L. P. Deutsch and C. N. Mooers

gtoal@tharr.UUCP (Graham Toal) (02/05/91)

In article <299.security.eff@pro-angmar> m.tiernan@pro-angmar.UUCP (Michael Tiernan) writes:

   (the old story about tax/surchange for modem use)

>My information is old and sketchy, we need up to date info so if anyone is out
>there who's got a finger on the pulse of this one, please let's hear about it.

Argh! Not again.  It's an URBAN LEGEND.  It is debunked every year regular
as clockwork but people still keep trotting it out.  Next phase is a letter-
writing campaign to Congress...

G
-- 
(* Posted from tharr.uucp - Public Access Unix - +44 (234) 261804 *)

acminfo@zeus.unomaha.edu (Dan Kenny) (02/10/91)

In article <1726@tharr.UUCP>, gtoal@tharr.UUCP (Graham Toal) writes:
> In article <299.security.eff@pro-angmar> m.tiernan@pro-angmar.UUCP (Michael Tiernan) writes:
> 
>    (the old story about tax/surchange for modem use)
> 
>>My information is old and sketchy, we need up to date info so if anyone is out
>>there who's got a finger on the pulse of this one, please let's hear about it.
> 
> Argh! Not again.  It's an URBAN LEGEND.  It is debunked every year regular
> as clockwork but people still keep trotting it out.  Next phase is a letter-
> writing campaign to Congress...
> 

It may be the old "urban legend", but I would much rather be informed of a 
potential threat to my pursuit of happiness than have it sneaked in on me by 
the phone company lobbyists and a short-term-mentality Congress. I do not 
buy the argument that just because rumors crop up each year, everyone can 
relax and there will never be another attempt to strangle the modem user.

For example, just how many people out in the net.space.time.continuum were 
aware of THIS little tidbit of legislation? 

-----------
  From The Omaha World Herald Sun Feb 3:
  Fr. The Washington Post

  "Computer Professionals to Lose Eligibilty for Overtime Payments"

  Washington - Hundreds of thousands of computer analysts, programmers and 
  software engineers no longer will be eligible to receive overtime payments
  under regulations to be issued this month by the Labor Department.
     The exemption that excludes these workers from receiving overtime was
  approved by Congress last year and represents the first time in the 52-year
  history of federal wage-hour law that anyone has become exempt from overtime
  payment simply by the level of earnings in a specific occupation.
     Under the new law, a computer systems analyst, programmer, software 
  engineer and "other similarly skilled professional workers" paid on an 
  hourly basis can be denied overtime payments if they earn 6 1/2 times the 
  federal minimum wage.
     The minimum wage will rise to $4.25 an hour on April 1. This means anyone
  earning $27.62 an hour in the covered occupations would not be eligible for 
  overtime.
     The most immediate impact will be in the computer consulting industry, 
  where hourly wages for programmers and analysts range from $25 to $100 an 
  hour, said Harvey Shulman, general consel for the National Association of
  Computer Consultant Businesses.
--------

I find it interesting to note that while Congress is quite alarmed about 
the declining interest in science and computer fields from our youth, they 
sure are trying to do their best to stifle movement into the electronic 
frontier...

The article should also serve as a reminder not to let one's guard down
for a minute. I know -I- wasn't aware of this legislation until after 
the fact. 

============================================================================
Dan Kenny, SIG Director                           acminfo@zeus.unomaha.edu
UNO-ACM Information Applications                  "Feed your brain"
============================================================================

wouk@alumni.colorado.edu (Arthur Wouk) (03/02/91)

In article <7X9kw3w163w@bluemoon.uucp> cmcurtin@bluemoon.uucp (Matthew Curtin) writes:
>Greetings!
>
>I've been hearing roumors about the FCC charging us EXTRA for using modems 
>(as opposed to just using voice).  How could the FCC regulate this, as it 
>seems to me that the phone companies alone would be responsible for this.
>
>If this is true, this is certainly just a scheme by some beaurocrat to 
>make an extra buck and hinder us from communicating with each other in 
>this manner.  What could be done to stop it?
>

i would like to comment on this matter based on my knowledge gained
from being in a company that was bought out by a telephone company
(GTE) over 30 years ago.  (i didn't stay around toolong after thast.)

the principle on which telephone service works is that of
'concentration'. it is too expensive to run a single line from each
terminal point ((telephone, ...)  to the switching center and hence pn
th the network. instead, local concentrators exist to serve a given
number of phones (say 10) on the basis that not more than one of them
will need service at any one time. actually this is an obvious
oversimplification, but it makes the point. these concentrators again
may be concentrated one or more times before reaching the switching
station. at the switching station you enter the world of trunk lines
with much capacity,  but again based on a predicted usage level.


