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Date:      Mon, 11 Nov 1996 15:18:40 -0500
From:      "Martin G. Bayerle" <bayerle@auidea.org>
To:        "Small Internet Access Providers" <IAP@VMA.CC.ND.EDU>, <freebsd-isp@FreeBSD.org>, <ISP-ADMIN-LIST@LISTSERV.AOL.COM>, <isp@FreeBSD.org>
Subject:   Telcos Refund Millions to ISPs
Message-ID:  <199611112018.PAA09627@avalon.imagixx.net>

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IMPORTANT.  Check your phone bills for your dedicated modem lines.  If 
you're paying a "Federal Subscriber Line Charge" (or equivalent) on your 
modem lines, you're telephone company owes you money . . .

MGB/IDEA

______________

FOR IMMEDIATE RELEASE

Telcos Cry Ouch as They Return Millions in Overcharges to ISPs

Morgantown, WV - The Internet Development & Exchange Association (IDEA) 
announced today that they were pursuing the telephone companies for 
millions of dollars in overcharges collected from Internet Service 
Providers (ISP) nationwide.  "We anticipate that the total overcharges 
which the RBOCs will return to the ISP industry will be somewhere between 
4 and 30 million dollars, and the savings to ISPs, while the exemption 
remains in place, can be into the hundreds of millions of dollars in the 
future.  Although the small to medium sized ISPs are exempt from certain 
tariffs - exemptions taken by AT&T, AOL, MSN and Compuserve and others - 
smaller ISPs are often not aware of their applicable exemptions," said 
Martin Bayerle, Executive Director of IDEA.

In 1983, the U.S. government exempted companies who provide access to the 
national network of computers from certain fees imposed by the RBOCs.  
"Unfortunately, the telephone companies' business offices are often 
unaware of the exemption, and the smaller ISP, as a consequence, gets 
charged.  The larger ISPs and their phalanx of lawyers know about the 
exemptions; the smaller ones often do not," Mr. Bayerle said. 

These overcharges came to light in May, when IDEA initiated its member 
audit program.  IDEA has already retrieved thousands of dollars in 
refunds for its membership.  IDEA is the Internet industry's trade 
association. 

Exemptions would be retroactive to 1983, with some ISPs collecting as 
much as $100,000 or more in refunds from the telcos.  The Association 
will assist IDEA members in the refund process.

_________

Contact: bayerle@auidea.org

For general information on IDEA, and its Audit Programs, visit 
http://www.auidea.org







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