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	No FCC Fees On ISPs The Federal Communications Commission has tentatively decided not impose fees on Internet service providers for use of local telephone lines. The commission issued a notice of proposed rulemaking setting out two possible plans for reducing the $23 billion a year that long-distance telephone companies pay to local service providers in access fees. "The commission raised the specific question of whether ISPs (Internet service providers) should pay access charges as we currently understand them," Kevin Werbach, counsel for new technology at the commission said. The FCC "tentatively concluded that the answer is no." Local phone companies had pressed to have the access fee applied to Internet service companies. The phone companies argued that consumers using the Internet were getting a free ride and tying up local lines with lengthy calls. Internet companies countered that such fees would smother the growth of the booming on-line industry. "We think they did exactly the right thing," said Jill Lesser, deputy director of law and public policy at America On-line, the largest on-line service in the world. "It means the FCC is thinking in the right way about this. They're thinking for the growth of the Internet." The commission did issue a "notice of inquiry" asking for comments on the issues involved, Werbach said. A notice of inquiry seeks comment but does not give the commission authority to then adopt a rule. The commission would have to first issue a notice of proposed rulemaking before applying access fees to Internet service providers, Werbach said. The Internet notice is "more forward looking" than the proposed rules for long distance access fees, Werbach said. "Once we have an idea what replaces the access charge system then we can take a look at that," he said. Based on a report from Reuters News Service

	Update on Leasehold/Tenant Improvements and Capital Investment The Small Business Job Protection Act contains a provision that will allow for unamortized depreciation of tenant improvements to be written off at the expiration of the lease, not over the 39-year depreciation term as stated in current law. This will mean substantial savings to building owners and tenants in the future. The bill was signed by President Clinton on August 20. The bill is effective for leasehold improvements disposed of after June 12, 1996. The bill increases the amount of capital investment that small businesses can expense from $17,500 under current law to $18,000 in 1997, $18,500 in 1998, $19,000 in 1999, $20,000 in 2000, $24,000 in 2001 and 2002, and $25,000 in 2003 or thereafter. The bill also contains 16 provisions relating to S Corporations. Most importantly, the bill increases the number of shareholders a Sub S can have from 35 under current law to 75. --Based on a report from the CCIM Commercial Real Estate Network FCC Delivers Decision on Access to Telecommunication Services Section 207 of the 1996 Telecommunications Act directed the FCC to develop rules that "prohibit restrictions that impair a viewer's ability to receive" transmissions using certain types of antennas. In a ruling released on August 6, the FCC promulgated a set of regulations that appears to exempt commercial property leases from being impacted by Section 207. Regarding rental property and common areas, the FCC has requested additional information and comments on the impacts of this ruling on this type of property. The ruling specifically preempts rules and restrictions dealing with homeowners associations and private covenants that do not meet certain safety or historical requirements. If interpreted broadly by the FCC, Section 207 would have preempted private lease agreements between tenants and property owners. Theoretically, tenants would have had the right to install satellite dishes on their commercial property wherever they liked. The ruling would have also opened up a Pandora's box of legal, safety, liability, and aesthetic considerations regarding the placement of satellite dishes and other reception devices. A coalition of real estate organizations has participated in discussions with FCC officials to ensure that the perspectives of property owners and managers would be represented in the FCC's decision-making process. As a result of these discussions and the legal work by the coalition's retained law firm of Miller, Canfield, Paddock and Stone, the ruling of the FCC--with the exception of office condominiums--exempts commercial property from Section 207. The FCC also issued a Further Notice of Proposed Rulemaking specifically to address placement of antennas on "common property for the benefit of one with an ownership interest or on a landlord's property for the benefit of a renter." This language refers to rental property and property that contains common areas. It is not clear whether this applies to common areas of commercial property. The coalition has worked closely with Miller Canfield to submit comments to the FCC to persuade the FCC that enough has been done on this issue. Based on a report from the CCIM Commercial Real Estate Network