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A Thing Put in Your 5 Cents


Put in Your 5 Cents

     You may have heard about a bill under congressional review which contains a “little known clause” to charge e-mail users 5 cents for every message sent. In fact, you may have received an e-mail reading, in part:

     “The last few months have revealed an alarming trend in the government attempting to quietly push through legislation that will affect your use of the Internet. Under proposed legislation, the USPS will be attempting to bill e-mail users out of alternate postage fees. Bill 602P will permit the Federal Government to charge a 5 cent surcharge on every e-mail delivered, by billing Internet Service Providers at source. The consumer would then be billed in turn by the ISP.”

     Pretty scary, huh?

     Now, if this was a charge similar to that for a call from a public phone booth, that makes sense (no pun intended). Someone has to pay for that phone booth and the upkeep. So, if you were to send an e-mail from a public PC, a 5 cent fee would be understandable. Someone has to pay for the equipment and the maintenance.

     But, to charge individuals who are sending e-mail from their homes and employees who are sending e-mail from their place of business is outrageous, right? They’ve already paid for the PC, the Internet connection fee, the software, the phone line, the electricity, now 5 more cents will be tacked on?

     Who gets the money? What if the e-mail is sent over international borders?

     What about exchange rates?

     Well, you don’t have to know the answers to these questions because it is just an “urban legend.”

     The first clue was when the exact same e-mail was circulating around Canada only the references to “U.S.” were replaced with “Canada.”

     In a statement, the USPS said,

     “A completely false rumor concerning the U.S. Postal Service is being circulated on Internet e-mail. As a matter of fact, the Postal Service has learned that a similar hoax occurred recently in Canada concerning Canada Post.

     The e-mail message claims that a ‘Congressman Schnell’ has introduced ‘Bill 602P’ to allow the federal government to impose a 5-cent surcharge on each e-mail message delivered over the Internet. The money would be collected by Internet Service Providers and then turned over to the Postal Service.

     No such proposed legislation exists. In fact, no ‘Congressman Schnell’ exists.

     The U.S. Postal Service has no authority to surcharge e-mail messages sent over the Internet, nor would it support such legislation.”

     Nonetheless, newspapers and news agencies alike have fallen for, and reported, the hoax.

     But, it’s easy to see how these rumors get started. Think about it. You call your ISP, for free. Your ISP receives the call, for free. So, consumers start thinking, “Hey, this is America. Why isn’t someone making a profit in the equation? Someone must be making a profit.” So, we concoct ideas that the phone companies or uncle Sam is going to dip in and take some cash.

     But, Bill Kennard, Chairman of the Federal Communications Commission says his organization is not about to start regulating the Internet. “I want to say this as clearly as I can...as long as I’m chairman of the Federal Communications Commission, this agency will not regulate the Internet. It’s not going to happen. The FCC has no intention of making computer users pay long-distance fees for dial-up access to the Internet, as people now pay when they make long-distance telephone calls.”

     Actually the Internet issue the FCC has been involved in has to do with how phone companies reimburse one another for calls to ISPs, called Reciprocal Compensation. In short, here’s how it works: Let’s say you use phone company XZ&Z and you place a local call to your friend who uses phone company Sprunt. XZ&Z has to pay Sprunt a fee (previously negotiated between the phone companies) for completing the call. Makes sense.

     With the advent of small, local phone companies, the larger phone companies felt they would be making some good profits, since the smaller organizations would be relying on the big guys to complete their out of area calls. But, the small companies started offering their services to ISPs, and as we know, ISPs receive thousands of calls each day, but initiate very few. Therefore, the smaller organizations were to collect substantial fees.

     That’s when the large organizations balked and said that ISP calls should be considered long distance and they should be getting paid for originating the calls, rather than paying the small phone companies for completing the calls.

     Then, and only then, did the FCC get involved. Last February they ruled that the reciprocal agreements previously negotiated between companies are valid and the large phone companies needed to pay up.

     That was it—the entire FCC/ISP issue—it just got blown completely out of proportion!

     If you don’t believe us, check it out for yourself at http://www.usps. gov/news/press/99/99045new.htm.

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