the point of this is, the physical plant is based on a specific
predicted utilization level, based on a well established pattern of
utilization by different types of users: home, business, etc.

since business use is very heavy, it is harder to reduce the number of
lines used to provide a given level of service, so more physical lines
need to be run from the terminus on in through the concentraters. this
is very expensive, and busnesses pay more for phone use for that
reason.

home use is much lighter, and the degree of concentration possible is
greater. so the introcution of a modem into residential areas 
provides a very different type of load to the system than a person to
person phone call. i for instance, tend to log in for from 10 minutes
to two hours at a time. this degrades the service offered to others on
my concentrator, since i tie up one its outgoing lines very
significantly.

in a sense this is the sort of phenomenon which makes family people
tend to have a dedicated line for their computers. the same queing
problems for a single line lead to immense dissatisfaction in the
household, because of the degraded service to the non-modem user!

anyway, as you can see, if you introduce this perturbation to the
service demand, the phone company will have to make more capital
investment to provide the same level of service to the other users on
your concentrator. 

now, the FCC enters because it has jurisdiction of rate setting in
certain case, while the state utilities commission has similar duties
in other cases.  the point is that we modem users are free loading on
a system designed for the usual distribution of personal phone
calls. i would not be surprised if some ruling from some government
agency doesn't eventually force us to pay extra for the extra demands
which we make. in order for that to be done a rather complicated
analysis of the distibution of modem based uses had to be mnade. for
instance, if we use uucp from 2am to 3am for regular downloads, we
don't really pose an extra system load. if we try to run for several
hours on mother's day, for instance, we make things very difficult.
so it is hard to judge what the extra cost really is.

now: this all could change if a fiber optic line was used for service
all the way down to the household level, or even say to the first
concentrator level. the huge capacity of such lines would make the
whole discussion above irrelevant.  but the cost of running fiber
optics so far down the tree of the system might make ALL phone service
too expensive for most people. i really can't guess about that.

so don't blame the phone companies so much, and think about what we do
as partially freeloading on others. since i happen to be retired, most
of my usage occurs at a time when my neighbors are all away at work,
so i don't believe that i downgrade their service significantly. can
you say the same?
-- 
arthur wouk 
internet: wouk@cs.colorado.edu

minich@unx2.ucc.okstate.edu (Robert Minich) (03/03/91)

by wouk@alumni.colorado.edu (Arthur Wouk):
:
:
| the point of this is, the physical plant is based on a specific
| predicted utilization level, based on a well established pattern of
| utilization by different types of users: home, business, etc.
| 
| since business use is very heavy, it is harder to reduce the number of
| lines used to provide a given level of service, so more physical lines
| need to be run from the terminus on in through the concentrators. this
| is very expensive, and busnesses pay more for phone use for that
| reason.
| 
| home use is much lighter, and the degree of concentration possible is
| greater. so the introcution of a modem into residential areas 
| provides a very different type of load to the system than a person to
| person phone call. i for instance, tend to log in for from 10 minutes
| to two hours at a time. this degrades the service offered to others on
| my concentrator, since i tie up one its outgoing lines very
| significantly.
:
:
| -- 
| arthur wouk 
| internet: wouk@cs.colorado.edu

  I would like to publicly ponder whether Arthur has witnessed the
phenomena of the teenage female with regard to phone usage. Should phone
companies charge more for households with children, much like insurance
companies do for auto insurance? This is just my light-hearted thought
for the day.

Robert Minich
minich@d.cs.okstate.edu
-- 
|_    /| | Robert Minich            |
|\'o.O'  | Oklahoma State University| "I'm not discouraging others from using
|=(___)= | minich@d.cs.okstate.edu  |  their power of the pen, but mine will
|   U    | - "Ackphtth"             |  continue to do the crossword."  M. Ho

johnl@iecc.cambridge.ma.us (John R. Levine) (03/03/91)

In article <7X9kw3w163w@bluemoon.uucp> cmcurtin@bluemoon.uucp (Matthew Curtin) writes:
>I've been hearing roumors about the FCC charging us EXTRA for using modems 
>(as opposed to just using voice).

This is a persistent false rumor that appears to get restarted every few
months when people come across old files on BBSes.  It is true that several
years ago, the FCC proposed to change the way that packet switched networks
such as Sprintnet and Tymnet were regulated.  In effect, the networks would
be treated as long-distance carriers rather than as end users.  These changes
would have had the effect of charging the networks and presumably their users
several cents per minute for dial-in and dial-out connect time.

