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U.S. Dist. Court, Denver, ruled it was unlawful for Internet tele...

U.S. Dist. Court, Denver, ruled it was unlawful for Internet telephony companies to use dial-around long distance services for completing calls to or from persons without Internet computers unless they paid interstate and intrastate access charges. U.S. Dist. Judge…

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Michael Mullins issued ruling Fri. in suit brought by Qwest against Englewood, Colo.-based Internet telephony provider IP Services (IPS). Court ordered IPS to pay access charges to Qwest at same rate required of other long distance companies when they connect to Qwest network, currently about 4 cents per min. Mullins said that when Internet telephony company used public switched phone network for completing calls, it was functioning as long distance carrier and therefore had obligation to pay every other carrier involved in completing call. If IPS doesn’t pay access charges, judge ruled, it would be engaging in illegal call bridging. IPS uses dial-around services of ICG Communications in Colo. and WorldCom for interstate calls. It provides service to 5,000 Colo. customers, with most calls being intrastate. Court dismissed IPS argument that it was exempt from access charges because its calls were routed via Internet backbone and therefore were enhanced service. IPS said Colo. PUC exempted enhanced services from intrastate access charges. IPS is startup with of only about $1.5 million in 2000.