Return-Path: Received: by massis.lcs.mit.edu (8.7.4/NSCS-1.0S) id JAA16442; Thu, 20 Feb 1997 09:15:08 -0500 (EST) Date: Thu, 20 Feb 1997 09:15:08 -0500 (EST) From: ptownson@massis.lcs.mit.edu (TELECOM Digest Editor) Message-Id: <199702201415.JAA16442@massis.lcs.mit.edu> To: ptownson@massis.lcs.mit.edu Subject: TELECOM Digest V17 #46 TELECOM Digest Thu, 20 Feb 97 09:15:00 EST Volume 17 : Issue 46 Inside This Issue: Editor: Patrick A. Townson Virginia Moves to End Beeper Ban (Tad Cook) Idaho Phone Competition (Tad Cook) Scam Site Shut Down (jamie@comet.net) FCC Designates 311 for Nonemergency Calls (Tad Cook) These Long Distance Rates Are a Steal! (Van Hefner) TELECOM Digest is an electronic journal devoted mostly but not exclusively to telecommunications topics. It is circulated anywhere there is email, in addition to various telecom forums on a variety of public service systems and networks including Compuserve and America On Line. It is also gatewayed to Usenet where it appears as the moderated newsgroup 'comp.dcom.telecom'. Subscriptions are available to qualified organizations and individual readers. Write and tell us how you qualify: * ptownson@massis.lcs.mit.edu * The Digest is edited, published and compilation-copyrighted by Patrick Townson of Skokie, Illinois USA. You can reach us by postal mail, fax or phone at: Post Office Box 4621 Skokie, IL USA 60076 Phone: 847-329-0571 Fax: 847-329-0572 ** Article submission address: ptownson@massis.lcs.mit.edu Our archives are located at hyperarchive.lcs.mit.edu. 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Knight-Ridder/Tribune Business News RICHMOND, Va.--Feb. 17--For weeks after he got in trouble for bringing a pager to school, Ryan Hudson's kindergarten classmates called him "beeper boy." The 5-year-old, who delighted in the device as a toy, even joked that other kids could do the same thing if they ever wanted to stay home for a day, his mom said. The October incident for which he was suspended is ancient history for Ryan now, buried by craftmaking sessions and story hours at Kiln Creek Elementary School. But more than three months after Ryan's beeper suspension was the talk of national television shows, it remains a point of bitterness for mother Kim Hudson, who believes her son was the victim of school officials' mindless adherence to a rule that often failed the test of common sense. And similar school rules around the state have drawn complaints from parents who feel they have legitimate reasons for wanting their children to have beepers and cellular phones during school hours. As a result, the House of Delegates has voted to repeal the state beeper ban on school grounds, and to give local school boards the power to decide when they could be allowed and how students should be punished if they're not. "At one time, they were sort of used as a tag to identify drug dealers," said Hampton High School Principal Mike Canty. "Drug dealers are much more sophisticated now." As for pagers: "They're on everyone now." Four lawmakers, responding to parents, proposed changes to the state beeper law during this Assembly session. All of the measures have been rolled into one bill repealing the prohibition and giving total discretion to local school officials. The House of Delegates approved the measure last week. The Senate is expected to vote on the measure Monday. "Local school divisions can regulate it better," said Linda T. "Toddy" Puller, D-Fairfax County, one of the bill's co-sponsors. "They could use it to expel a child if necessary. But you certainly don't want to include parents going to a football game." Parents across the region have hailed the change, arguing the state prohibition on beepers at schools makes no distinction between a mischievous 5-year-old and a teen-ager with a bag of crack cocaine to sell. "That would be great," said Hudson, who has a meeting with School Board officials Wednesday in her continuing efforts to appeal her son's suspension. She said she favored allowing local school boards to write their own beeper guidelines because it would make local officials more accountable. "Then they could not just point to their rule book and say, `That's the rule,"' Hudson said. While Ryan's principal initially punished him with a long-term suspension - which could range anywhere from 11 to 180 days -- officials allowed the boy to return after one day when the case was publicized. "They change the rules to make themselves look better, but not to make parents happy," Hudson said. Many school officials still say beepers should be barred from classrooms. "Telephones and beepers have no place in the classroom," said Newport News School Board Chairwoman Betty Ann Davis. "The students are there to learn, and distractions like that would be detrimental." To parents who argue they want the ability to communicate with their children for medical or other reasons, Davis and other officials counter that standard phones in the school offices are just fine. Right now, state law makes it a misdemeanor for students to bring beepers or cellular phones onto school property. That offense is punishable by up to 12 months in jail and a fine of up to $2,500 for students who are 18 or older. Younger students could be put on probation or sent to juvenile detention for violating the law. The law makes exceptions for students with medical conditions and