An Introduction to the Internet Access Coalition
The affordability and usefulness of the Internet are in jeopardy.
As described below and elsewhere on this site, the Federal Communications Commission (the "FCC"), a government agency, is considering new regulations that could affect profoundly the affordability of consumer Internet access over telephone lines and the availability of inexpensive digital telephone network connections to the Internet. See the FCC Page on this site.
The millions of Americans who access the Internet through PC modems could see their on-line charges marked up significantly simply because local phone companies want more money for the same old analog telephone connections. Indeed, the largest of these phone companies have asked the FCC for permission to assess new fees - called "access charges" - on Internet service providers, who then would pass the charges along to Internet consumers. At present, such additional fees are illegal.
Unfortunately, the local phone companies are not offering any new services to justify the access charges they propose. They merely hint that they might provide new Internet-friendly services some time in the future. This is akin to the sole grocer in town demanding payment today for a pie made in a bakery that the grocer might build in the next decade.
The Internet Access Coalition was formed by the leading information technology associations and over a dozen high tech companies (see the Members Page) in order to encourage the deployment of Internet-friendly phone technologies and to prevent the local phone companies from applying any new "tax" on Internet access. A list of Coalition members is attached.
In a ruling issued on December 24, 1996, the FCC tentatively decided to not allow the local phone companies to assess these new access charges. As described in more detail on the FCC Page on this site, the FCC currently is seeking public comments on its tentative conclusion.
As articulated in the ETI Study conducted for the Coalition, the local phone companies have failed to show that Internet access is a cause of serious telephone network congestion. Further, the phone companies neglect to report the substantial revenues (and minimal costs) they have gleaned from Internet access. The local phone companies actually are making, not losing, money on PC users' modem connections to the Internet. The Internet Access Coalition soon will release the ETI study.
The Internet Access Coalition believes the local telephone companies should invest in new, data-friendly digital phone technologies and then, like companies in competitive industries, seek a return on their investment. These technologies - such as ADSL and HDSL - not only would alleviate any future telephone network congestion, they also would provide consumers with far higher Internet connection speeds. Only after such services are available to consumers should the local phone companies be permitted to charge extra for them. In response to the second half of the FCC proceeding begun on December 24, 1996, the Coalition will be providing the FCC with information about the available data-friendly technologies and the regulatory structures that would encourage telephone company investment.
Of course, the Coalition also will point out that competition is very important. Regardless of whether today's local phone companies decide to provide data-friendly service to consumers, they should not be allowed to prevent competing local phone companies from offering it.