Path: utzoo!attcan!uunet!cs.utexas.edu!samsung!xylogics!bu.edu!telecom-request From: ehopper@ehpcb.wlk.com (Ed Hopper) Newsgroups: comp.dcom.telecom Subject: Thoughts on BBSs and Business Rates Message-ID: <72205@bu.edu.bu.edu> Date: 13 Jan 91 20:39:27 GMT Sender: news@bu.edu.bu.edu Organization: Ed Hopper's BBS - Houston, Texas 713-997-7575 Lines: 191 Approved: Telecom@eecs.nwu.edu X-Submissions-To: telecom@eecs.nwu.edu X-Administrivia-To: telecom-request@eecs.nwu.edu X-Telecom-Digest: Volume 11, Issue 33, Message 3 of 6 There has been a lot of discussion here in Telecom regarding BBS's and the application of business rates. With the decision in Texas, I'd like to pass on my views and speak to some of the issues raised recently. Before I begin, I believe it is important to make some distinctions. 1. Obviously, I do not believe, nor does anyone I know believe, that residential rates should apply to a BBS located in a business location or run by a business or corporation. Telephone company rules on the provision of residence lines already speak to providing service in such cases. I do not disagree with them. Unless otherwise specified, all references to BBSs in this document refer to home based BBSs. 2. One must recognize that there are several categories of BBS systems. To briefly recount them for the purposes of this discussion: A. Free BBSs. These systems do not request donations of their users. Some even refuse to accept unsolicited donations. B. Donation BBSs. These systems request donations from their users. Such donations might be project-specific (i.e., raising money for a new hard drive) or may be solicited to defray ongoing operating costs. No quid pro quo is offered for donations on these systems. C. Fee BBSs. These are systems who have published schedules of fees. (i.e., $25 for a years access, etc). Some BBS's in this category do play word games, calling their fees "donations". (For the record, Ed Hopper's BBS *does* have a schedule of fees for access to shareware downloads. All message functions are free to all callers.) Also, for the purposes of this discussion, only CASH BBS fees and donations are considered. There has been some attempt to consider uploads, messages, cans of Spam, etc. to be "consideration". In the Texas case, only monetary compensation is included. Now, with distinctions made, to deal with some of the issues: Issue #1. - Who SHOULD pay business rates? I feel that, in the present circumstances, Fee BBSs should pay business rates. I do not feel business rates should apply to Free or Donation BBSs. The Texas settlement only protects Free BBSs. Donation BBSs must pay business rates. Issue #2. - Why a three line limit? A peculiarity of the Texas settlement is the "three line provision". This holds that a BBS that, under all other criteria, qualifies for residential rates must pay business rates if that BBS has four or more lines. This is an area where COSUARD on the one hand and SWBT and the PUC staff on the other, agreed to disagree. COSUARD accepted the settlement based upon our assessment of the politics of the situation, not because of our view that this is perfect. Our disagreement is based upon the fact that this restriction is an unprecedented restriction on consumers. It is certainly conceivable for one to envision situations where residential customers would order four or more telephone lines for non-computer uses. Individual lines for three children, for example. Needless to say, if SWBT told a residential customer that he could not have four residential lines for non-bbs purposes, the Texas PUC would quickly act to remedy the situation. I feel that this provision is discriminatory. Again, in order to forge a settlement, COSUARD agreed not to oppose this in the settlement of the case. The PUC and SWBT understand that COSUARD and/or others may move to oppose this provision later in other forums. In fact, one Houston sysop, Donald Saxman, testified against this provision during hearings on the case. Issue #3. - Three or more lines consume additional physical plant resources (i.e., cables). Sysops should pay for that. I do not disagree here. HOWEVER, sysops should only pay based upon tariff provisions that apply equally to ALL customers. Most telcos, including Southwestern Bell, have provisions to bill construction costs to customers for situations where unusual expenses are incurred. In no place, however, is the application of business rates vs residence rates considered to be a remedy for such a problem. Further, the assessment of such construction costs should not vary depending on the intended use of such a line (i.e., BBS or voice). Issue #4. - BBS lines are more busy than others and should pay accordingly. Here I must speak to the situation in Texas only. In Texas, flat rate service is nearly universal. The normal residential and business customer in Texas has flat