students who are involved with organizations that require their use, such as volunteer fire companies. "Parents in Virginia Beach have been asking for us to ease the law, after it was getting some kids trapped" and caught unaware that their beepers were illegal, said Del. Robert Tata, R-Virginia Beach, a sponsor of one of the measures. "They were unaware the law was so stringent. We have to change, to adapt. One locality may not have a problem with them, and another locality may want to take a strict line against having them." But area school officials say they routinely use such discretion in handling students caught with beepers, despite the state's blanket prohibition. Canty said school officials may confiscate three or more beepers a week at Hampton High School. But in most cases, the devices are handed over to the parents, he said. And despite the state law, beeper cases are rarely treated as something criminal. "We're supposed to give them to the police, but they've told us, `No, don't do that"' Canty said. Although Ryan was sent home, at least one young Newport News student caught with a beeper was not, Davis said. "We have used discretion in Newport News," Davis said. "It's a very complex issue," she said. "I would prefer that the state kept the law there. They had good reasons for it. But they have had a lot of different pressures from other people, and the state threw up their hands." Regardless of whether the state law is changed, Newport News officials have begun their annual review of school policies and had intended to consider revising the beeper guidelines -- something that Hudson urged officials to do last fall. The School Board would consider any revisions in April. Last month, Virginia Beach school officials scrapped their stiff rule requiring principals to recommend a one-year suspension for any student who brings a beeper to school, noting that of the 125 beeper cases in schools last year, eight involved weapons and four involved drugs. Parents and school officials say such statistics demonstrate that a blanket prohibition can cause some crises of common sense -- especially when many students bring them to school by mistake or for what they consider legitimate reasons, such as a young mother worried about an infant kept in day care. While Newport News school officials insisted on subjecting Ryan to the state law, his mother said prosecutors have told her that he cannot be prosecuted for an act he's too young to understand -- school rulebook or no. "He's just a 5-year-old," Hudson said. ------------------------------ Subject: Idaho Phone Competition Date: Thu, 20 Feb 1997 00:31:33 PST From: tad@ssc.com (Tad Cook) Idaho Phone Service Will Soon Be Open to Competition By Stephen Stuebner, Post Register, Idaho Falls, Idaho Knight-Ridder/Tribune Business News Feb. 17--The whole idea behind opening up the telecommunications industry to free competition was to save money for you, the customer. So why is US West applying for a $28 million rate increase from its residential and small business customers in southern Idaho -- right on the eve of full deregulation? Is it right? Is it fair? Consumer groups and independent analysts say no. US West has been riding on its stature as a monopoly. It's scrambling to get every dollar it can get now before the competition kicks in,'' said Joel Thierstein, a professor of communications law at Purdue University in Calumet, Ind. Tom Power, chairman of the economics department at the University of Montana, is representing Idaho consumers in the US West rate case before the state Public Utilities Commission. He contends US West is trying to pick the pockets'' of consumers because they're easy prey. This is the most captive group of customers they have, and they're saying, `We have to nail them,''' Power said. US West officials defend the increase proposal, saying residential customers have been subsidized by business customers and artificially high in-state long distance rates for too long. Once competition kicks in, subsidies have to end, they say. Further, US West argues that residential customers should pay for a portion of the company's 10-year, $500 million investment in state-of-the-art telecommunications equipment in southern Idaho. The Public Utilities Commission referees these rate cases. The commission will begin holding hearings on US West's proposed rate increase March 10. Its staff studied the US West proposal and countered with a recommendation that the 14-state corporation should cut Idaho residential and small business rates by $32 million. Roll prices back to 1958 when we all had rotary phones? Come on, we were insulted by that,'' said Clint Berry, a spokesman for US West in Boise. The IPUC staff remains stuck in a historic regulatory mindset where legitimate business expenses can be ignored or forever pushed off to the next generation,'' adds Barbara Wilson, Idaho vice president of US West Communications. Welcome to the complex, high-stakes world of telephone deregulation. Almost exactly a year after the Telecommunications Act was passed by Congress on Feb. 8, 1996, big telephone companies like US West, and small rural carriers like Century Telephone of Idaho in Salmon, are gearing up for a flood of new competitors. The lynch-pin issue of who pays for infrastructure investment -- fiber-optic cables and switching systems -- is not only