Congressional Republicans Challenge Kennard on Regulation of Internet and Access Charges on Net Service

(March 20, 1999) A group of Republican Representatives and Senators wrote to FCC Chairman William Kennard on Thursday, March 18, asking him to work with them in drafting legislation that would prevent the FCC from regulating the Internet, or assessing access charges on Internet service.

The group included a number of Republican leaders, such as Rep. Chris Cox (R-CA), House Majority Leader Dick Armey (R-TX), Senate Commerce Committee Chairman John McCain (R-AZ), and Rules Committee Chairman David Dreier (R-CA). No Democrats signed the letter.

The group wrote:

"we are writing to ask you to work with us on legislation to clarify the 1934 Communications Act to make it clear that the FCC will not regulate the Internet or impose access charges on Internet service. Without such a clarification, there will always be a reason for Internet users to suspect that FCC regulation could be right around the corner."

William Kennard is the Chairman of the Federal Communications Commission. On March 11 he gave a speech in which he said that the FCC "will not regulate the Internet." However, many legislators believe that Kennard seeks to expand the regulatory reach of the FCC to include the Internet.

Kennard said the following in his speech to Legg Mason:

"The Internet grew so fast that regulators hardly had a chance to regulate it even if they wanted to. And that's a good thing. Now, two weeks ago, the FCC made a decision that addressed the payment of reciprocal compensation for Internet-bound traffic. Now, in plain English, this means that the decision dealt with the way in which different phone companies pay each other for connecting your call to the Internet. With this order, it's clear that the FCC, and the FCC alone, has jurisdiction over Internet traffic. It means that no state can impose long-distance charges. And the FCC won't either. Let me say this as clearly as I can: as long as I am chairman of the FCC, we will not regulate the Internet. Unfortunately, there are those who, for whatever reason, try to rile up Internet users saying that the FCC is going take all those old phone regulations and dump them on the Internet. That people are going to have to pay long-distance charges to get on the Internet. Rumors are flying around town and around the Internet itself that the big, bad FCC is ready to regulate."

Letter from legislators to William Kennard.
Re: Legislation barring FCC from regulating Internet or assessing access charges on Internet service.
Date: March 18, 1999.
Source: Senate Commerce Committee and Office of Rep. Chris Cox.

March 18, 1999

The Honorable William E. Kennard
Chairman
Federal Communications Commission
445 12th Street, S.W.
Washington, DC 20554

Dear Chairman Kennard:

We are writing regarding the concerns voiced by many of our constituents that the FCC intends to impose per-minute access charges on Internet services.

We were pleased to learn of your recent statement, in a March 11 speech, that "as long as I am chairman of the Federal Communications Commission, we will not regulate the Internet." As you make clear in your speech, the fact that the Internet is unregulated by the FCC has been an indispensable factor in the Internet's development and explosive growth. As you so clearly put it: "The Internet grew so fast that regulators hardly had a chance to regulate it even if they wanted to. And that's a good thing."

We support these efforts, and agree with you that the Internet should remain unregulated by the FCC and, specifically, that the government should not hit Internet users with per-minute access charges. Still, we note that at least one commissioner has voiced concern that the FCC's recent reciprocal compensation decision in fact "put in jeopardy" the longstanding rule that bars local phone companies from assessing usage-sensitive access charges on Internet service providers.

To end this uncertainty once and for all--and to stop the thousands of emails and phone calls from concerned Internet users--we are writing to ask you to work with us on legislation to clarify the 1934 Communications Act to make it clear that the FCC will not regulate the Internet or impose access charges on Internet service. Without such a clarification, there will always be a reason for Internet users to suspect that FCC regulation could be right around the corner.

We appreciate your consideration of this request, and look forward to working with you for such a clarification of the FCC's desire not to regulate the Internet.

Sincerely,

[signatures]

The letter was signed by:

Rep. Chris Cox (R-CA).
Sen. John McCain (R-AZ), Chairman of Senate Commerce Committee.
Rep. Dick Armey (R-TX), House Majority Leader.
Sen. Paul Coverdell (R-GA).
Rep. Tom Campbell (R-CA).
Rep. Tom Davis (R-VA).
Rep. J.C. Watts (R-OK), House Republican Conference Chairman
Rep. Lee Terry (R-NE).
Rep. David Dreier (R-CA), Chairman of the House Rules Committee.
Rep. Jennifer Dunn (R-WA).

Editor's Note: Tech Law Journal received a fax copy of this letter from the Senate Commerce Committee which had the signatures of the persons listed above. TLJ also received a press release from the Office of Rep. Chris Cox which also named Rep. Bob Goodlatte (R-VA) as a signatory.