This proposal was completely abandoned due to objections from the networks,
their users, and many congress members.  The FCC has in recent years stated
in writing that they have no intention of changing the treatment of packet
networks.

If someone has evidence of an actual FCC proposal to change the treatment of
modem users, including an FCC docket number that would allow us to get copies
of it and comment on it, we'd all be very interested to hear about it.  I do
not believe that there is any such proposal, and would appreciate it if people
would be more careful about spreading false alarming rumors.  There are enough
true alarming rumors around that we don't need any false ones.

A continuing situation of concern to modem users is that in some states,
local phone companies are trying to charge the owners of hobby BBS systems
business rather than residential phone rates.  This has nothing whatsoever
to do with the FCC, which only regulates interstate telephony.  The newsgroup
alt.cosuard contains considerable material on this topic.

-- 
John R. Levine, IECC, POB 349, Cambridge MA 02238, +1 617 864 9650
johnl@iecc.cambridge.ma.us, {ima|spdcc|world}!iecc!johnl
Cheap oil is an oxymoron.

floyd@ims.alaska.edu (Floyd Davidson) (03/03/91)

In article <1991Mar3.045031.25491@unx2.ucc.okstate.edu> minich@unx2.ucc.okstate.edu (Robert Minich) writes:
>by wouk@alumni.colorado.edu (Arthur Wouk):
>:
>:
>| the point of this is, the physical plant is based on a specific
>| predicted utilization level, based on a well established pattern of
>| utilization by different types of users: home, business, etc.
>| 
>| since business use is very heavy, it is harder to reduce the number of
>| lines used to provide a given level of service, so more physical lines
>| need to be run from the terminus on in through the concentrators. this
>| is very expensive, and busnesses pay more for phone use for that
>| reason.
>| 
>| home use is much lighter, and the degree of concentration possible is
>| greater. so the introcution of a modem into residential areas 
>| provides a very different type of load to the system than a person to
>| person phone call. i for instance, tend to log in for from 10 minutes
>| to two hours at a time. this degrades the service offered to others on
>| my concentrator, since i tie up one its outgoing lines very
>| significantly.
>
>  I would like to publicly ponder whether Arthur has witnessed the
>phenomena of the teenage female with regard to phone usage. Should phone
>companies charge more for households with children, much like insurance
>companies do for auto insurance? This is just my light-hearted thought
>for the day.

Actually it isn't just children, or at least young children.  The
normal pattern for business use is many relatively short calls.
The calls peak at the beginning of the business day (8-9), at
about 11 AM, and from 1-2 PM, with each peak being larger than
the earlier one.

At 5PM the number of calls drops dramatically.  And the length of
those fewer calls goes up just as dramatically.

And it is not just kids calling each other either.  The long distance
calls are almost all kids calling Mom and Dad, and the kids are any
age young enough to have parents alive to call!

As far as I know modem calls are exactly a reflection of voice
calls.  Business calls are short and many, residential calls
are fewer and lengthy.

I also suspect that modem users make more long distance calls than
non-modem users.  I like that, it pays my wages.

Floyd
-- 
Floyd L. Davidson  |  floyd@ims.alaska.edu   |  Alascom, Inc. pays me
Salcha, AK 99714   |    Univ. of Alaska      |  but not for opinions.

hes@ccvr1.ncsu.edu (Henry E. Schaffer) (03/04/91)

In article <1991Mar2.023716.13851@csn.org> wouk@alumni.colorado.edu (Arthur Wouk) writes:
> ...
>i would like to comment on this matter based on my knowledge gained
>from being in a company that was bought out by a telephone company
>(GTE) over 30 years ago.  (i didn't stay around toolong after thast.)
>
>the principle on which telephone service works is that of
>'concentration'. it is too expensive to run a single line from each
                  ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  Except that this is what is very often done in urban and suburban
areas.  While this is just a single part of the telephone system,
the point is important - and is at the root of my disagreement with
this argument.

>terminal point ((telephone, ...)  to the switching center and hence pn
>th the network. instead, local concentrators exist to serve a given
>number of phones (say 10) on the basis that not more than one of them
>will need service at any one time. actually this is an obvious
>oversimplification, but it makes the point. these concentrators again
>may be concentrated one or more times before reaching the switching
>station. at the switching station you enter the world of trunk lines
>with much capacity,  but again based on a predicted usage level.
>
>the point of this is, the physical plant is based on a specific
>predicted utilization level, based on a well established pattern of
>utilization by different types of users: home, business, etc.
> ...