germane to US West, but also to Idaho's rural companies. They stand to lose their largest business customers in small towns -- companies or public schools -- which subsidize the cost of service for rural residents flung far and wide at the end of expensive phone cables. Competitors are likely to work hard for big clients in town, while making no effort to win the business of ranchers and farmers out in the country. It's a real problem,'' said Conley Ward, an attorney who represents a coalition of rural carriers and co-ops. No companies want to be left in the position of serving all of their customers at below-cost rates. You can't get blood out of a stone.''Meanwhile, if the Idaho Legislature passes a new telephone deregulation law, as it is expected to do in the coming weeks, a series of dizzying changes will occur in the industry. Changes will be phased-in over a period of years. New competitors will enter the market, offering a series of services from a single source. Customers may be able to one-stop shop for phone service, voice messaging, Internet access and long distance service. US West will, for the first time, be able to enter the out-of-state long distance market, trying to compete with the likes of AT&T, MCI, Sprint and Access. US West also plans to enter the Internet market. Companies that provide the best service and the most competitive rates are likely to win the most customers. US West cannot compete in that new market without removing the subsidy it gives residential and small business customers, company spokesman Berry said. It costs US West an average of $1,800 to install a new phone line, he said, while the utility has been charging an average of $12 for the service. US West is the largest provider of local telecommunications services in southern Idaho, with 350,000 residential customers and 130,000 business customers. US West serves the Idaho Falls area and the Idaho National Engineering and Environmental Laboratory, while rural carriers and co-ops serve smaller service territories in mountain valleys. US West's rate increase comes on the heels of a $3-a-month hike that paid for extended service, a service that wipes out long-distance charges for customers from Rexburg to Pocatello. It also comes at a time when US West's profit margin ranked 46th in the latest Fortune 500, with $1.371 billion in profits. US West is employing the same strategy of trying to boost rates for small customers in the rest of its territory before competition kicks in. The state of Washington rejected US West's proposal to hike rates $300 million, and ordered a $62 million credit. That case has been appealed to the Washington Supreme Court. US West's rate case boils down to basic accounting, depreciation, quality of service and who pays for what. University of Montana's Professor Power, the advocate for customers, argues that most of US West's infrastructure investments benefit businesses and future economic development, not residential customers. What's at issue is not the rate increase as much as who pays the bill,'' he said. Under a law pushed by US West in the Idaho Legislature in 1988, US West's costs for regulated services (residential customers and business customers with five lines or less), are placed in one column, and the costs for unregulated services are placed in another column, PUC officials said. In analyzing the numbers, the PUC staff found that US West was not only trying to raise rates for infrastructure investments, but also to cover a percentage of corporate expenses --things like legal fees and salaries. The PUC argues that those expenses are not appropriate to use in defending the rate increase proposal. US West officials disagree. This is a case that will be decided by attorneys and accountants,'' Berry said. Competitors point out that US West has had a proprietary interest in making infrastructure investments prior to deregulation. As owners of the infrastructure in southern Idaho, US West will be able to charge competitors a wholesale access fee for using its fiber-optic and copper phone lines for many years into the future. That access fee is being hashed out by AT&T and US West before the Federal Communications Commission. Their perspective is shaped by 100 years of dominion. It's a perspective of a monopoly,'' said Jeffrey Mayhook, vice president of legal and regulatory affairs for GST Telecomm Inc., a new competitor in Idaho. The `Baby Bells' like US West were given a monopoly service, a guaranteed rate of return and a guaranteed profit. And the ratepayer has paid for it all.''GST won't have the luxury of charging customers for its own infrastructure investments, which, admittedly, will be far less expensive than US West's, Mayhook said. GST will have to offer rates at a competitive level -- while paying a percentage to US West -- and make profits through efficient operations and quality service, he said. The responsibility to our investors will be to make our customers happy.''Given the recent level of dissatisfaction with US West's service, one might wonder why US West would sting small customers with a rate increase not long before competitors will come knocking with promises of better service and lower rates. US West's service has been so poor in parts of Idaho in recent months that it paid a $5,000 fine to the PUC for four months in a row (October 1996 through