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Text File | 1987-05-25 | 4.8 KB | 100 lines | [TEXT/MSWD] |
- Everyone whould be aware of this info, previously posted by F.HATTA in the TC
- RoundTable. Write to the FCC about this one...or you'll pay later!
-
- -----------------------
-
- I found the following on the PC-PURSUIT 800 number BBS. Time to reply to the
- FCC is running out.
-
- ACTION ALERT -- FCC'S COMPUTER III
-
- Many of you have recently asked about the FCC's pending "Computer Inquiry III"
- ruling and its implications. In a nutshell, the FCC is considering taking
- action which would subject the competitive packet switching market to
- government regulation, dramatically increase the costs of local dial access to
- packet networks, and threaten the very existence of innovative new services
- such as PC Pursuit. The FCC currently plans to decide this issue on March 26,
- so it is of great importance to let the Commission know your views
- immediately.
-
- Letters should be sent to:
-
- The Honorable Mark Fowler, Chairman
- Federal Communications Commission
- Washington, DC 20554 202/632-6600
-
- with copies to the other Commissioners:
-
- Commissioner James H. Quello 202/632-7557
- Commissioner Mimi Weyforth Dawson 202/632-6446
- Commissioner Dennis R. Patrick 202/632-7117
- Commissioner Patricia Diaz Dennis 202/632-6996
-
-
- The following provides some background on this subject. Additional information
- on Computer III can be found in the general file section of the Net Exchange
- BBS.
-
- Computer III is a proceeding in which the FCC is considering whether to "re-
- regulate" public packet switching networks such as Telenet, that were
- deregulated in 1980. As a result of the FCC's 1980 decision, the packet
- market has flourished; many new competitors have entered the market, and new
- services such as PC Pursuit have been introduced. AT&T and the Bell
- Operating Companies (BOCs) are now also entering the packet market, and prefer
- to offer their services on a regulated, tariffed basis rather than in a
- nonregulated mode. They would also like to see the existing packet networks,
- such as Telenet, regulated as well.
-
- There are three principal reasons for this AT&T/BOC attitude. First, these
- carriers would like to subsidize their packet services with revenues from
- their basic telephone service. This would enable them to price their packet
- services below cost, at least long enough to drive out competition in this
- market.
-
- Second, the BOCs would like to be able to charge competing packet networks
- "carrier access charges" for the use of local dial access lines, which would
- add more than $7.00 per hour to the cost of providing a service such as PC
- Pursuit. This would provide additional revenue for the BOCs and greatly
- increase the prices which packet competitors would have to charge for their
- services, undermining their ability to price their services at attractive
- levels.
-
- Third, re-regulation of packet services is likely to reduce the enthusiasm of
- entrepreneurs to enter this market and provide additional competition to the
- AT&T/BOC services. Many companies simply do not wish to operate in a
- regulated industry, with all the restrictions and red tape that regulation may
- imply.
-
- In order to achieve these three objectives, AT&T and the BOCs have pressured
- the FCC to reverse its 1980 decision and re-regulate all packet networks.
-
- In an address on Computer III, Paolo Guidi, President of Telenet Communications
- Corp., explained what would result for the consumer if the full extent of the
- proposal is voted into being:
-
- "With the competitors driven out of the market, prospects for success of their
- own (AT&T's and the RBOCS) packet services would improve. Of course, the user
- would be deprived of the benefits of competition, and would be left with no
- choice but a carrier-provided packet service which fails to offer many of the
- innovative features that have been introduced by the Value Added Networks.
- Continued rapid advancement of the remote computer industry would be dealt a
- serious blow, and the consumer would be the ultimate loser."
-
- The potential consequences of the FCC's Computer III proposal for the value-
- added services you know and enjoy are quite serious. There is no need to take
- such action, and it would be contrary to the entire deregulatory thrust of the
- Reagan Administration and the FCC in recent years. The proposal should be
- stopped
-
- Again, time is extremely short on this issue. Any letters or phone calls to
- the FCC must be received no later than March 23 in order to be effective.
-
- -----------------------
-
- If this change occurs, the cost of using all online services via networks
- (Tymnet, Telenet, GEISCO, etc.) will increase substantially! Last I heard, the
- FCC had received just 60 letters objecting to the changes.
-
- So...write to the FCC now...or pay later!
-
-