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Rates and tariffs have been part and parcel of telecommunications regulation for many years, as was discussed in Chapter 6. Beginning with the MFJ, the posture of the FCC gradually relaxed to the point that interstate long distance tariffs are largely optional. Actually, the FCC would prefer that they not be filed at all, and seriously is considering eliminating them altogether. Such a move would allow carriers to bundle services, perhaps including CPE in a package of cellular, PCS, long distance and local service. At last report, 10,000 annual long distance tariffs filed with the FCC account for 4 million pages of paper. In fact, there is discussion about eliminating local service tariffs, as well, in favor of allowing market forces to dictate prices in the soon-to-be competitive market [16-16], [16-19] and [16-20]. No doubt the spotted owl and other forest critters are looking forward to the outcome of this debate!
CATV providers have been up and down the regulatory path, first having been regulated, then deregulated, then re-regulated and now looking forward to de-regulation again. The Act charges the FCC with developing 18 new cable rules, in addition to those oriented specifically toward telecom. The intent is that all CATV regulations will be lifted in 1999. Should a CATV provider desire freedom at an earlier time, it must prove effective competition from at least one other provider. At this point, the rules specify that effective competition means that a rival must reach 50% of a market and that 15% of potential customers must have subscribed to the competing service. Not surprisingly, the CATV industry wants those numbers reduced, while competitors want them left untouched. Additionally, the FCC must deal with the issue of CATV set-top boxes, which currently are rented at very profitable rates. While retailers and manufacturers would prefer that they be sold outright, standards issues are a long way from being resolved [16-21].
The Internet and, especially, the World Wide Web remain both hot topics and open issues. As part of the governments initiatives in telecom reform, Congress passed the Communications Decency Act (CDA) in February 1996. That act provided for sentences of up to two years and levies of fines up to $250,000 for those who made indecent or offensive material available to minors on the Net. Not only were the creators of such content liable, but also the Information Service Providers (e.g., American Online, CompuServe, and Prodigy). A number of coalitions and groups lead by the American Civil Liberties Union (ACLU) and Electronic Frontier Foundation (EFF) challenged the law. The CDA was stricken down by a panel of federal judges in June 1996, citing violation of free speech as guaranteed by the First Amendment to the Constitution. Judge Stewart Dalzell, who wrote the opinion, stated that: The Internet may fairly be regarded as a never-ending worldwide conversation. The government may not, through the CDA, interrupt that. The Justice Department is expected to appeal the decision to the U.S. Supreme Court, which could hear final arguments as early as Fall 1996 [16-22].
Regardless of the outcome, the issue of censorship of the Internet and the Web will continue unabated for many years. It is clear that measures of some sort must be taken to limit access of minors to certain material. It may be that the government will require installation on newer PCs of something akin to the V-chip (Violence-chip) which are required to be included in new TV sets under provisions of The Act. Software filters currently are available that allow parents to impose some level of restriction, although the cost is additional and the filters must be updated continuously.
Other remaining Internet issues include the extent to which Internet Service Providers (ISPs) will be required to contribute to the Universal Service Fund. As the FCC develops rules and implementation strategies for The Act, the Internet, itself, may benefit through classification as an essential service. Its availability will be increased at low cost to libraries and schools, further encouraging its continuing and expanding use by future generations. More than just a footnote is the fact that the expanding use of Internet telephony (Chapter 13) certainly threatens to impact the Universal Service Fund in a very negative way.
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