  However, this is only part of the story and it is a major distortion
to consider it as the whole story.  Some parts of my telephone service
are dedicated to my phone alone.  My local loop (which in my case goes
to my central office) is used only by me and sits there vacant when I
don't use it. Similarly such services as monthly billing and listing
services are constant cost regardless of my phone usage.  The
telephone switch in my central office may or may not be cost sensitive
to my use.  (If it is non-blocking then costs don't depend on how much
I use my phone.  If it is blocking, then there may have to be a *very*
small equipment increment if I use my phone very much.)  The trunks from 
my central office to others in my local calling area do have their
size dependant on how much I use them, but for long distance trunks I
am already paying dependant on how much I use them.

  Therefore I claim that major portions of the cost of rendering me
phone service do not change because of my usage pattern, and that other
portions increase very slowly with my increased usage.  If I am 
correct, then much of the "we consider you a business and therefore
you must pay much higher rates" stuff is simply a way for the phone co.
to collect extra money (and to provide a public relations rationale so
that the general public will swallow this rationale.)

  If there really was an increased cost, wouldn't the phone companies
talk about it?

--henry schaffer  n c state univ

randolph@cognito.Eng.Sun.COM (Randolph Fritz) (03/05/91)

If pricing actually followed usage, you would actually pay a very high
monthly flat rate, and a very small usage charge; most of the cost of
the network is in the "last mile" of wire and the local office
equipment.

As tariffs (rate schedules) were set before ATT broke up, long
distance was charged much higher than cost, and local service lower.
Since, at that time, the majority of long-distance service was
business-related, national and international business users were
carrying the costs of the network.

As tariffs are currently set, I would guess that, at this point, it is
local business users who actually carry most of the cost of the
network.  The local access charge is a reflection of the lost
long-distance subsidy; if the local telcos had their way it would be
much higher.

   nd t
 ou    ui
R Press  T  __Randolph Fritz  sun!cognito.eng!randolph || randolph@eng.sun.com
 ou    ui     Mountain View, California, North America, Earth
   nd t

dgelbart@questor.wimsey.bc.ca (Dave Gelbart) (03/05/91)

minich@unx2.ucc.okstate.edu (Robert Minich) writes:

>   I would like to publicly ponder whether Arthur has witnessed the
> phenomena of the teenage female with regard to phone usage. Should phone
> companies charge more for households with children, much like insurance
> companies do for auto insurance? This is just my light-hearted thought
> for the day.
> 
> Robert Minich
> minich@d.cs.okstate.edu

That completely misses the point. It's impractical for the phone company to 
start charging households according to usage level, teenage girl quotient,
etc. *Very* impractical. On the other hand, it's pretty easy for them to 
start charging BBSs -- which *consistently* have greater than average phone 
use -- as they do not have to rearrange or scrap existing regulations.
Besides, it's doubtful there will be a public outcry if all telcos
started charging BBSs higher rates.

Incidentally, I believe several telephone companies have standing policy,
which they have never bothered to enforce, that BBSs pay business rates.
I know BC Tel, my local telco, does.


  Dave Gelbart                <dgelbart@questor.wimsey.bc.ca>
Post: #12 4255 Sophia St./Vancouver, BC/V5V 3V6/CANADA

todd@toolz.uucp (Todd Merriman) (03/05/91)

wouk@alumni.colorado.edu (Arthur Wouk) writes:
>so don't blame the phone companies so much, and think about what we do
>as partially freeloading on others.

I am not "freeloading," as you put it, when I use my private phone line
15 hours/day continuously (as I often do).  I am paying for 24-hour
service, and I am not concerned about the requirements to the phone
company of delivering the level of service I am paying for.

You are free to insult yourself by calling yourself a "freeloader,"
but how dare you lay your lack of self-respect on me?

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* Todd Merriman - Software Toolz, Inc.                   * Maintainer of the  *
* 8030 Pooles Mill Dr., Ball Ground, GA 30107-9610       * Software           *
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ggw%wolves@cs.duke.edu (Gregory G. Woodbury) (03/05/91)

In article <aocBy2w164w@questor.wimsey.bc.ca>
dgelbart@questor.wimsey.bc.ca (Dave Gelbart) writes:
>minich@unx2.ucc.okstate.edu (Robert Minich) writes:
>
>>   I would like to publicly ponder whether Arthur has witnessed the
>> phenomena of the teenage female with regard to phone usage. Should phone
>> companies charge more for households with children, much like insurance
>> companies do for auto insurance? This is just my light-hearted thought
>> for the day.
>
>That completely misses the point. It's impractical for the phone company to 
>start charging households according to usage level, teenage girl quotient,
>etc. *Very* impractical.

