IP: All Calls to ISPs Long Distance

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

> From: "Turner, Jim" <Jim.Turner () mail house gov>
> To: "Farber, Dave" <farber () cis upenn edu>
> Subject: All Calls to ISPs Long Distance
> Date: Thu, 3 Jun 1999 15:21:41 -0400 
> X-Mailer: Internet Mail Service (5.5.2539.1)
>
> Dave,
>
>      I had the communications legislative assistant for a senior California
> Congressman look into last week's e-mail about making calls to ISPs long
> distance.  Here is her response.
>
> OK, this is kind of a complicated issue.  It is most definitely a rumor with
> regard to the FCC and any federal action.  CPUC is having hearings on the
> reciprocal compensation issue today, however it's not as clearcut as it may
> seem.  23 state regulatory commissions have considered the issue, and all
> have found that the phone company that originates the ISP call must pay
> reciprocal compensation, but many companies are currently withholding
> payment while pursuing appeals, hence the PacWest-PacBell battle.
>
> In February, the FCC issued a Declaratory Ruling concluding that carriers
> are bound by their existing interconnnection agreements and are subject to
> reciprocal compensation obligations to the extent provided by agreements or
> determined by state commissions.  So, theoretically, CPUC could alter
> PacBell's obligatory compensation.  However, even if they do so, which isn't
> fair by the way, cosumers will not be affected.  
>
> The rulings have to do with reciprocal compensation only - the FCC has ruled
> that Internet and other information services are exempt from interstate
> access charges.  This means that customers will continue to be able to
> access their ISP by dialing a seven digit number and will not incur long
> distance charges.  To charge more for Internet access, state commissions
> would have to alter their local rate plans - phone companies alone can't do
> this.  And this is something regulated by states, not by the federal
> government.