[Congressional Record Volume 143, Number 64 (Thursday, May 15, 1997)]
[Senate]
[Pages S4611-S4613]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 SENATE RESOLUTION 86--RELATIVE TO TELEPHONE ACCESS CHARGES FOR USE OF 
                              THE INTERNET

  Mr. ABRAHAM (for himself and Mr. Leahy) submitted the following 
resolution; which was referred to the Committee on Commerce, Science, 
and Transportation:

                               S. Res. 86

       Whereas with the enactment of the Telecommunications Act of 
     1996 (Public Law 104-104), Congress sought to stimulate 
     through the competitive marketplace the rapid deployment of 
     new communications technologies at the lowest possible cost 
     to the customers;
       Whereas the Internet is the most noteworthy example of the 
     development of an advanced communications network, having 
     expanded from the four linked sites of its precursor network 
     in 1969 to become the first ubiquitous, interactive advanced 
     communications network today;
       Whereas the Internet is a digital electronic environment 
     where different forms of multimedia flow freely and 
     efficiently;
       Whereas over 15,000,000 households are currently connected 
     to the Internet and 43,000,000 households are expected to be 
     so connected by the year 2000;
       Whereas the Internet is an invaluable tool for personal 
     communications, education, telemedicine, and better 
     integrating the elderly, the disabled, and individuals living 
     in remote locations into the life of the Nation;

[[Page S4612]]

       Whereas the development of an electronic marketplace over 
     the Internet will be a competitive stimulus to the national 
     economy, with the amount of electronic commerce expected to 
     grow to $80,000,000,000 by the year 2000;
       Whereas commerce over the Internet will empower consumers 
     by offering a myriad of options for comparison shopping 
     information gathering, and purchasing opportunities;
       Whereas commerce over the Internet has also proven an 
     important start-up mechanism for small businesses by 
     providing minimal barriers to entry and by acting as a 
     ubiquitous, cost-effective distribution system;
       Whereas innovative companies in all economic sectors have 
     tied their economic future to the continued growth and 
     success of the Internet;
       Whereas the Internet is the medium of choice for electronic 
     commerce, electronic mail, multimedia, and corporate 
     Intranets;
       Whereas the Internet has succeeded as a result of its 
     responsiveness to technical challenges unencumbered by any 
     preconceptions imposed by regulation relating to its 
     development; and
       Whereas the imposition of telephone access charges by 
     regulation would inhibit the development of the Internet and 
     discourage the use of the Internet at a time when the 
     national policy should be to promote the development of 
     advance telecommunications networks such as the Internet: 
     Now, therefore, be it
       Resolved, That it is the sense of the Senate that the 
     telecommunications policy of the United States should support 
     the continued unfettered growth of the Internet by--
       (1) encouraging greater dialogue between the Local Exchange 
     Carriers and the Internet community in the effort to reach a 
     mutually beneficial resolution to the issues relating to 
     connecting to the internet; and
       (2) encouraging the removal of impediments to the 
     introduction of competition, and in particular, in the 
     provision of new technologies and services to connecting to 
     the internet and other advanced networks.