	You don't seem to realize that in many places, the telcos DO
charge by effective usage level.  Unmetered service (flat rate/free
local calls/etc.) is mostly a smaller town situation.  In the large
metropolitan areas most service (business or residential) is measured
and all call are paid for on a time used basis.  Even here in Durham NC
where I have unmeasured local calls, the extended calling area (which
allows lower than LD rate calling to Chapel Hill and Raleigh) is simply
a measured service rate.  LD has always been a measured service.

	The local telcos are also going to have a damn good idea of the
service utilization patterns in their COs.  They may not know exactly
how much service a particular line uses currently, but they ARE
collecting the usage statistics and aggregating them for their planning
use.  If they want to track individual line usage, it is simply a matter
of programming in most modern switches.


>                         On the other hand, it's pretty easy for them to 
>start charging BBSs -- which *consistently* have greater than average phone 
>use -- as they do not have to rearrange or scrap existing regulations.

	Now, this is the real crux of the matter - existing regulations.
In most places, it would NOT really be too hard for the telcos to
introduce tarriffs that provided more than two tiers of service.  The
distinction between residential and business is one carefully maintained
by the telcos.  In reality they have several levels of service tarriffed
in most places.
	For example, there is usually a "lifeline" service tarriffed
that provides measured local calls, no LD access and a very low rate
which is available for locations or users that only need telephone
access for emergency or minimal use.  This tarriff was introduced in
most places at the insistence of the PUC or equivalent.  But you will
almost never hear the telco mention this particular service option.
	On the other end of the spectrum, the largest users seldom buy
telco service line-by-line.  They get a PBX and a "trunk" interface that
in essense makes them a micro-telco on their premises.  The buy large
chunks of service at a time and may often get a lower aggregate rate
than a residence.
	It is the vast middle class of telco users - the residences and
small businesses - that get shafted with high rates and strange
regulations.  The telcos try to shuffle most folks into the "standard
residence" or "standard business" tarriffs so that the telco will get maximal
return on investment.

>Besides, it's doubtful there will be a public outcry if all telcos
>started charging BBSs higher rates.

	Well, there may not be much PUBLIC outcry, but there sure is a
lot of outcry and complaints and testimony before the regulators when
they do try it.

>Incidentally, I believe several telephone companies have standing policy,
>which they have never bothered to enforce, that BBSs pay business rates.
>I know BC Tel, my local telco, does.

	Well, in this GTE satrapy, BBSs get charged business rates if
they operate as a business.  If they charge for access, advertise
strongly or are operated as part of a business, they get charged
business rates.  On the other hand, if they do not require contributions
and don't draw too much attention, they can operate on residential
lines.
-- 
Gregory G. Woodbury @ The Wolves Den UNIX, Durham NC
UUCP: ...dukcds!wolves!ggw   ...mcnc!wolves!ggw           [use the maps!]
Domain: ggw@cds.duke.edu     ggw%wolves@mcnc.mcnc.org
[The line eater is a boojum snark! ]           <standard disclaimers apply>

learn@ddsw1.MCS.COM (William Vajk) (03/06/91)

In article <1991Mar2.023716.13851@csn.org> Arthur Wouk writes:

>the principle on which telephone service works is that of
>'concentration'. it is too expensive to run a single line from each
>terminal point ((telephone, ...)  to the switching center and hence pn
>th the network. instead, local concentrators exist to serve a given
>number of phones (say 10) on the basis that not more than one of them
>will need service at any one time. 

May be some places. But you can chase the wires from my house right to
the local exchange.

>now: this all could change if a fiber optic line was used for service
>all the way down to the household level, or even say to the first
>concentrator level. the huge capacity of such lines would make the
>whole discussion above irrelevant.  but the cost of running fiber
>optics so far down the tree of the system might make ALL phone service
>too expensive for most people. i really can't guess about that.

May be in some places. But they've been running fiber all over town
here for the last year or so. What/where they do/will connect I don't
know. I'm still wire all the way here.

>so don't blame the phone companies so much, and think about what we do
>as partially freeloading on others. 

Don't you dare talk to me about "freeloading." Here in Illinois we recently
began paying an extra 15 cents per month per line to help pay the cost of
phone service to the certifiably poor. Beyond that we have 100% metered
service only. Calls within 8 miles cost a nickel regardless of duration. From
8 miles outward we are billed by the minute. That's for BELL. The rules are
different for folks serviced by CENTEL.

In spite of the "fairness" promised by the telephone company here, their
profits rose and I have been able to find no one whose monthly bill was
actually reduced as opposed to the old "callpack" system we used to enjoy.

>since i happen to be retired, most
>of my usage occurs at a time when my neighbors are all away at work,
>so i don't believe that i downgrade their service significantly. can
>you say the same?

