Copyright (c) 1992 CompuServe Incorporated All Rights Reserved FCC ACCESS CHARGES FCC An FCC Commissioner recently stated that the FCC may again examine the possibility of imposing "modem fees" for information service companies. Observers have said the fees could drive up telephone line costs to information services companies by as much as 300 percent, some or all of which online service members would likely bear. -------------------- FCC ACCESS CHARGES FDC-6 THE FCC IS ONCE AGAIN CONSIDERING ACCESS CHARGE PROPOSALS THAT COULD INCREASE COMPUSERVE'S COSTS FOR LOCAL ACCESS In July 1991, the Federal Communications Commission adopted rules which could increase by up to 300 percent the price of local telephone lines which employ new network features and which are used by information service companies like CompuServe to provide its services to customers. In addition, at least one FCC Commissioner recently suggested that the Commission likely would reexamine whether various "modem fees" or "modem taxes" ought to be imposed on all information services. Consideration of any proposed "modem tax" would revive proposals made back in 1987 and 1989 to impose usage-sensitive common carrier-type access charges on information service companies. It is important that you understand the genesis of the FCC's latest rules, and how you can help to fight back. THE FCC'S PRICE INCREASE PROPOSAL WAS ORIGINALLY DEFEATED IN 1987 THANKS TO THE EFFORTS OF COMPUSERVE MEMBERS LIKE YOU The ability of CompuServe to offer advanced information services to its members on a reasonably-priced basis is dependent upon being able to obtain cost-based access to local telephone lines. To date, information service companies have been able to use non-usage- sensitive local business lines, obtained from the local telephone company's state tariffs, for distributing their on-line information services to customers. Under this arrangement, CompuServe has been able to provide its customers with hundreds of services at affordable prices that promote widespread usage. However, you may recall that in 1987 the FCC issued a proposal which, if adopted, would have required information service providers (ISPs) like CompuServe to abandon their flat-rated, state-tariffed access arrangements. Instead, ISPs would have been required to pay usage- sensitive common carrier access charges, which were originally designed solely to be paid by long distance companies. After a massive letter writing campaign by CompuServe members, the FCC decided not to adopt its carrier access charge proposal. WHY YOUR HELP IS NEEDED NOW CompuServe and other information service providers have filed petitions with the FCC asking the agency to reconsider its July 1991 access charge decision. Congress also may consider legislation shortly which would prevent the FCC from imposing usage-sensitive carrier access charges on information providers as a condition of obtaining new network features. CompuServe believes that cost-based access to advanced telephone network functionalities and features will be crucial in bringing the "Information Age" to all consumers. Members like you can help assure that the federal government does not impose what in effect are enormous financial penalties on information service providers and their members simply for attempting to use advanced network functionalities and services. We have drafted a suggested letter to various United States Senators which objects to the FCC's new access charge rule and any new "modem tax" proposal, and asks the Congress to pass legislation which would once and for all prevent the FCC from imposing any usage-sensitive common carrier access charges on information service providers. Please write to the indicated members of Congress, and send copies to FCC Chairman Alfred Sikes and the other FCC Commissioners. With your help, we can convince the FCC to change its mind regarding new ONA access charge rules which would only hurt the ability of CompuServe to provide consumers with advanced information services at reasonable prices. -------------------- SUGGESTED LETTER AND TEXT RECIPIENTS 1 Suggested Letter Text FCC ACCESS CHARGES FDC-14 Please note that it is important for you to personalize your letter as indicated. Your message will be more effective if it is not perceived as simply a form letter, but instead gives your individual reason for opposing modem fees. SUGGESTED LETTER TEXT Dear Senator _____________: I have read that an FCC Commissioner has stated that the FCC may look once again at whether the FCC should require CompuServe and other information services to pay usage-sensitive carrier access charges or "modem fees" for the local telephone lines they use to distribute their services to customers. If such higher fees for using local telephone lines were to be imposed and passed on to information service subscribers, this likely would have the effect of severely curtailing the use of information services just as the mass market for such services is beginning to develop. I urge you to pass legislation which would prevent the imposition of any new usage-sensitive carrier access charges or "modem fees" on information services. The legislation also should allow CompuServe and other information service providers to use new and more efficient technologies without having to become subject to higher access charges. [At this point: State that you use CompuServe and other information services and describe how you use them; State that you will curtail your use of information services if the FCC's access charge rules cause price increases.] Thank you for your consideration. Sincerely, -------------------- ADDRESS INFORMATION FOR RECIPIENTS The letter should be sent to the following members of the Senate Communications Subcommittee. A copy of the letter may also be sent to Congressman Edward Markey, who is Chairman of the House Telecommunciations Subcommittee. In addition, a copy of the letter should be sent to the FCC Commissioners. Letters to Senate members may be addressed to: The Honorable _________________ United States Senate Washington, D.C. 20510 Senator Lloyd Bentsen Phone: 202-224-5922 Fax: unpublished Senator John Breaux Phone: 202-224-4623 Fax: 202-224-4268 Senator Conrad Burns Phone: 202-224-2644 Fax: 202-224-8594 Senator James Exon Phone: 202-224-4224 Fax: unpublished Senator Wendell Ford Phone: 202-224-4343 Fax: 202-224-0046 Senator Albert Gore Phone: 202-224-4944 Fax: 202-224-0580 Senator Slade Gorton Phone: 202-224-3441 Fax: 202-224-9393 Senator Ernest Hollings Phone: 202-224-6121 Fax: unpublished Senator Daniel Inouye Phone: 202-224-3934 Fax: 202-224-6747 Senator John Kerry Phone: 202-224-2742 Fax: unpublished Senator John McCain Phone: 202-224-3004 Fax: 202-224-8938 Senator Bob Packwood Phone: 202-224-5244 Fax: 202-224-2050 Senator Ted Stevens Phone: 202-224-3004 Fax: 202-224-2354 Representative Markey Chairman, Subcommittee on Telecommunications and Finance U.S. House of Representatives 2133 Rayburn House Office Building Washington, D.C. 20515 Phone: 202-225-2836 Fax: 202-225-8689 Chairman Alfred C. Sikes Federal Communications Commission 1919 M Street, N.W., Room 814 Washington, D.C. 20554 Phone: 202-632-6600 Fax: 202-632-0163 Commissioner Andrew C. Barrett Federal Communications Commission 1919 M Street, N.W., Room 844 Washington, D.C. 20554 Phone: 202-632-7116 Fax: 202-632-5168 Commissioner Ervin S. Duggan Federal Communciations Commission 1919 M Street, N.W., Room 832 Washington, D.C. 20554 Phone: 202-632-6996 Fax: 202-632-5171 Commissioner Sherrie P. Marshall Federal Communications Commission 1919 M Street, N.W., Room 826 Washington, D.C. 20554 Phone: 202-632-6446 Fax: 202-632-5172 Commissioner James H. Quello Federal Communications Commission 1919 M Street, N.W., Room 802 Washington, D.C. 20554 Phone: 202-632-7557 Fax: 202-632-5173