Hi listers,
        This letter from my Congressman was in response to my query regarding long
distance charges using the internet. I hope this letter clears up much of
the misunderstanding and confusion people have.

Joel from sunny southwest Florida


                DISTRICT OFFICES:
      PORTER GOSS               2000 MAIN STREET
      14TH DISTRICT, FLORIDA            SUITE 303

                FT. MYERS, FL 33901
    108 CANNON BUILDING         (941)332-4677
  WASHINGTON, DC 20515-0913
        (202)225-2536   *tateg  3301 TAMIAMI TRAIL EAST
                BUILDING F, SUITE 212
                NAPLES, FL 34112
        COMMITTEES:     ouge of Repregentatibeg
          CHAIRMAN              (941)774-8060
PERMANENT SELECT COMMITTEE
       ON INTELLIGENCE  Wagbington, 3X 20515-0914       PUNTA GORDA
                (941)639-0051
              RULES
    CHAIRMAN, SUBCOMMITTEE
ON LEGISLATIVE AND BUDGET PROCESS       January 13, 1999





                Mr. Joel Pinkus 5964 Sonnet Court
                North Fort Myers, Florida 33903
                Dear Mr. Pinkus:
                        Thanks for contacting me with your concerns regarding a tax on internet
use.
                     I am not aware of any initiative here in Congress to charge a tax
each time one signs online.  However, I have contacted the Federal
Communications Commission (FCC), which is currently handling this matter,
and it was able to offer some insight as to why there has been talk of a
new internet tax or fee.

                     Recently, more and more areas are offering more than one local
telephone carrier for local telephone service.  This competition in the
telecommunications market is certainly welcome, since it drives the cost
down and improves quality.  However, an issue has arisen as a result of
this which involves carrier-to-carrier payments -- also called reciprocal
compensation.  For instance, if a customer of Company A makes a local call
to a customer of Company 13, Company A must compensate Company B for
completing the call.  Thus, reciprocal compensation is paid between phone
companies, and not by customers or internet service providers.

                     This has become a concern recently because there is a dispute within
the telephone industry as to whether local calls to internet service
providers are subject to reciprocal compensation.  Currently, most state
regulatory agencies require telephone companies to charge a flat rate for
local service.  Therefore, a local telephone company cannot charge a
separate surcharge for internet access.  Further, the FCC has already
provided a special exemption for internet service providers so that they
will be considered local phone customers.

                     Although there are still some issues yet to be resolved as to
whether the FCC or states have regulatory authority over this matter, the
outcome will only affect how telephone companies compensate one another,
and will not directly affect internet users.

                     Rest assured that I will continue to keep an eye on this issue.
Should this matter come before Congress, I will be certain to keep your
comments in mind.



                                                                                Kind              ds,



                                                                                Member of Congress

                PG:ch




THIS STATIONERY PRINTED ON PAPER MADE OF RECYCLED FIBERS


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