And isn't it interesting that while you don't downgrade the service
significantly, you are also using the phone during the hours the
phone companies consider to be "prime", the very same hours during
they impose the highest charges ?

I'm not in the least concerned about the loading I present to the local
phone system. I pay for it quite dearly. I support enough that they can
afford to upgrade the service. In my neighborhood (not swanky by any
means) more homes have multiple phone lines than one. There are 5 phone
drops to my house from the pole.

Bill Vajk

shiva@pro-smof.cts.com (System Smof) (03/06/91)

In-Reply-To: message from dgelbart@questor.wimsey.bc.ca

I've always wondered about the "BBSs have greater than average phone use"
justification for higher rates, since prime time for BBSs is typically
during evening hours, which does not conflict with business use of the
system during the day.
 ____________________________________________________________________
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alien@hpdmd48.boi.hp.com (Tom von Alten) (03/07/91)

In comp.org.eff.talk, todd@toolz.uucp (Todd Merriman) writes:

> I am not "freeloading," as you put it, when I use my private phone line
> 15 hours/day continuously (as I often do).  I am paying for 24-hour
> service, and I am not concerned about the requirements to the phone
> company of delivering the level of service I am paying for.

> You are free to insult yourself by calling yourself a "freeloader,"
> but how dare you lay your lack of self-respect on me?

Ayup.  And when enough of their customers get to using their phones
15 hours/day, somebody will have to pay for it.

There is no such thing as a free lunch.
There is no such thing as a free lunch.
There is no such thing as a free lunch.

curt@cynic.wimsey.bc.ca (Curt Sampson) (03/09/91)

hes@ccvr1.ncsu.edu (Henry E. Schaffer) writes:

>   Therefore I claim that major portions of the cost of rendering me
> phone service do not change because of my usage pattern, and that other
> portions increase very slowly with my increased usage.  If I am 
> correct, then much of the "we consider you a business and therefore
> you must pay much higher rates" stuff is simply a way for the phone co.
> to collect extra money (and to provide a public relations rationale so
> that the general public will swallow this rationale.)

Apparently local residential calling is not as heavily subsidised in the
US as it is in Canada (Canada has some of the, if not the, cheapest
local phone rates in the world) but I belive that the situation is
similar.

Residental users are given a heavy subsidy to keep the cost of having a
phone low.  Currently, residential users in B.C. pay about $14 per month
for a phone and business users pay about $70 per month (or about $30 per
month for a restricted outgoing line).  B.C. Tel claims that the true
cost of a residental phone line, were it not subsidized by business and
long-distance charges, would be about $30-$35 per month.  The CRTC
(Canadian Radio-Television and Telephone Commission, which regulates the
phone monopoly) deems that this subsidy is a good thing.

cjs
curt@cynic.wimsey.bc.ca          | "Sometimes it's like a party you go to where
curt@cynic.uucp                  | there are no lights and everyone is doing
{uunet|ubc-cs}!van-bc!cynic!curt | animal impressions." -Phillip Evans on usenet

curt@cynic.wimsey.bc.ca (Curt Sampson) (03/09/91)

dgelbart@questor.wimsey.bc.ca (Dave Gelbart) writes:

> Incidentally, I believe several telephone companies have standing policy,
> which they have never bothered to enforce, that BBSs pay business rates.
> I know BC Tel, my local telco, does.

Wrong.  This issue came to a head last year when BC Tel decided to
charge Doppler/Deep Cove BBS business rates.  Up until that point BC Tel
had *never* charged a non-commercial BBS anything but a residential
rate.  DCDBBS was a 16-line BBS that gave free access to anyone.
However, it was sponsored by Doppler Computers (a computer store) and
carried advertising for that store.  Thus, BC Tel deemed it a commercial
operation.

After several months of discussion with the local BBS community, BC Tel
put forth the following policy on rates charged to BBSs:

(3)     Mon 17 Sep 90 13:04     Rcvd: Mon 17 Sep 15:13
By: Ellen Mark, BCT BBS (153/908)
To: Curt Sampson
Re: B.C. Tel's Position
St: Pvt  Crash  Rcvd
------------------------------------------------------------------------
@MSGID: 1:153/908 988d16ca
@Original: Dallas Hinton
cc: Dallas Hinton
B.C. Tel has reviewed the many informative messages and letters of
comment received from members of the bulletin  board  system (BBS)
community.  These comments have been very helpful in expanding our
knowledge of the subject.  We truly appreciate the effort you have
made in providing this input.