January 1997) for failing to restore service in 24 hours in parts of its service territory. In high-growth areas like Meridian and west Ada County, it can take weeks to get a new phone line. INEEL officials say US West has been slow to install the latest technology in eastern Idaho to benefit businesses and future economic development. Customer complaints filed with the Idaho PUC have spiked in the last three years, with twice as many complaints (1,200 in 1996), as any other utility in Idaho. The problem has persisted over much of US West's territory. An August 1995 headline in the Portland Oregonian blared US West, US Worst?'' A Forbes magazine article compared the corporation's service to that of the Third World. Typical complaints include lengthy waits for service, unhelpful employees and difficulty in reaching real people'' in customer service. Berry said US West is working on improving service. He notes that if delays in telephone service persist, US West offers to provide a temporary cellular phone. I'll be the first to admit that we've had problems,'' he said. Idaho's Public Utility Commission will be weighing all of these factors when it presides over hours of testimony next month. For US West, the battle is over corporate profits and positioning itself for a new age of competition. For consumers, it's a matter of keeping costs down. Purdue's Thierstein points out that if US West does not fare well in the shakeup caused by deregulation, it could sell out or merge with the likes of AT&T. That's a potential danger that could lead to the formation of a new monopoly,'' Thierstein said. That's why consumer groups need to watch all of this very closely.'' The proposal would increase rates for monthly telephone service for residential customers and small businesses with five lines or less. US West's proposed rate increase has been adjusted from $38 million to $28 million. The increase means $7.37 more per line per month, from $15.63 to $23. The increase would be phased in over three years. It is the first proposed rate increase for residential and small business customers in 10 years. Senior citizens who meet low-income guidelines will have options to avoid paying the increase. Another option involves a $12 monthly rate with three hours of free local calling, after which a per-call surcharge kicks in. Contacting the PUC: By phone: (208) 334-0300By e-mail: ipuc(at)puc.state.id.usPUC home page: www.puc.state.id.usBy mail: Public Utilities Commission, 472 W. Washington, Boise, ID 83720Commissioners: Ralph Nelson, president; Marsha Smith, commissioner; Dennis Hansen, commissioner. ------------------------------ From: jamie@comet.net (jamie) Subject: Scam Site Shut dDwn Date: Wed, 19 Feb 1997 13:18:15 -0500 Found this on htpp://www.news.com FTC shuts down alleged Net scam By Courtney Macavinta and Nick Wingfield February 19, 1997, 8:30 a.m. PT The Federal Trade Commission today won a court order to shut down "free adult entertainment" Internet sites that it alleges illegally billedNet surfers hundreds of thousands of dollars. As previously reported by CNET, the Royal Canadian Mounted Police was investigating one of the sites, "sexygirls.com," which employed a special program to disconnect unknowing Canadian users from their Internet service providers and re-route their calls through Moldova, a republic in the former Soviet Union. Earlier this month, a warning was issued by the National Fraud Information Center to American long distance carriers about the alleged scam. Today the FTC is taking action on behalf of thousands of American consumers, who like Canadians, downloaded a program called "david.exe" from the sites. Through a tangled series of international connections, the program quietly boomeranged calls from users to Moldova then to a Web site in Dallas, Texas. Unaware surfers racked up charges at more than $2 a minute, according to the FTC. "Even more insidious, this is essentially a "stealth" scam -- consumers are kept in the dark because the software program also turns off their modem speakers so they cannot hear either the disconnect, or the dialing of the international phone number," Jodie Bernstein, director of the FTC Bureau of Consumer Protection, said today. She added: The software program used by the defendents risks consumers sense of security about using the Internet." Defendants named in the FTC case are Audiotex Connection, Rockville Center, New York; Promo Line of Dix Hills, New York; Anna Grella, president of Audiotex; William Gannon, president of Promo Line; and David Zeng, who was the employee of both firms. They could not immediately be reached for comment. A federal district court judge has issued a temporary restraining order, freezing the defendants assets and ceasing any further operations of the sites. AT&T helped the FTC investigate the case. CNET reported that at least two pornographic Web sites -- "sexygirls.com" and "erotic2000.com" -- used the program to make international calls, but both were inaccessible earlier this month. Along with "sexygirls.com," the FTC is targeting "beavisbutthead.com" and "1adult.com." In the FTC's complaint, it says the defendants promised the "adult images" could be downloaded for free. On January 23, more than one of the Web sites posted a disclaimer warning about the international re-routing. Even then, the FTC says, the new disclaimer