rate service. Measured service is an option, but flat rate service is the basis for policy decisions. The tariffs do not say "Flat rate as long as you don't use TOO much", they say FLAT RATE period. Public policy is that telephone customers in Texas are entitled to service without charge for usage. (Measured service is available as an *OPTION*) If Southwestern Bell wishes to apply charges based upon usage, it should be done via rate making procedures before the PUC. The PUC should decide if a break with previous public policy in Texas is justified. Such rates should be equitable so that the proverbial talkative teenager also bears such a burden. The application of business rates should not be used as a back door alternative to the imposition of a mandatory measured service tariff in Texas. Issue #5. - What about other non-profit organizations (Rape Crisis centers, the United Way, etc.)? They pay business rates, why shouldn't "non-profit" BBSs? There are several important differences here. First, virtually all such organizations operate from business premises, most sysops do not contest the assessment of business rates on otherwise residential BBS systems located in a business location. Additionally, corporations cannot normally subscribe to residential rates. Most non-profit organizations are non-profit corporations. Second, a non-profit organization is typically far more sophisticated than a BBS. They do have sources of income, paid employees, etc. A BBS is an individual undertaking paid for out of the wallet of an individual. Additionally, with the exception of certain communications oriented undertakings like suicide-prevention hotlines, communications costs are an incidental portion of the total operating budget of a non-profit organization. With a BBS, such charges can make the difference between life and death. Third, while it is generally true that non-profit organizations pay business rates, this is not always the case. For example: -- Alcoholics Anonymous encourages it's members to call another member if they are tempted to drink. Should AA members pay business rates? -- Many ministers and other unpaid persons engage in over the telephone counseling from home (for that matter, so do many PAID counselors). -- Some hotlines subscribe to one business number which is then call-forwarded to various volunteers homes on a nightly rotation. Should those volunteers pay business rates? Issue #6 - "What makes sysops so special?" I have heard this in several venues (including negotiations with SWBT). Here's my answer. A BBS is something unique. It is one of the few ways for an individual to inexpensively give voice to his views. If I want to post my views on the mideast, AT&T/NCR or the Houston Astros, I have a venue to do so. I also provide a method for other individuals to do so as well. If they don't like my little popstand, they can set up their own. No it's not CBS, the {New York Times} or even the Podunk Weekly Bugle, but it's mine and no one has a say in what I "publish" there but me (and the libel/slander laws). I think this IS unique. I think public policy should be to nurture such free expression. That nurturing should take the form of recognition that BBSs fall in a grey area and should, for the aforementioned public policy reasons, be given the benefit of the doubt in the assessment of residential rates. Issue #7 - Why should a BBS be allowed to accept donations? The BBS hobby is unique in my view. A BBS serves no purpose if there are no callers. There is little reason for callers to join in the hobby if there are no BBSs (yes, they can call Compuserve. That isn't a hobby, that's a business transaction). This is a shared hobby. It takes two to tango. I do not believe that it is improper for a caller to assist in the expenses associated with the provision of the BBS. In fact, I believe it is almost a moral imperative for BBS callers to support some BBS somewhere. It has been my experience and also the experience of many other sysops that such fund raising only brings in a few dollars every year. Normally, the total funds raised do not equal the difference between a business and a residential line in Texas (Approx $250 per year). COSUARD voted to accept a settlement that we feel is imperfect. It is the best deal we feel we could get. It gave the BBS operator some legitimacy and some basic security. The alternative presented to us by the PUC staff and Southwestern Bell was to see ALL BBS systems assessed business rates. This would be a disaster in our view. In order to protect as many as possible, the settlement was accepted. Ed Hopper BBS: 713-997-7575 ehopper@attmail.com ehopper@ehpcb.wlk.com [Moderator's Note: Ed, my sincere thanks for rushing this report into the Digest as soon as possible. I'm moving it to the top of the queue for the same reason you sent it in: It is an important issue. PAT]