B.C. Tel  believes  that  the  local  exchange  telephone  service
that   serves    a BBS  can  be  classed  as  either  Business  or
Residential,  depending on  whether  the  BBS is  being  used in a
"business" or "residential" manner; this is in accordance with the
Company's  tariffs.   The  following criteria  will  determine the
appropriate classification for computer bulletin board systems:

Residential local exchange rates will apply to a BBS EXCEPT when:

1.   Money   or  payment  in  kind   (including  club  membership,
     contribution of any type) is paid for services;

                            -AND/OR-

2.   The bulletin board is sponsored by or operated in affiliation
     with a not-for-profit or otherwise commercial entity;

                            -AND/OR-

3.   When advertising, as a function of the bulletin board, is for
     the   financial  gain  of  a  not-for-profit   or   otherwise
     commercial entity;

                            -AND/OR-

4.   When  the system operator/owner/sponsor of the bulletin board
     solicits or receives money or payment in kind  for  providing
     advertising as a function of the bulletin board.

These  criteria will be utilized when customers apply for multiple
line telephone service for the purpose of providing a BBS.

These  criteria will be in  effect on a "going  forward" basis, as
customers  request new service,  move or change  existing service.
There   is  no  plan  to  comprehensively  review existing BBSes.

Again, thank you for your help in this matter.

------------------------------------------------------------------------

I hope that this clears up any misunderstandings.

cjs
curt@cynic.wimsey.bc.ca          | "Sometimes it's like a party you go to where
curt@cynic.uucp                  | there are no lights and everyone is doing
{uunet|ubc-cs}!van-bc!cynic!curt | animal impressions." -Phillip Evans on usenet

peter@taronga.hackercorp.com (Peter da Silva) (03/09/91)

curt@cynic.wimsey.bc.ca (Curt Sampson) writes:
> Residential local exchange rates will apply to a BBS EXCEPT when:

> 1.   Money   or  payment  in  kind   (including  club  membership,
>      contribution of any type) is paid for services;

If this does not include software uploads (as SW Bell tried to regard
as "payment"), then this is a totally reasonable policy. Much better than
the disasterous "3 lines max" that COSUARD agreed to down here.
-- 
               (peter@taronga.uucp.ferranti.com)
   `-_-'
    'U`

zane@ddsw1.MCS.COM (Sameer Parekh) (03/16/91)

In article <0852J16@taronga.hackercorp.com> peter@taronga.hackercorp.com (Peter da Silva) writes:
>curt@cynic.wimsey.bc.ca (Curt Sampson) writes:
>> Residential local exchange rates will apply to a BBS EXCEPT when:
>
>> 1.   Money   or  payment  in  kind   (including  club  membership,
>>      contribution of any type) is paid for services;
>
>If this does not include software uploads (as SW Bell tried to regard
>as "payment"), then this is a totally reasonable policy. Much better than
>the disasterous "3 lines max" that COSUARD agreed to down here.

	This is NOT a reasonable policy even if it doesn't include software
uploads.  If a BBS asks for money, that does not necesarily mean that
it makes a profit.  And the definition of a business is (IRS) something
which did not make a loss for the past three years.  Most BBSes,
even though they may take in money never pull a profit. (And even if they
do make some more money, it is usually invested into the system.)
	This is NOT a business, it is a hobby, as the IRS calls it.
(And it is.)  If the phone company calls me a business I would atleast
want the IRS to call me a business.

-- 
zane@ddsw1.MCS.COM

peter@taronga.hackercorp.com (Peter da Silva) (03/17/91)

zane@ddsw1.MCS.COM (Sameer Parekh) writes:
> 	This is NOT a reasonable policy even if it doesn't include software
> uploads.  If a BBS asks for money, that does not necesarily mean that
> it makes a profit.

And just because it doesn't make a profit, doesn't mean it's residential.
Bringing the IRS into it is a red herring: the IRS has different goals,
different reasons for classifying something as a business. They don't tax
churches at all, but churches are businesses for IRS purposes. On the other
hand, someone working at home (say, painting) is not a business to the
phone company but they still have to report business profits to the IRS.

Basically, the IRS is in charge of taxes. They care if you are making money
by engaging in business transactions. The phone company is in charge of
phone service. They care if a phone line is primarily used for business
transactions.
-- 
               (peter@taronga.uucp.ferranti.com)
   `-_-'
    'U`

mpd@anomaly.SBS.COM (Michael P. Deignan) (03/19/91)

peter@taronga.hackercorp.com (Peter da Silva) writes:

>The phone company is in charge of
>phone service. They care if a phone line is primarily used for business
>transactions.

