The following is an excerpt from nwfusion.com.
Cady cited increased use of fax machines, second and third
lines, pagers and a host of other services
contribute to the
load. In fact, she said, Pac Bell just sent her
a letter at home
offering to give her another phone line for just
$11.25 per
month and five free months of Internet service.
"On the one hand, they're arguing that ISPs are
terrible," she
said, "and on the other, they're running around
trying to get
new business for the Internet part of their
company."
She also said Netcom has tried to work with the
local phone
companies to find ways to reduce the load.
Ed
ps: The phone co. complains about "clogging" up the switches? I do
believe that's what one reason Centrex was developed.
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On Tue, 12 Nov 1996, Sysop wrote:
>
> One of my customers just forwarded this message to me...
>
> Have you guys seen this yet?
>
> --Paul
> *------------------------------------------------------------------*
> * Sysop (919) 363-1000 Voice *
> * PAGESZ.net (919) 363-1010 Fax *
> * Cary, NC USA (919) 363-1492 Dial-up *
> * sysop@pagesz.net http://www.pagesz.net *
> *------------------------------------------------------------------*
>
>
>
> STUDY ESTIMATES MONTHLY $56 ACCESS FEE FOR INTERNET SUBSCRIBERS
>
> ----------------------------------------------------------------------------
> Date: Monday, November 11, 1996
> Source: Inside Washington
> ----------------------------------------------------------------------------
>
> WASHINGTON TELECOM WEEK : In studying the likely impact
> of impending access charge reform on Internet Service Providers (ISPs),
> analysts anticipate a sharp decline in the number of providers. This
> decline, they say, will be a direct result of fees they will be required to
> pay for the privilege of connecting to the networks controlled by local
> exchange carriers (LECs).
>
> It is anticipated that ISPs will be charged approximately $56 per subscriber
> per month and will not be able to absorb that cost or pass it through to
> customers.
>
> The analysis was conducted by Bern Communications, a New Jersey-based firm
> dedicated to helping independent LECs profit from the Internet. Bern founded
> its study on the premise that the Federal Communications Commission, in an
> upcoming access charge reform proceeding, will eliminate the access charge
> exemption which Internet service providers have historically enjoyed.
>
> The consulting firm arrived at the $56 monthly charge by estimating an
> average monthly on-line time of 20 hours per subscriber and an access charge
> of 3-cents per minute. An industry observer said the
> 3-cents-per-subscriber-per-minute rate is a reasonable estimate of what ISPs
> can expect to be paying the LECs by this time next year.
>
> "The ISPs won't have to do the same thing as long distance carriers at the
> beginning. [The FCC] will give them time to get ready for it," the industry
> observer said. "The introduction will be delayed. It may start at half a
> cent and go up incrementally. It will probably be volume sensitive and
> related to size [of the company]."
>
> Bern's analysis concludes that almost 85% of the Internet service firms are
> not adequately capitalized to absorb the estimated access charges. Internet
> subscribers, who are accustomed to paying a flat, monthly rate which many
> say is below cost, will not tolerate an additional $56 fee. Bern predicts
> that the "prognosis for those firms is extinction."
>
> For telephone companies, however, the situation provides an opportunity, a
> source with the company said. As the smaller ISPs go out of business and the
> larger providers shift to traffic-sensitive and subscription-based pricing
> to cover the cost of access, the telcos will have the chance to get into the
> Internet business.
>
> Industry observers say this will also offer an opportunity for alternative
> local exchange providers to enter the local market through the back door. By
> offering Internet service, IXCs or other new entrants will be able to gather
> information on customer needs and usage patterns.
>
> "The cost of customer acquisition is large," one source said. "The Internet
> is the way to play into the local market. It's a cheap date for [new
> entrants] to play into local markets and acquire local customers."
>
> Other predictions would have on-line service providers building their own
> wireline networks or turning to wireless technologies to avoid LEC access
> charges. There could be major ISP mergers that will invest in independent
> infrastructure.
>
> "The basic law of economics is coming in," the industry observer said.
> "Regulation is starting to leave the industry, and the gates are being
> lifted so predators are being let out. Small entrepreneur who arbitraged a
> regulatory situation will no longer be able to."
>