Access charges suck.

Once upon a time, there was a noble goal. That goal was universal service. In exchange for a monopoly, and a guaranteed return on their investment, Bell and the independents were required to provide service to all comers. This was, over the years, assured through a pool of money known as the "universal service fund." A hefty portion of each long distance call's revenue was placed in this fund, and the money was withdrawn to pay for service to expensive areas--such as remote parts of Alaska, Wyoming, and farm communities.

Then came deregulation. Sprint, MCI, and other long distance carriers appeared. Bell was split into a number of "Baby Bells" as well as the long distance giant AT&T. A new $3.50 "FCC access charge" was added to local phone bills, and a system of "access charges" were devised whereas local exchange carriers (LECs) were paid a portion of long distance charges on both the originating and terminating end. The $3.50 monthly fee was designed to ensure universal service, whereas the access charges were designed to ensure a continued revenue stream for the "Baby Bells."

This served Local Exchange Carriers well for a number of years. So well that they managed to increase service penetration, and developed a variety of new services which were "untariffed," meaning that the Bells could create "feature packages" and charge hefty fees for them. Explosive use of modems, fax machines, and other devices in the home led to another revenue stream: second phone lines, many of which were also equipped with special features.

Yet the access charges continued. The Bells saw no reason to get rid of them. They continued to make long distance expensive, which meant that they would not have to upgrade their tandem facilities. They also provided a substantial amount of income. But the FCC created an exception. Packet switched data services, they reasoned, could not be subject to a per-minute "access charge," since such services already used tariffed facilities. Besides, transmission rates were unreliable, so metering by the minute would not be sensible.

The Bells, especially US West, fought this tooth and nail. As the BBS scene came into play, Local Exchange Carriers insisted that more profitable business lines, rather than residence lines, be used--even if the BBS was not for profit! Many Bells petitioned the FCC to create a new "modem tax", though their efforts failed. Eventually, the "enhanced data services" provision of FCC rules led to the Internet.

Telephone networks are made up of bandwidth. But like a road, if someone isn't using it at any given time, it's wasted. And North America is awash in bandwidth. Just Worldcom's bandwidth alone is more than enough to carry all of the long distance traffic that takes place even on the busiest day of the year. And many companies own bandwidth other than Worldcom, such as Qwest, Sprint, AT&T, and others.

Internet bandwidth is really no different than voice bandwidth. It is just passed from place to place more efficiently. Rather than creating a 64kbps channel which may or may not be fully utilized, as during a voice conversation, packet switched technology only uses the amount of bandwidth necessary to carry whatever data is being sent at the time. It is simply tariffed differently, which is why you can buy unlimited internet access to anywhere in the world for $19.95 per month, while long distance costs a minimum of $6.00 per hour.

And this is why I am a phreak. The circuit switched voice network is a fraud, and a cash cow for telephone companies. Understanding how it works is a great way to expose the hypocrisy of the Bells--and to fight for lower rates for consumers. As for finding technical flaws in the network, it is amusing. Billing-related flaws would not matter if there were a flat rate for long distance per month, just like with Internet service. The amount of money wasted on billing, all due to an anachronistic and unnecessary system of "access charges," probably runs into the billions.

Being a phreak doesn't necessarily mean breaking the law. It means being interested in the telephone system. And everyone should pay enough attention to understand what's behind their phone. The reason it's costing you so much might surprise you.

** 9 November 2004 - This day will go down in history! The FCC ruled that VoIP services are exempt from state regulation. The era of flat-rate, truly unlimited, long distance service has finally arrived.