Since my phone at home is primarily in existance so the operations staff
at work can reach me at home if there is a problem, according to this
logic I should be charged business rates.

MD
-- 
--  Michael P. Deignan                      / 
--  Domain: mpd@anomaly.sbs.com            / "The Mother Of All Battles"
--    UUCP: ...!uunet!rayssd!anomaly!mpd  /  apparently had an abortion...
-- Telebit: +1 401 455 0347              /

peter@taronga.hackercorp.com (Peter da Silva) (03/20/91)

mpd@anomaly.SBS.COM (Michael P. Deignan) writes:
> peter@taronga.hackercorp.com (Peter da Silva) writes:
> >The phone company is in charge of
> >phone service. They care if a phone line is primarily used for business
> >transactions.

> Since my phone at home is primarily in existance so the operations staff
> at work can reach me at home if there is a problem, according to this
> logic I should be charged business rates.

Is it really? You wouldn't have a phone if the company didn't need to
call you?

There is a certain amount of flexibility in the definition of "business
transaction", and there is a certain amount of inertia on the part of
the phone company. But I think between your phone, even granting your
premise, and a BBS that requests monetary donations there is a fairly
substantial gap. In the case of the BBS the phone line is the only
channel for the service provided (you *do* do more than read news all
day :->), and the only payments are for that service (voluntary or not).
-- 
               (peter@taronga.uucp.ferranti.com)
   `-_-'
    'U`

zane@ddsw1.MCS.COM (Sameer Parekh) (03/23/91)

In article <GOD27SE@taronga.hackercorp.com> peter@taronga.hackercorp.com (Peter da Silva) writes:
>zane@ddsw1.MCS.COM (Sameer Parekh) writes:
>> 	This is NOT a reasonable policy even if it doesn't include software
>> uploads.  If a BBS asks for money, that does not necesarily mean that
>> it makes a profit.
>
>And just because it doesn't make a profit, doesn't mean it's residential.
>Bringing the IRS into it is a red herring: the IRS has different goals,
>different reasons for classifying something as a business. They don't tax
>churches at all, but churches are businesses for IRS purposes. On the other
>hand, someone working at home (say, painting) is not a business to the
>phone company but they still have to report business profits to the IRS.
>
>Basically, the IRS is in charge of taxes. They care if you are making money
>by engaging in business transactions. The phone company is in charge of
>phone service. They care if a phone line is primarily used for business
>transactions.

	You have some good points.  But what are we going to do, 
find motives?  Most BBSes are hobbies, not businesses, even if they
do take money.  Maybe if the classification was called high-volume or
low-volume I wouldn't mind, because that is the reason (I think) that
business rates are more. (Yet they give volume discounts. . .)


-- 
The Ravings of the Insane Maniac Sameer Parekh -- zane@ddsw1.MCS.COM

curt@cynic.wimsey.bc.ca (Curt J. Sampson) (03/24/91)

In article <1991Mar23.025428.6672@ddsw1.MCS.COM> zane@ddsw1.MCS.COM (Sameer Parekh) writes:

> Most BBSes are hobbies, not businesses, even if they
> do take money.  Maybe if the classification was called high-volume or
> low-volume I wouldn't mind, because that is the reason (I think) that
> business rates are more. (Yet they give volume discounts. . .)

This, at least in Canada, is not the reason that residential telephone
lines cost only twenty to twenty-five percent as much as business
lines.

According to B.C. Tel, the "real" cost of a telephone line is about
thirty dollars per month.  Residental lines are about fifteen dollars
per month and business lines are about sixty to seventy-five dollars
per month.  The CRTC (Canadian Radio-Television and Telecommunications
Commission, which is similar to the USA's FCC), which regulates the
prices that may be charged for telephone service, has a policy of
setting residental rates lower than cost and letting them be
subsidised by business lines and long-distance calls.

cjs
-- 
                        | "It is actually a feature of UUCP that the map of
curt@cynic.uucp	        | all systems in the network is not known anywhere."
curt@cynic.wimsey.bc.ca |    --Berkeley Mail Reference Manual (Kurt Schoens)

peter@taronga.hackercorp.com (Peter da Silva) (03/24/91)

zane@ddsw1.MCS.COM (Sameer Parekh) writes:
> 	You have some good points.  But what are we going to do, 
> find motives?  Most BBSes are hobbies, not businesses, even if they
> do take money.

I don't think the motive is that relevent. What if my hobby is running
a Pizza place (and I can afford it), should I pay residential rates?

If you're soliciting donations for a transaction carried on over a
phone line, you're using the line for business purposes... profit or
not.
-- 
               (peter@taronga.uucp.ferranti.com)
   `-_-'
    'U`