FCC Delays Decision on Internet Charges

A government report issued Friday on who should subsidize telephone service for the poor and remote areas has largely spared the Internet from charges.

The Federal Communications Commission report to Congress steered a middle ground between lawmakers seeking to enhance the current subsidies and those opposed to any FCC regulation of the Internet.

FCC said services that allowed customers to make calls over the Internet using a regular telephone handset appeared to fall under the definition of telecommunications services that should contribute to universal service charges.

But the agency stopped short of a decision, saying it wanted to see more information on individual Internet telephone offerings.

“If it looks like a duck and quacks like a duck, you have to call it a duck,” said FCC Chairman William Kennard in a telephone interview.

If charges are eventually levied, it would be a blow to firms such as Qwest Communications International Inc. and IDT Corp., which want to offer Internet long-distance service at rates as low as 5 cents per minute.

AT&T; Corp. has also announced plans to offer a similar service.