IP: Bell Atlantic's "Internet Traffic" Campaign at the FCC

[Dave Farber <farber () central cis upenn edu>]

Posted-Date: Mon, 2 Sep 1996 21:28:35 -0400


Date: Mon, 2 Sep 1996 18:28:29 -0700


To: Dave Farber <<farber () central cis upenn edu>


From: sky () earthlink net (Sky Dayton)


Subject: For IP: Bell Atlantic's "Internet Traffic" Campaign at the FCC




Dave,




This would be disasterous for the growth of the Internet in the US.


These


charges would be passed on as a measured rate to the end user, forcing


down


the average residential usage of the Internet (businesses already


curtail


usage due to daytime measured rates in most markets).




The end result would be a considerable drop in residential usage of the


Internet, with a potentially disasterous domino-effect on all of the


business models that rely on its continued growth.




In other markets, such as France, where the telephone company charges a


measured rate for local residential calls, Internet use is curtailed.


Such


areas could miss the renaissance. Or at least get there much later than


everyone else.




Sky





--




>        BELL ATLANTIC'S "INTERNET TRAFFIC" CAMPAIGN AT THE FCC


>


> Bell Atlantic has turned up the heat again on the long-simmering issue


of


> Internet traffic on the LECs' networks.  Even the Washington Post


jumped


> into the fray with an editorial this morning on "traffic jams and


taxation"


> on the Internet.  The _Update_ has been following this thread since


last


> January or February when rumors first surfaced that several RBOCs were


> floating proposals around the FCC to eliminate the Enhanced Service


> Provider (ESP) exemption that currently keeps ISPs from paying access


> charges to local phone companies.  The access charge issue resurfaced


again


> during the ACTA petition comments and is likely to be at issue in


future


> access charge reform proceedings.


>


> Bell Atlantic's participation is a study done in February and March of


1996


> and submitted to the FCC.  The BA study looks at ISP traffic at 


several


> Washington, DC area Central Offices (COs) serving ISPs.  The study


claims


> that average call lengths to ISPs were 17.7 minutes - four to five


times


> the length of other calls on BA's network during this period. BA's


study


> also found "above normal" traffic levels in terms of "hundreds of call


> seconds" - 26 CCS for ISP peak times (a line supports 36 CCS per hour)


> where normal voice traffic peaks at 5 p.m. at 12 CCS for


> business/government users.  Bottom line:  the BA study says that each


> analog line to an ISP costs $75 while the tariff rate is only $17.


>


> At issue here is the dial-up lines of an ISP and the fact that calls


only


> come in but are not originated by ISPs.  Thus, an ISP pays a flat-rate


> tariff for the line without usage costs.  The further complaint is 


that


> residential customers connect to a local ISP at a flat rate, again


avoiding


> usage charges.


>


> Bell Atlantic's answer to these problems is to eliminate or "modify"


the


> ESP exemption and find an appropriate usage sensitive price to charge


to


> ISPs.  An analysis of the study, written by two BA employees in the


July


> issue of _Telephony_ insists that the usage sensitive pricing is needed


to


> "send a signal" to "encourage efficiency and stop cross-subsidizing."


>


> As reported here earlier this summer, FCC Chairman Reed Hundt has


indicated


> that he is not in favor of removing the ESP exemption.  This issue is


> unlikely to go away anytime soon, however.  The RBOCs are serious 


about


> this and at the same time are feeling threatened by the specter of


local


> competition (see above).  An access reform proceeding is on the horizon


at


> the FCC where the RBOCs could potentially lose it all - if the FCC chose


to


> do away with access charges altogether (unlikely, but not impossible).


>


> The Bell Atlantic report can be found at http://www.ba.com


>


> ^^^^^


> Written from FARNET's Washington office, "FARNET's Washington Update" is


a


> service to FARNET members and other interested subscribers.  We


gratefully


> acknowledge EDUCOM's NTTF and the Coalition for Networked Information


for


> additional support.  If you would like more information about the Update


or


> would like to offer comments or suggestions, please contact Heather


Boyles


> at heather () farnet org





--


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