was false, stating calls would go through Canada -- not Moldova. "erotic2000.com," which is not named in the FTC case, did include a link to a disclaimer that warned users of the call to Moldova. "By downloading our image viewer software, your modem will disconnect from your ISP and will be automatically reconnect to a remote site where international long distance charges to Moldova apply," the disclaimer read. jamie "Wasting your time, and mine, since 1961" jamie@comet.net http://www.comet.net Charlottesville, Va. 804-295-2407 "When arguing with a fool, make sure s/he's not doing the same." Why do you need PGP? mail jamie@comet.net with Subject:GET PGPDOC mail jamie@comet.net with Subject:GET KEY for PGP public key ------------------------------ Subject: FCC Designates 311 for Nonemergency Calls Date: Wed, 19 Feb 1997 15:52:39 PST From: tad@ssc.com (Tad Cook) FCC designates 311 for nonemergency calls By JEANNINE AVERSA Associated Press Writer WASHINGTON (AP) -- The government is setting aside 311 as the telephone number for people to call police or other local agencies for nonemergency help. Millions of people call 911 each year, but the Justice Department says most of those calls in many communities are for situations that are not emergencies, such as noisy neighbors or lost pets. Wednesday's 311 allocation by the Federal Communications Commission responds to a request from President Clinton last July. To help combat crime, Clinton asked the agency to designate a number for community policing and other nonemergency calls. That number, he said, would take pressure off the 911 emergency calling system. Available for use nationwide, the 311 code could improve the effectiveness of 911 service by cutting down the number of calls made to it, the FCC said. In Los Angeles alone, 325,000 callers to 911 hung up two years ago because the jammed line denied them immediate help. The FCC's action does not require local governments to use 311 but ensures the number will be available if they choose to. Baltimore, where more than 60 percent of 911 calls are estimated not to be for emergencies, became last October the first city -- and according to the FCC the only one thus far -- to institute 311 service. That Maryland city can route 311 calls directly to local precincts and can treat as 911 calls emergency calls inadvertently made to the new number. The FCC chose 311 because it's not widely used. Companies, individuals or governments that currently use 311 for purposes other than nonemergency police calls can retain the number until their local government activates the new service. A uniform number for community policing and for nonemergencies nationwide will minimize confusion and provide consistency as people travel or move to new communities, the Justice Department says. In a speech at the University of Massachusetts in Boston, Clinton hailed the FCC's action Wednesday. "To all of you out there who are just citizens, I say, use both numbers and talk to your neighbors about using them in the right way. Be a part of neighborhood watch," he said. "We'll do our part. You have to do your part." ------------------------------ Date: Thu, 20 Feb 1997 04:36:53 -0800 From: Van Hefner Subject: These Long Distance Rates Are a Steal! Van Nuys Man Awaits Trial in 'Clip-On' Phone Scam Crime: Simi Valley police say defendant was illegally apping into business lines and selling long-distance calls. By SCOTT HADLY, Times Staff Writer SIMI VALLEY--Maximo Pintle Cruz has been locked up in the Ventura County Jail for a month for allegedly helping people reach out and touch someone. The problem, prosecutors allege, is that the people he was helping had no telephones, and his help came in the form of illegally tapping into Pacific Bell phone lines and selling cut-rate phone service. Cruz, who is awaiting trial on two charges of telephone fraud, was arrested in late December after a Simi Valley police officer noticed people lining up to make calls at a pay phone. The 25-year-old Van Nuys man is believed to be the first person arrested in Ventura County on suspicion of performing the so-called "clip-on" fraud, said Mark Yelchak, a fraud investigator for Pacific Bell. The scam, which has swept through California in the last year, involves breaking into telephone boxes and tapping into business phone lines and then selling long-distance service either on the spot or transferring the line to a neary phone booth and selling the service there, Yelchak said. The victim businesses often end up with huge phone bills, officials said, and the scam artists are long gone by the time the fraud is discovered. Prosecutors believe that Cruz twice broke into phone boxes -- also known as "b-boxes" -- outside of businesses in Simi Valley and then sold long-distance service to people on the street, said Deputy Dist. Atty. David Lehr. Lehr would not comment on details of the case but said that Cruz pleaded not guilty to the phone fraud charges earlier this month and is scheduled to have a preliminary hearing next week. The Simi Valley Police Department was tight-lipped about the case, only saying that detectives are still investigating. Van Hefner - Editor Discount Long Distance Digest The Internet Journal of the Long Distance Industry http://www.thedigest.com ------------------------------ End of TELECOM Digest V17 #46 *****************************