  Mr. ABRAHAM. Mr. President, I rise today to submit a resolution 
regarding access charges on the Internet. This resolution conveys the 
sense of the U.S. Senate that telephone access charges for Internet use 
will impede the Internet's continued growth and development and, 
therefore, should be discouraged.
  The rise of the Internet has been truly phenomenal. From the four 
linked sites of its 1969 precursor, the Internet has developed into an 
advanced telecommunications network that was unimagined only a decade 
ago. Today, over 15,000,000 households are currently connected to the 
Internet, and some industry analysts expect this number to rise to 
43,000,000 by the year 2000. These new users will continue to find an 
increasing amount of options and assistance available to them online. 
Whether the Internet is used to meet new friends, do online banking, 
compare medical or scientific research or do shopping, as services 
increase, the Internet will become an indispensable part of everyday 
life.
  Personal uses aside, many believe the Internet's greatest growth 
potential lies in the evolution of online commerce. The Internet is 
clearly the technology of the future and innovative companies are 
staking their future on the public's increased access to this network. 
According to the Wall Street Journal, online commerce was estimated at 
$518 million in 1996 and is expected to reach $1.14 billion in 1997.
  Not surprisingly though, the surge of Internet use has led to some 
unexpected difficulties. Industry studies indicate that Internet usage 
is growing at up to 42 percent per year, and some Local Exchange 
Carrier's [LEC] contend this increasing traffic could exceed the 
current phone system's capacity. While studies differ on the scope or 
extent of this problem, it seems clear that, ultimately, a significant 
investment in the telephone infrastructure will be required if gridlock 
is to be avoided. To fund this infrastructure, some of the LEC's 
support an Internet user fee to help fund the installation of new 
circuits designed to head-off any congestion problems.
  Rather than install more, inefficient analog switches, however, it is 
my hope that the Local Exchange Carriers will work to upgrade their 
telephone systems to digital transmissions just as satellite 
transmitters, wireless, and long-distance companies have undertaken the 
transition to digital. Last year, a coalition of high-technology 
companies in support of this concept organized to oppose traditional 
telephone fees for Internet use. Consumers, they argue, will be 
reluctant to use the Internet if new fees are imposed without such 
product improvement. I agree. The Nation's telephone system needs 
improvement in order to meet the challenges of 21st century technology 
and consumer expectations. For this to happen, the telephone 
infrastructure will require technological improvements, not just 
additional capacity.
  In my opinion, if we are to maximize the potential for this new 
technology, it is important that we recognize the exciting 
technological changes ongoing in communications. In particular, when 
addressing problems caused by the surge in Internet use, I believe 
America should focus on ways to optimize this medium's efficiency. 
Charging additional regulatory fees for access to the Internet, I fear, 
could have the unintended consequence of limiting the public's ability 
and desire to connect. If, as a result of some new form of access fee, 
less people use the Internet, then we will have passed up a great 
opportunity to advance the public's investment and involvement in one 
of the truly revolutionary technological advancements of this century. 
I hope that the advanced-technology companies which depend on the 
Internet and the local carriers which help provide service can come to 
a mutually beneficial agreement on Internet services absent the 
imposition of additional fees for Internet use.
  The likelihood of such an agreement was probably heightened by last 
weeks announcement by the Federal Communications Commission that it 
will not permit the Local Exchange Carriers to charge user fees for 
connecting to the internet. This resolution demonstrates congressional 
support for the FCC position. This sense of the Senate resolution 
outlines the dramatic growth of the Internet, spells out the benefits 
available online and recognizes the potential for digital commerce. 
More importantly, the resolution demonstrates that it is time for the 
Internet providers and the local phone companies to work together to 
resolve this conundrum before it becomes a real problem.
  With so many different issues surrounding the Internet today, it is 
easy to lose track of the industries' latest developments. This 
legislation, however, addresses what I believe to be the most 
fundamental Internet issue: affordability. All of the amazing tools 
provided by the Internet and all its conveniences will be meaningless 
if, in our zeal to control the Internet, we price its access beyond the 
reach of average Americans. This nonbinding resolution expresses the 
desire of the Senate to avoid such a mistake, and I urge my colleagues 
to support it.
  Mr. LEAHY. Mr. President, I am pleased to cosponsor this resolution 
with Senator Abraham. I feel strongly that the Senate needs to speak 
out on the importance that our future telecommunications policy will 
play in the growth of commerce on the Internet.
  The Internet was born in 1974, but I missed the birth announcement. 
Like many who later would become avid Internet users, I let several 
years slip by before realizing the incredible potential of this new 
tool--that computers could virtually connect you to anyone, anywhere, 
anytime.
  The Internet is changing more than the speed of communications; it is 
changing the very dynamics of communication. Though still in its 
infancy, it already is beginning to change the way we do business. Over 
the past 2 years, sales generated through the Web grew more than 5,000 
percent. And Net merchants are expected to sell billions of dollars 
worth of goods by the end of the century. This is a tremendous 
potential market for businesses.
  While Internet growth has been explosive, concrete standards for 
Internet commerce have not been set. Most online users still do not buy 
and sell goods over the Internet because they are afraid online hackers 
will steal their financial information. These are legitimate concerns 
that still have to be addressed by emerging security technologies.
  That is why I have worked with industry leaders during the past two 
years to find ways to promote more secure encryption technology. Better 
encryption means safer online commerce. We should be working with the 
private sector to help set standards that provide a secure Internet 
where people are safe paying their bills from their home computers. We 
should also encourage greater dialogue between Local Exchange Carriers 
and the Internet community. We do not want

[[Page S4613]]

to choke Internet growth with excessive phone charges for Internet 
access.
  I use the Internet on a daily basis for anything from finding the 
latest Batman movie clips to online chats with Vermont schools. My work 
on Internet issues has earned me the nickname of ``the Cyber Senator.'' 
I have had many nicknames in my life. Some have been better than others 
but I am proud of this nickname because as the Cyber Senator, I can 
help Vermonters. That is why the Internet is so important to me.
  In two key ways, the opportunities opened by the Internet are a 
perfect match for Vermont.
  First, cyber-selling compliments our community-centered, 
environmentally-conscious style. In the past 25 years, Vermonters have 
shown uncommon stewardship in preserving our State's quality of life. 
Other States that only now are discovering these values will have 
trouble recapturing what already has eroded. Since the Internet allows 
anyone to work anywhere in the world, why not in Vermont where you can 
enjoy a unique lifestyle?
  Second, throughout this century, we Vermonters have been held back 
because we are not geographically near any major markets to sell our 
goods. Now, through the Internet, we can sell our goods in the blink of 
an eye to anyone in the world.
  Some pioneering Vermont businesses are already venturing into 
cyberspace. My home page on the World Wide Web is linked to Web sites 
of more than 100 Vermont businesses, ranging from the Quill Bookstore 
in Manchester Center to Jay Peak Ski Resort. For instance, The Flying 
Noodle in Waterbury Center now sells about 30 percent of its gourmet 
pasta and sauces over the Internet and has regular customers in Japan, 
Guam, Germany, France, and South Korea.
  We all have visions of what we want for Vermont as we enter the 21st 
century. My vision is that the Internet will unlock the potential for 
any Vermonter--and especially, our children--to stay in our beautiful 
state to earn a living. The Internet is a place where Vermonters can 
exchange ideas with people across the world with the stroke of a key or 
the click of a mouse.
  Mr. President, I commend my colleague from Michigan for submitting 
this resolution. It is strongly supported by the American Electronics 
Association, Business Software Alliance, and many other groups devoted 
to the growth of Internet commerce. I urge my colleagues to support our 
resolution.

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