WEEKLY COLUMN -- May 30, 2000

Keeping Lines of Communication Open to Everyone



One of the most noticeable changes of the new Information Age has been rapid growth in ways to communicate. We are in an unprecedented period of technological advancement which is making our already small world even smaller. The Internet, cellular telephones, satellite networks, e-mail, fax machines and advances in digital technology are able to provide communications links to virtually any location on the planet and at speeds which were impossible just a few years ago.

While the electronic and telecommunications industries continue to make technological improvements, Congress has the role of providing a level playing field in the marketplace and enacting standards to ensure the compatibility of various communications networks.

Congress has a critical task in trying to monitor all of the new advancements being made, but equally important is the work to streamline existing regulations so that consumers are protected from problems with existing technology.

One of the most recent actions of the House of Representatives was to approve H.R. 1291, the Internet Access Charge Prohibition Act of 2000. This bill was introduced in response to persistent, yet false and inaccurate, e-mail messages on the Internet which stated that the Federal Communications Commission (FCC) or Congress was seeking to impose new charges on Internet use. H.R. 1291 specifically prohibits the FCC from imposing new fees on the Internet. I also have discussed this matter with FCC officials, who assure me that they have no intention of making any changes in the way consumers obtain and pay for access to the Internet.

I am also very concerned about "nickel and dime" charges imposed by the Federal Communications Commission (FCC) on telephone service. I have been outspoken in my criticism of the FCC and also have cosponsored legislation to eliminate tax increases on your telephone bill never approved by Congress. This week, consumers won an important victory when two of the three major long-distance companies have agreed to eliminate monthly minimum charges.

The FCC estimates that the reduction in access charges and several other flat fees could result in a savings of as much as $50 a year for consumers who make no long-distance calls and about $10 a year for those who make 30 minutes of long-distance calls each month. The FCC touted the overall reduction in access charges of $3.2 billion as the largest fee decrease ever adopted.

The House of Representatives has made additional gains for phone customers by passing H.R. 3916, the Phone Tax Repeal Act. This legislation, which was sponsored by my friend and fellow Ohio Republican Rep. Rob Portman, repeals a federal telecommunications excise tax that was originally enacted in 1898 as a "temporary luxury tax" to finance the Spanish-American War.

When it was enacted in 1898, this "temporary" tax amounted to a penny on long-distance phone calls costing more than 15 cents. Over the years, the federal phone tax has survived many efforts to phase it out and Congress made it a permanent 3 percent tax on telecommunications services in 1990.

The federal phone tax is regressive, affecting lower-income Americans and people on a fixed income (such as senior citizens) more than other taxpayers. Additionally, the telephone tax also impacts the millions of Americans who use residential telephone lines to access the Internet and jeopardizes our efforts to keep the Internet tax-free.

The stunning achievements we have made in global communications should not be hampered by outdated regulations or attempts to raise federal revenue. By ensuring there is a minimum of interference and common sense safeguards, we can extend the full benefits of affordable and accessible communications for the future.

Please share your opinions with me. I can best be reached by writing: Congressman Dave Hobson, 1514 Longworth House Office Building, Washington, D.C. 20515.